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Last Updated on: 14 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Kanani Industries Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 10, 2024, 10:56 pm

Market Cap 56.2 Cr.
Current Price 2.84
High / Low7.55/2.50
Stock P/E216
Book Value 3.21
Dividend Yield0.00 %
ROCE1.80 %
ROE0.98 %
Face Value 1.00
PEG Ratio-12.42

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

View Share Price Target for Kanani Industries Ltd

Competitors of Kanani Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Tribhovandas Bhimji Zaveri Ltd (TBZ) 1,690 Cr. 253360/93.028.1 90.10.69 %10.9 %9.33 % 10.0
Moksh Ornaments Ltd 97.1 Cr. 18.129.4/13.514.0 10.70.00 %14.9 %11.6 % 2.00
Lypsa Gems & Jewellery Ltd 22.0 Cr. 7.4512.6/4.64 10.80.00 %60.6 %68.4 % 10.0
Kanani Industries Ltd 56.2 Cr. 2.847.55/2.50216 3.210.00 %1.80 %0.98 % 1.00
Titan Company Ltd 2,85,184 Cr. 3,2123,887/3,05688.0 1100.35 %22.7 %32.9 % 1.00
Industry Average96,929.67 Cr870.9078.6462.300.17%23.00%25.45%5.67

All Competitor Stocks of Kanani Industries Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales84.2987.6473.50101.1173.5642.5595.0165.9747.6561.8681.7365.7922.00
Expenses84.2287.5773.17100.6473.2241.9793.6464.8647.1561.6681.4465.2122.13
Operating Profit0.070.070.330.470.340.581.371.110.500.200.290.58-0.13
OPM %0.08%0.08%0.45%0.46%0.46%1.36%1.44%1.68%1.05%0.32%0.35%0.88%-0.59%
Other Income0.240.420.320.180.070.600.13-0.270.150.110.37-0.080.18
Interest0.140.320.230.300.220.040.170.290.200.260.290.120.15
Depreciation0.020.020.020.020.040.020.020.020.020.020.010.010.00
Profit before tax0.150.150.400.330.151.121.310.530.430.030.360.37-0.10
Tax %13.33%13.33%7.50%12.12%0.00%11.61%4.58%1.89%6.98%166.67%13.89%5.41%20.00%
Net Profit0.120.130.370.290.150.991.250.530.41-0.010.320.34-0.08
EPS in Rs0.010.010.020.010.010.050.060.030.02-0.000.020.02-0.00

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
Sales166292338444496443386344377312291270257
Expenses162291333441493443385340373311289267255
Operating Profit41533-01431232
OPM %2%1%1%1%1%-0%0%1%1%0%1%1%1%
Other Income-11-00021011101
Interest2211111111111
Depreciation0000000000000
Profit before tax1132211231221
Tax %9%8%3%6%9%25%15%7%7%20%10%6%
Net Profit1132201230221
EPS in Rs0.070.100.300.170.190.050.080.220.260.040.180.220.10
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172018-20192019-20202020-20212022-2023
YoY Net Profit Growth (%)0.00%200.00%-33.33%0.00%-100.00%100.00%50.00%-100.00%0.00%
Change in YoY Net Profit Growth (%)0.00%200.00%-233.33%33.33%-100.00%200.00%-50.00%-150.00%100.00%

Kanani Industries Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 9 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:-4%
5 Years:-8%
3 Years:-11%
TTM:-26%
Compounded Profit Growth
10 Years:-17%
5 Years:-22%
3 Years:54%
TTM:-75%
Stock Price CAGR
10 Years:-5%
5 Years:14%
3 Years:-12%
1 Year:-25%
Return on Equity
10 Years:2%
5 Years:2%
3 Years:2%
Last Year:1%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital101010101010101010101020
Reserves323536393940434747495343
Borrowings15263530293537252224316
Other Liabilities8712374917975617355583626
Total Liabilities14319315516915616015115513314113195
Fixed Assets111110100000
CWIP000000000000
Investments000000000000
Other Assets14219215516915615915015413314113095
Total Assets14319315516915616015115513314113195

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 29-7-36-4-7-163-2-219
Cash from Investing Activity 0000-0-0-000-0-00
Cash from Financing Activity -33119-5-162-12-326-26
Net Cash Flow-4461-5-01-6-003-7

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow4.00-14.00-21.00-32.00-27.00-29.00-34.00-33.00-22.00-21.00-22.00-28.00

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 Days1461541029999116115115128128128123
Inventory Days274513132025333022423629
Days Payable10913561676571657265735042
Cash Conversion Cycle65655446557083748597114110
Working Capital Days66675547567184758798116111
ROCE %4%9%4%4%3%1%4%4%1%2%4%2%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters74.83%74.83%71.72%61.35%61.35%61.35%61.35%61.35%61.35%61.35%57.21%38.29%
Public25.17%25.17%28.28%38.65%38.65%38.65%38.64%38.64%38.65%38.65%42.80%61.71%
No. of Shareholders4,1166,1265,65433,32228,51427,06125,87426,01827,42941,80165,33676,380

