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Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Kesoram Industries Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 9:55 pm

Market Cap 6,537 Cr.
Current Price 210
High / Low230/118
Stock P/E
Book Value 1.02
Dividend Yield0.00 %
ROCE11.0 %
ROE125 %
Face Value 10.0
PEG Ratio0.00

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

View Share Price Target for Kesoram Industries Ltd

Competitors of Kesoram Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Bheema Cements Ltd 77.1 Cr. 23.635.3/21.0 13.20.00 %11.8 %56.4 % 10.0
UltraTech Cement Ltd 3,16,116 Cr. 10,95512,138/8,54448.1 2,1260.64 %15.1 %12.2 % 10.0
The Ramco Cements Ltd 21,622 Cr. 9151,058/70078.4 3020.27 %8.17 %5.63 % 1.00
The India Cements Ltd 11,009 Cr. 355386/173 1700.00 %0.78 %4.81 % 10.0
Star Cement Ltd 6,986 Cr. 173256/16235.3 67.90.00 %16.5 %11.5 % 1.00
Industry Average31,942.64 Cr1,738.1834.28530.040.63%11.13%16.10%7.13

All Competitor Stocks of Kesoram Industries Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales7148628558438761,0328918459861,055999954961
Expenses619746685709766934861793906947894885859
Operating Profit961151701341109830528010810569102
OPM %13%13%20%16%13%9%3%6%8%10%10%7%11%
Other Income20-2036138-122615-1591571210
Interest764612212812812411111025123116119130
Depreciation283428282828272510726313233
Profit before tax11-16826-9-38-66-81-67-211-25-35-71-51
Tax %-378%157%50%-36%15%31%25%12%77%-4%8%18%5%
Net Profit539613-12-32-46-61-59-48-26-32-58-49
EPS in Rs2.523.940.52-0.49-1.31-1.90-2.51-1.90-1.54-0.84-1.04-1.88-1.57

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2009Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales3,8823,8423,8732,9042,6462,6533,6063,7783,994
Expenses3,3193,8443,9432,8722,4172,2783,0943,5073,633
Operating Profit562-3-7032229375512271362
OPM %14%-0%-2%1%9%14%14%7%9%
Other Income80172795740-14814-103-125
Interest121283443357344276502450465
Depreciation112136146108113118112103114
Profit before tax409-250-580-375-188-167-87-385-342
Tax %7%3%0%3%0%184%11%50%
Net Profit379-242-578-363-188140-77-194-165
EPS in Rs23.23-13.90-28.31-17.15-8.855.72-3.18-6.25-5.30
Dividend Payout %7%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-138.84%37.20%48.21%174.47%-155.00%-151.95%
Change in YoY Net Profit Growth (%)0.00%176.04%11.01%126.26%-329.47%3.05%

Kesoram Industries Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 6 years from 2017-2018 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:%
5 Years:7%
3 Years:15%
TTM:-30%
Compounded Profit Growth
10 Years:%
5 Years:0%
3 Years:%
TTM:-1029%
Stock Price CAGR
10 Years:10%
5 Years:35%
3 Years:52%
1 Year:70%
Return on Equity
10 Years:%
5 Years:-22%
3 Years:-38%
Last Year:-125%

Last Updated: Unknown

Balance Sheet

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

MonthMar 2009Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital46117137143143165244311311311
Reserves1,300680307-30-24033266163-216-342
Borrowings2,1423,2974,0993,1872,2372,0361,9021,9382,270248
Other Liabilities8351,2381,5741,6711,0729981,0201,0241,0113,206
Total Liabilities4,3225,3336,1174,9703,2123,2323,4333,4353,3763,423
Fixed Assets1,8742,5442,8902,7722,1672,0812,0051,7361,728618
CWIP86573079080031334965348
Investments497172082707774828080
Other Assets1,5341,9881,7171,3179441,0411,3051,5511,5332,716
Total Assets4,3225,3336,1174,9703,2123,2323,4333,4353,3763,423

Reserves and Borrowings Chart

Cash Flow

MonthMar 2009Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +37079177775787259324131206
Cash from Investing Activity +-1,0351,694-1,137354-877-150-6349-16
Cash from Financing Activity +681-2,117662-1,823-218201-224-248-148
Net Cash Flow16-343-298-693-30830936-6841

Free Cash Flow

MonthMar 2009Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow560.00-6.00-74.0029.00227.00373.00511.00270.00

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 2009Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days365054742742323643
Inventory Days130122127324161140174197212
Days Payable54141200806619593568463461
Cash Conversion Cycle11231-19-408-431-411-362-230-206
Working Capital Days722711-57-89-34-9-36
ROCE %-1%-0%6%15%19%10%11%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters45.97%49.15%49.15%49.21%43.40%43.40%43.40%43.40%43.40%43.40%43.34%43.34%
FIIs0.21%0.32%0.48%0.00%0.41%0.62%3.12%3.78%4.42%7.18%8.95%8.42%
DIIs13.81%9.11%9.09%8.80%12.79%11.99%11.40%10.61%10.78%13.37%12.82%16.31%
Government0.21%0.14%0.14%0.00%0.00%0.00%0.00%0.00%0.00%0.03%0.06%0.06%
Public39.81%41.28%41.14%41.99%43.39%43.99%42.08%42.20%41.38%36.01%34.83%31.86%
No. of Shareholders1,02,3311,01,9481,08,5291,01,4341,01,48599,09096,04595,74088,38091,48688,66987,730

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Quant Value Fund4,750,0004.9337.794,750,0002024-11-160%
Taurus Flexi Cap Fund180,7590.521.444,750,0002024-11-16-96.19%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)-12.36-6.83-3.869.73-13.15
Diluted EPS (Rs.)-12.36-6.83-3.869.73-13.15
Cash EPS (Rs.)-7.96-2.951.4115.66-5.25
Book Value[Excl.RevalReserv]/Share (Rs.)3.0515.2320.8511.98-6.82
Book Value[Incl.RevalReserv]/Share (Rs.)3.0515.2320.8511.98-6.82
Revenue From Operations / Share (Rs.)128.34121.61147.53160.96185.54
PBDIT / Share (Rs.)12.9010.9722.4527.1618.84
PBIT / Share (Rs.)8.497.6717.8720.0110.95
PBT / Share (Rs.)-8.83-12.39-3.57-10.13-13.15
Net Profit / Share (Rs.)-12.36-6.25-3.168.50-13.15
NP After MI And SOA / Share (Rs.)-12.36-6.25-3.168.50-13.15
PBDIT Margin (%)10.059.0215.2116.8710.15
PBIT Margin (%)6.616.3012.1112.435.90
PBT Margin (%)-6.87-10.18-2.41-6.29-7.08
Net Profit Margin (%)-9.63-5.14-2.145.28-7.08
NP After MI And SOA Margin (%)-9.63-5.14-2.145.28-7.08
Return on Networth / Equity (%)-405.07-41.05-15.1770.940.00
Return on Capital Employeed (%)11.389.8518.5014.6710.91
Return On Assets (%)-11.37-5.65-2.254.27-5.83
Long Term Debt / Equity (X)21.833.793.229.45-14.54
Total Debt / Equity (X)23.484.013.549.53-21.00
Asset Turnover Ratio (%)1.171.101.090.750.58
Current Ratio (X)1.081.040.920.780.28
Quick Ratio (X)0.810.800.760.640.19
Inventory Turnover Ratio (X)2.002.362.591.801.04
Interest Coverage Ratio (X)0.820.751.091.620.78
Interest Coverage Ratio (Post Tax) (X)0.310.950.892.310.45
Enterprise Value (Cr.)7403.353645.462996.192999.752288.79
EV / Net Operating Revenue (X)1.860.960.831.130.86
EV / EBITDA (X)18.4710.705.466.708.52
MarketCap / Net Operating Revenue (X)1.330.480.350.430.09
Price / BV (X)56.113.852.515.85-2.70
Price / Net Operating Revenue (X)1.330.480.350.430.09
EarningsYield-0.07-0.10-0.060.12-0.71

