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Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Inventure Growth & Securities Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 10:00 pm

Market Cap 213 Cr.
Current Price 2.04
High / Low3.77/2.00
Stock P/E12.9
Book Value 2.62
Dividend Yield0.00 %
ROCE9.51 %
ROE6.56 %
Face Value 1.00
PEG Ratio6.70

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

View Share Price Target for Inventure Growth & Securities Ltd

Competitors of Inventure Growth & Securities Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Nam Securities Ltd 85.7 Cr. 159198/59.3238 21.20.00 %4.16 %3.05 % 10.0
Naperol Investments Ltd 845 Cr. 1,4702,041/801862 3,2040.00 %0.08 %0.05 % 10.0
Inani Securities Ltd 14.1 Cr. 30.842.0/20.59.70 42.20.00 %10.6 %6.92 % 10.0
HCKK Ventures Ltd 41.4 Cr. 112154/77.4230 11.50.00 %8.17 %6.44 % 10.0
HB Portfolio Ltd 107 Cr. 99.5177/54.314.4 2791.01 %3.34 %2.90 % 10.0
Industry Average3,857.94N/A59.47N/AN/A15.0215.79N/A

All Competitor Stocks of Inventure Growth & Securities Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales7.8417.3013.1710.3513.2410.458.8213.2812.9314.4516.7036.2148.81
Expenses5.615.907.736.428.598.975.5711.6510.648.5415.3134.5941.56
Operating Profit2.2311.405.443.934.651.483.251.632.295.911.391.627.25
OPM %28.44%65.90%41.31%37.97%35.12%14.16%36.85%12.27%17.71%40.90%8.32%4.47%14.85%
Other Income0.910.570.530.981.522.370.520.620.530.500.661.01-1.50
Interest0.240.330.370.170.340.340.410.420.580.490.410.520.77
Depreciation0.140.150.130.160.170.190.210.210.200.190.180.170.18
Profit before tax2.7611.495.474.585.663.323.151.622.045.731.461.944.80
Tax %34.78%30.37%26.51%19.21%27.03%37.05%29.21%11.73%29.41%26.70%50.00%18.04%44.58%
Net Profit1.808.004.023.704.132.092.231.431.444.200.731.592.66
EPS in Rs0.020.100.050.040.050.020.030.020.020.050.010.020.03

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
Sales35.0934.7520.4633.6216.1031.42311.8794.9231.1640.4346.9250.8480.29
Expenses19.0218.8816.7319.9617.3021.26303.3497.7428.0821.1229.7235.7569.08
Operating Profit16.0715.873.7313.66-1.2010.168.53-2.823.0819.3117.2015.0911.21
OPM %45.80%45.67%18.23%40.63%-7.45%32.34%2.74%-2.97%9.88%47.76%36.66%29.68%13.96%
Other Income6.350.660.315.081.403.112.080.37-0.18-0.023.710.152.70
Interest9.356.153.024.745.853.853.251.462.360.721.221.912.00
Depreciation1.091.030.971.311.030.960.790.760.600.570.650.810.74
Profit before tax11.989.350.0512.69-6.688.466.57-4.67-0.0618.0019.0412.5211.17
Tax %31.39%23.96%540.00%19.46%26.50%93.97%31.05%21.20%166.67%30.83%26.79%26.04%
Net Profit8.217.11-0.2210.22-4.900.514.54-3.680.0512.4513.959.267.96
EPS in Rs0.100.08-0.000.12-0.060.010.05-0.040.000.150.170.110.10
Dividend Payout %25.45%0.00%0.00%0.00%0.00%0.00%0.00%-57.07%0.00%0.00%0.00%0.00%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-13.40%-103.09%4745.45%-147.95%110.41%790.20%-181.06%101.36%24800.00%12.05%-33.62%
Change in YoY Net Profit Growth (%)0.00%-89.70%4848.55%-4893.40%258.35%679.79%-971.25%282.42%24698.64%-24787.95%-45.67%