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
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)0.030.220.180.040.26
Diluted EPS (Rs.)0.030.220.180.040.26
Cash EPS (Rs.)0.030.220.190.050.27
Book Value[Excl.RevalReserv]/Share (Rs.)3.206.335.945.715.71
Book Value[Incl.RevalReserv]/Share (Rs.)3.206.335.945.715.71
Revenue From Operations / Share (Rs.)11.2627.3429.3931.4938.06
PBDIT / Share (Rs.)0.070.330.290.170.38
PBIT / Share (Rs.)0.070.320.280.170.36
PBT / Share (Rs.)0.030.230.200.050.27
Net Profit / Share (Rs.)0.030.210.180.040.25
NP After MI And SOA / Share (Rs.)0.030.210.180.040.25
PBDIT Margin (%)0.651.220.990.571.00
PBIT Margin (%)0.641.190.960.540.96
PBT Margin (%)0.300.850.690.170.72
Net Profit Margin (%)0.270.800.620.140.68
NP After MI And SOA Margin (%)0.270.800.620.140.68
Return on Networth / Equity (%)0.973.463.070.774.53
Return on Capital Employeed (%)2.064.444.702.875.95
Return On Assets (%)0.651.661.280.321.65
Long Term Debt / Equity (X)0.090.160.010.030.07
Total Debt / Equity (X)0.090.500.410.390.44
Asset Turnover Ratio (%)1.980.690.750.630.70
Current Ratio (X)3.682.251.721.781.64
Quick Ratio (X)3.011.801.321.531.32
Inventory Turnover Ratio (X)1.783.295.383.784.00
Interest Coverage Ratio (X)1.913.613.681.564.26
Interest Coverage Ratio (Post Tax) (X)1.813.383.301.393.90
Enterprise Value (Cr.)79.3882.65243.0058.4848.33
EV / Net Operating Revenue (X)0.350.300.830.180.12
EV / EBITDA (X)54.5525.0384.1832.9112.83
MarketCap / Net Operating Revenue (X)0.330.210.760.120.07
Price / BV (X)1.180.943.790.710.48
Price / Net Operating Revenue (X)0.330.210.760.120.07
EarningsYield0.010.030.010.010.09

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Kanani Industries Ltd as of November 14, 2024 is: 6.93

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 14, 2024, Kanani Industries Ltd is Undervalued by 144.01% compared to the current share price 2.84

Intrinsic Value of Kanani Industries Ltd as of November 14, 2024 is: 5.72

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 14, 2024, Kanani Industries Ltd is Undervalued by 101.41% compared to the current share price 2.84

Last 5 Year EPS CAGR: -17.40%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (41.92 cr) compared to borrowings (26.25 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (339.69 cr) and profit (1.69 cr) over the years.
  1. The stock has a low average ROCE of 3.50%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 77.75, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 76.50, 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 Kanani Industries Ltd:
    1. Net Profit Margin: 0.27%
      • 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: 2.06% (Industry Average ROCE: 23%)
      • 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%: 0.97% (Industry Average ROE: 25.45%)
      • 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): 1.81
      • 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: 3.01
      • 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: 216 (Industry average Stock P/E: 78.64)
      • 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

Kanani Industries Ltd. is a Public Limited Listed company incorporated on 22/03/1983 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L51900MH1983PLC029598 and registration number is 029598. Currently Company is involved in the business activities of Manufacture of jewellery and related articles. Company’s Total Operating Revenue is Rs. 84.56 Cr. and Equity Capital is Rs. 9.89 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Gems, Jewellery & Precious MetalsGE 1080, Bharat Diamond Bourse, Mumbai Maharashtra 400051info@kananiindustries.com
http://www.kananiindustries.com
Management
NamePosition Held
Mr. Premjibhai D KananiChairman & Wholetime Director
Mr. Harshil P KananiManaging Director
Mr. Darsh Lavjibhai KananiNon Exe.Non Ind.Director
Mr. Tejas ChoksiIndependent Director
Mr. Satyam JaiswalIndependent Director
Mrs. Shiwaginee JaiswalIndependent Director

FAQ

What is the latest intrinsic value of Kanani Industries Ltd?

The latest intrinsic value of Kanani Industries Ltd as on 13 November 2024 is ₹6.93, which is 144.01% higher than the current market price of ₹2.84.

What is the Market Cap of Kanani Industries Ltd?

The Market Cap of Kanani Industries Ltd is 56.2 Cr..

What is the current Stock Price of Kanani Industries Ltd as on 13 November 2024?

The current stock price of Kanani Industries Ltd as on 13 November 2024 is ₹2.84.

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

In FY 2024, the High / Low of Kanani Industries Ltd stocks is 7.55/2.50.

What is the Stock P/E of Kanani Industries Ltd?

The Stock P/E of Kanani Industries Ltd is 216.

What is the Book Value of Kanani Industries Ltd?

The Book Value of Kanani Industries Ltd is 3.21.

What is the Dividend Yield of Kanani Industries Ltd?

The Dividend Yield of Kanani Industries Ltd is 0.00 %.

What is the ROCE of Kanani Industries Ltd?

The ROCE of Kanani Industries Ltd is 1.80 %.

What is the ROE of Kanani Industries Ltd?

The ROE of Kanani Industries Ltd is 0.98 %.

What is the Face Value of Kanani Industries Ltd?

The Face Value of Kanani Industries 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 Kanani 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