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Last Updated on: 27 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo

India Nippon Electricals Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 24, 2024, 8:30 pm

Market Cap 1,614 Cr.
Current Price 713
High / Low 867/518
Stock P/E22.5
Book Value 294
Dividend Yield1.44 %
ROCE12.8 %
ROE10.0 %
Face Value 5.00
PEG Ratio300.70

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

View Share Price Target for India Nippon Electricals Ltd

Competitors of India Nippon Electricals Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
India Nippon Electricals Ltd 1,614 Cr. 713 867/51822.5 2941.44 %12.8 %10.0 % 5.00
Industry Average1,614.00 Cr713.0022.50294.001.44%12.80%10.00%5.00

All Competitor Stocks of India Nippon Electricals Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales153150110159148149156186156158160190179
Expenses131134107138135137146167144143150170164
Operating Profit2216421131210191215102015
OPM %14%11%3%13%9%8%6%10%8%9%6%10%8%
Other Income24442153565656
Interest0000000000000
Depreciation3333344444444
Profit before tax211842212239211516122117
Tax %14%23%20%19%19%17%58%19%9%11%21%16%30%
Net Profit18143181019417141491812
EPS in Rs7.856.021.547.924.268.491.647.405.996.284.097.755.34

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
Sales261269261324336351452525479481566656664
Expenses225235237290301316388449424436517603610
Operating Profit36342433353564765545505354
OPM %14%12%9%10%10%10%14%14%11%9%9%8%8%
Other Income989791413152616252325
Interest0000000011000
Depreciation66684468910131515
Profit before tax40352732404471837151626063
Tax %22%19%24%29%27%33%29%29%24%22%18%20%
Net Profit29292123293050595440504855
EPS in Rs13.0412.939.3910.2112.8013.0822.0125.8824.0217.5222.2121.3224.11
Dividend Payout %35%35%48%44%35%38%30%27%28%34%28%43%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)0.00%-27.59%9.52%26.09%3.45%66.67%18.00%-8.47%-25.93%25.00%-4.00%
Change in YoY Net Profit Growth (%)0.00%-27.59%37.11%16.56%-22.64%63.22%-48.67%-26.47%-17.45%50.93%-29.00%

India Nippon Electricals 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:11%
5 Years:7%
3 Years:15%
TTM:16%
Compounded Profit Growth
10 Years:11%
5 Years:0%
3 Years:14%
TTM:32%
Stock Price CAGR
10 Years:12%
5 Years:14%
3 Years:25%
1 Year:31%
Return on Equity
10 Years:11%
5 Years:10%
3 Years:9%
Last Year:10%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 11:32 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital11111111111111111111111111
Reserves193202212245264331389408440494549612654
Borrowings0000000554433
Other Liabilities4051557086103109105137132154211209
Total Liabilities245264278326362445510529593641718837877
Fixed Assets424547505764668191130134143147
CWIP311237713345131311
Investments93104126154189226261262261278355432456
Other Assets106115104121112148176173207228215249264
Total Assets245264278326362445510529593641718837877

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +25183033422736523875763
Cash from Investing Activity +-16-18-17-14-36-17-17-7-3428-46-39
Cash from Financing Activity +-12-12-11-17-7-8-18-38-15-15-22-25
Net Cash Flow-3-1212-1128-1020-11-1

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow36.0034.0024.0033.0035.0035.0064.0076.0050.0040.0046.0049.00

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 Days688371666975726783766671
Inventory Days303429393538384549464551
Days Payable59634860979480881038377101
Cash Conversion Cycle38545245720302429393521
Working Capital Days436040269233234364939121
ROCE %18%13%14%15%14%22%22%15%12%10%11%13%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters66.39%66.39%70.39%70.39%70.38%70.38%70.38%70.37%70.37%70.37%70.37%70.37%
FIIs0.00%0.01%0.19%0.13%0.14%0.11%0.09%0.08%0.12%0.15%0.13%0.14%
DIIs2.48%2.31%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Public31.13%31.29%29.43%29.49%29.47%29.51%29.53%29.54%29.51%29.49%29.50%29.49%
No. of Shareholders19,82219,63118,48618,78918,27018,10318,39918,21317,77217,87718,53319,120

