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Last Updated on: 16 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Indo National Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 15, 2024, 3:04 pm

Market Cap 387 Cr.
Current Price 516
High / Low858/500
Stock P/E2.77
Book Value 600
Dividend Yield0.97 %
ROCE8.22 %
ROE4.11 %
Face Value 5.00
PEG Ratio-0.06

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

View Share Price Target for Indo National Ltd

Competitors of Indo National Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Industry Average0 Cr0000%0.59%0.49%0

All Competitor Stocks of Indo National Ltd

Quarterly Result

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales159.90154.56128.67104.99172.13171.72121.34130.70148.95149.19143.19131.85171.50
Expenses137.97134.76119.5299.59154.08163.79126.76131.50144.54142.73138.63129.72163.81
Operating Profit21.9319.809.155.4018.057.93-5.42-0.804.416.464.562.137.69
OPM %13.71%12.81%7.11%5.14%10.49%4.62%-4.47%-0.61%2.96%4.33%3.18%1.62%4.48%
Other Income4.335.524.973.624.078.522.551.141.280.682.362.142.61
Interest3.253.303.042.812.642.912.282.372.533.103.173.323.78
Depreciation3.123.193.153.173.283.463.273.523.595.264.554.114.38
Profit before tax19.8918.837.933.0416.2010.08-8.42-5.55-0.43-1.22-0.80-3.162.14
Tax %27.80%40.73%38.34%32.24%28.58%32.64%16.39%20.18%-58.14%-2.46%-102.50%-5.38%-41.59%
Net Profit14.3611.164.892.0711.566.48-7.27-4.76-0.63-1.25-1.62-3.333.04
EPS in Rs15.9213.696.713.9911.773.81-8.97-2.750.12-1.49-3.47-0.715.73

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales361377394443508532570572596
Expenses337346352402447475544557575
Operating Profit243142416157261521
OPM %7%8%11%9%12%11%5%3%4%
Other Income18151517-13181958
Interest655121713111113
Depreciation889111213131718
Profit before tax28334335185021-8-3
Tax %53%36%29%25%43%35%36%0%
Net Profit13213127103313-8-3
EPS in Rs18.8925.5729.7924.561.8840.5110.59-7.590.06
Dividend Payout %66%49%34%41%133%31%47%-66%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)61.54%47.62%-12.90%-62.96%230.00%-60.61%-161.54%
Change in YoY Net Profit Growth (%)0.00%-13.92%-60.52%-50.06%292.96%-290.61%-100.93%

Indo National Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 7 years from 2016-2017 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:%
5 Years:8%
3 Years:6%
TTM:-2%
Compounded Profit Growth
10 Years:%
5 Years:-12%
3 Years:-32%
TTM:60874%
Stock Price CAGR
10 Years:2%
5 Years:13%
3 Years:6%
1 Year:-27%
Return on Equity
10 Years:%
5 Years:4%
3 Years:2%
Last Year:4%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 11:30 pm

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital4444444444
Reserves172198209219211238236228232446
Borrowings58496511312112312413214037
Other Liabilities7778152146161148147151223232
Total Liabilities311329431481496513511515599719
Fixed Assets134158163182188182215226254205
CWIP12145112424
Investments000000000129
Other Assets177169254295307330294284343381
Total Assets311329431481496513511515599719

Reserves and Borrowings Chart

Cash Flow

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +374438-191011353644
Cash from Investing Activity +-21-20-12-715-35-28-38
Cash from Financing Activity +-11-30-1829-9-10-20-9-9
Net Cash Flow5-68225-20-1-4

Free Cash Flow

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow-34.00-18.00-23.00-72.00-60.00-66.00-98.00-117.00

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 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days818211611383103618076
Inventory Days728279851111071248895
Days Payable294192778777636972
Cash Conversion Cycle1241241031201071331229999
Working Capital Days788945769113311310388
ROCE %16%18%15%18%16%7%1%8%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters65.35%65.35%65.35%65.35%65.35%65.35%65.35%65.35%65.35%65.35%65.35%65.35%
FIIs0.16%0.00%0.13%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.03%0.00%
Public34.49%34.64%34.52%34.65%34.65%34.64%34.65%34.64%34.65%34.65%34.62%34.65%
No. of Shareholders10,01311,60711,79012,23512,64511,74911,87111,76611,28010,21611,05213,027

