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Last Updated on: 05 October, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Lokesh Machines Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 5, 2024, 12:25 am

Market Cap 709 Cr.
Current Price 383
High / Low476/212
Stock P/E50.2
Book Value 101
Dividend Yield0.00 %
ROCE11.6 %
ROE8.00 %
Face Value 10.0
PEG Ratio0.84

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

View Share Price Target for Lokesh Machines Ltd

Competitors of Lokesh Machines Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Harshil Agrotech Ltd 419 Cr. 82.582.5/2.54320 10.50.00 %16.4 %13.5 % 10.0
Gujarat Toolroom Ltd 135 Cr. 11.645.9/10.81.45 6.828.64 %179 %170 % 1.00
GTV Engineering Ltd 140 Cr. 448640/29022.1 1160.00 %12.7 %13.5 % 10.0
Galaxy Agrico Exports Ltd 16.9 Cr. 62.068.2/24.0 15.10.00 %33.5 %44.8 % 10.0
GG Engineering Ltd 301 Cr. 1.902.97/1.1465.7 1.410.00 %5.90 %3.98 % 1.00
Industry Average3,833.37N/A45.31N/AN/A30.1320.77N/A

All Competitor Stocks of Lokesh Machines Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales40.7356.5432.7149.3054.6165.2150.0460.3362.9267.0050.3076.4286.49
Expenses33.5748.7927.4542.1747.0155.4344.2051.9657.7457.8644.5866.6173.55
Operating Profit7.167.755.267.137.609.785.848.375.189.145.729.8112.94
OPM %17.58%13.71%16.08%14.46%13.92%15.00%11.67%13.87%8.23%13.64%11.37%12.84%14.96%
Other Income0.101.000.190.180.150.300.210.134.840.620.400.270.36
Interest3.053.513.102.882.953.282.862.872.522.492.642.982.90
Depreciation2.082.112.152.202.182.492.192.192.362.352.392.402.73
Profit before tax2.133.130.202.232.624.311.003.445.144.921.094.707.67
Tax %28.17%25.88%30.00%27.80%27.86%36.89%28.00%30.52%29.96%39.63%30.28%30.00%33.51%
Net Profit1.542.310.151.601.882.710.722.393.602.960.763.295.11
EPS in Rs0.861.290.080.891.051.510.401.342.011.650.421.842.86

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
Sales164143112118121132175190126150201239280
Expenses1331128591107104146159113125171211243
Operating Profit31322727142829311225302938
OPM %19%22%24%23%12%21%16%16%10%17%15%12%13%
Other Income50231201101162
Interest15211918151714131212121111
Depreciation810997889989910
Profit before tax1221343710-8591518
Tax %39%29%57%71%39%36%34%34%42%27%32%33%
Net Profit81012257-5461012
EPS in Rs6.450.900.390.641.451.242.633.78-2.612.213.555.406.77
Dividend Payout %8%83%128%79%34%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-87.50%-100.00%100.00%0.00%150.00%40.00%-171.43%180.00%50.00%66.67%
Change in YoY Net Profit Growth (%)0.00%-12.50%200.00%-100.00%150.00%-110.00%-211.43%351.43%-130.00%16.67%

Lokesh Machines Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 10 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:10%
5 Years:9%
3 Years:25%
TTM:27%
Compounded Profit Growth
10 Years:41%
5 Years:15%
3 Years:51%
TTM:64%
Stock Price CAGR
10 Years:26%
5 Years:61%
3 Years:93%
1 Year:65%
Return on Equity
10 Years:3%
5 Years:4%
3 Years:6%
Last Year:8%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital121212151718181818181818
Reserves86869199109120126121125131141178
Borrowings12312511611297847779878788118
Other Liabilities667267727258676057587977
Total Liabilities287295286297295280288278287294326391
Fixed Assets10599789986109102100116117122171
CWIP2535412941192526471616
Investments888622222211
Other Assets149154159164167151160151164169187202
Total Assets287295286297295280288278287294326391

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 27302417213031119233217
Cash from Investing Activity -17-147-12-7-5-10-2-4-11-22-60
Cash from Financing Activity -11-16-22-14-15-24-21-9-5-12-1042
Net Cash Flow-108-9-01-0-0-0-00-0

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow31.00-91.00-98.00-89.00-98.00-69.00-55.00-46.00-67.00-62.00-57.00-59.00

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 Days717665897352748497806260
Inventory Days425693623537544376356602500329300256
Days Payable152191192176166108138169135937980
Cash Conversion Cycle344578496450451319291518462316283236
Working Capital Days129167150223214158156239249192155148
ROCE %10%9%9%9%9%9%10%2%8%9%10%11%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters51.70%52.24%52.75%53.01%53.05%53.05%53.05%52.40%52.40%52.40%50.76%50.76%
FIIs0.03%0.00%0.36%0.16%0.71%0.06%0.49%0.49%0.32%0.57%0.27%0.21%
DIIs2.07%2.07%2.06%2.07%2.07%2.07%0.00%0.00%0.00%0.00%0.00%0.00%
Public46.19%45.69%44.82%44.77%44.17%44.82%46.46%47.11%47.27%47.02%48.98%49.04%
No. of Shareholders11,97213,52214,59716,44216,57016,35616,67319,80018,78818,73918,83822,493

