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Last Updated on: 25 June, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 533451 | NSE: KARMAENG

Fundamental Analysis of Karma Energy Ltd

Basic Stock Data of Karma Energy Ltd

Last Updated: June 25, 2024, 10:35 pm

Market Cap 70.3 Cr.
Current Price 60.4
High / Low106/39.3
Stock P/E586
Book Value 33.2
Dividend Yield0.00 %
ROCE0.21 %
ROE0.31 %
Face Value 10.0
PEG Ratio5.64

Competitors of Karma Energy Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Jaiprakash Power Ventures Ltd 13,556 Cr. 19.824.0/5.859.69 16.70.00 %14.0 %12.8 % 10.0
NLC India Ltd 32,162 Cr. 232294/95.417.4 1191.51 %9.13 %11.7 % 10.0
Adani Green Energy Ltd 2,86,124 Cr. 1,8062,174/816227 47.30.00 %9.81 %17.1 % 10.0
GVK Power & Infrastructure Ltd 1,783 Cr. 11.317.0/2.4287.4 7.490.00 %13.5 %% 1.00
JSW Energy Ltd 1,19,477 Cr. 684687/25272.1 1270.29 %8.59 %8.40 % 10.0
Industry Average76,700.81 Cr345.6955.10100.090.86%9.58%11.25%8.11

Karma Energy Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales4.192.306.5411.197.881.933.935.871.871.153.516.311.51
Expenses5.084.416.108.954.512.692.242.712.112.552.442.122.24
Operating Profit-0.89-2.110.442.243.37-0.761.693.16-0.24-1.401.074.19-0.73
OPM %-21.24%-91.74%6.73%20.02%42.77%-39.38%43.00%53.83%-12.83%-121.74%30.48%66.40%-48.34%
Other Income0.190.110.160.170.100.520.300.200.169.310.060.000.21
Interest1.241.490.980.960.900.570.410.380.310.040.030.030.03
Depreciation1.291.261.261.281.281.271.211.221.221.190.740.750.75
Profit before tax-3.23-4.75-1.640.171.29-2.080.371.76-1.616.680.363.41-1.30
Tax %35.91%-13.89%16.46%-158.82%-5.43%-23.08%-129.73%-23.30%12.42%36.08%19.44%24.93%23.08%
Net Profit-2.06-5.41-1.370.441.37-2.560.862.17-1.414.260.292.57-0.99
EPS in Rs-1.78-4.68-1.180.381.18-2.210.741.88-1.223.680.252.22-0.86

Last Updated: June 7, 2024, 9:01 am

Karma Energy Ltd Quarterly Chart

Karma Energy Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales25.3630.1428.5615.3213.9727.4733.5029.1135.8823.0727.5312.8112.84
Expenses8.4910.2112.9010.249.0016.8025.6125.2325.9024.8922.249.629.22
Operating Profit16.8719.9315.665.084.9710.677.893.889.98-1.825.293.193.62
OPM %66.52%66.12%54.83%33.16%35.58%38.84%23.55%13.33%27.81%-7.89%19.22%24.90%28.19%
Other Income4.471.702.682.725.581.150.31-0.530.990.490.959.989.53
Interest9.4510.058.117.136.997.774.504.225.355.253.411.140.41
Depreciation7.937.827.744.905.004.984.984.965.425.115.094.833.90
Profit before tax3.963.762.49-4.23-1.44-0.93-1.28-5.830.20-11.69-2.267.208.84
Tax %40.66%34.57%38.15%26.00%-6.94%300.00%12.50%27.27%15.00%8.55%5.75%18.19%
Net Profit2.352.461.53-3.13-1.541.85-1.12-4.250.17-10.69-2.135.895.71
EPS in Rs2.032.131.32-2.71-1.331.60-0.97-3.670.15-9.24-1.845.094.93
Dividend Payout %24.60%23.52%37.81%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%

Karma Energy Ltd Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)4.68%-37.80%-304.58%50.80%220.13%-160.54%-279.46%104.00%-6388.24%80.07%376.53%
Change in YoY Net Profit Growth (%)0.00%-42.49%-266.77%355.37%169.33%-380.67%-118.92%383.46%-6492.24%6468.31%296.45%

Karma Energy Ltd Growth

Compounded Sales Growth
10 Years:-8%
5 Years:-17%
3 Years:-29%
TTM:-8%
Compounded Profit Growth
10 Years:0%
5 Years:35%
3 Years:154%
TTM:462%
Stock Price CAGR
10 Years:18%
5 Years:36%
3 Years:73%
1 Year:120%
Return on Equity
10 Years:-4%
5 Years:-5%
3 Years:-10%
Last Year:8%

