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Last Updated on: 18 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Kanoria Chemicals & Industries Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 18, 2024, 5:47 pm

Market Cap 479 Cr.
Current Price 110
High / Low178/101
Stock P/E
Book Value 131
Dividend Yield0.00 %
ROCE0.64 %
ROE6.36 %
Face Value 5.00
PEG Ratio0.00

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

View Share Price Target for Kanoria Chemicals & Industries Ltd

Competitors of Kanoria Chemicals & Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Aeonx Digital Technology Ltd 71.1 Cr. 155216/85.022.0 1070.65 %6.00 %3.71 % 10.0
Kanoria Chemicals & Industries Ltd 479 Cr. 110178/101 1310.00 %0.64 %6.36 % 5.00
Industry Average479.00 Cr132.5022.00119.000.33%3.32%5.04%7.50

All Competitor Stocks of Kanoria Chemicals & Industries Ltd

Quarterly Result

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales247326388328339324378386362385445402371
Expenses231281350310322317352360356369422391365
Operating Profit16453818187262761723116
OPM %6%14%10%5%5%2%7%7%2%4%5%3%2%
Other Income12-08-08137-03-013-0
Interest96856787810111112
Depreciation15151414141414141415151615
Profit before tax-726167-4-71712-17-5-3-3-21
Tax %-3%1%-30%16%-153%-104%-17%30%1%14%70%-17%3%
Net Profit-726216-9-14209-17-4-1-4-21
EPS in Rs-1.685.334.561.13-1.29-2.484.201.89-3.26-0.29-0.35-0.60-4.20

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
Sales2913715415315657028371,0721,0051,0951,3691,5781,560
Expenses2703565005065336758021,0089771,0011,3011,5061,517
Operating Profit21164125322735642894687243
OPM %7%4%8%5%6%4%4%6%3%9%5%5%3%
Other Income379234327157457228291021
Interest148179142024363732273642
Depreciation16192430344547495658575962
Profit before tax371124313-1-3210-15-431113-12-41
Tax %18%29%20%7%-414%25%-20%-30%26%-40%83%-5%
Net Profit30683412-7-2412-20-32162-13-40
EPS in Rs1.817.722.82-1.65-3.383.22-3.42-5.903.321.56-2.01-7.01
Dividend Payout %3%83%19%53%-91%-44%47%-22%0%0%64%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 (%)-97.39%325.00%-64.71%-158.33%-242.86%150.00%-266.67%-60.00%150.00%-87.50%-750.00%
Change in YoY Net Profit Growth (%)0.00%422.39%-389.71%-93.63%-84.52%392.86%-416.67%206.67%210.00%-237.50%-662.50%

Kanoria Chemicals & 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:11%
5 Years:7%
3 Years:10%
TTM:-9%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:%
TTM:-123%
Stock Price CAGR
10 Years:10%
5 Years:23%
3 Years:-13%
1 Year:-13%
Return on Equity
10 Years:-1%
5 Years:-2%
3 Years:-3%
Last Year:-6%

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
Reserves447474472581558566577547565577584579549
Borrowings172161331430408440509539493475510509544
Other Liabilities80152157192222250293266282329366380406
Total Liabilities7208109821,2251,2091,2781,4011,3741,3621,4031,4811,4901,521
Fixed Assets293328344512743800850894864863882850894
CWIP214182269271242151410104728
Investments2552111741381006348261922171616
Other Assets170257282306340403461439465507573578583
Total Assets7208109821,2251,2091,2781,4011,3741,3621,4031,4811,4901,521

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-122013123027223182832638
Cash from Investing Activity +6512-156-1096-21-86-3-12-43-29-50
Cash from Financing Activity +-58-3516982-39-1173-11-75-5335
Net Cash Flow-5-327-15-2-5817-4-13-0-8

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow21.00-156.00-120.00-306.00-398.00-381.00-405.00-445.00-511.00-399.00-407.00-438.00

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 Days585851575960505268464546
Inventory Days74101828687929697849791104
Days Payable487766537784748577807582
Cash Conversion Cycle848268896968716475636168
Working Capital Days757659735350465065525261
ROCE %2%5%1%1%1%3%2%-1%4%4%1%1%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters74.43%74.43%74.43%74.43%74.42%74.39%74.39%74.39%74.39%74.39%74.39%74.39%
FIIs0.12%0.16%0.17%0.14%0.12%0.11%0.11%0.11%0.04%0.07%0.14%0.20%
DIIs0.07%0.08%0.07%0.08%0.08%0.08%0.08%0.08%0.08%0.10%0.08%0.08%
Public25.38%25.34%25.33%25.36%25.37%25.41%25.41%25.41%25.48%25.43%25.39%25.32%
No. of Shareholders12,94812,79212,75712,85412,45812,60013,56513,62117,29218,17717,57116,934

