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Last Updated on: 24 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Kakatiya Cement Sugar & Industries Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 22, 2024, 10:03 pm

Market Cap 137 Cr.
Current Price 176
High / Low278/163
Stock P/E
Book Value 286
Dividend Yield1.70 %
ROCE1.10 %
ROE0.65 %
Face Value 10.0
PEG Ratio0.00

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

View Share Price Target for Kakatiya Cement Sugar & Industries Ltd

Competitors of Kakatiya Cement Sugar & Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Bheema Cements Ltd 77.1 Cr. 23.635.3/21.0 13.20.00 %11.8 %56.4 % 10.0
UltraTech Cement Ltd 3,28,403 Cr. 11,37512,138/8,58350.0 2,1260.62 %15.1 %12.2 % 10.0
The Ramco Cements Ltd 22,328 Cr. 9451,058/70080.9 3020.26 %8.17 %5.63 % 1.00
The India Cements Ltd 11,040 Cr. 356386/173 1700.00 %0.78 %4.81 % 10.0
Star Cement Ltd 7,272 Cr. 180256/16236.8 67.90.00 %16.5 %11.5 % 1.00
Industry Average32,923.86 Cr1,789.9635.16530.040.62%11.13%16.10%7.13

All Competitor Stocks of Kakatiya Cement Sugar & Industries Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales33.9427.0636.2036.5842.7638.8734.0633.6940.5645.8440.3437.7347.03
Expenses38.7624.0027.4727.7637.9838.8535.2140.9841.9155.2743.0637.1950.06
Operating Profit-4.823.068.738.824.780.02-1.15-7.29-1.35-9.43-2.720.54-3.03
OPM %-14.20%11.31%24.12%24.11%11.18%0.05%-3.38%-21.64%-3.33%-20.57%-6.74%1.43%-6.44%
Other Income2.681.882.552.582.552.062.653.132.6013.172.692.832.68
Interest0.380.640.390.250.110.510.500.530.783.891.121.101.18
Depreciation0.640.630.570.570.570.560.560.560.580.560.590.590.60
Profit before tax-3.163.6710.3210.586.651.010.44-5.25-0.11-0.71-1.741.68-2.13
Tax %1.58%153.95%36.63%28.36%26.77%62.38%47.73%-1.71%54.55%147.89%0.57%-7.74%-32.86%
Net Profit-3.10-1.986.547.574.860.380.24-5.34-0.050.34-1.731.80-2.84
EPS in Rs-3.99-2.558.419.746.250.490.31-6.87-0.060.44-2.232.32-3.65

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
Sales169184201155210220157111156123154154164
Expenses136156186136183179150112156114132173177
Operating Profit3328141828417-10822-19-13
OPM %19%15%7%12%13%19%5%-1%0%7%14%-12%-8%
Other Income433368121355102221
Interest0001222632167
Depreciation7772222223222
Profit before tax29249173045154-0929-6-1
Tax %30%33%4%19%26%36%29%-39%-356%86%32%21%
Net Profit21169142229105-1119-40
EPS in Rs26.4320.7211.3718.1528.5337.0913.486.64-0.941.6124.90-5.740.47
Dividend Payout %10%13%24%15%9%8%22%45%-319%186%12%-52%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-23.81%-43.75%55.56%57.14%31.82%-65.52%-50.00%-120.00%200.00%1800.00%-121.05%
Change in YoY Net Profit Growth (%)0.00%-19.94%99.31%1.59%-25.32%-97.34%15.52%-70.00%320.00%1600.00%-1921.05%

Kakatiya Cement Sugar & Industries 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:-2%
5 Years:7%
3 Years:8%
TTM:-21%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:%
TTM:-731%
Stock Price CAGR
10 Years:5%
5 Years:4%
3 Years:-7%
1 Year:-21%
Return on Equity
10 Years:5%
5 Years:2%
3 Years:2%
Last Year:-1%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 9:33 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital8888888888888
Reserves158165174194208212214212211228221217214
Borrowings0133527416680503135839482
Other Liabilities31252554403032455142333227
Total Liabilities197210242282297316333315300313345351331
Fixed Assets67616058565553514947464746
CWIP0000000000000
Investments0000000000000
Other Assets130148182224241261280264251265299304285
Total Assets197210242282297316333315300313345351331

