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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
Stock Ticker - BSE: 533192 | NSE: KCPSUGIND

KCP Sugar & Industries Corporation Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 15, 2024, 2:58 pm

Market Cap 491 Cr.
Current Price 43.3
High / Low62.0/31.0
Stock P/E6.76
Book Value 45.2
Dividend Yield0.46 %
ROCE13.8 %
ROE14.0 %
Face Value 1.00
PEG Ratio0.22

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

View Share Price Target for KCP Sugar & Industries Corporation Ltd

Competitors of KCP Sugar & Industries Corporation Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Gayatri Sugars Ltd 108 Cr. 16.629.4/15.1 20.00.00 %102 %% 10.0
Dhampure Speciality Sugars Ltd 76.8 Cr. 96.8116/66.152.3 35.60.00 %3.15 %3.78 % 10.0
Dhampur Bio Organics Ltd 823 Cr. 124171/11278.2 1462.03 %5.02 %3.67 % 10.0
DCM Shriram Industries Ltd 1,588 Cr. 182242/14113.0 1001.10 %16.1 %14.9 % 2.00
Davangere Sugar Company Ltd 565 Cr. 6.0111.5/5.6245.6 3.640.00 %6.86 %3.75 % 1.00
Industry Average2,120.32 Cr296.7129.82224.520.65%13.29%13.21%6.37

All Competitor Stocks of KCP Sugar & Industries Corporation Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales617911465748274599694837489
Expenses626712057746988548582867373
Operating Profit-112-58-013-1451112-4016
OPM %-2%15%-5%13%-0%16%-19%9%12%12%-4%0%18%
Other Income1552-662456-1272352248
Interest6545433443233
Depreciation0113111311131
Profit before tax712-8-613338-33431-21660
Tax %-16%26%9%-15%208%12%-1%202%10%9%101%28%9%
Net Profit99-9-5-12938-83128-41254
EPS in Rs0.760.75-0.75-0.45-0.132.553.36-0.752.712.47-0.381.044.77

Last Updated: October 22, 2024, 5:18 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: October 22, 2024, 5:18 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales451385426402442351359393329319290346339
Expenses380335447383383392313387328305284326314
Operating Profit7150-201959-4147501451924
OPM %16%13%-5%5%13%-12%13%1%0%4%2%6%7%
Other Income681113366216144816857797
Interest6547121520222420141110
Depreciation111211111099865666
Profit before tax5941-251474-334-111757079105
Tax %31%20%-43%13%22%-483%52%-42%-36%31%17%16%
Net Profit4133-1412571216-6234586690
EPS in Rs3.612.92-1.231.055.041.011.44-0.552.050.325.135.837.90
Dividend Payout %28%29%-8%24%18%10%7%-18%5%32%4%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-19.51%-142.42%185.71%375.00%-78.95%33.33%-137.50%483.33%-82.61%1350.00%13.79%
Change in YoY Net Profit Growth (%)0.00%-122.91%328.14%189.29%-453.95%112.28%-170.83%620.83%-565.94%1432.61%-1336.21%

KCP Sugar & Industries Corporation Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:-1%
5 Years:-1%
3 Years:2%
TTM:-1%
Compounded Profit Growth
10 Years:6%
5 Years:29%
3 Years:36%
TTM:-17%
Stock Price CAGR
10 Years:8%
5 Years:26%
3 Years:26%
1 Year:14%
Return on Equity
10 Years:5%
5 Years:5%
3 Years:7%
Last Year:14%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 9:32 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital11111111111111111111111111
Reserves218240220229271270286278302304362427501
Borrowings50879910714020922026527019018414775
Other Liabilities167173155180126991801215973718066
Total Liabilities447511486527548590697676643578628666653
Fixed Assets1181081081051081009992919299100100
CWIP2821100231111
Investments33404647147188148141178180204263332
Other Assets294356330375292301450441371304324301221
Total Assets447511486527548590697676643578628666653

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +28-5151550-70-522717114742
Cash from Investing Activity +-3-10-70-93729-1-11127-7
Cash from Financing Activity +-2519-4-10366917-23-11-102-15-50
Net Cash Flow-0445-76-63-51419-15

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow21.00-37.00-119.00-88.00-81.00-250.00-173.00-260.00-270.00-176.00-179.00-128.00

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 Days272933492730293551332831
Inventory Days306466243331280265684422373356430303
Days Payable12216710414078752448221352625
Cash Conversion Cycle211328171240230220468375403355432309
Working Capital Days115181147162131153241250332234270203
ROCE %23%15%-7%5%22%1%11%2%7%4%5%14%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters40.59%40.59%40.59%40.59%40.59%40.59%40.59%40.59%40.59%40.59%40.59%40.59%
FIIs0.01%0.19%0.28%0.08%0.33%0.07%0.00%0.65%0.28%0.04%0.01%0.07%
DIIs0.01%0.01%0.01%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Public59.39%59.21%59.12%59.33%59.07%59.33%59.40%58.75%59.14%59.36%59.40%59.33%
No. of Shareholders41,04945,26749,36548,57748,92848,48647,38948,47946,86252,44255,88564,535