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

Karma Energy Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital11.5611.5711.5711.5711.5711.5711.5711.5711.5711.5711.5711.5711.57
Reserves31.9733.7534.6031.5329.9843.4862.1236.1734.2520.9918.6426.9029.76
Borrowings75.1471.1554.9250.4473.4159.2944.3156.6671.1464.7818.806.281.14
Other Liabilities29.2727.1725.5223.0821.7019.2624.2615.3614.3215.2214.4010.7211.51
Total Liabilities147.94143.64126.61116.62136.66133.60142.26119.76131.28112.5663.4155.4753.98
Fixed Assets75.2767.4659.7558.1053.1047.8942.9245.1042.3137.4632.3727.3825.89
CWIP0.060.150.290.320.340.370.320.330.000.000.000.000.00
Investments31.2331.6134.3634.3644.2153.1378.6149.8858.9952.421.8813.528.28
Other Assets41.3844.4232.2123.8439.0132.2120.4124.4529.9822.6829.1614.5719.81
Total Assets147.94143.64126.61116.62136.66133.60142.26119.76131.28112.5663.4155.4753.98

Karma Energy Ltd Reserves and Borrowings Chart

Karma Energy Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity -5.965.5919.0810.63-12.2119.0814.135.724.6711.08-1.594.96
Cash from Investing Activity -5.68-0.47-1.59-3.22-9.87-4.263.98-10.63-19.400.1250.698.55
Cash from Financing Activity 14.33-5.46-15.78-7.5122.06-15.06-14.028.127.56-11.03-49.39-13.49
Net Cash Flow2.69-0.341.71-0.10-0.02-0.244.093.21-7.160.17-0.300.02

Karma Energy Ltd Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow-58.27-51.22-39.26-45.36-68.44-48.62-36.42-52.78-61.16-66.60-13.51-3.09

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.

Karma Energy Ltd Free Cash Flow Chart

Karma Energy Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days168.2558.1343.07371.19798.45332.8483.02124.26161.34107.43131.39300.89
Inventory Days
Days Payable
Cash Conversion Cycle168.2558.1343.07371.19798.45332.8483.02124.26161.34107.43131.39300.89
Working Capital Days310.60261.3497.904.05385.90123.9745.6533.7357.68107.27171.96253.02
ROCE %16.65%12.83%9.85%1.55%0.34%5.97%2.77%0.78%5.01%-6.01%1.57%6.98%

Karma Energy Ltd Financial Efficiency Indicators Chart

Karma Energy Ltd Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters74.70%74.70%74.70%74.70%74.70%74.70%74.70%74.70%74.70%74.70%74.70%74.70%
Public25.30%25.30%25.30%25.30%25.30%25.30%25.30%25.29%25.30%25.30%25.28%25.29%
No. of Shareholders7,0227,4647,4847,7227,8387,9937,9937,7697,6307,7168,3148,749

Karma Energy Ltd Shareholding Pattern Chart

No. of Karma Energy Ltd Shareholders

This stock is not held by any mutual fund

Karma Energy Ltd ROCE Trend

Karma Energy Ltd EPS Trend

Karma Energy Ltd Key Financial Ratios

MonthMar 22Mar 21Mar 20Mar 19Mar 18
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)-1.40-11.47-0.24-8.62-2.11
Diluted EPS (Rs.)-1.40-11.47-0.24-8.62-2.11
Cash EPS (Rs.)3.87-6.015.86-4.622.19
Book Value[Excl.RevalReserv]/Share (Rs.)26.118.5522.8637.1373.90
Book Value[Incl.RevalReserv]/Share (Rs.)26.118.5522.8637.1373.90
Revenue From Operations / Share (Rs.)27.3621.8536.1929.9934.83
PBDIT / Share (Rs.)7.95-0.6212.247.4910.63
PBIT / Share (Rs.)2.67-6.096.522.165.22
PBT / Share (Rs.)-1.52-12.340.14-9.08-1.57
Net Profit / Share (Rs.)-1.40-11.470.13-9.96-3.22
NP After MI And SOA / Share (Rs.)-1.40-11.47-0.24-8.62-2.11
PBDIT Margin (%)29.05-2.8833.8124.9630.51
PBIT Margin (%)9.77-27.8718.007.1914.98
PBT Margin (%)-5.55-56.440.38-30.29-4.49
Net Profit Margin (%)-5.12-52.490.37-33.19-9.24
NP After MI And SOA Margin (%)-5.12-52.49-0.66-28.76-6.06
Return on Networth / Equity (%)-5.37-134.19-1.05-24.13-2.99
Return on Capital Employeed (%)5.88-18.0411.782.593.87
Return On Assets (%)-2.56-11.06-0.19-6.82-1.33
Long Term Debt / Equity (X)0.381.750.950.920.60
Total Debt / Equity (X)0.578.713.331.850.76
Asset Turnover Ratio (%)0.300.170.250.190.21
Current Ratio (X)2.650.290.430.580.88
Quick Ratio (X)2.430.260.390.530.69
Interest Coverage Ratio (X)1.90-0.101.921.261.57
Interest Coverage Ratio (Post Tax) (X)0.66-0.831.020.210.52
Enterprise Value (Cr.)43.7891.0693.5685.7898.03
EV / Net Operating Revenue (X)1.383.602.232.472.43
EV / EBITDA (X)4.76-124.926.619.907.97
MarketCap / Net Operating Revenue (X)1.180.630.380.560.92
Price / BV (X)1.241.610.610.470.45
Price / Net Operating Revenue (X)1.180.630.380.560.92
EarningsYield-0.04-0.83-0.01-0.50-0.06

