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Last Updated on: 30 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo

Magadh Sugar & Energy Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 29, 2024, 9:29 pm

Market Cap 899 Cr.
Current Price 638
High / Low 1,010/490
Stock P/E8.76
Book Value 526
Dividend Yield1.57 %
ROCE14.6 %
ROE16.8 %
Face Value 10.0
PEG Ratio1.86

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

View Share Price Target for Magadh Sugar & Energy Ltd

Competitors of Magadh Sugar & Energy Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Gayatri Sugars Ltd 93.5 Cr. 14.4 27.9/13.3 20.00.00 %93.2 %% 10.0
Dhampure Speciality Sugars Ltd 100 Cr. 127 142/75.768.4 35.60.00 %3.15 %3.78 % 10.0
Dhampur Bio Organics Ltd 760 Cr. 115 164/11272.3 1462.18 %5.02 %3.67 % 10.0
DCM Shriram Industries Ltd 1,574 Cr. 181 242/15012.9 1001.11 %16.1 %14.9 % 2.00
Davangere Sugar Company Ltd 500 Cr. 5.31 11.5/5.0140.3 3.640.00 %6.86 %3.75 % 1.00
Industry Average2,271.29 Cr311.5631.02224.520.67%13.00%13.21%6.37

All Competitor Stocks of Magadh Sugar & Energy Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales222326253198202343246199210299301289219
Expenses182274242187160281230197164230263256157
Operating Profit4152101142621524568383361
OPM %18%16%4%5%21%18%6%1%22%23%13%11%28%
Other Income0100110001001
Interest1314121071097591174
Depreciation5555566666666
Profit before tax2234-6-431460-103453212152
Tax %34%36%35%31%35%29%43%35%36%34%25%27%25%
Net Profit1522-4-320330-72235161539
EPS in Rs10.3815.48-2.80-2.1514.1823.430.06-4.7515.4824.8711.0310.7027.61

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales006817177399169529959531,107
Expenses00520654638761837870822906
Operating Profit0-016064101155115125131201
OPM %24%9%14%17%12%13%14%18%
Other Income00286192322
Interest004143354855403031
Depreciation002019181819212525
Profit before tax0-01021054108426677147
Tax %0%43%-145%36%23%36%31%35%
Net Profit0-058253483274650105
EPS in Rs41.0217.6724.2758.9319.2232.6635.6774.21
Dividend Payout %0%3%4%6%7%21%20%20%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-56.90%36.00%144.12%-67.47%70.37%8.70%
Change in YoY Net Profit Growth (%)0.00%92.90%108.12%-211.59%137.84%-61.67%

Magadh Sugar & Energy 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:8%
3 Years:5%
TTM:8%
Compounded Profit Growth
10 Years:%
5 Years:28%
3 Years:62%
TTM:17%
Stock Price CAGR
10 Years:%
5 Years:40%
3 Years:36%
1 Year:-7%
Return on Equity
10 Years:%
5 Years:11%
3 Years:11%
Last Year:17%

Last Updated: Unknown

Balance Sheet

Last Updated: December 14, 2024, 3:13 pm

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital0.050.05101010141414141414
Reserves-0-0391414446522544584625732727
Borrowings-0-0462519539641632637583637375
Other Liabilities-0-0247204391367240113187228118
Total Liabilities001,1111,1471,3861,5441,4301,3481,4091,6111,233
Fixed Assets-0-0649653657670691807790792785
CWIP-0-0122715125111
Investments-0-0000000000
Other Assets00461492727867724540617815337
Total Assets001,1111,1471,3861,5441,4301,3481,4091,6111,233

Reserves and Borrowings Chart

Cash Flow

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +0-0892141-1712514711531
Cash from Investing Activity +00-13-24-24-36-52-106-21-43
Cash from Financing Activity +00-753-1753-73-41-9412
Net Cash Flow0-00-1-00-0-0-00

Free Cash Flow

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow0.000.00-302.00-455.00-438.00-486.00-517.00-512.00-452.00

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 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days6101046181312
Inventory Days358297456451337231309390
Days Payable8811124418485195879
Cash Conversion Cycle276196222271258229264323
Working Capital Days103125154196179170184207
ROCE %-25%33%5%9%13%8%9%9%15%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters61.02%61.02%61.02%61.02%61.02%61.02%61.02%61.02%61.02%61.02%61.02%61.02%
FIIs0.00%0.12%0.00%0.10%0.03%0.07%0.05%0.22%0.47%0.49%0.43%0.42%
DIIs0.01%0.01%0.01%0.01%0.11%0.11%0.01%0.03%0.01%0.01%0.01%0.01%
Public38.97%38.85%38.97%38.88%38.86%38.82%38.93%38.72%38.52%38.49%38.55%38.55%
No. of Shareholders10,14911,38912,72312,53812,06511,1539,9919,93311,41811,18011,11812,025