Inventure Growth & Securities 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:12%
5 Years:-8%
3 Years:15%
TTM:41%
Compounded Profit Growth
10 Years:21%
5 Years:42%
3 Years:4%
TTM:107%
Stock Price CAGR
10 Years:5%
5 Years:10%
3 Years:-5%
1 Year:-1%
Return on Equity
10 Years:3%
5 Years:5%
3 Years:6%
Last Year:7%

Last Updated: Unknown

Balance Sheet

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

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital848484848484848484848484105
Reserves8686969292979087101115125138171
Borrowings3523373134263293430323048
Other Liabilities73303036403015303745367590
Total Liabilities279223248243250237221210256275277327414
Fixed Assets1413121118202119171413108
CWIP0000000000000
Investments14171614132112134
Other Assets251193220218230214198190238259263314402
Total Assets279223248243250237221210256275277327414

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +9-147271-27-425-5-17
Cash from Investing Activity +2714-19516-9273-11520
Cash from Financing Activity +-23-1512-81-75-287-291-5
Net Cash Flow13-150-190-676-151-2

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow16.07-19.13-19.27-23.34-32.20-23.84-17.47-34.82-5.92-14.69-12.80-16.91

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 Days9481,02248197146928147053473661
Inventory Days46
Days Payable2070
Cash Conversion Cycle9481,02248197146913-497053473661
Working Capital Days9221,9031,1732,2931,2351202-121-181-214-224-247
ROCE %7%1%8%0%6%5%-2%1%9%9%6%10%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Aug 2024
Promoters27.59%26.40%26.40%26.40%26.40%26.40%26.40%26.40%26.40%26.40%26.40%26.40%
Public72.41%73.60%73.60%73.60%73.60%73.60%73.60%73.60%73.59%73.60%73.60%73.59%
No. of Shareholders1,09,7522,64,3842,56,0012,48,7162,40,8022,33,9462,28,9932,27,9692,27,5692,33,8452,68,3642,74,504

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
FaceValue1.001.001.0010.0010.00
Basic EPS (Rs.)0.140.110.171.480.01
Diluted EPS (Rs.)0.140.110.171.480.01
Cash EPS (Rs.)0.150.110.171.550.07
Book Value[Excl.RevalReserv]/Share (Rs.)2.642.492.3722.0320.39
Book Value[Incl.RevalReserv]/Share (Rs.)2.642.492.3722.0320.39
Revenue From Operations / Share (Rs.)0.700.580.554.663.23
PBDIT / Share (Rs.)0.290.180.232.300.34
PBIT / Share (Rs.)0.280.170.222.230.27
PBT / Share (Rs.)0.210.140.222.14-0.01
Net Profit / Share (Rs.)0.140.110.161.480.01
NP After MI And SOA / Share (Rs.)0.140.110.161.480.01
PBDIT Margin (%)41.1831.2242.7649.3110.68
PBIT Margin (%)39.9829.5641.3847.778.47
PBT Margin (%)30.2625.6540.9145.94-0.19
Net Profit Margin (%)20.1918.9729.9731.770.17
NP After MI And SOA Margin (%)20.1918.9729.9731.770.17
Return on Networth / Equity (%)5.414.436.996.720.02
Return on Capital Employeed (%)10.706.759.489.941.32
Return On Assets (%)3.673.345.074.850.02
Long Term Debt / Equity (X)0.000.020.010.010.01
Total Debt / Equity (X)0.130.150.150.180.05
Asset Turnover Ratio (%)0.190.170.130.120.07
Current Ratio (X)2.984.053.543.364.93
Quick Ratio (X)2.884.053.543.354.90
Interest Coverage Ratio (X)10.727.9816.3426.851.23
Interest Coverage Ratio (Post Tax) (X)7.785.8511.6318.301.02
Enterprise Value (Cr.)73.4739.70200.86170.1035.55
EV / Net Operating Revenue (X)1.240.814.314.341.31
EV / EBITDA (X)3.002.6010.098.8012.26
MarketCap / Net Operating Revenue (X)3.012.866.516.303.55
Price / BV (X)0.800.661.521.330.56
Price / Net Operating Revenue (X)3.012.866.516.303.55
EarningsYield0.060.060.040.050.00