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +2-0-13432915-262713-71-38-13
Cash from Investing Activity +101-36-381571170-29
Cash from Financing Activity +-3928-12122211-35-241403
Net Cash Flow-09172847-1-0-10-01-1

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow33.0028.001.00-17.001.000.00-59.00-81.00-50.00-23.00-13.00-102.00

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 Days242225261928352935344342
Inventory Days648466811454355249722312471396523449
Days Payable925472912211253859408582
Cash Conversion Cycle580434764389352267733304446390480410
Working Capital Days167161275159155180324140121128209192
ROCE %15%6%9%14%19%6%3%3%6%11%0%1%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters54.26%54.26%54.26%54.26%53.85%53.85%54.25%54.25%54.25%54.25%54.25%54.25%
FIIs0.00%0.12%0.11%0.02%0.02%0.11%0.00%0.00%0.06%0.05%0.01%0.00%
DIIs0.00%0.01%0.01%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Public45.74%45.62%45.63%45.72%46.12%46.04%45.76%45.75%45.69%45.70%45.75%45.75%
No. of Shareholders26,37326,02125,50825,04625,12824,23523,91223,74823,33422,77122,08921,776

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.)-1.73-5.7424.911.61-0.93
Diluted EPS (Rs.)-1.73-5.7424.911.61-0.93
Cash EPS (Rs.)1.34-2.8427.824.862.19
Book Value[Excl.RevalReserv]/Share (Rs.)289.75294.29303.20281.13282.52
Book Value[Incl.RevalReserv]/Share (Rs.)289.75294.29303.20281.13282.52
Dividend / Share (Rs.)3.003.003.003.003.00
Revenue From Operations / Share (Rs.)200.61198.29198.62157.97201.27
PBDIT / Share (Rs.)7.713.0041.2724.8615.30
PBIT / Share (Rs.)4.640.0938.3521.6212.17
PBT / Share (Rs.)-1.96-7.2436.7311.70-0.20
Net Profit / Share (Rs.)-1.73-5.7424.911.61-0.93
PBDIT Margin (%)3.841.5120.7715.747.60
PBIT Margin (%)2.310.0419.3013.686.04
PBT Margin (%)-0.97-3.6518.497.40-0.10
Net Profit Margin (%)-0.86-2.8912.531.02-0.46
Return on Networth / Equity (%)-0.59-1.958.210.57-0.33
Return on Capital Employeed (%)1.540.0312.157.354.12
Return On Assets (%)-0.38-1.296.200.41-0.23
Total Debt / Equity (X)0.410.360.140.140.22
Asset Turnover Ratio (%)0.440.460.500.390.48
Current Ratio (X)1.881.541.782.893.08
Quick Ratio (X)1.350.931.042.232.41
Inventory Turnover Ratio (X)0.790.990.910.580.63
Dividend Payout Ratio (NP) (%)-173.45-52.2312.04186.04-387.27
Dividend Payout Ratio (CP) (%)223.31-105.7610.7861.72165.05
Earning Retention Ratio (%)273.45152.2387.96-86.04487.27
Cash Earning Retention Ratio (%)-123.31205.7689.2238.28-65.05
Interest Coverage Ratio (X)1.170.4025.428.593.80
Interest Coverage Ratio (Post Tax) (X)0.730.2116.343.982.85
Enterprise Value (Cr.)134.58184.99174.9738.56-26.29
EV / Net Operating Revenue (X)0.861.201.130.31-0.16
EV / EBITDA (X)22.4579.185.451.99-2.21
MarketCap / Net Operating Revenue (X)1.000.951.121.070.55
Retention Ratios (%)273.45152.2387.95-86.04487.27
Price / BV (X)0.690.640.730.600.39
Price / Net Operating Revenue (X)1.000.951.121.070.55
EarningsYield-0.01-0.030.110.01-0.01

