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Last Updated on: 23 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 532835 | NSE: ICRA

ICRA Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 22, 2024, 11:08 pm

Market Cap 6,112 Cr.
Current Price 6,332
High / Low7,735/4,983
Stock P/E40.4
Book Value 989
Dividend Yield1.58 %
ROCE21.4 %
ROE15.6 %
Face Value 10.0
PEG Ratio4.93

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for ICRA Ltd

Competitors of ICRA Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
ICRA Ltd 6,112 Cr. 6,3327,735/4,98340.4 9891.58 %21.4 %15.6 % 10.0
CARE Ratings Ltd 4,140 Cr. 1,3861,571/89136.2 2521.30 %20.6 %14.5 % 10.0
Industry Average5,126.00 Cr3,859.0038.30620.501.44%21.00%15.05%10.00

All Competitor Stocks of ICRA Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales7782808387949399103109103105115
Expenses53585560525561636771687184
Operating Profit24242523353932363638353430
OPM %31%29%31%27%40%41%34%36%35%35%34%32%26%
Other Income111011119117131516181617
Interest0100000000003
Depreciation3322222233234
Profit before tax33313331414736464851504741
Tax %25%26%27%22%25%28%41%19%18%24%18%32%20%
Net Profit24222424313422373939413232
EPS in Rs25.0623.0024.8224.9332.0034.6222.0238.0640.2939.7641.7732.9233.31

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales207251283322341333309328321301343403431
Expenses145192197252240231194215225220222260294
Operating Profit636086701011021151139681121143137
OPM %30%24%30%22%30%31%37%34%30%27%35%35%32%
Other Income21171942273949454843415067
Interest0012100022214
Depreciation5561010986101081012
Profit before tax797298100118132157152131112152181189
Tax %32%18%30%35%35%33%35%30%26%26%25%25%
Net Profit5459696676891011069783114137144
EPS in Rs54.0159.1668.9365.4576.2489.29101.68109.2199.6684.61116.35140.13147.76
Dividend Payout %37%37%33%37%33%30%29%27%27%32%24%93%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)9.26%16.95%-4.35%15.15%17.11%13.48%4.95%-8.49%-14.43%37.35%20.18%
Change in YoY Net Profit Growth (%)0.00%7.69%-21.30%19.50%1.95%-3.62%-8.53%-13.44%-5.94%51.78%-17.17%

ICRA Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:5%
5 Years:6%
3 Years:14%
TTM:14%
Compounded Profit Growth
10 Years:10%
5 Years:7%
3 Years:23%
TTM:1%
Stock Price CAGR
10 Years:9%
5 Years:18%
3 Years:20%
1 Year:14%
Return on Equity
10 Years:15%
5 Years:14%
3 Years:15%
Last Year:16%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 11:33 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital10101010101010101010101010
Reserves329378419466539645631692748834941967945
Borrowings01610000001714131315
Other Liabilities102109144151111116128144121121138196247
Total Liabilities4415135836276607717698468969781,1011,1851,216
Fixed Assets65899192373634544646479194
CWIP1701101232110
Investments229277257185311338182104177454689813708
Other Assets146140234350312396552685669478364280415
Total Assets4415135836276607717698468969781,1011,1851,216

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +24100677163628121769799107
Cash from Investing Activity +-6-72-31-40-12-544511-32-72-7728
Cash from Financing Activity +-11-27-29-40-694-121-41-32-31-32-137
Net Cash Flow617-9-17125-812-7-10-2

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow63.0060.0070.0060.00101.00102.00115.00113.0096.0064.00107.00130.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days695561513748386558283443
Inventory Days
Days Payable
Cash Conversion Cycle695561513748386558283443
Working Capital Days-19-54-64-66-45-41-44-2-44-52-62-57
ROCE %19%23%21%24%26%25%23%20%15%19%20%21%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters51.87%51.87%51.87%51.87%51.86%51.86%51.86%51.86%51.86%51.86%51.86%51.86%
FIIs8.95%8.18%7.55%7.55%7.60%7.71%7.64%7.71%8.15%8.22%8.42%8.59%
DIIs29.49%29.06%28.84%28.70%27.47%25.23%24.73%24.30%23.98%24.21%24.05%23.60%
Public9.37%10.56%11.42%11.56%12.74%14.86%15.43%15.79%15.66%15.38%15.34%15.62%
Others0.33%0.33%0.33%0.33%0.33%0.33%0.33%0.33%0.33%0.33%0.33%0.33%
No. of Shareholders15,48715,66115,37315,43516,10316,68417,24217,04617,52017,41517,54718,526

