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Last Updated on: 19 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo

Madras Fertilizers Ltd: Share Price Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: December 18, 2024, 9:35 pm

Market Cap 1,653 Cr.
Current Price 103
High / Low 134/75.4
Stock P/E12.8
Book Value 3.13
Dividend Yield0.00 %
ROCE10.3 %
ROE%
Face Value 10.0
PEG Ratio0.19

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

View Share Price Target for Madras Fertilizers Ltd

Competitors of Madras Fertilizers Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Gujarat State Fertilizers & Chemicals Ltd 8,601 Cr. 216 322/18816.3 3371.85 %5.77 %4.55 % 2.00
Bharat Agri Fert & Realty Ltd 404 Cr. 76.5 132/68.5 9.970.07 %6.14 %14.8 % 1.00
Basant Agro Tech (India) Ltd 174 Cr. 19.2 28.9/17.521.0 19.50.26 %5.65 %1.30 % 1.00
Zuari Agro Chemicals Ltd 983 Cr. 234 268/1515.49 4220.00 %8.50 %3.44 % 10.0
Southern Petrochemicals Industries Corporation Ltd (SPIC) 1,583 Cr. 77.7 108/64.410.2 56.41.93 %17.8 %14.4 % 10.0
Industry Average10,744.67 Cr369.0952.69165.700.62%21.98%10.62%7.35

All Competitor Stocks of Madras Fertilizers Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales442460495382648777813912954768529385556
Expenses407391443368570684710862869684546374543
Operating Profit356952147893103508484-171213
OPM %8%15%11%4%12%12%13%6%9%11%-3%3%2%
Other Income2412326233649-46
Interest24362020203419192119181416
Depreciation710888-153331333
Profit before tax62725-115310083316471-343-52
Tax %0%0%0%0%0%5%24%22%20%34%0%0%0%
Net Profit62725-11539563245147-343-52
EPS in Rs0.371.651.54-0.713.315.923.911.483.172.94-2.140.21-3.21

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
Sales2,2072,3442,5921,6981,1981,3921,6161,5931,2921,5332,3023,4472,636
Expenses2,0072,2132,3591,7281,1911,3131,5921,5951,2941,3982,0563,1152,473
Operating Profit200131233-3077924-2-2135247332163
OPM %9%6%9%-2%1%6%1%-0%-0%9%11%10%6%
Other Income1291218-69364718127291423
Interest60749710410990941231041081008972
Depreciation4042421818212223323191010
Profit before tax11224106-135-1904-45-130-1253166249104
Tax %0%0%5%0%0%0%0%0%0%0%2%25%
Net Profit11224100-135-1904-45-130-125316218567
EPS in Rs6.951.526.21-8.36-11.770.22-2.78-8.06-7.780.1810.0811.504.18
Dividend Payout %0%0%0%0%0%0%0%0%0%0%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 (%)-78.57%316.67%-235.00%-40.74%102.11%-1225.00%-188.89%3.85%102.40%5300.00%14.20%
Change in YoY Net Profit Growth (%)0.00%395.24%-551.67%194.26%142.85%-1327.11%1036.11%192.74%98.55%5197.60%-5285.80%

Madras Fertilizers 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:-2%
5 Years:7%
3 Years:13%
TTM:-5%
Compounded Profit Growth
10 Years:-11%
5 Years:18%
3 Years:110%
TTM:92%
Stock Price CAGR
10 Years:19%
5 Years:40%
3 Years:57%
1 Year:4%
Return on Equity
10 Years:%
5 Years:%
3 Years:%
Last Year:%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 8:36 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital162162162162162162162162162162162162162
Reserves-468-368-505-694-592-654-737-892-857-668-449-352-213
Borrowings8737909149861,2541,5061,6521,8041,3781,7361,4941,5831,508
Other Liabilities3471,152784798406568492344508680650614574
Total Liabilities9141,7361,3561,2521,2301,5821,5681,4191,1911,9111,8572,0072,032
Fixed Assets232195183180183162148217190190192200199
CWIP1718151522263131814132522
Investments0000135149198180203250337455525
Other Assets6651,5221,1571,0578891,2461,1921,0187801,4561,3151,3281,287
Total Assets9141,7361,3561,2521,2301,5821,5681,4191,1911,9111,8572,0072,032