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
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)7.685.413.552.21-2.62
Diluted EPS (Rs.)7.685.413.552.21-2.62
Cash EPS (Rs.)12.8810.488.596.872.36
Book Value[Excl.RevalReserv]/Share (Rs.)105.9688.8383.3979.9877.60
Book Value[Incl.RevalReserv]/Share (Rs.)105.9688.8383.3979.9877.60
Revenue From Operations / Share (Rs.)158.70134.27112.7883.9370.31
PBDIT / Share (Rs.)22.7118.3017.0914.667.00
PBIT / Share (Rs.)17.3213.2212.0510.002.02
PBT / Share (Rs.)11.118.115.223.03-4.54
Net Profit / Share (Rs.)7.495.413.542.21-2.62
PBDIT Margin (%)14.3013.6215.1517.469.94
PBIT Margin (%)10.919.8410.6811.902.87
PBT Margin (%)7.006.034.633.60-6.45
Net Profit Margin (%)4.714.023.142.63-3.72
Return on Networth / Equity (%)7.066.084.252.76-3.37
Return on Capital Employeed (%)12.4212.2311.6510.142.23
Return On Assets (%)3.542.962.151.38-1.68
Long Term Debt / Equity (X)0.230.120.160.160.09
Total Debt / Equity (X)0.600.550.580.560.54
Asset Turnover Ratio (%)0.810.770.690.530.44
Current Ratio (X)1.411.311.441.411.20
Quick Ratio (X)0.520.460.540.510.34
Inventory Turnover Ratio (X)1.491.391.100.730.64
Interest Coverage Ratio (X)3.663.052.502.101.07
Interest Coverage Ratio (Post Tax) (X)2.211.751.521.320.60
Enterprise Value (Cr.)794.50278.10220.15131.4699.62
EV / Net Operating Revenue (X)2.711.161.090.870.79
EV / EBITDA (X)18.918.497.205.017.96
MarketCap / Net Operating Revenue (X)2.330.810.680.380.21
Price / BV (X)3.491.240.920.400.19
Price / Net Operating Revenue (X)2.330.810.680.380.21
EarningsYield0.020.040.040.06-0.17

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Lokesh Machines Ltd as of October 5, 2024 is: ₹413.73

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 5, 2024, Lokesh Machines Ltd is Undervalued by 8.02% compared to the current share price ₹383.00

Intrinsic Value of Lokesh Machines Ltd as of October 5, 2024 is: ₹660.63

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 5, 2024, Lokesh Machines Ltd is Undervalued by 72.49% compared to the current share price ₹383.00

Last 5 Year EPS CAGR: 59.68%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (117.75 cr) compared to borrowings (99.42 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (165.46 cr) and profit (6.23 cr) over the years.
  1. The stock has a low average ROCE of 8.75%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 181.67, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 395.33, 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 Lokesh Machines Ltd:
    1. Net Profit Margin: 4.71%
      • 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: 12.42% (Industry Average ROCE: 30.13%)
      • 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%: 7.06% (Industry Average ROE: 20.77%)
      • 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): 2.21
      • 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: 0.52
      • 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: 50.2 (Industry average Stock P/E: 45.31)
      • 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: 0.6
      • 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

Lokesh Machines Ltd. is a Public Limited Listed company incorporated on 17/12/1983 and has its registered office in the State of Andhra Pradesh, India. Company’s Corporate Identification Number(CIN) is L29219TG1983PLC004319 and registration number is 004319. Currently Company is involved in the business activities of Manufacture of engines and turbines, except aircraft, vehicle and cycle engines. Company’s Total Operating Revenue is Rs. 201.84 Cr. and Equity Capital is Rs. 17.90 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Engineering - GeneralB-29, EEIE, Hyderabad Telangana 500037info@lokeshmachines.com
http://www.lokeshmachines.com
Management
NamePosition Held
Mr. Mullapudi Lokeswara RaoManaging Director
Mr. B Kishore BabuWhole Time Director
Mr. M SrinivasWhole Time Director
Mr. M SrikrishnaWhole Time Director
Ms. M LikhithaNon Executive Director
Mr. K Krishna SwamyNon Executive Director
Mr. D BalajiIndependent Director
Mr. B R MaheshIndependent Director
Mr. S S RamanIndependent Director

FAQ

What is the latest fair value of Lokesh Machines Ltd?

The latest fair value of Lokesh Machines Ltd is ₹413.73.

What is the Market Cap of Lokesh Machines Ltd?

The Market Cap of Lokesh Machines Ltd is 709 Cr..

What is the current Stock Price of Lokesh Machines Ltd as on 05 October 2024?

The current stock price of Lokesh Machines Ltd as on 05 October 2024 is ₹383.

What is the High / Low of Lokesh Machines Ltd stocks in FY 2024?

In FY 2024, the High / Low of Lokesh Machines Ltd stocks is 476/212.

What is the Stock P/E of Lokesh Machines Ltd?

The Stock P/E of Lokesh Machines Ltd is 50.2.

What is the Book Value of Lokesh Machines Ltd?

The Book Value of Lokesh Machines Ltd is 101.

What is the Dividend Yield of Lokesh Machines Ltd?

The Dividend Yield of Lokesh Machines Ltd is 0.00 %.

What is the ROCE of Lokesh Machines Ltd?

The ROCE of Lokesh Machines Ltd is 11.6 %.

What is the ROE of Lokesh Machines Ltd?

The ROE of Lokesh Machines Ltd is 8.00 %.

What is the Face Value of Lokesh Machines Ltd?

The Face Value of Lokesh Machines 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 Lokesh Machines 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