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
FaceValue5.005.005.0010.0010.00
Basic EPS (Rs.)12.83-7.5910.5981.013.75
Diluted EPS (Rs.)12.83-7.5910.5981.013.75
Cash EPS (Rs.)43.0311.9135.44120.2560.39
Book Value[Excl.RevalReserv]/Share (Rs.)364.62349.21367.58727.04653.56
Book Value[Incl.RevalReserv]/Share (Rs.)364.62349.21367.58727.04653.56
Revenue From Operations / Share (Rs.)854.14762.70760.241418.161355.13
PBDIT / Share (Rs.)67.7526.7959.81201.81203.88
PBIT / Share (Rs.)44.234.2242.24168.25171.32
PBT / Share (Rs.)25.89-10.6827.88132.8449.20
Net Profit / Share (Rs.)19.52-10.6617.8786.7027.84
NP After MI And SOA / Share (Rs.)12.82-7.5910.5981.003.75
PBDIT Margin (%)7.933.517.8614.2315.04
PBIT Margin (%)5.170.555.5511.8612.64
PBT Margin (%)3.03-1.403.669.363.63
Net Profit Margin (%)2.28-1.392.356.112.05
NP After MI And SOA Margin (%)1.50-0.991.395.710.27
Return on Networth / Equity (%)4.07-2.453.3012.550.65
Return on Capital Employeed (%)9.080.999.1918.7021.18
Return On Assets (%)1.60-1.101.555.910.28
Long Term Debt / Equity (X)0.200.120.150.140.16
Total Debt / Equity (X)0.590.560.510.430.49
Asset Turnover Ratio (%)1.150.970.860.920.84
Current Ratio (X)1.411.421.731.861.58
Quick Ratio (X)0.990.971.041.361.12
Inventory Turnover Ratio (X)2.551.681.642.062.17
Dividend Payout Ratio (NP) (%)0.000.00118.006.170.00
Dividend Payout Ratio (CP) (%)0.000.0044.374.360.00
Earning Retention Ratio (%)0.000.00-18.0093.830.00
Cash Earning Retention Ratio (%)0.000.0055.6395.640.00
Interest Coverage Ratio (X)3.691.804.175.704.61
Interest Coverage Ratio (Post Tax) (X)2.060.282.243.453.39
Enterprise Value (Cr.)558.51360.26420.51359.12244.39
EV / Net Operating Revenue (X)0.870.620.730.670.48
EV / EBITDA (X)10.9917.939.374.753.20
MarketCap / Net Operating Revenue (X)0.640.380.510.500.32
Retention Ratios (%)0.000.00-18.0093.820.00
Price / BV (X)1.750.951.221.100.76
Price / Net Operating Revenue (X)0.640.380.510.500.32
EarningsYield0.02-0.020.020.110.01

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Indo National Ltd as of November 16, 2024 is: 68.97

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 16, 2024, Indo National Ltd is Overvalued by 86.63% compared to the current share price 516.00

Intrinsic Value of Indo National Ltd as of November 16, 2024 is: 34.63

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 16, 2024, Indo National Ltd is Overvalued by 93.29% compared to the current share price 516.00

Last 5 Year EPS CAGR: -49.79%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (238.90 cr) compared to borrowings (96.20 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (483.67 cr) and profit (24.11 cr) over the years.
  1. The stock has a low average ROCE of 11.00%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 90.67, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 114.56, 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 Indo National Ltd:
    1. Net Profit Margin: 2.28%
      • 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: 9.08% (Industry Average ROCE: 0.59%)
      • 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%: 4.07% (Industry Average ROE: 0.49%)
      • 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): 2.06
      • 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: 0.99
      • 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: 2.77 (Industry average Stock P/E: 0)
      • 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: 0.59
      • 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

Indo National Ltd. is a Public Limited Listed company incorporated on 15/07/1972 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L31909TN1972PLC006196 and registration number is 006196. Currently Company is involved in the business activities of Manufacture of electric lighting equipment. Company’s Total Operating Revenue is Rs. 368.27 Cr. and Equity Capital is Rs. 3.75 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Dry CellsNo.609, Mount Road, Chennai (Madras) Tamil Nadu 600006jsrinivasan@nippo.in
http://www.nippo.in
Management
NamePosition Held
Ms. Deepa SeshadriChairman
Mr. P Dwaraknath ReddyManaging Director
Mr. P Aditya ReddyJoint Managing Director
Mr. R P KhaitanJoint Managing Director
Mr. M Sankara ReddyDirector
Mr. Kiran JosephDirector

FAQ

What is the latest intrinsic value of Indo National Ltd?

The latest intrinsic value of Indo National Ltd as on 15 November 2024 is ₹68.97, which is 86.63% lower than the current market price of ₹516.00.

What is the Market Cap of Indo National Ltd?

The Market Cap of Indo National Ltd is 387 Cr..

What is the current Stock Price of Indo National Ltd as on 15 November 2024?

The current stock price of Indo National Ltd as on 15 November 2024 is ₹516.

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

In FY 2024, the High / Low of Indo National Ltd stocks is 858/500.

What is the Stock P/E of Indo National Ltd?

The Stock P/E of Indo National Ltd is 2.77.

What is the Book Value of Indo National Ltd?

The Book Value of Indo National Ltd is 600.

What is the Dividend Yield of Indo National Ltd?

The Dividend Yield of Indo National Ltd is 0.97 %.

What is the ROCE of Indo National Ltd?

The ROCE of Indo National Ltd is 8.22 %.

What is the ROE of Indo National Ltd?

The ROE of Indo National Ltd is 4.11 %.

What is the Face Value of Indo National Ltd?

The Face Value of Indo National 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 Indo National 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