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Last Updated on: 06 October, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Indo Rama Synthetics (India) Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 5, 2024, 12:33 am

Market Cap 1,212 Cr.
Current Price 46.4
High / Low67.1/36.4
Stock P/E
Book Value 14.1
Dividend Yield0.00 %
ROCE4.37 %
ROE42.7 %
Face Value 10.0
PEG Ratio0.00

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

View Share Price Target for Indo Rama Synthetics (India) Ltd

Competitors of Indo Rama Synthetics (India) Ltd

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

All Competitor Stocks of Indo Rama Synthetics (India) Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales6208286959921,0991,2521,1791,1378908807701,259940
Expenses5757276609451,0051,1231,1201,1359328577941,228997
Operating Profit44101354895129592-4223-2431-56
OPM %7%12%5%5%9%10%5%0%-5%3%-3%2%-6%
Other Income08023111905114
Interest15151415201411121620243137
Depreciation988888888881010
Profit before tax2186142771107401-660-55-9-99
Tax %-262%-50%1%-91%-35%0%4%-16%0%-1,373%0%0%0%
Net Profit76129145295107391-662-55-9-99
EPS in Rs2.924.930.542.003.654.101.480.04-2.520.06-2.11-0.34-3.79

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales2,9082,6562,7582,5252,4592,1062,0434,0384,0853,799
Expenses2,8672,6292,6352,4642,4792,1281,9503,7344,0413,811
Operating Profit412712261-20-229330444-12
OPM %1%1%4%2%-1%-1%5%8%1%-0%
Other Income2021365-245520109227
Interest45504354919266626091
Depreciation15814311778798634313133
Profit before tax40-31-33-94-135-1803219-25-130
Tax %-1%56%38%140%40%-75%-3,245%-23%1%
Net Profit40-14-2138-81-317113269-25-128
EPS in Rs2.65-0.89-1.362.48-5.36-12.124.3410.30-0.94-4.91
Dividend Payout %38%-112%-73%40%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172020-20212021-20222022-2023
YoY Net Profit Growth (%)-135.00%-50.00%280.95%-313.16%135.65%138.05%-109.29%
Change in YoY Net Profit Growth (%)0.00%85.00%330.95%-594.11%448.80%2.41%-247.35%

Indo Rama Synthetics (India) Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 7 years from 2013-2014 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:4%
5 Years:%
3 Years:24%
TTM:10%
Compounded Profit Growth
10 Years:-6%
5 Years:%
3 Years:%
TTM:-41%
Stock Price CAGR
10 Years:7%
5 Years:11%
3 Years:-3%
1 Year:-9%
Return on Equity
10 Years:%
5 Years:%
3 Years:3%
Last Year:-43%

Last Updated: Unknown

Balance Sheet

Last Updated: September 15, 2024, 3:28 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital152152152152152261261261261261
Reserves456436397450350-3972339312107
Borrowings7136585173213074713953548901,339
Other Liabilities8668238201,0067997909831,1521,2501,199
Total Liabilities2,1872,0691,8861,9291,6081,4831,7112,1052,7132,907
Fixed Assets1,1761,2701,1349358987036917027831,217
CWIP2063616117935324105
Investments1041611000-0-0
Other Assets7957917309776987731,0121,3681,6051,584
Total Assets2,1872,0691,8861,9291,6081,4831,7112,1052,7132,907

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity -28-8922112739-119182200-81-97
Cash from Investing Activity -34207-3-335340-18-75-348-258
Cash from Financing Activity 65-115-208-111-9387-174-123479322
Net Cash Flow3310-17-18-9250-32

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow-672.00-631.00-395.00-260.00-327.00-493.00-302.00-50.00-846.00

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 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days11161629201619171416
Inventory Days464846483657102677367
Days Payable808792136132126221126125120
Cash Conversion Cycle-24-23-30-60-76-53-100-43-38-38
Working Capital Days-7-8-15-24-44-36-35-829
ROCE %-8%1%-1%-8%11%33%3%-5%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters75.00%75.00%75.00%75.00%75.00%74.85%74.85%74.85%74.85%74.85%74.84%74.84%
FIIs0.00%0.00%0.00%0.00%0.20%0.18%0.19%0.17%0.17%0.16%0.03%0.00%
DIIs4.79%4.78%3.31%3.23%3.07%3.07%3.07%3.07%3.07%3.07%2.89%2.89%
Government0.12%0.13%0.13%0.13%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Public20.09%20.09%21.56%21.63%21.71%21.90%21.89%21.91%21.92%21.92%22.24%22.27%
No. of Shareholders18,39619,23125,02925,52525,54825,25525,02725,26925,89325,87828,57228,279

