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Last Updated on: 05 October, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

ISMT Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: August 6, 2024, 11:14 pm

Market Cap 3,612 Cr.
Current Price 120
High / Low158/68.2
Stock P/E20.8
Book Value 54.4
Dividend Yield0.42 %
ROCE17.9 %
ROE12.1 %
Face Value 5.00
PEG Ratio0.24
No data available for this post.

Competitors of ISMT Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Ashiana Ispat Ltd 43.0 Cr. 54.062.6/27.08.49 48.60.00 %7.41 %1.79 % 10.0
Ahmedabad Steelcraft Ltd 457 Cr. 303303/22.2 56.50.00 %18.1 %16.9 % 10.0
Sunflag Iron & Steel Company Ltd 4,130 Cr. 229275/15928.4 2870.00 %5.69 %3.37 % 10.0
Kalyani Steels Ltd 3,787 Cr. 8671,083/42415.9 3871.15 %16.6 %15.5 % 5.00
ISMT Ltd 3,612 Cr. 120158/68.220.8 54.40.42 %17.9 %12.1 % 5.00
Industry Average2,996.50 Cr314.6018.40166.700.31%13.14%9.93%8.00

All Competitor Stocks of ISMT Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales384459479567534581623709598650657749642
Expenses371517454540520587588649540587577626538
Operating Profit13-58252714-63560586381122105
OPM %3%-13%5%5%3%-1%6%9%10%10%12%16%16%
Other Income11272732,52133422-128
Interest6666686670-1905852432
Depreciation16151516161614141418132223
Profit before tax-58-112-56-48-692,68919424345678587
Tax %0%-0%-0%0%0%5%-7%27%32%81%39%39%29%
Net Profit-58-112-56-48-692,5462030298415162
EPS in Rs-3.94-7.66-3.80-3.25-4.7084.740.671.010.960.281.351.712.06

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
Sales2,0351,6201,5961,5231,0151,2041,5581,8541,3251,2522,1612,5802,655
Expenses1,8191,4741,5201,4951,0111,1581,4781,7381,2481,2662,1012,3632,331
Operating Profit21614775284458011678-1460217324
OPM %11%9%5%2%0%4%5%6%6%-1%3%8%12%
Other Income25-46-599-321015-1820-22,53312-4
Interest126158187239282270277278275263132214
Depreciation9010110979756661576664625966
Profit before tax25-158-226-191-385-282-244-237-242-3422,517149239
Tax %-0%21%14%2%-2%-0%0%0%1%-0%6%41%
Net Profit25-124-194-188-395-282-243-237-240-3432,37488129
EPS in Rs1.72-8.47-13.25-12.84-26.95-19.23-16.57-16.18-16.41-23.3879.012.924.30
Dividend Payout %44%0%0%0%0%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-596.00%-56.45%3.09%-110.11%28.61%13.83%2.47%-1.27%-42.92%792.13%-96.29%
Change in YoY Net Profit Growth (%)0.00%539.55%59.54%-113.20%138.71%-14.78%-11.36%-3.73%-41.65%835.04%-888.42%

ISMT 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:5%
5 Years:7%
3 Years:28%
TTM:-2%
Compounded Profit Growth
10 Years:12%
5 Years:24%
3 Years:39%
TTM:59%
Stock Price CAGR
10 Years:19%
5 Years:101%
3 Years:61%
1 Year:57%
Return on Equity
10 Years:%
5 Years:%
3 Years:%
Last Year:12%

Last Updated: Unknown

Balance Sheet

Last Updated: September 15, 2024, 3:26 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital737373737373737373150150150
Reserves358144171-191-478-719-943-1,188-1,5311,2361,3281,483
Borrowings1,3751,6101,7342,1162,2032,2152,1972,1382,09620984164
Other Liabilities1,0169207824876448641,1151,3761,670359380383
Total Liabilities2,8232,7472,7592,4862,4432,4332,4432,3992,3081,9551,9422,180
Fixed Assets1,4371,4061,6551,6011,2691,2241,4421,4231,3641,1261,019987
CWIP99919794172919442419261
Investments000-000-0-0-0-0-0-0
Other Assets1,2871,2491,0077901,1571,207909882901825904932
Total Assets2,8232,7472,7592,4862,4432,4332,4432,3992,3081,9551,9422,180

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 1208669-245-7131801091610492161
Cash from Investing Activity -71-2314-7-11-2210-035-238
Cash from Financing Activity -83-8-82200-46-13-50-101-46-84-15257
Net Cash Flow-3555-12-40-1241730-13-2020-25-20

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow216.00146.0074.0027.002.0043.0078.00114.0076.00-16.00-149.00133.00

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 Days766846656053495580484443
Inventory Days259236192232215152129211181129126147
Days Payable3092832161499148385967635532
Cash Conversion Cycle262122149184158141207193114115158
Working Capital Days-31-56-56-50-36-134-253-461-281747378
ROCE %4%-1%-2%-3%-1%2%5%2%-3%2%11%18%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters48.61%48.61%74.95%74.95%74.95%74.95%74.95%74.95%74.95%74.95%74.95%74.95%
FIIs1.04%0.36%0.19%0.18%0.08%0.00%0.03%0.02%0.10%0.07%0.09%0.19%
DIIs0.04%0.04%0.02%0.01%0.02%0.02%0.11%0.28%0.31%0.31%0.31%0.31%
Government0.00%0.00%0.00%0.00%0.00%0.01%0.01%0.00%0.00%0.00%0.00%0.00%
Public50.31%50.99%24.84%24.86%24.96%25.03%24.90%24.76%24.64%24.67%24.66%24.56%
No. of Shareholders70,57073,73073,25572,70572,87374,38681,73879,43380,30183,64986,35988,369

