Innovative Tyres & Tubes Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: November 15, 2024, 3:03 pm

Market Cap	10.2 Cr.
Current Price	5.65
High / Low	10.2/4.75
Stock P/E
Book Value	9.21
Dividend Yield	0.00 %
ROCE	26.6 %
ROE	%
Face Value	10.0
PEG Ratio	0.00

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

Stock P/E Current Price Intrinsic Value

View Share Price Target for Innovative Tyres & Tubes Ltd

Competitors of Innovative Tyres & Tubes Ltd

Stock Name	Market Cap	Current Price	High / Low	Stock P/E	Book Value	Dividend Yield	ROCE	ROE	Face Value
Goodyear India Ltd	2,345 Cr.	1,016	1,440/999	40.1	255	1.48 %	22.0 %	16.0 %	10.0
TVS Srichakra Ltd	2,687 Cr.	3,511	4,900/3,470	38.8	1,404	1.35 %	11.1 %	10.6 %	10.0
JK Tyre & Industries Ltd	10,444 Cr.	381	554/355	13.7	172	1.18 %	19.3 %	20.6 %	2.00
Innovative Tyres & Tubes Ltd	10.2 Cr.	5.65	10.2/4.75		9.21	0.00 %	26.6 %	%	10.0
CEAT Ltd	12,646 Cr.	3,126	3,581/2,210	21.3	1,038	0.96 %	20.4 %	18.1 %	10.0
Industry Average	19,553.83 Cr	1,629.52		28.37	512.74	0.95%	19.06%	16.02%	6.43

All Competitor Stocks of Innovative Tyres & Tubes Ltd

Quarterly Result

Month	Sep 2019	Mar 2020	Sep 2020	Mar 2021	Sep 2021	Mar 2022	Sep 2022	Mar 2023	Sep 2023
Sales	83	66	63	76	41	10	1	0	0
Expenses	82	66	66	71	52	50	3	52	1
Operating Profit	1	-1	-2	4	-10	-40	-2	-52	-1
OPM %	1%	-1%	-4%	6%	-25%	-394%	-128%	-15,670%
Other Income	1	0	0	1	0	2	0	0	38
Interest	1	1	2	2	2	1	0	0	0
Depreciation	4	4	4	4	4	3	4	4	2
Profit before tax	-3	-6	-8	-1	-16	-43	-6	-56	35
Tax %	-10%	-4%	3%	-26%	2%	-0%	3%	15%	0%
Net Profit	-4	-6	-8	-1	-16	-43	-6	-47	35
EPS in Rs	-2.11	-3.36	-4.41	-0.51	-8.82	-23.94	-3.10	-26.33	19.34

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

Month	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	TTM
Sales	87	102	126	129	124	131	140	172	149	139	52	2	0
Expenses	81	93	117	119	114	118	126	164	149	137	102	55	53
Operating Profit	6	9	9	10	10	13	14	7	0	2	-50	-53	-53
OPM %	7%	9%	7%	8%	8%	10%	10%	4%	0%	2%	-98%	-3,295%	-16,079%
Other Income	0	1	1	1	2	2	1	2	2	1	2	0	39
Interest	3	6	4	5	5	4	3	2	3	4	3	0	0
Depreciation	2	2	2	3	4	4	5	6	8	8	8	8	6
Profit before tax	2	2	3	5	3	6	6	1	-9	-9	-59	-61	-21
Tax %	71%	65%	34%	12%	41%	21%	30%	-9%	-6%	0%	0%	14%
Net Profit	0	1	2	4	2	5	4	1	-10	-9	-59	-53	-13
EPS in Rs	0.60	0.99	2.42	4.41	1.97	5.10	2.45	0.55	-5.46	-4.91	-32.76	-29.42	-6.99
Dividend Payout %	-0%	-0%	-0%	-0%	-0%	-0%	-0%	-0%	-0%	-0%	-0%	-0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year	2013-2014	2014-2015	2015-2016	2016-2017	2017-2018	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023
YoY Net Profit Growth (%)	100.00%	100.00%	-50.00%	150.00%	-20.00%	-75.00%	-1100.00%	10.00%	-555.56%	10.17%
Change in YoY Net Profit Growth (%)	0.00%	0.00%	-150.00%	200.00%	-170.00%	-55.00%	-1025.00%	1110.00%	-565.56%	565.73%

Innovative Tyres & Tubes Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 10 years from 2013-2014 to 2022-2023.

No data available for the compounded sales growth chart.