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue5.005.005.005.005.00
Basic EPS (Rs.)26.2121.3221.7617.5224.02
Diluted EPS (Rs.)26.2121.3221.7617.5224.02
Cash EPS (Rs.)32.8927.7927.4422.0928.92
Book Value[Excl.RevalReserv]/Share (Rs.)275.53247.71222.87199.36185.57
Book Value[Incl.RevalReserv]/Share (Rs.)275.53247.71222.87199.36185.57
Revenue From Operations / Share (Rs.)320.11290.12250.32212.73211.66
PBDIT / Share (Rs.)40.3433.3632.4927.1936.64
PBIT / Share (Rs.)33.6726.9026.8122.6232.48
PBT / Share (Rs.)33.5026.7126.5922.3732.23
Net Profit / Share (Rs.)26.2221.3221.7617.5224.76
NP After MI And SOA / Share (Rs.)26.2221.3221.7617.5224.02
PBDIT Margin (%)12.6011.4912.9712.7817.30
PBIT Margin (%)10.519.2710.7010.6315.34
PBT Margin (%)10.469.2010.6210.5115.22
Net Profit Margin (%)8.187.348.698.2311.69
NP After MI And SOA Margin (%)8.187.348.698.2311.34
Return on Networth / Equity (%)9.518.609.768.7812.94
Return on Capital Employeed (%)11.4210.2011.4010.9116.91
Return On Assets (%)7.086.717.676.6810.26
Long Term Debt / Equity (X)0.000.000.000.010.01
Total Debt / Equity (X)0.000.000.000.010.01
Asset Turnover Ratio (%)0.930.960.920.850.92
Current Ratio (X)2.513.013.222.703.26
Quick Ratio (X)2.112.552.772.352.86
Inventory Turnover Ratio (X)7.598.358.517.918.49
Dividend Payout Ratio (NP) (%)39.0843.3728.7234.2444.74
Dividend Payout Ratio (CP) (%)31.1633.2822.7727.1538.14
Earning Retention Ratio (%)60.9256.6371.2865.7655.26
Cash Earning Retention Ratio (%)68.8466.7277.2372.8561.86
Interest Coverage Ratio (X)234.00179.67149.86109.61148.04
Interest Coverage Ratio (Post Tax) (X)153.05115.83101.3671.62101.04
Enterprise Value (Cr.)1516.90726.27925.30806.07406.84
EV / Net Operating Revenue (X)2.091.111.631.680.84
EV / EBITDA (X)16.629.6212.5913.104.91
MarketCap / Net Operating Revenue (X)2.121.141.701.730.89
Retention Ratios (%)60.9156.6271.2765.7555.25
Price / BV (X)2.461.341.911.851.02
Price / Net Operating Revenue (X)2.121.141.701.730.89
EarningsYield0.030.060.050.040.12

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of India Nippon Electricals Ltd as of December 27, 2024 is: 671.03

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 December 27, 2024, India Nippon Electricals Ltd is Overvalued by 5.89% compared to the current share price 713.00

Intrinsic Value of India Nippon Electricals Ltd as of December 27, 2024 is: 671.53

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 December 27, 2024, India Nippon Electricals Ltd is Overvalued by 5.82% compared to the current share price 713.00

Last 5 Year EPS CAGR: 0.07%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (384.08 cr) compared to borrowings (1.85 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (432.69 cr) and profit (52.23 cr) over the years.
  1. The stock has a low average ROCE of 14.92%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 42.67, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 32.83, 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 India Nippon Electricals Ltd:
    1. Net Profit Margin: 8.18%
      • 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: 11.42% (Industry Average ROCE: 12.8%)
      • 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%: 9.51% (Industry Average ROE: 10%)
      • 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): 153.05
      • 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: 2.11
      • 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: 22.5 (Industry average Stock P/E: 22.5)
      • 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

India Nippon Electricals Ltd. is a Public Limited Listed company incorporated on 12/07/1984 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L31901TN1984PLC011021 and registration number is 011021. Currently Company is involved in the business activities of Manufacture of motor vehicle electrical equipment, such as generators, alternators, spark plugs, ignition wiring harnesses, power window and door systems, assembly of purchased gauges into instrument panels, voltage regulators, etc.. Company’s Total Operating Revenue is Rs. 566.27 Cr. and Equity Capital is Rs. 11.31 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Auto Ancl - ElectricalNo.11 & 13, Patullos Road, Chennai (Madras) Tamil Nadu 600002investors@inel.co.in
http://www.indianippon.com
Management
NamePosition Held
Mr. T K BalajiChairman
Mr. Arvind BalajiManaging Director
Mr. Anant Jaivant TalaulicarDirector
Mr. Heramb Ravindra HajarnavisDirector
Ms. Gangapriya ChakravertiDirector
Ms. Priyamvada BalajiDirector

FAQ

What is the latest intrinsic value of India Nippon Electricals Ltd?

The latest intrinsic value of India Nippon Electricals Ltd as on 27 December 2024 is ₹671.03, which is 5.89% lower than the current market price of ₹713.00. The stock has a market capitalization of 1,614 Cr. and recorded a high/low of 867/518 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹654 Cr and total liabilities of ₹877 Cr.

What is the Market Cap of India Nippon Electricals Ltd?

The Market Cap of India Nippon Electricals Ltd is 1,614 Cr..

What is the current Stock Price of India Nippon Electricals Ltd as on 27 December 2024?

The current stock price of India Nippon Electricals Ltd as on 27 December 2024 is 713.

What is the High / Low of India Nippon Electricals Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of India Nippon Electricals Ltd stocks is 867/518.

What is the Stock P/E of India Nippon Electricals Ltd?

The Stock P/E of India Nippon Electricals Ltd is 22.5.

What is the Book Value of India Nippon Electricals Ltd?

The Book Value of India Nippon Electricals Ltd is 294.

What is the Dividend Yield of India Nippon Electricals Ltd?

The Dividend Yield of India Nippon Electricals Ltd is 1.44 %.

What is the ROCE of India Nippon Electricals Ltd?

The ROCE of India Nippon Electricals Ltd is 12.8 %.

What is the ROE of India Nippon Electricals Ltd?

The ROE of India Nippon Electricals Ltd is 10.0 %.

What is the Face Value of India Nippon Electricals Ltd?

The Face Value of India Nippon Electricals Ltd is 5.00.

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 India Nippon Electricals 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