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +3-107-65-19220-150-23104492-317687164
Cash from Investing Activity +-29-6-2-10-5-3-13-60-1522-1
Cash from Financing Activity +-251306244-2451784556-527265-32019
Net Cash Flow-5117-515-302510100-50-50369182

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow200.00-742.00-557.00-944.00-979.0078.0023.00-3.00-3.00134.00246.00331.00

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 Days10331156147651565353
Inventory Days8356681201698611610298713346
Days Payable631749412913314911549114774164
Cash Conversion Cycle21-117-24-648-598200491504535
Working Capital Days-384-1-49126151157159501253843
ROCE %24%35%-5%2%15%5%-1%-2%13%28%28%10%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters85.27%85.27%85.27%85.27%85.27%85.27%85.27%85.27%85.27%85.27%85.27%85.27%
FIIs0.00%0.00%0.00%0.00%0.00%0.15%0.00%0.00%0.00%0.00%0.13%0.00%
DIIs0.02%0.03%0.02%0.14%0.02%0.06%0.04%0.04%0.04%0.04%0.04%0.04%
Public14.70%14.70%14.70%14.59%14.71%14.52%14.69%14.69%14.69%14.69%14.56%14.69%
No. of Shareholders39,26838,71539,10544,39243,69548,33749,39749,33048,32353,46153,49860,264

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.)0.3511.5010.060.18-8.37
Diluted EPS (Rs.)0.3511.5010.060.18-8.37
Cash EPS (Rs.)0.9712.0210.582.10-6.69
Book Value[Excl.RevalReserv]/Share (Rs.)-11.70-17.70-31.17-42.88-38.91
Book Value[Incl.RevalReserv]/Share (Rs.)-11.70-17.70-31.17-42.88-38.91
Revenue From Operations / Share (Rs.)137.44212.60141.9994.5378.60
PBDIT / Share (Rs.)8.9020.7516.618.17-1.12
PBIT / Share (Rs.)8.2720.1616.026.25-2.75
PBT / Share (Rs.)0.7315.3410.280.17-8.32
Net Profit / Share (Rs.)0.3411.439.990.17-8.32
PBDIT Margin (%)6.479.7611.698.64-1.42
PBIT Margin (%)6.019.4811.286.61-3.49
PBT Margin (%)0.537.217.240.18-10.58
Net Profit Margin (%)0.245.377.030.18-10.58
Return on Networth / Equity (%)-2.93-64.55-32.06-0.410.00
Return on Capital Employeed (%)-397.12-201.93-60.54-16.168.32
Return On Assets (%)0.279.988.480.23-8.82
Long Term Debt / Equity (X)0.000.00-0.01-0.03-0.08
Total Debt / Equity (X)-8.35-5.20-3.43-1.98-2.85
Asset Turnover Ratio (%)1.151.831.471.120.82
Current Ratio (X)0.630.630.600.420.49
Quick Ratio (X)0.520.510.480.280.37
Inventory Turnover Ratio (X)7.539.645.673.684.34
Interest Coverage Ratio (X)2.004.302.891.35-0.20
Interest Coverage Ratio (Post Tax) (X)1.773.372.741.03-0.49
Enterprise Value (Cr.)2323.972029.982506.491708.401866.73
EV / Net Operating Revenue (X)1.050.581.091.111.46
EV / EBITDA (X)16.166.039.3112.89-102.51
MarketCap / Net Operating Revenue (X)0.580.270.340.260.15
Price / BV (X)-6.92-3.26-1.59-0.59-0.31
Price / Net Operating Revenue (X)0.580.270.340.260.15
EarningsYield0.000.190.200.01-0.67