Karma Energy Ltd Profitability Ratios (%)

Karma Energy Ltd Liquidity Ratios

Karma Energy Ltd Liquidity Ratios (%)

Karma Energy Ltd Interest Coverage Ratios (%)

Karma Energy Ltd Valuation Ratios

Fair Value

Fair Value: 61.52

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.

Undervalued: 1.85% compared to the current price 60.4

Intrinsic Value: 125.45

Calculation basis:

  • Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 107.70% compared to the current price ₹60.4

Last 5 Year EPS CAGR: 103.93%

*Investments are subject to market risks

Strength and Weakness of Karma Energy Ltd Stock

StrengthWeakness
    1. The stock has a low average ROCE of 4.86%, which may not be favorable.
    2. The stock has a high average Working Capital Days of 154.42, which may not be favorable.
    3. The stock has a high average Cash Conversion Cycle of 223.36, which may not be favorable.
    4. The company has higher borrowings (49.80) compared to reserves (33.40), which may suggest financial risk.
    5. The company has not shown consistent growth in sales (24.25) and profit (-0.07).

    Should I Buy Karma Energy Ltd Share Now?

    • 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 Karma Energy Ltd:
      1. Net Profit Margin: -5.12%
        • 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: 5.88% (Industry Average ROCE: 8.48%)
        • 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%: -5.37% (Industry Average ROE: 6.37%)
        • 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): 0.66
        • 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: 2.43
        • 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: 586 (Industry average Stock P/E: 87.3)
        • 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: 0.57
        • 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 - Karma Energy Ltd

    Karma Energy Ltd. is a Public Limited Listed company incorporated on 15/03/2007 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L31101MH2007PLC168823 and registration number is 168823. Currently Company is involved in the business activities of Electric power generation using other non conventional sources. Company’s Total Operating Revenue is Rs. 27.53 Cr. and Equity Capital is Rs. 11.57 Cr. for the Year ended 31/03/2022.
    INDUSTRYADDRESSCONTACT
    Power - Generation/DistributionEmpire House, 214, Dr. D.N.Road, Mumbai Maharashtra 400001investorshelpdesk@weizmann.co.in
    http://www.karmaenergy.co
    Management
    NamePosition Held
    Mr. Dharmendra G SirajChairman
    Mr. Chetan D MehraVice Chairman
    Mr. Ganesh N KamathManaging Director
    Mr. Neelkamal V SirajDirector
    Mr. Kishore M VussonjiDirector
    Mrs. Smita V DavdaDirector
    Mr. Balady S ShettyDirector

    FAQ

    What is the latest fair value of Karma Energy Ltd?

    The latest fair value of Karma Energy Ltd is ₹61.52.

    What is the Market Cap of Karma Energy Ltd?

    The Market Cap of Karma Energy Ltd is 70.3 Cr..

    What is the current Stock Price of Karma Energy Ltd as on 25 June 2024?

    The current stock price of Karma Energy Ltd as on 25 June 2024 is ₹60.4.

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

    In FY 2024, the High / Low of Karma Energy Ltd stocks is 106/39.3.

    What is the Stock P/E of Karma Energy Ltd?

    The Stock P/E of Karma Energy Ltd is 586.

    What is the Book Value of Karma Energy Ltd?

    The Book Value of Karma Energy Ltd is 33.2.

    What is the Dividend Yield of Karma Energy Ltd?

    The Dividend Yield of Karma Energy Ltd is 0.00 %.

    What is the ROCE of Karma Energy Ltd?

    The ROCE of Karma Energy Ltd is 0.21 %.

    What is the ROE of Karma Energy Ltd?

    The ROE of Karma Energy Ltd is 0.31 %.

    What is the Face Value of Karma Energy Ltd?

    The Face Value of Karma Energy 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 Karma Energy 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