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Last Updated on: 12 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo

Kalyani Steels Ltd: Share Price Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: December 11, 2024, 10:46 pm

Market Cap 4,439 Cr.
Current Price 1,019
High / Low1,083/427
Stock P/E18.0
Book Value 404
Dividend Yield0.98 %
ROCE16.6 %
ROE15.5 %
Face Value 5.00
PEG Ratio1.68

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

View Share Price Target for Kalyani Steels Ltd

Competitors of Kalyani Steels Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Ashiana Ispat Ltd 36.0 Cr. 45.262.6/28.0 46.40.00 %7.41 %1.79 % 10.0
Ahmedabad Steelcraft Ltd 448 Cr. 297391/26.22,801 29.60.00 %18.1 %16.9 % 10.0
Sunflag Iron & Steel Company Ltd 4,635 Cr. 260275/17531.4 3850.00 %5.69 %3.37 % 10.0
Kalyani Steels Ltd 4,439 Cr. 1,0191,083/42718.0 4040.98 %16.6 %15.5 % 5.00
ISMT Ltd 3,612 Cr. 120158/80.620.8 54.40.42 %17.9 %12.1 % 5.00
Industry Average3,283.50 Cr348.24717.80183.880.28%13.14%9.93%8.00

All Competitor Stocks of Kalyani Steels Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales368377390461407449493500447460497480480
Expenses284273294375346352457449390358404387384
Operating Profit8410496866197365157102929396
OPM %23%28%25%19%15%22%7%10%13%22%19%19%20%
Other Income912121312101313161512912
Interest1333335699795
Depreciation11111111121212121213161515
Profit before tax811029383589132465295827888
Tax %25%26%25%26%26%25%26%25%25%26%26%26%25%
Net Profit60767062436824353970615865
EPS in Rs13.8617.3816.0214.159.8015.675.417.938.9515.9714.0313.3614.97

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
Sales9768091,1161,2261,1801,2571,3451,4071,1991,1881,7061,8991,883
Expenses9347329871,0599459701,1421,1941,0049251,3671,6541,539
Operating Profit4377129168235288203212195263339246344
OPM %4%9%12%14%20%23%15%15%16%22%20%13%18%
Other Income27712231317252343465653
Interest2122171512109787132833
Depreciation26243431525237384344464956
Profit before tax223889124174239175192168255326225307
Tax %2%37%35%33%35%35%34%31%18%25%25%26%
Net Profit22245983114156115132137190243167228
EPS in Rs5.055.4713.4219.0826.0235.8526.3230.2531.4143.5955.6538.2652.31
Dividend Payout %20%27%22%0%0%14%19%17%16%17%18%26%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)9.09%145.83%40.68%37.35%36.84%-26.28%14.78%3.79%38.69%27.89%-31.28%
Change in YoY Net Profit Growth (%)0.00%136.74%-105.16%-3.33%-0.51%-63.12%41.06%-10.99%34.90%-10.79%-59.17%

Kalyani Steels 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:6%
5 Years:7%
3 Years:18%
TTM:3%
Compounded Profit Growth
10 Years:15%
5 Years:15%
3 Years:9%
TTM:8%
Stock Price CAGR
10 Years:22%
5 Years:35%
3 Years:45%
1 Year:120%
Return on Equity
10 Years:17%
5 Years:16%
3 Years:15%
Last Year:16%

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 Capital22222222222222222222222222
Reserves3333764545686807638699421,1321,3461,4681,6701,743
Borrowings170206219327239169180168438506596560
Other Liabilities311430390338421325422400328551355297425
Total Liabilities8361,0351,0841,2551,3611,2781,3301,3641,6502,3562,3512,5842,750
Fixed Assets337339442488436437422418382358599734705
CWIP141013055551115418381403
Investments493177249234280366177144147146145171
Other Assets4366545525176865575377631,1131,6961,5871,3241,471
Total Assets8361,0351,0841,2551,3611,2781,3301,3641,6502,3562,3512,5842,750