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.)-8.79-2.011.563.32-5.90
Diluted EPS (Rs.)-8.79-2.011.563.32-5.90
Cash EPS (Rs.)1.6510.5413.6016.945.61
Book Value[Excl.RevalReserv]/Share (Rs.)141.33138.93137.75136.25132.85
Book Value[Incl.RevalReserv]/Share (Rs.)141.33138.93137.75136.25132.85
Revenue From Operations / Share (Rs.)337.92361.21313.31250.55229.92
PBDIT / Share (Rs.)16.4718.9222.2024.1611.43
PBIT / Share (Rs.)2.175.449.1110.88-1.40
PBT / Share (Rs.)-8.23-2.793.012.61-9.80
Net Profit / Share (Rs.)-12.65-2.950.513.66-7.22
NP After MI And SOA / Share (Rs.)-8.79-2.011.563.32-5.90
PBDIT Margin (%)4.875.237.089.644.97
PBIT Margin (%)0.641.502.904.34-0.60
PBT Margin (%)-2.43-0.770.951.04-4.26
Net Profit Margin (%)-3.74-0.810.161.46-3.14
NP After MI And SOA Margin (%)-2.60-0.550.491.32-2.56
Return on Networth / Equity (%)-6.38-1.441.142.47-4.53
Return on Capital Employeed (%)0.962.444.004.81-0.63
Return On Assets (%)-2.57-0.590.481.06-1.87
Long Term Debt / Equity (X)0.490.520.570.580.59
Total Debt / Equity (X)0.840.830.780.780.86
Asset Turnover Ratio (%)0.991.090.570.340.31
Current Ratio (X)1.111.121.241.221.07
Quick Ratio (X)0.540.570.610.770.62
Inventory Turnover Ratio (X)3.514.304.342.282.17
Dividend Payout Ratio (NP) (%)0.00-49.840.000.00-12.70
Dividend Payout Ratio (CP) (%)0.008.700.000.0010.82
Earning Retention Ratio (%)0.00149.840.000.00112.70
Cash Earning Retention Ratio (%)0.0091.300.000.0089.18
Interest Coverage Ratio (X)1.672.303.643.271.36
Interest Coverage Ratio (Post Tax) (X)-0.220.641.081.610.14
Enterprise Value (Cr.)972.40951.811045.87835.26563.57
EV / Net Operating Revenue (X)0.650.600.760.760.56
EV / EBITDA (X)13.5111.5110.787.9111.28
MarketCap / Net Operating Revenue (X)0.310.290.430.360.10
Retention Ratios (%)0.00149.840.000.00112.70
Price / BV (X)0.760.760.990.670.18
Price / Net Operating Revenue (X)0.310.290.430.360.10
EarningsYield-0.08-0.010.010.03-0.24

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Kanoria Chemicals & Industries Ltd as of November 18, 2024 is: 127.47

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 18, 2024, Kanoria Chemicals & Industries Ltd is Undervalued by 15.88% compared to the current share price 110.00

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

Intrinsic Value of Kanoria Chemicals & Industries Ltd as of November 18, 2024 is: 109.79

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 18, 2024, Kanoria Chemicals & Industries Ltd is Overvalued by 0.19% compared to the current share price 110.00

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

Last 5 Year EPS CAGR: -13.87%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (544.31 cr) compared to borrowings (424.69 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (295.69 cr) and profit (25.31 cr) over the years.
  1. The stock has a low average ROCE of 2.00%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 59.33, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 71.83, 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 Kanoria Chemicals & Industries Ltd:
    1. Net Profit Margin: -3.74%
      • 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: 0.96% (Industry Average ROCE: 3.32%)
      • 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%: -6.38% (Industry Average ROE: 5.04%)
      • 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): -0.22
      • 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: 0.54
      • 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: 22)
      • 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: 0.84
      • 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

Kanoria Chemicals & Industries Ltd. is a Public Limited Listed company incorporated on 17/12/1960 and has its registered office in the State of West Bengal, India. Company’s Corporate Identification Number(CIN) is L24110WB1960PLC024910 and registration number is 024910. Currently Company is involved in the business activities of Manufacture of organic and inorganic chemical compounds. Company’s Total Operating Revenue is Rs. 649.13 Cr. and Equity Capital is Rs. 21.85 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Chemicals - Organic - Alcohol BasedKCI Plaza, 6th Floor, Kolkata West Bengal 700019info@kanoriachem.com
http://www.kanoriachem.com
Management
NamePosition Held
Mr. R V KanoriaChairman & Managing Director
Mr. S V KanoriaWhole Time Director
Mr. H K KhaitanNon Exe.Non Ind.Director
Mrs. Madhuvanti KanoriaNon Exe.Non Ind.Director
Mr. Sidharth Kumar BirlaInd. Non-Executive Director
Mrs. Suhana MurshedInd. Non-Executive Director
Mrs. Meeta MakhanAddnl.Non Exe.Independent Director
Mr. Sumanta ChaudhuriAddnl.Non Exe.Independent Director

FAQ

What is the latest intrinsic value of Kanoria Chemicals & Industries Ltd?

The latest intrinsic value of Kanoria Chemicals & Industries Ltd as on 18 November 2024 is ₹127.47, which is 15.88% higher than the current market price of ₹110.00.

What is the Market Cap of Kanoria Chemicals & Industries Ltd?

The Market Cap of Kanoria Chemicals & Industries Ltd is 479 Cr..

What is the current Stock Price of Kanoria Chemicals & Industries Ltd as on 18 November 2024?

The current stock price of Kanoria Chemicals & Industries Ltd as on 18 November 2024 is ₹110.

What is the High / Low of Kanoria Chemicals & Industries Ltd stocks in FY 2024?

In FY 2024, the High / Low of Kanoria Chemicals & Industries Ltd stocks is 178/101.

What is the Stock P/E of Kanoria Chemicals & Industries Ltd?

The Stock P/E of Kanoria Chemicals & Industries Ltd is .

What is the Book Value of Kanoria Chemicals & Industries Ltd?

The Book Value of Kanoria Chemicals & Industries Ltd is 131.

What is the Dividend Yield of Kanoria Chemicals & Industries Ltd?

The Dividend Yield of Kanoria Chemicals & Industries Ltd is 0.00 %.

What is the ROCE of Kanoria Chemicals & Industries Ltd?

The ROCE of Kanoria Chemicals & Industries Ltd is 0.64 %.

What is the ROE of Kanoria Chemicals & Industries Ltd?

The ROE of Kanoria Chemicals & Industries Ltd is 6.36 %.

What is the Face Value of Kanoria Chemicals & Industries Ltd?

The Face Value of Kanoria Chemicals & Industries 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 Kanoria Chemicals & 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