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.)5.835.040.272.22-0.57
Diluted EPS (Rs.)5.835.040.272.22-0.57
Cash EPS (Rs.)6.355.520.772.620.15
Book Value[Excl.RevalReserv]/Share (Rs.)38.6932.7927.8127.6325.51
Book Value[Incl.RevalReserv]/Share (Rs.)38.6932.7927.8127.6325.51
Revenue From Operations / Share (Rs.)30.4925.5128.1728.9834.63
PBDIT / Share (Rs.)7.756.342.654.221.69
PBIT / Share (Rs.)7.235.872.193.660.97
PBT / Share (Rs.)6.966.080.451.51-0.94
Net Profit / Share (Rs.)5.835.040.312.06-0.55
NP After MI And SOA / Share (Rs.)5.835.040.312.06-0.55
PBDIT Margin (%)25.4224.869.4014.564.87
PBIT Margin (%)23.7222.997.7712.622.82
PBT Margin (%)22.8123.841.615.20-2.73
Net Profit Margin (%)19.1319.751.127.09-1.59
NP After MI And SOA Margin (%)19.1319.751.127.09-1.59
Return on Networth / Equity (%)15.0815.371.137.43-2.16
Return on Capital Employeed (%)16.5615.406.239.952.94
Return On Assets (%)9.939.100.613.62-0.92
Long Term Debt / Equity (X)0.070.110.220.290.25
Total Debt / Equity (X)0.330.490.600.760.78
Asset Turnover Ratio (%)0.530.470.470.470.53
Current Ratio (X)2.161.982.061.901.68
Quick Ratio (X)0.960.800.850.740.52
Inventory Turnover Ratio (X)0.890.950.660.500.71
Dividend Payout Ratio (NP) (%)3.421.9831.694.86-21.83
Dividend Payout Ratio (CP) (%)3.141.8112.943.8277.00
Earning Retention Ratio (%)96.5898.0268.3195.14121.83
Cash Earning Retention Ratio (%)96.8698.1987.0696.1823.00
Interest Coverage Ratio (X)7.855.031.521.960.87
Interest Coverage Ratio (Post Tax) (X)6.193.831.181.960.71
Enterprise Value (Cr.)474.27404.26449.62393.68355.48
EV / Net Operating Revenue (X)1.371.401.411.200.90
EV / EBITDA (X)5.405.6214.978.2318.57
MarketCap / Net Operating Revenue (X)1.080.920.890.500.37
Retention Ratios (%)96.5798.0168.3095.13121.83
Price / BV (X)0.850.710.900.530.51
Price / Net Operating Revenue (X)1.080.920.890.500.37
EarningsYield0.170.210.010.13-0.04

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of KCP Sugar & Industries Corporation Ltd as of November 18, 2024 is: 42.97

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, KCP Sugar & Industries Corporation Ltd is Overvalued by 0.76% compared to the current share price 43.30

Intrinsic Value of KCP Sugar & Industries Corporation Ltd as of November 18, 2024 is: 56.28

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, KCP Sugar & Industries Corporation Ltd is Undervalued by 29.98% compared to the current share price 43.30

Last 5 Year EPS CAGR: 30.97%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (300.62 cr) compared to borrowings (157.15 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (371.69 cr) and profit (35.31 cr) over the years.
  1. The stock has a low average ROCE of 8.50%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 201.58, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 311.83, 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 KCP Sugar & Industries Corporation Ltd:
    1. Net Profit Margin: 19.13%
      • 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: 16.56% (Industry Average ROCE: 13.29%)
      • 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%: 15.08% (Industry Average ROE: 13.21%)
      • 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): 6.19
      • 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: 0.96
      • 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: 6.76 (Industry average Stock P/E: 29.82)
      • 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: 0.33
      • 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

KCP Sugar & Industries Corporation Ltd. is a Public Limited Listed company incorporated on 11/10/1995 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L15421TN1995PLC033198 and registration number is 033198. Currently Company is involved in the business activities of Manufacture or refining of sugar (sucrose) from sugercane. Company’s Total Operating Revenue is Rs. 270.87 Cr. and Equity Capital is Rs. 11.34 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
SugarRamakrishna Buildings, 239, Anna Salai, Chennai (Madras) Tamil Nadu 600006secretarial@kcpsugar.com
http://www.kcpsugar.com
Management
NamePosition Held
Mr. Vinod R SethiExecutive Chairman
Ms. Irmgard Velagapudi M RaoManaging Director
Ms. Kiran VelagapudiExecutive Director
Dr. Vithal RajanIndependent Director
Mr. M S V M RaoIndependent Director
Mr. Prathap K MoturiIndependent Director
Mr. K R AdivarahanIndependent Director

FAQ

What is the latest intrinsic value of KCP Sugar & Industries Corporation Ltd?

The latest intrinsic value of KCP Sugar & Industries Corporation Ltd as on 18 November 2024 is ₹42.97, which is 0.76% lower than the current market price of ₹43.30.

What is the Market Cap of KCP Sugar & Industries Corporation Ltd?

The Market Cap of KCP Sugar & Industries Corporation Ltd is 491 Cr..

What is the current Stock Price of KCP Sugar & Industries Corporation Ltd as on 18 November 2024?

The current stock price of KCP Sugar & Industries Corporation Ltd as on 18 November 2024 is ₹43.3.

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

In FY 2024, the High / Low of KCP Sugar & Industries Corporation Ltd stocks is 62.0/31.0.

What is the Stock P/E of KCP Sugar & Industries Corporation Ltd?

The Stock P/E of KCP Sugar & Industries Corporation Ltd is 6.76.

What is the Book Value of KCP Sugar & Industries Corporation Ltd?

The Book Value of KCP Sugar & Industries Corporation Ltd is 45.2.

What is the Dividend Yield of KCP Sugar & Industries Corporation Ltd?

The Dividend Yield of KCP Sugar & Industries Corporation Ltd is 0.46 %.

What is the ROCE of KCP Sugar & Industries Corporation Ltd?

The ROCE of KCP Sugar & Industries Corporation Ltd is 13.8 %.

What is the ROE of KCP Sugar & Industries Corporation Ltd?

The ROE of KCP Sugar & Industries Corporation Ltd is 14.0 %.

What is the Face Value of KCP Sugar & Industries Corporation Ltd?

The Face Value of KCP Sugar & Industries Corporation 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 KCP Sugar & Industries Corporation 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