Balance Sheet

Last Updated: November 14, 2024, 10:33 pm

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Equity Capital	8	9	9	10	10	18	18	18	18	18	18	18
Reserves	17	19	27	27	36	67	68	58	50	-9	-62	-18
Borrowings	25	24	22	23	28	13	22	22	37	38	38	35
Other Liabilities	53	57	77	66	66	59	69	74	57	51	42	8
Total Liabilities	102	109	136	126	139	156	178	172	161	98	36	42
Fixed Assets	61	61	60	60	65	88	108	104	97	90	32	36
CWIP	5	8	14	13	15	10	1	0	1	0	0	0
Investments	0	0	0	0	0	0	0	0	0	0	0	0
Other Assets	36	40	63	53	59	58	69	68	63	8	4	6
Total Assets	102	109	136	126	139	156	178	172	161	98	36	42

Reserves and Borrowings Chart

No data available for this post.

Free Cash Flow

Month	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023
Free Cash Flow	6.00	-16.00	-15.00	-12.00	-13.00	-15.00	1.00	-15.00	-22.00	-35.00	-88.00	-91.00

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

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Debtor Days	17	23	57	46	40	29	27	44	37	14	23	17
Inventory Days	127	90	124	102	148	122	120	136	143	12	0	80
Days Payable	106	93	164	138	130	94	73	92	121	137		158
Cash Conversion Cycle	38	20	17	11	58	57	73	88	58	-112	23	-60
Working Capital Days	17	25	20	29	52	43	50	53	26	-266	-9,377	-91
ROCE %	14%	15%	17%	14%	16%	11%	2%	-7%	-6%	-75%	-306%	-27%

Financial Efficiency Indicators Chart

Share Holding Pattern

Month	Mar 2023	Sep 2023	Mar 2024	Sep 2024
Promoters	14.00%	14.00%	14.00%	94.55%
Public	86.01%	86.00%	86.00%	5.45%
No. of Shareholders	1,767	1,795	1,981	2,033

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

Month	Mar 24	Mar 23	Mar 22	Mar 21	Mar 20
FaceValue	10.00	10.00	10.00	10.00	10.00
Basic EPS (Rs.)	19.17	-29.42	-32.76	-4.91	-5.46
Diluted EPS (Rs.)	19.17	-29.42	-32.76	-4.91	-5.46
Cash EPS (Rs.)	21.63	-24.87	-28.42	-0.26	-0.86
Book Value[Excl.RevalReserv]/Share (Rs.)	-5.41	-28.63	0.79	33.55	38.47
Book Value[Incl.RevalReserv]/Share (Rs.)	-5.41	-24.58	4.84	37.60	42.52
Revenue From Operations / Share (Rs.)	7.88	0.90	28.66	77.35	82.74
PBDIT / Share (Rs.)	0.36	-29.53	-26.81	1.74	1.02
PBIT / Share (Rs.)	-2.10	-34.08	-31.15	-2.91	-3.58
PBT / Share (Rs.)	19.16	-34.13	-32.85	-4.93	-5.15
Net Profit / Share (Rs.)	19.17	-29.42	-32.76	-4.91	-5.46
PBDIT Margin (%)	4.57	-3271.20	-93.54	2.25	1.22
PBIT Margin (%)	-26.63	-3774.96	-108.67	-3.76	-4.32
PBT Margin (%)	243.12	-3780.36	-114.62	-6.37	-6.22
Net Profit Margin (%)	243.31	-3258.83	-114.29	-6.35	-6.60
Return on Networth / Equity (%)	-354.74	0.00	-4120.82	-14.64	-14.19
Return on Capital Employeed (%)	-20.51	138.66	-326.17	-4.80	-5.55
Return On Assets (%)	81.88	-146.90	-60.38	-5.47	-5.70
Long Term Debt / Equity (X)	-1.92	0.00	0.00	0.10	0.06
Total Debt / Equity (X)	-3.58	-0.73	26.29	0.33	0.29
Asset Turnover Ratio (%)	0.36	0.02	0.39	0.83	0.84
Current Ratio (X)	0.17	0.02	0.07	1.15	1.15
Quick Ratio (X)	0.05	0.02	0.03	0.40	0.41
Inventory Turnover Ratio (X)	9.02	0.78	2.31	2.43	2.69
Interest Coverage Ratio (X)	30.73	-605.90	-15.74	0.86	0.64
Interest Coverage Ratio (Post Tax) (X)	-177.64	-602.61	-18.23	-1.43	-2.49
Enterprise Value (Cr.)	45.15	41.00	47.29	31.20	28.89
EV / Net Operating Revenue (X)	3.18	25.24	0.91	0.22	0.19
EV / EBITDA (X)	69.63	-0.77	-0.98	9.95	15.78
MarketCap / Net Operating Revenue (X)	0.73	2.60	0.19	0.10	0.07
Price / BV (X)	-1.07	-0.08	6.99	0.25	0.16
Price / Net Operating Revenue (X)	0.73	2.61	0.19	0.10	0.07
EarningsYield	3.31	-12.52	-5.90	-0.57	-0.86