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.)82.6135.6732.6619.2258.93
Diluted EPS (Rs.)82.6135.6732.6619.2258.93
Cash EPS (Rs.)100.6553.5547.5032.8371.71
Book Value[Excl.RevalReserv]/Share (Rs.)529.11453.72424.59395.72380.59
Book Value[Incl.RevalReserv]/Share (Rs.)529.11453.72424.59395.72380.59
Dividend / Share (Rs.)15.007.006.504.004.00
Revenue From Operations / Share (Rs.)778.18676.59706.13675.54650.14
PBDIT / Share (Rs.)152.3194.1390.2382.89112.15
PBIT / Share (Rs.)134.2776.2575.3869.2799.37
PBT / Share (Rs.)111.1254.7147.1630.0276.39
Net Profit / Share (Rs.)82.6135.6732.6619.2258.93
PBDIT Margin (%)19.5713.9112.7712.2617.25
PBIT Margin (%)17.2511.2610.6710.2515.28
PBT Margin (%)14.288.086.674.4411.74
Net Profit Margin (%)10.615.274.622.849.06
Return on Networth / Equity (%)15.617.867.694.8515.48
Return on Capital Employeed (%)21.7613.1613.6814.4720.49
Return On Assets (%)7.223.563.411.895.37
Long Term Debt / Equity (X)0.090.190.230.150.22
Total Debt / Equity (X)0.850.911.061.061.14
Asset Turnover Ratio (%)0.720.690.710.640.62
Current Ratio (X)1.081.040.940.941.00
Quick Ratio (X)0.060.080.110.070.10
Inventory Turnover Ratio (X)1.371.410.950.841.05
Dividend Payout Ratio (NP) (%)8.4718.2212.2420.812.92
Dividend Payout Ratio (CP) (%)6.9512.138.4212.182.40
Earning Retention Ratio (%)91.5381.7887.7679.1997.08
Cash Earning Retention Ratio (%)93.0587.8791.5887.8297.60
Interest Coverage Ratio (X)6.584.373.202.113.27
Interest Coverage Ratio (Post Tax) (X)4.572.662.161.492.39
Enterprise Value (Cr.)1389.561030.801079.46735.53704.31
EV / Net Operating Revenue (X)1.271.081.080.770.76
EV / EBITDA (X)6.477.778.496.304.46
MarketCap / Net Operating Revenue (X)0.680.470.440.140.10
Retention Ratios (%)91.5281.7787.7579.1897.07
Price / BV (X)1.010.700.740.250.17
Price / Net Operating Revenue (X)0.680.470.440.140.10
EarningsYield0.150.110.100.180.87

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Magadh Sugar & Energy Ltd as of December 30, 2024 is: 786.26

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 30, 2024, Magadh Sugar & Energy Ltd is Undervalued by 23.24% compared to the current share price 638.00

Intrinsic Value of Magadh Sugar & Energy Ltd as of December 30, 2024 is: 823.36

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 30, 2024, Magadh Sugar & Energy Ltd is Undervalued by 29.05% compared to the current share price 638.00

Last 5 Year EPS CAGR: 4.72%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has shown consistent growth in sales (595.40 cr) and profit (60.60 cr) over the years.
  1. The stock has a low average ROCE of 7.60%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 131.80, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 203.90, which may not be favorable.
  4. The company has higher borrowings (456.82) compared to reserves (453.18), 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 Magadh Sugar & Energy Ltd:
    1. Net Profit Margin: 10.61%
      • 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: 21.76% (Industry Average ROCE: 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%: 15.61% (Industry Average ROE: 11.89%)
      • 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): 4.57
      • 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: 0.06
      • 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: 8.76 (Industry average Stock P/E: 23.78)
      • 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: 0.85
      • 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

Magadh Sugar & Energy Ltd. is a Public Limited Listed company incorporated on 19/03/2015 and has its registered office in the State of Uttar Pradesh, India. Company’s Corporate Identification Number(CIN) is L15122UP2015PLC069632 and registration number is 069632. Currently Company is involved in the business activities of Manufacture of sugar. Company’s Total Operating Revenue is Rs. 995.06 Cr. and Equity Capital is Rs. 14.09 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
SugarP. O. Hargaon, Sitapur Dist. Uttar Pradesh 261121magadhsugar@birlasugar.org
http://www.birla-sugar.com
Management
NamePosition Held
Mr. Chandra Shekhar NopanyChairperson & Non Executive Director
Mr. Chandra MohanWhole Time Director
Mr. Padam Kumar KhaitanIndependent Director
Mr. Yashwant Kumar DagaIndependent Director
Mr. Ishwari Prosad Singh RoyIndependent Director
Mr. Raj Kumar BagriIndependent Director
Mrs. Shashi SharmaIndependent Director
Mr. Rajan Arvind DalalAddnl. & Non Exe.Director

FAQ

What is the latest intrinsic value of Magadh Sugar & Energy Ltd?

The latest intrinsic value of Magadh Sugar & Energy Ltd as on 30 December 2024 is ₹786.26, which is 23.24% higher than the current market price of ₹638.00. The stock has a market capitalization of 899 Cr. and recorded a high/low of 1,010/490 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹727 Cr and total liabilities of ₹1,233 Cr.

What is the Market Cap of Magadh Sugar & Energy Ltd?

The Market Cap of Magadh Sugar & Energy Ltd is 899 Cr..

What is the current Stock Price of Magadh Sugar & Energy Ltd as on 30 December 2024?

The current stock price of Magadh Sugar & Energy Ltd as on 30 December 2024 is 638.

What is the High / Low of Magadh Sugar & Energy Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Magadh Sugar & Energy Ltd stocks is 1,010/490.

What is the Stock P/E of Magadh Sugar & Energy Ltd?

The Stock P/E of Magadh Sugar & Energy Ltd is 8.76.

What is the Book Value of Magadh Sugar & Energy Ltd?

The Book Value of Magadh Sugar & Energy Ltd is 526.

What is the Dividend Yield of Magadh Sugar & Energy Ltd?

The Dividend Yield of Magadh Sugar & Energy Ltd is 1.57 %.

What is the ROCE of Magadh Sugar & Energy Ltd?

The ROCE of Magadh Sugar & Energy Ltd is 14.6 %.

What is the ROE of Magadh Sugar & Energy Ltd?

The ROE of Magadh Sugar & Energy Ltd is 16.8 %.

What is the Face Value of Magadh Sugar & Energy Ltd?

The Face Value of Magadh Sugar & Energy 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 Magadh Sugar & Energy 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