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.)5.782.92152.40-23.38-16.41
Diluted EPS (Rs.)5.782.92152.40-23.38-16.41
Cash EPS (Rs.)8.684.8781.08-19.62-12.54
Book Value[Excl.RevalReserv]/Share (Rs.)54.3743.0139.81-112.76-89.57
Book Value[Incl.RevalReserv]/Share (Rs.)54.3749.1846.14-99.52-76.07
Revenue From Operations / Share (Rs.)88.0085.8671.9085.4490.47
PBDIT / Share (Rs.)12.927.832.742.306.09
PBIT / Share (Rs.)10.015.880.65-2.071.62
PBT / Share (Rs.)8.904.9483.76-23.98-17.15
Net Profit / Share (Rs.)5.772.9279.00-23.99-17.01
NP After MI And SOA / Share (Rs.)5.782.9279.01-23.38-16.41
PBDIT Margin (%)14.679.113.802.686.73
PBIT Margin (%)11.376.840.91-2.421.78
PBT Margin (%)10.105.75116.49-28.06-18.95
Net Profit Margin (%)6.563.40109.88-28.07-18.80
NP After MI And SOA Margin (%)6.563.40109.88-27.36-18.14
Return on Networth / Equity (%)10.626.78198.450.000.00
Return on Capital Employeed (%)17.6811.471.372.19-2.53
Return On Assets (%)7.964.51121.46-14.84-10.02
Long Term Debt / Equity (X)0.000.000.00-0.03-0.12
Total Debt / Equity (X)0.090.050.17-0.64-0.90
Asset Turnover Ratio (%)1.281.301.010.520.53
Current Ratio (X)1.852.161.560.190.21
Quick Ratio (X)0.780.970.710.100.09
Inventory Turnover Ratio (X)2.553.053.281.851.94
Interest Coverage Ratio (X)34.3810.855.750.120.32
Interest Coverage Ratio (Post Tax) (X)18.335.34-8.60-0.110.09
Enterprise Value (Cr.)2766.682253.291649.251183.641148.35
EV / Net Operating Revenue (X)1.050.870.760.940.86
EV / EBITDA (X)7.139.5820.0535.1512.87
MarketCap / Net Operating Revenue (X)0.980.850.690.120.02
Price / BV (X)1.601.711.25-0.09-0.02
Price / Net Operating Revenue (X)0.980.850.690.120.02
EarningsYield0.060.031.58-2.19-6.29

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of ISMT Ltd as of October 5, 2024 is: ₹137.49

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 5, 2024, ISMT Ltd is Undervalued by 14.58% compared to the current share price ₹120.00

Intrinsic Value of ISMT Ltd as of October 5, 2024 is: ₹254.45

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 5, 2024, ISMT Ltd is Undervalued by 112.04% compared to the current share price ₹120.00

Last 5 Year EPS CAGR: 85.07%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -94.42, which is a positive sign.
  1. The stock has a low average ROCE of 2.83%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 124.00, which may not be favorable.
  3. The company has higher borrowings (1,511.75) compared to reserves (-27.50), which may suggest financial risk.
  4. The company has not shown consistent growth in sales (1.31) and profit (-145.54).

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 ISMT Ltd:
    1. Net Profit Margin: 6.56%
      • 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: 17.68% (Industry Average ROCE: 13.14%)
      • 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%: 10.62% (Industry Average ROE: 9.93%)
      • 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): 18.33
      • 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: 0.78
      • 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: 20.8 (Industry average Stock P/E: 18.4)
      • 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: 0.09
      • 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

ISMT Ltd. is a Public Limited Listed company incorporated on 01/09/1999 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L27109PN1999PLC016417 and registration number is 016417. Currently Company is involved in the business activities of Manufacture of tubes, pipes and hollow profiles and of tube or pipe fittings of cast-iron/cast-steel. Company’s Total Operating Revenue is Rs. 2152.54 Cr. and Equity Capital is Rs. 150.25 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Steel - RollingPanama House, Viman Nagar, Pune Maharashtra 411014secretarial@ismt.co.in
http://www.ismt.com
Management
NamePosition Held
Mr. Rahul KirloskarChairman
Mr. Ravindranath GumasteVice Chairman
Mr. Nishikant EktareManaging Director
Mr. M KanakrajDirector
Mr. S VenkataramaniDirector
Dr. Shalini SarinDirector

FAQ

What is the latest fair value of ISMT Ltd?

The latest fair value of ISMT Ltd is ₹137.49.

What is the Market Cap of ISMT Ltd?

The Market Cap of ISMT Ltd is 3,612 Cr..

What is the current Stock Price of ISMT Ltd as on 20 August 2024?

The current stock price of ISMT Ltd as on 20 August 2024 is 120.

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

In FY 2024, the High / Low of ISMT Ltd stocks is 158/68.2.

What is the Stock P/E of ISMT Ltd?

The Stock P/E of ISMT Ltd is 20.8.

What is the Book Value of ISMT Ltd?

The Book Value of ISMT Ltd is 54.4.

What is the Dividend Yield of ISMT Ltd?

The Dividend Yield of ISMT Ltd is 0.42 %.

What is the ROCE of ISMT Ltd?

The ROCE of ISMT Ltd is 17.9 %.

What is the ROE of ISMT Ltd?

The ROE of ISMT Ltd is 12.1 %.

What is the Face Value of ISMT Ltd?

The Face Value of ISMT 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 ISMT 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