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +1323911416115219128625762263-126302
Cash from Investing Activity +-87-43-107-255-38-77-117-183-226-470153-304
Cash from Financing Activity +-5512-1997-98-105-181-80160218-3912
Net Cash Flow-108-1221610-12-6-311-129

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow43.00-93.00-77.00-51.00-92.0049.0034.00194.00195.0095.00-99.00-260.00

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 Days8110898107135102807277897878
Inventory Days103112979081537174718210066
Days Payable121160131120147881531841401728167
Cash Conversion Cycle636064776967-1-397-19777
Working Capital Days717576786553251135359480
ROCE %11%19%21%23%27%19%20%19%23%22%13%17%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters64.71%64.71%64.71%64.69%64.70%64.70%64.70%64.70%64.70%64.70%64.70%64.70%
FIIs3.05%3.04%0.00%3.06%2.88%2.88%2.89%2.85%2.73%2.71%2.54%2.45%
DIIs9.13%9.14%9.13%9.13%9.14%9.14%9.04%9.26%8.75%9.37%12.18%12.03%
Public23.11%23.11%26.15%23.12%23.29%23.28%23.39%23.18%23.81%23.21%20.59%20.82%
No. of Shareholders45,67944,20444,49643,81143,09442,59442,39041,83642,75742,13545,77746,153

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
DSP Small Cap Fund3,753,1851.46172.3866,9792024-12-115503.52%
JM Value Fund66,9791.073.0866,9792024-12-110%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 22Mar 21Mar 20Mar 19
FaceValue5.005.005.005.005.00
Basic EPS (Rs.)56.9955.9343.5931.2930.17
Diluted EPS (Rs.)56.9955.9343.5931.2930.17
Cash EPS (Rs.)70.7967.1453.5440.4338.83
Book Value[Excl.RevalReserv]/Share (Rs.)384.18312.72262.85219.41202.32
Book Value[Incl.RevalReserv]/Share (Rs.)384.18312.72262.85219.41202.32
Revenue From Operations / Share (Rs.)448.11390.15271.69274.18321.67
PBDIT / Share (Rs.)95.5589.1969.9749.6651.60
PBIT / Share (Rs.)81.6678.7059.8739.9042.81
PBT / Share (Rs.)76.1875.6158.2537.7043.87
Net Profit / Share (Rs.)56.8956.6543.4530.6630.04
NP After MI And SOA / Share (Rs.)56.8955.8343.5131.2430.12
PBDIT Margin (%)21.3222.8625.7518.1116.04
PBIT Margin (%)18.2220.1722.0314.5513.30
PBT Margin (%)16.9919.3821.4413.7513.63
Net Profit Margin (%)12.6914.5215.9911.189.34
NP After MI And SOA Margin (%)12.6914.3116.0111.399.36
Return on Networth / Equity (%)14.8017.8516.4914.1814.79
Return on Capital Employeed (%)19.9221.6421.6117.2819.84
Return On Assets (%)9.6610.8111.5210.019.55
Long Term Debt / Equity (X)0.040.130.020.000.01
Total Debt / Equity (X)0.350.240.150.000.01
Asset Turnover Ratio (%)0.000.870.780.871.06
Current Ratio (X)1.762.332.342.211.78
Quick Ratio (X)1.392.012.071.861.43
Inventory Turnover Ratio (X)0.005.764.464.186.01
Dividend Payout Ratio (NP) (%)17.5413.410.0031.9516.57
Dividend Payout Ratio (CP) (%)14.1011.280.0024.3412.82
Earning Retention Ratio (%)82.4686.590.0068.0583.43
Cash Earning Retention Ratio (%)85.9088.720.0075.6687.18
Interest Coverage Ratio (X)16.1928.9043.1522.6030.90
Interest Coverage Ratio (Post Tax) (X)10.5719.3627.7914.9617.36
Enterprise Value (Cr.)3779.81660.30936.91191.74904.66
EV / Net Operating Revenue (X)1.930.380.780.150.64
EV / EBITDA (X)9.051.693.060.884.01
MarketCap / Net Operating Revenue (X)1.910.751.170.450.66
Retention Ratios (%)82.4586.580.0068.0483.42
Price / BV (X)2.220.941.210.571.06
Price / Net Operating Revenue (X)1.910.751.170.450.66
EarningsYield0.060.180.130.240.13