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Parag Parikh Flexi Cap Fund422,5870.42232.1785,8682024-11-22392.14%
Aditya Birla Sun Life ELSS Tax Saver Fund282,8101.04155.3785,8682024-11-22229.35%
Aditya Birla Sun Life MNC Fund - Div271,2574.15149.0385,8682024-11-22215.9%
Aditya Birla Sun Life MNC Fund - Gr271,2574.15149.0385,8682024-11-22215.9%
Canara Robeco Small Cap Fund168,3200.9692.4785,8682024-11-2296.02%
Mahindra Manulife Small Cap Fund88,6051.3948.6885,8682024-11-223.19%
Sundaram Small Cap Fund85,8681.5447.1885,8682024-11-220%
Sundaram Diversified Equity Fund58,0001.9931.8685,8682024-11-22-32.45%
Sundaram Flexicap Fund46,0001.2225.2785,8682024-11-22-46.43%
Sundaram Focused Fund43,0002.3823.6285,8682024-11-22-49.92%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)157.07140.59116.7484.8999.98
Diluted EPS (Rs.)156.99140.59116.7484.8999.98
Cash EPS (Rs.)171.69151.85125.7395.95111.41
Book Value[Excl.RevalReserv]/Share (Rs.)1016.43989.44878.36788.52729.65
Book Value[Incl.RevalReserv]/Share (Rs.)1016.43989.44878.36788.52729.65
Revenue From Operations / Share (Rs.)462.24417.80355.19311.94332.69
PBDIT / Share (Rs.)231.82199.41167.29128.46149.01
PBIT / Share (Rs.)217.87189.23159.20118.18138.35
PBT / Share (Rs.)207.08187.77157.58116.05136.23
Net Profit / Share (Rs.)157.74141.67117.6485.67100.75
NP After MI And SOA / Share (Rs.)156.56140.12116.3584.6199.65
PBDIT Margin (%)50.1547.7247.0941.1844.78
PBIT Margin (%)47.1345.2944.8237.8841.58
PBT Margin (%)44.8044.9444.3637.2040.94
Net Profit Margin (%)34.1233.9033.1127.4630.28
NP After MI And SOA Margin (%)33.8633.5332.7527.1229.95
Return on Networth / Equity (%)15.4714.2313.3110.7713.70
Return on Capital Employeed (%)20.3018.8417.8014.6218.27
Return On Assets (%)12.7212.2811.479.1111.37
Asset Turnover Ratio (%)0.380.240.230.230.28
Current Ratio (X)4.324.293.774.266.26
Quick Ratio (X)4.324.293.774.266.26
Dividend Payout Ratio (NP) (%)82.7619.9123.1231.8030.00
Dividend Payout Ratio (CP) (%)75.9918.5621.6228.3627.10
Earning Retention Ratio (%)17.2480.0976.8868.2070.00
Cash Earning Retention Ratio (%)24.0181.4478.3871.6472.90
Interest Coverage Ratio (X)21.50136.25103.4160.2770.33
Interest Coverage Ratio (Post Tax) (X)15.6397.8073.7141.1948.56
Enterprise Value (Cr.)5105.594025.553803.032773.341565.28
EV / Net Operating Revenue (X)11.449.9811.099.214.87
EV / EBITDA (X)22.8220.9223.5522.3710.88
MarketCap / Net Operating Revenue (X)11.7810.5711.9910.536.51
Retention Ratios (%)17.2380.0876.8768.1969.99
Price / BV (X)5.384.494.874.182.98
Price / Net Operating Revenue (X)11.7810.5711.9910.536.51
EarningsYield0.020.030.020.020.04

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of ICRA Ltd as of November 23, 2024 is: 6,331.56

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 23, 2024, ICRA Ltd is Overvalued by 0.01% compared to the current share price 6,332.00

Intrinsic Value of ICRA Ltd as of November 23, 2024 is: 6,850.43

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 23, 2024, ICRA Ltd is Undervalued by 8.19% compared to the current share price 6,332.00

Last 5 Year EPS CAGR: 8.20%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 21.33%, which is a positive sign.
  2. The stock has a low average Working Capital Days of -45.83, which is a positive sign.
  3. The company has higher reserves (656.46 cr) compared to borrowings (7.54 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (321.00 cr) and profit (128.69 cr) over the years.
  1. The stock has a high average Cash Conversion Cycle of 48.92, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in ICRA Ltd:
    1. Net Profit Margin: 34.12%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 20.3% (Industry Average ROCE: 21%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 15.47% (Industry Average ROE: 15.05%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 15.63
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 4.32
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 40.4 (Industry average Stock P/E: 38.3)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

ICRA Ltd. is a Public Limited Listed company incorporated on 16/01/1991 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L74999DL1991PLC042749 and registration number is 042749. Currently Company is involved in the business activities of Activities auxiliary to financial service activities. Company’s Total Operating Revenue is Rs. 194.73 Cr. and Equity Capital is Rs. 9.65 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Rating ServicesB-710, Statesman House, New Delhi Delhi 110001investors@icraindia.com
http://www.icra.in
Management
NamePosition Held
Mr. Arun DuggalChairman & Ind.Director
Mr. Ramnath KrishnanManaging Director & Group CEO
Ms. Wendy Huay Huay CheongNon Exe.Non Ind.Director
Ms. Shivani Priya Mohini KakNon Exe.Non Ind.Director
Mr. Stephen Arthur LongNon Exe.Non Ind.Director
Mr. Michael FoleyNon Exe.Non Ind.Director
Ms. Radhika Vijay HaribhaktiIndependent Director
Ms. Ranjana AgarwalIndependent Director

FAQ

What is the latest intrinsic value of ICRA Ltd?

The latest intrinsic value of ICRA Ltd as on 23 November 2024 is ₹6331.56, which is 0.01% lower than the current market price of ₹6,332.00.

What is the Market Cap of ICRA Ltd?

The Market Cap of ICRA Ltd is 6,112 Cr..

What is the current Stock Price of ICRA Ltd as on 23 November 2024?

The current stock price of ICRA Ltd as on 23 November 2024 is 6,332.

What is the High / Low of ICRA Ltd stocks in FY 2024?

In FY 2024, the High / Low of ICRA Ltd stocks is 7,735/4,983.

What is the Stock P/E of ICRA Ltd?

The Stock P/E of ICRA Ltd is 40.4.

What is the Book Value of ICRA Ltd?

The Book Value of ICRA Ltd is 989.

What is the Dividend Yield of ICRA Ltd?

The Dividend Yield of ICRA Ltd is 1.58 %.

What is the ROCE of ICRA Ltd?

The ROCE of ICRA Ltd is 21.4 %.

What is the ROE of ICRA Ltd?

The ROE of ICRA Ltd is 15.6 %.

What is the Face Value of ICRA Ltd?

The Face Value of ICRA Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in ICRA Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE