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Last Updated on: 11 October, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Kiri Industries Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 11, 2024, 12:02 am

Market Cap 1,843 Cr.
Current Price 356
High / Low454/263
Stock P/E8.62
Book Value 542
Dividend Yield0.00 %
ROCE5.96 %
ROE4.84 %
Face Value 10.0
PEG Ratio-0.27

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

View Share Price Target for Kiri Industries Ltd

Competitors of Kiri Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Dynamic Industries Ltd 30.3 Cr. 100110/58.186.6 1540.50 %0.04 %0.49 % 10.0
Daikaffil Chemicals India Ltd 102 Cr. 170202/35.5 17.60.00 %17.3 %17.4 % 10.0
Amal Ltd 406 Cr. 329489/29684.7 56.50.00 %6.58 %2.42 % 10.0
Vidhi Specialty Food Ingredients Ltd 2,397 Cr. 481530/38265.3 56.30.42 %17.3 %13.8 % 1.00
Ushanti Colour Chem Ltd 71.2 Cr. 66.075.4/49.8 39.60.00 %0.21 %5.88 % 10.0
Industry Average1,422.00 Cr353.9984.20162.630.22%8.67%7.38%8.13

All Competitor Stocks of Kiri Industries Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales310363293358429417277242204222227231219
Expenses271314273330381392285249221227226240231
Operating Profit394920284925-9-7-17-52-10-13
OPM %13%14%7%8%11%6%-3%-3%-8%-2%1%-4%-6%
Other Income1000010003123
Interest1111111122456
Depreciation12141313131212121212121212
Profit before tax26357143512-22-20-31-16-13-26-28
Tax %22%-12%1%14%30%23%-21%-28%-10%-15%-18%-5%-6%
Net Profit1491169110110691546154-61-319126
EPS in Rs44.2634.5724.6025.2926.5117.5610.3211.7010.42-11.86-0.493.6324.38

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
Sales5565546919311,0301,1251,1171,3941,3059571,497945899
Expenses4755316198319179669361,1631,1198741,376983925
Operating Profit81237310011315918123118683121-37-26
OPM %15%4%11%11%11%14%16%17%14%9%8%-4%-3%
Other Income-19-110-2821715923392652333382159
Interest5478808674935545617
Depreciation32353728272934384446504949
Profit before tax-24-199-72-1330279376198402265404122-82
Tax %-33%-0%-1%-22%13%5%5%17%7%5%4%13%
Net Profit-32-2001018219626635816437625238910781
EPS in Rs-16.84-105.025.2279.8873.7195.40118.3852.36111.6975.1075.0020.5815.66
Dividend Payout %0%0%0%0%0%0%0%4%0%1%0%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 (%)-525.00%105.00%1720.00%7.69%35.71%34.59%-54.19%129.27%-32.98%54.37%-72.49%
Change in YoY Net Profit Growth (%)0.00%630.00%1615.00%-1712.31%28.02%-1.13%-88.78%183.46%-162.25%87.34%-126.86%

Kiri 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:3%
5 Years:-7%
3 Years:0%
TTM:10%
Compounded Profit Growth
10 Years:13%
5 Years:-4%
3 Years:-19%
TTM:322%
Stock Price CAGR
10 Years:12%
5 Years:-4%
3 Years:-13%
1 Year:33%
Return on Equity
10 Years:15%
5 Years:11%
3 Years:8%
Last Year:5%

Last Updated: Unknown

Balance Sheet

Last Updated: September 15, 2024, 3:20 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital191923272830313434525252
Reserves1681614205961,0051,3451,5341,8972,1472,5212,6272,760
Borrowings7357827914291842051671531529649122
Other Liabilities192251321288257245327321367406477478
Total Liabilities1,1141,2121,5561,3391,4731,8242,0582,4042,7003,0743,2053,411
Fixed Assets325324368333376412484512563546510470
CWIP1091118963632387958637273
Investments1141963945687179489541,2141,4451,7811,9922,213
Other Assets567581705433344433582599634685630655
Total Assets1,1141,2121,5561,3391,4731,8242,0582,4042,7003,0743,2053,411

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 32169-8322620664141124729289-61
Cash from Investing Activity -22-120-247-212-105-66-119-104-70-29-180
Cash from Financing Activity -8-453251-1192-16-27-7-57-5650
Net Cash Flow14-616-1906-7-5614-11

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow81.00-712.00-709.00-691.00-316.00-25.00-24.0064.0033.00-69.0025.00-86.00

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 Days1891751849048706690126708188
Inventory Days14810056423963696510490105107
Days Payable89808596878981100158119213210
Cash Conversion Cycle24819515536-04455557241-27-16
Working Capital Days1901081517265539406940-11-2
ROCE %-1%4%7%9%25%27%12%21%12%16%5%6%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters34.98%34.98%26.72%26.72%26.72%26.72%26.72%26.72%26.72%26.72%26.72%26.72%
FIIs35.11%34.48%49.13%48.40%48.43%48.34%46.53%46.81%46.35%45.73%42.07%39.73%
DIIs0.62%0.62%0.48%0.47%0.48%0.48%0.48%0.48%0.54%0.56%0.48%0.34%
Public29.23%29.92%23.67%24.41%24.36%24.46%26.29%26.01%26.40%27.00%30.74%33.21%
Others0.06%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
No. of Shareholders33,37135,08431,61830,68529,35727,93829,91830,15432,60030,28530,81032,067

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Motilal Oswal Nifty Microcap 250 Index Fund37,5250.221.0237,5252024-10-090%
Groww Nifty Total Market Index Fund880.01037,5252024-10-09-99.77%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)25.5520.6795.4975.07114.33
Diluted EPS (Rs.)25.5520.6774.9448.6972.34
Cash EPS (Rs.)-7.57-10.8219.8920.2047.62
Book Value[Excl.RevalReserv]/Share (Rs.)542.45516.89496.32643.22568.56
Book Value[Incl.RevalReserv]/Share (Rs.)542.45516.89496.32643.22568.56
Revenue From Operations / Share (Rs.)183.12182.32288.79284.65388.27
PBDIT / Share (Rs.)-0.67-6.5923.7825.2356.91
PBIT / Share (Rs.)-10.05-16.0214.1011.5143.71
PBT / Share (Rs.)-14.46-17.2313.1810.3242.27
Net Profit / Share (Rs.)-16.96-20.2510.216.4834.41
NP After MI And SOA / Share (Rs.)25.6620.5875.0075.09111.69
PBDIT Margin (%)-0.36-3.618.238.8614.65
PBIT Margin (%)-5.49-8.784.884.0411.25
PBT Margin (%)-7.89-9.454.563.6210.88
Net Profit Margin (%)-9.25-11.103.532.278.86
NP After MI And SOA Margin (%)14.0111.2825.9726.3828.76
Return on Networth / Equity (%)4.733.9815.1111.6719.64
Return on Capital Employeed (%)-1.83-3.042.801.687.16
Return On Assets (%)3.893.3312.649.3515.62
Long Term Debt / Equity (X)0.010.010.010.040.04
Total Debt / Equity (X)0.040.010.030.040.04
Asset Turnover Ratio (%)0.280.300.600.390.61
Current Ratio (X)0.981.131.241.351.45
Quick Ratio (X)0.620.710.710.921.04
Inventory Turnover Ratio (X)3.042.755.713.644.60
Interest Coverage Ratio (X)-0.15-5.4125.7821.1639.56
Interest Coverage Ratio (Post Tax) (X)-2.85-15.6312.076.4324.92
Enterprise Value (Cr.)1599.981416.912615.311489.90987.36
EV / Net Operating Revenue (X)1.691.501.751.560.75
EV / EBITDA (X)-460.34-41.5021.2217.565.16
MarketCap / Net Operating Revenue (X)1.661.561.701.470.69
Price / BV (X)0.550.540.980.640.47
Price / Net Operating Revenue (X)1.661.561.701.470.69
EarningsYield0.080.070.150.170.41

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Kiri Industries Ltd as of October 11, 2024 is: ₹230.65

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 October 11, 2024, Kiri Industries Ltd is Overvalued by 35.21% compared to the current share price ₹356.00

Intrinsic Value of Kiri Industries Ltd as of October 11, 2024 is: ₹155.71

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 October 11, 2024, Kiri Industries Ltd is Overvalued by 56.26% compared to the current share price ₹356.00

Last 5 Year EPS CAGR: -32.49%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (1,431.75 cr) compared to borrowings (322.08 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (426.08 cr) and profit (129.69 cr) over the years.
  1. The stock has a low average ROCE of 11.92%, 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 71.50, 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 Kiri Industries Ltd:
    1. Net Profit Margin: -9.25%
      • 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: -1.83% (Industry Average ROCE: 8.67%)
      • 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%: 4.73% (Industry Average ROE: 7.38%)
      • 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): -2.85
      • 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: 0.62
      • 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: 8.62 (Industry average Stock P/E: 68.41)
      • 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: 0.04
      • 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

Kiri Industries Ltd. is a Public Limited Listed company incorporated on 14/05/1998 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L24231GJ1998PLC034094 and registration number is 034094. Currently Company is involved in the business activities of Manufacture of dyes and pigments from any source in basic form or as concentrate. Company’s Total Operating Revenue is Rs. 1136.80 Cr. and Equity Capital is Rs. 51.83 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Dyes & Pigments7th Floor, Hasubhai Chambers, Ahmedabad Gujarat 380006investor@kiriindustries.com
http://www.kiriindustries.com
Management
NamePosition Held
Mr. Manish KiriChairman & Managing Director
Ms. Veena PadiaIndependent Director
Mr. Keyoor BakshiIndependent Director
Mr. Mukesh DesaiIndependent Director
Mr. Yagnesh MankadWhole Time Director
Mr. Girish TandelWhole Time Director

FAQ

What is the latest fair value of Kiri Industries Ltd?

The latest fair value of Kiri Industries Ltd is ₹230.65.

What is the Market Cap of Kiri Industries Ltd?

The Market Cap of Kiri Industries Ltd is 1,843 Cr..

What is the current Stock Price of Kiri Industries Ltd as on 11 October 2024?

The current stock price of Kiri Industries Ltd as on 11 October 2024 is ₹356.

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

In FY 2024, the High / Low of Kiri Industries Ltd stocks is 454/263.

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

The Stock P/E of Kiri Industries Ltd is 8.62.

What is the Book Value of Kiri Industries Ltd?

The Book Value of Kiri Industries Ltd is 542.

What is the Dividend Yield of Kiri Industries Ltd?

The Dividend Yield of Kiri Industries Ltd is 0.00 %.

What is the ROCE of Kiri Industries Ltd?

The ROCE of Kiri Industries Ltd is 5.96 %.

What is the ROE of Kiri Industries Ltd?

The ROE of Kiri Industries Ltd is 4.84 %.

What is the Face Value of Kiri Industries Ltd?

The Face Value of Kiri 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 Kiri 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