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Kalyani Steels Ltd as of December 12, 2024 is: 1,138.21

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 12, 2024, Kalyani Steels Ltd is Undervalued by 11.70% compared to the current share price 1,019.00

Intrinsic Value of Kalyani Steels Ltd as of December 12, 2024 is: 1,260.45

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 December 12, 2024, Kalyani Steels Ltd is Undervalued by 23.69% compared to the current share price 1,019.00

Last 5 Year EPS CAGR: 10.74%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 19.50%, which is a positive sign.
  2. The company has higher reserves (949.54 cr) compared to borrowings (278.15 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (138.15 cr) and profit (179.54 cr) over the years.
  1. The stock has a high average Working Capital Days of 58.17, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 45.00, 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 Kalyani Steels Ltd:
    1. Net Profit Margin: 12.69%
      • 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: 19.92% (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%: 14.8% (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): 10.57
      • 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: 1.39
      • 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: 18 (Industry average Stock P/E: 574.24)
      • 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: 0.35
      • 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

Kalyani Steels Ltd. is a Public Limited Listed company incorporated on 28/02/1973 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L27104MH1973PLC016350 and registration number is 016350. Currently Company is involved in the business activities of Manufacture of basic iron and steel. Company’s Total Operating Revenue is Rs. 1706.03 Cr. and Equity Capital is Rs. 21.86 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Steel - RollingMundhwa, Pune Maharashtra 411036investor@kalyanisteels.com
http://www.kalyanisteels.com
Management
NamePosition Held
Mr. B N KalyaniChairman
Mr. R K GoyalManaging Director
Mrs. Sunita B KalyaniNon Executive Director
Mr. Amit B KalyaniNon Executive Director
Mr. S M KhenyNon Executive Director
Mr. B B HattarkiIndependent Director
Mr. M U TakaleIndependent Director
Mr. Arun P PawarIndependent Director
Mr. S K AdivarekarIndependent Director
Mr. S K MandlikIndependent Director
Mrs. Shruti Anup ShahIndependent Director
Mr. Ahmad JavedIndependent Director

FAQ

What is the latest intrinsic value of Kalyani Steels Ltd?

The latest intrinsic value of Kalyani Steels Ltd as on 12 December 2024 is ₹1138.21, which is 11.70% higher than the current market price of ₹1,019.00. The stock has a market capitalization of 4,439 Cr. and recorded a high/low of ₹1,083/427 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹1,743 Cr and total liabilities of ₹2,750 Cr.

What is the Market Cap of Kalyani Steels Ltd?

The Market Cap of Kalyani Steels Ltd is 4,439 Cr..

What is the current Stock Price of Kalyani Steels Ltd as on 12 December 2024?

The current stock price of Kalyani Steels Ltd as on 12 December 2024 is 1,019.

What is the High / Low of Kalyani Steels Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Kalyani Steels Ltd stocks is 1,083/427.

What is the Stock P/E of Kalyani Steels Ltd?

The Stock P/E of Kalyani Steels Ltd is 18.0.

What is the Book Value of Kalyani Steels Ltd?

The Book Value of Kalyani Steels Ltd is 404.

What is the Dividend Yield of Kalyani Steels Ltd?

The Dividend Yield of Kalyani Steels Ltd is 0.98 %.

What is the ROCE of Kalyani Steels Ltd?

The ROCE of Kalyani Steels Ltd is 16.6 %.

What is the ROE of Kalyani Steels Ltd?

The ROE of Kalyani Steels Ltd is 15.5 %.

What is the Face Value of Kalyani Steels Ltd?

The Face Value of Kalyani Steels 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 Kalyani Steels 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