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Innovative Tyres & Tubes Ltd as of December 27, 2024 is: 21.14

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, Innovative Tyres & Tubes Ltd is Undervalued by 274.16% compared to the current share price 5.65

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

Intrinsic Value of Innovative Tyres & Tubes Ltd as of December 27, 2024 is: 17.56

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, Innovative Tyres & Tubes Ltd is Undervalued by 210.80% compared to the current share price 5.65

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

Last 5 Year EPS CAGR: -16.94%

*Investments are subject to market risks

Strength and Weakness

Strength	Weakness
The stock has a low average Working Capital Days of -4.25, which is a positive sign.	The stock has a low average ROCE of -27.67%, which may not be favorable. The stock has a high average Cash Conversion Cycle of 22.58, which may not be favorable. The company has higher borrowings (27.25) compared to reserves (23.33), which may suggest financial risk. The company has not shown consistent growth in sales (104.08) and profit (-10.08).

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 Innovative Tyres & Tubes Ltd:
1. Net Profit Margin: 243.31%
  - 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: -20.51% (Industry Average ROCE: 19.06%)
  - 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%: -354.74% (Industry Average ROE: 16.02%)
  - 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): -177.64
  - 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: 0.05
  - 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: 28.37)
  - 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

Innovative Tyres & Tubes Ltd. is a Public Limited Listed company incorporated on 28/11/1995 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L25112GJ1995PLC086579 and registration number is 086579. Currently Company is involved in the business activities of Manufacture of rubber and plastics products. Company’s Total Operating Revenue is Rs. 51.57 Cr. and Equity Capital is Rs. 17.99 Cr. for the Year ended 31/03/2022.

INDUSTRY	ADDRESS	CONTACT
Tyres & Tubes	1201, 1202, 1203 GIDC Halol, Panchmahal Gujarat 389350	investors@innovativetyres.co.in http://www.innovativetyres.com

Management
Name	Position Held
Mr. Munish Chawla	Managing Director
Mr. Robin Chawla	Director & CFO
Dr. Ramesh Chander Chawla	Director
Mrs. Roshni Chawla	Director
Mr. Umesh Ved	Independent Director
Mr. Jasmin Doshi	Independent Director

FAQ

What is the latest intrinsic value of Innovative Tyres & Tubes Ltd?

The latest intrinsic value of Innovative Tyres & Tubes Ltd as on 20 November 2024 is ₹21.14, which is 274.16% higher than the current market price of ₹5.65.

What is the Market Cap of Innovative Tyres & Tubes Ltd?

The Market Cap of Innovative Tyres & Tubes Ltd is 10.2 Cr..

What is the current Stock Price of Innovative Tyres & Tubes Ltd as on 20 November 2024?

The current stock price of Innovative Tyres & Tubes Ltd as on 20 November 2024 is ₹5.65.

What is the High / Low of Innovative Tyres & Tubes Ltd stocks in FY 2024?

In FY 2024, the High / Low of Innovative Tyres & Tubes Ltd stocks is 10.2/4.75.

What is the Stock P/E of Innovative Tyres & Tubes Ltd?

The Stock P/E of Innovative Tyres & Tubes Ltd is .

What is the Book Value of Innovative Tyres & Tubes Ltd?

The Book Value of Innovative Tyres & Tubes Ltd is 9.21.

What is the Dividend Yield of Innovative Tyres & Tubes Ltd?

The Dividend Yield of Innovative Tyres & Tubes Ltd is 0.00 %.

What is the ROCE of Innovative Tyres & Tubes Ltd?

The ROCE of Innovative Tyres & Tubes Ltd is 26.6 %.

What is the ROE of Innovative Tyres & Tubes Ltd?

The ROE of Innovative Tyres & Tubes Ltd is %.

What is the Face Value of Innovative Tyres & Tubes Ltd?

The Face Value of Innovative Tyres & Tubes Ltd is 10.0.