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Kakatiya Cement Sugar & Industries Ltd as of November 24, 2024 is: 28.36

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 24, 2024, Kakatiya Cement Sugar & Industries Ltd is Overvalued by 83.89% compared to the current share price 176.00

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

Intrinsic Value of Kakatiya Cement Sugar & Industries Ltd as of November 24, 2024 is: 33.82

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 24, 2024, Kakatiya Cement Sugar & Industries Ltd is Overvalued by 80.78% compared to the current share price 176.00

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

Last 5 Year EPS CAGR: 19.23%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (202.15 cr) compared to borrowings (49.00 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (166.00 cr) and profit (15.69 cr) over the years.
  1. The stock has a low average ROCE of 7.75%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 184.25, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 462.42, 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 Kakatiya Cement Sugar & Industries Ltd:
    1. Net Profit Margin: -0.86%
      • 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: 1.54% (Industry Average ROCE: 11.13%)
      • 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%: -0.59% (Industry Average ROE: 16.1%)
      • 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): 0.73
      • 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: 1.35
      • 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: 35.16)
      • 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: 0.41
      • 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

Kakatiya Cement Sugar & Industries Ltd. is a Public Limited Listed company incorporated on 07/07/1979 and has its registered office in the State of Andhra Pradesh, India. Company’s Corporate Identification Number(CIN) is L26942TG1979PLC002485 and registration number is 002485. Currently company belongs to the Industry of Cement. Company’s Total Operating Revenue is Rs. 154.40 Cr. and Equity Capital is Rs. 7.77 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Cement1-10-140/1, Gurukrupa, Hyderabad Telangana 500020info@kakatiyacements.com
http://www.kakatiyacements.com
Management
NamePosition Held
Mr. P VeeraiahChairman & Managing Director
Mr. J S RaoNon Executive Director
Mrs. M VaralakshmiNon Executive Director
Mr. V Sivarama Krishna MurthyIndependent Director
Mrs. Hima Bindu MyneniIndependent Director
Mr. K Rama RaoIndependent Director

FAQ

What is the latest intrinsic value of Kakatiya Cement Sugar & Industries Ltd?

The latest intrinsic value of Kakatiya Cement Sugar & Industries Ltd as on 23 November 2024 is ₹28.36, which is 83.89% lower than the current market price of ₹176.00.

What is the Market Cap of Kakatiya Cement Sugar & Industries Ltd?

The Market Cap of Kakatiya Cement Sugar & Industries Ltd is 137 Cr..

What is the current Stock Price of Kakatiya Cement Sugar & Industries Ltd as on 23 November 2024?

The current stock price of Kakatiya Cement Sugar & Industries Ltd as on 23 November 2024 is 176.

What is the High / Low of Kakatiya Cement Sugar & Industries Ltd stocks in FY 2024?

In FY 2024, the High / Low of Kakatiya Cement Sugar & Industries Ltd stocks is 278/163.

What is the Stock P/E of Kakatiya Cement Sugar & Industries Ltd?

The Stock P/E of Kakatiya Cement Sugar & Industries Ltd is .

What is the Book Value of Kakatiya Cement Sugar & Industries Ltd?

The Book Value of Kakatiya Cement Sugar & Industries Ltd is 286.

What is the Dividend Yield of Kakatiya Cement Sugar & Industries Ltd?

The Dividend Yield of Kakatiya Cement Sugar & Industries Ltd is 1.70 %.

What is the ROCE of Kakatiya Cement Sugar & Industries Ltd?

The ROCE of Kakatiya Cement Sugar & Industries Ltd is 1.10 %.

What is the ROE of Kakatiya Cement Sugar & Industries Ltd?

The ROE of Kakatiya Cement Sugar & Industries Ltd is 0.65 %.

What is the Face Value of Kakatiya Cement Sugar & Industries Ltd?

The Face Value of Kakatiya Cement Sugar & Industries 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 Kakatiya Cement Sugar & Industries 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