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Madras Fertilizers Ltd as of December 19, 2024 is: 6.13

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 December 19, 2024, Madras Fertilizers Ltd is Overvalued by 94.05% compared to the current share price 103.00

Default values used*: Default value of 15% for ROE is used

Intrinsic Value of Madras Fertilizers Ltd as of December 19, 2024 is: 10.23

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 December 19, 2024, Madras Fertilizers Ltd is Overvalued by 90.07% compared to the current share price 103.00

Default values used*: Default value of 15% for ROE is used

Last 5 Year EPS CAGR: 66.92%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has shown consistent growth in sales (1.54 cr) and profit (11.00 cr) over the years.
  1. The stock has a low average ROCE of 12.67%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 63.75, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 29.17, which may not be favorable.
  4. The company has higher borrowings (1,344.46) compared to reserves (-573.00), which may suggest financial risk.

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 Madras Fertilizers Ltd:
    1. Net Profit Margin: 0.24%
      • 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: -397.12% (Industry Average ROCE: 21.98%)
      • 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%: -2.93% (Industry Average ROE: 10.62%)
      • 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): 1.77
      • 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: 12.8 (Industry average Stock P/E: 52.69)
      • 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: -8.35
      • 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

Madras Fertilizers Ltd. is a Public Limited Listed company incorporated on 08/12/1966 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L32201TN1966GOI005469 and registration number is 005469. Currently Company is involved in the business activities of Manufacture of fertilizers and nitrogen compounds. Company’s Total Operating Revenue is Rs. 2302.16 Cr. and Equity Capital is Rs. 162.14 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
FertilisersPost Bag No.2, Manali, Chennai (Madras) Tamil Nadu 600068cs@madrasfert.co.in
http://www.madrasfert.co.in
Management
NamePosition Held
Mr. Kishor RungtaChairman & Managing Director
Dr. K JayachandranDirector - Technical
Dr. Jatin Kumar MohantyNon Official Independent Director
Dr. C R JayanthiNon Official Independent Director
Mr. Sanjay ShetyeNon Official Independent Director
Mr. Nalabothu Venkata RaoNon Official Independent Director
Mr. Mohammad Bagher DakhiliNominee Director
Mr. Babak BagherpourNominee Director
Mrs. Samieh KokabiNominee Director
Mr. Arvind KumarGovernment Nominee Director

FAQ

What is the latest intrinsic value of Madras Fertilizers Ltd?

The latest intrinsic value of Madras Fertilizers Ltd as on 18 December 2024 is ₹6.13, which is 94.05% lower than the current market price of ₹103.00. The stock has a market capitalization of 1,653 Cr. and recorded a high/low of ₹134/75.4 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹-213 Cr and total liabilities of ₹2,032 Cr.

What is the Market Cap of Madras Fertilizers Ltd?

The Market Cap of Madras Fertilizers Ltd is 1,653 Cr..

What is the current Stock Price of Madras Fertilizers Ltd as on 18 December 2024?

The current stock price of Madras Fertilizers Ltd as on 18 December 2024 is 103.

What is the High / Low of Madras Fertilizers Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Madras Fertilizers Ltd stocks is 134/75.4.

What is the Stock P/E of Madras Fertilizers Ltd?

The Stock P/E of Madras Fertilizers Ltd is 12.8.

What is the Book Value of Madras Fertilizers Ltd?

The Book Value of Madras Fertilizers Ltd is 3.13.

What is the Dividend Yield of Madras Fertilizers Ltd?

The Dividend Yield of Madras Fertilizers Ltd is 0.00 %.

What is the ROCE of Madras Fertilizers Ltd?

The ROCE of Madras Fertilizers Ltd is 10.3 %.

What is the ROE of Madras Fertilizers Ltd?

The ROE of Madras Fertilizers Ltd is %.

What is the Face Value of Madras Fertilizers Ltd?

The Face Value of Madras Fertilizers 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 Madras Fertilizers 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