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Inventure Growth & Securities Ltd as of November 21, 2024 is: 2.26

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 21, 2024, Inventure Growth & Securities Ltd is Undervalued by 10.78% compared to the current share price 2.04

Intrinsic Value of Inventure Growth & Securities Ltd as of November 21, 2024 is: 2.30

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 21, 2024, Inventure Growth & Securities Ltd is Undervalued by 12.75% compared to the current share price 2.04

Last 5 Year EPS CAGR: 1.92%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock is trading at a low valuation with an average P/B ratio of 0.63 and average Dividend Yield of 33.43%.
  2. The stock has a low average Working Capital Days of 5.17, which is a positive sign.
  3. The company has higher reserves (105.85 cr) compared to borrowings (30.85 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (63.68 cr) and profit (7.57 cr) over the years.
  1. The stock has a low average ROCE of 5.00%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 258.42, 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 Inventure Growth & Securities Ltd:
    1. Net Profit Margin: 20.19%
      • 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: 10.7% (Industry Average ROCE: 15.02%)
      • 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%: 5.41% (Industry Average ROE: 15.79%)
      • 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): 7.78
      • 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: 2.88
      • 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: 12.9 (Industry average Stock P/E: 59.47)
      • 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: 0.13
      • 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

Inventure Growth & Securities Ltd. is a Public Limited Listed company incorporated on 22/06/1995 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L65990MH1995PLC089838 and registration number is 089838. Currently company belongs to the Industry of Finance & Investments. Company’s Total Operating Revenue is Rs. 32.83 Cr. and Equity Capital is Rs. 84.00 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Finance & Investments201, 2nd Floor, Viraj Towers, Near Landmark, Mumbai Maharashtra 400069investorgrievance@inventuregrowth.com
http://www.inventuregrowth.com
Management
NamePosition Held
Mr. Kanji B RitaChairman & Managing Director
Mr. Surji Damji ChhedaIndependent Director
Mr. Rekhchand Ramdayal ThanviIndependent Director
Mr. Pathik ShahIndependent Director
Mrs. Lasha Meet RitaDirector
Mr. Kamlesh S LimbachiyaWhole Time Director

FAQ

What is the latest intrinsic value of Inventure Growth & Securities Ltd?

The latest intrinsic value of Inventure Growth & Securities Ltd as on 21 November 2024 is ₹2.26, which is 10.78% higher than the current market price of ₹2.04.

What is the Market Cap of Inventure Growth & Securities Ltd?

The Market Cap of Inventure Growth & Securities Ltd is 213 Cr..

What is the current Stock Price of Inventure Growth & Securities Ltd as on 21 November 2024?

The current stock price of Inventure Growth & Securities Ltd as on 21 November 2024 is ₹2.04.

What is the High / Low of Inventure Growth & Securities Ltd stocks in FY 2024?

In FY 2024, the High / Low of Inventure Growth & Securities Ltd stocks is 3.77/2.00.

What is the Stock P/E of Inventure Growth & Securities Ltd?

The Stock P/E of Inventure Growth & Securities Ltd is 12.9.

What is the Book Value of Inventure Growth & Securities Ltd?

The Book Value of Inventure Growth & Securities Ltd is 2.62.

What is the Dividend Yield of Inventure Growth & Securities Ltd?

The Dividend Yield of Inventure Growth & Securities Ltd is 0.00 %.

What is the ROCE of Inventure Growth & Securities Ltd?

The ROCE of Inventure Growth & Securities Ltd is 9.51 %.

What is the ROE of Inventure Growth & Securities Ltd?

The ROE of Inventure Growth & Securities Ltd is 6.56 %.

What is the Face Value of Inventure Growth & Securities Ltd?

The Face Value of Inventure Growth & Securities Ltd is 1.00.

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 Inventure Growth & Securities 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