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
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)-7.79-0.9410.304.34-12.14
Diluted EPS (Rs.)-7.79-0.9410.304.34-12.14
Cash EPS (Rs.)-6.290.2511.505.63-8.83
Book Value[Excl.RevalReserv]/Share (Rs.)14.1021.9322.9912.768.50
Book Value[Incl.RevalReserv]/Share (Rs.)14.1021.9322.9912.768.50
Revenue From Operations / Share (Rs.)148.34156.44154.6578.2481.27
PBDIT / Share (Rs.)-1.252.5411.974.39-0.08
PBIT / Share (Rs.)-2.751.3410.773.10-3.38
PBT / Share (Rs.)-7.79-0.948.400.12-6.91
Net Profit / Share (Rs.)-7.79-0.9410.304.34-12.12
NP After MI And SOA / Share (Rs.)-7.79-0.9410.304.34-12.12
PBDIT Margin (%)-0.841.627.745.61-0.10
PBIT Margin (%)-1.850.856.963.96-4.15
PBT Margin (%)-5.25-0.605.430.16-8.50
Net Profit Margin (%)-5.25-0.606.665.54-14.91
NP After MI And SOA Margin (%)-5.25-0.606.665.54-14.91
Return on Networth / Equity (%)-55.26-4.2844.8234.02-142.57
Return on Capital Employeed (%)-8.972.9133.6313.26-15.37
Return On Assets (%)-6.99-0.9012.776.62-21.34
Long Term Debt / Equity (X)0.990.970.280.691.38
Total Debt / Equity (X)3.581.510.530.911.80
Asset Turnover Ratio (%)1.381.702.071.270.00
Current Ratio (X)0.600.850.810.690.69
Quick Ratio (X)0.320.430.390.320.41
Inventory Turnover Ratio (X)4.625.126.164.490.00
Interest Coverage Ratio (X)-0.241.115.051.74-0.02
Interest Coverage Ratio (Post Tax) (X)-0.540.585.352.90-2.43
Enterprise Value (Cr.)2303.811824.562023.511310.44676.67
EV / Net Operating Revenue (X)0.590.440.500.640.31
EV / EBITDA (X)-70.4327.566.4711.42-317.68
MarketCap / Net Operating Revenue (X)0.260.240.420.490.14
Price / BV (X)2.761.782.863.051.35
Price / Net Operating Revenue (X)0.260.240.420.490.14
EarningsYield-0.20-0.020.150.11-1.05

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Indo Rama Synthetics (India) Ltd as of October 6, 2024 is: ₹92.12

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 October 6, 2024, Indo Rama Synthetics (India) Ltd is Undervalued by 98.53% compared to the current share price ₹46.40

Default values used*: Default value of 15 for Stock P/E is used

Intrinsic Value of Indo Rama Synthetics (India) Ltd as of October 6, 2024 is: ₹140.35

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 October 6, 2024, Indo Rama Synthetics (India) Ltd is Undervalued by 202.48% compared to the current share price ₹46.40

Default values used*: Default value of 15 for Stock P/E is used

Last 5 Year EPS CAGR: 52.36%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -16.60, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -48.50, which is a positive sign.
  1. The stock has a low average ROCE of 2.60%, which may not be favorable.
  2. The company has higher borrowings (596.50) compared to reserves (288.00), which may suggest financial risk.
  3. The company has not shown consistent growth in sales (2.50) and profit (-36.60).

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 Rama Synthetics (India) Ltd:
    1. Net Profit Margin: -5.25%
      • 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: -8.97% (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%: -55.26% (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): -0.54
      • 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: 0.32
      • 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: 0 (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: 3.58
      • 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 Rama Synthetics (India) Ltd. is a Public Limited Listed company incorporated on 28/04/1986 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L17124MH1986PLC166615 and registration number is 166615. Currently Company is involved in the business activities of Manufacture of synthetic or artificial filament staple fibre not textured. Company’s Total Operating Revenue is Rs. 3901.13 Cr. and Equity Capital is Rs. 261.11 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Textiles - Spinning - Synthetic BlendedA-31, MIDC Industrial Area, Butibori, Nagpur Maharashtra 441122corp@indorama-ind.com
http://www.indoramaindia.com
Management
NamePosition Held
Mr. Om Prakash LohiaChairman & Managing Director
Mr. Vishal LohiaWhole Time Director
Mr. Hemant Balkrishna BalWhole Time Director
Mr. Dilip Kumar AgarwalNon Exe.Non Ind.Director
Mr. Dharmpal AgarwalInd. Non-Executive Director
Ms. Ranjana AgarwalInd. Non-Executive Director
Mr. Dhanendra KumarInd. Non-Executive Director
Mr. Sanjay ThapliyalWhole Time Director
Mr. Ravi CapoorInd. Non-Executive Director

FAQ

What is the latest fair value of Indo Rama Synthetics (India) Ltd?

The latest fair value of Indo Rama Synthetics (India) Ltd is ₹92.12.

What is the Market Cap of Indo Rama Synthetics (India) Ltd?

The Market Cap of Indo Rama Synthetics (India) Ltd is 1,212 Cr..

What is the current Stock Price of Indo Rama Synthetics (India) Ltd as on 06 October 2024?

The current stock price of Indo Rama Synthetics (India) Ltd as on 06 October 2024 is ₹46.4.

What is the High / Low of Indo Rama Synthetics (India) Ltd stocks in FY 2024?

In FY 2024, the High / Low of Indo Rama Synthetics (India) Ltd stocks is 67.1/36.4.

What is the Stock P/E of Indo Rama Synthetics (India) Ltd?

The Stock P/E of Indo Rama Synthetics (India) Ltd is .

What is the Book Value of Indo Rama Synthetics (India) Ltd?

The Book Value of Indo Rama Synthetics (India) Ltd is 14.1.

What is the Dividend Yield of Indo Rama Synthetics (India) Ltd?

The Dividend Yield of Indo Rama Synthetics (India) Ltd is 0.00 %.

What is the ROCE of Indo Rama Synthetics (India) Ltd?

The ROCE of Indo Rama Synthetics (India) Ltd is 4.37 %.

What is the ROE of Indo Rama Synthetics (India) Ltd?

The ROE of Indo Rama Synthetics (India) Ltd is 42.7 %.

What is the Face Value of Indo Rama Synthetics (India) Ltd?

The Face Value of Indo Rama Synthetics (India) 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 Indo Rama Synthetics (India) 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