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Kesoram Industries Ltd as of November 21, 2024 is: 19.51

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 21, 2024, Kesoram Industries Ltd is Overvalued by 90.71% compared to the current share price 210.00

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

Intrinsic Value of Kesoram Industries Ltd as of November 21, 2024 is: 26.42

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 21, 2024, Kesoram Industries Ltd is Overvalued by 87.42% compared to the current share price 210.00

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

Last 5 Year EPS CAGR: 35.39%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -8.44, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -213.78, which is a positive sign.
  1. The stock has a low average ROCE of 6.67%, which may not be favorable.
  2. The company has higher borrowings (2,335.60) compared to reserves (192.10), which may suggest financial risk.
  3. The company has not shown consistent growth in sales (2.67) and profit (-218.33).

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 Kesoram Industries Ltd:
    1. Net Profit Margin: -9.63%
      • 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: 11.38% (Industry Average ROCE: 11.13%)
      • 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%: -405.07% (Industry Average ROE: 16.1%)
      • 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): 0.31
      • 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: 0.81
      • 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: 34.28)
      • 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: 23.48
      • 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

Kesoram Industries Ltd. is a Public Limited Listed company incorporated on 18/10/1919 and has its registered office in the State of West Bengal, India. Company’s Corporate Identification Number(CIN) is L17119WB1919PLC003429 and registration number is 003429. Currently Company is involved in the business activities of Manufacture of clinkers and cement. Company’s Total Operating Revenue is Rs. 3539.56 Cr. and Equity Capital is Rs. 244.41 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
CementBirla Building, 9/1, R.N. Mukherjee Road, Kolkata West Bengal 700001corporate@kesoram.net
http://www.kesocorp.com
Management
NamePosition Held
Mrs. Manjushree KhaitanChairman
Mr. P RadhakrishnanWholeTime Director & CEO
Mr. Lee Seow ChuanDirector
Mr. Satish Narain JajooDirector
Mr. Kashi Prasad KhandelwalDirector
Mr. Jikyeong KangDirector
Mr. Sudip BanerjeeDirector
Mr. Mangala Radhakrishna PrabhuDirector
Ms. Rashmi BihaniDirector

FAQ

What is the latest intrinsic value of Kesoram Industries Ltd?

The latest intrinsic value of Kesoram Industries Ltd as on 21 November 2024 is ₹19.51, which is 90.71% lower than the current market price of ₹210.00.

What is the Market Cap of Kesoram Industries Ltd?

The Market Cap of Kesoram Industries Ltd is 6,537 Cr..

What is the current Stock Price of Kesoram Industries Ltd as on 21 November 2024?

The current stock price of Kesoram Industries Ltd as on 21 November 2024 is ₹210.

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

In FY 2024, the High / Low of Kesoram Industries Ltd stocks is 230/118.

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

The Stock P/E of Kesoram Industries Ltd is .

What is the Book Value of Kesoram Industries Ltd?

The Book Value of Kesoram Industries Ltd is 1.02.

What is the Dividend Yield of Kesoram Industries Ltd?

The Dividend Yield of Kesoram Industries Ltd is 0.00 %.

What is the ROCE of Kesoram Industries Ltd?

The ROCE of Kesoram Industries Ltd is 11.0 %.

What is the ROE of Kesoram Industries Ltd?

The ROE of Kesoram Industries Ltd is 125 %.

What is the Face Value of Kesoram Industries Ltd?

The Face Value of Kesoram Industries 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 Kesoram 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