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Last Updated on: 25 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Manali Petrochemicals Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 24, 2024, 9:26 pm

Market Cap 1,070 Cr.
Current Price 62.2
High / Low105/55.9
Stock P/E58.3
Book Value 62.3
Dividend Yield1.21 %
ROCE4.75 %
ROE2.25 %
Face Value 5.00
PEG Ratio-3.28

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

View Share Price Target for Manali Petrochemicals Ltd

Competitors of Manali Petrochemicals Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Hindustan Fluoro Carbons Ltd 33.0 Cr. 16.823.7/13.025.2 41.90.00 %3.05 %% 10.0
Gujarat Petrosynthese Ltd 41.2 Cr. 69.198.0/44.232.7 81.90.00 %2.73 %3.46 % 10.0
AVI Polymers Ltd 5.11 Cr. 12.514.0/9.45102 12.00.00 %0.57 %0.41 % 10.0
Supreme Petrochem Ltd 12,988 Cr. 691927/52131.6 1121.30 %22.5 %16.8 % 2.00
Signet Industries Ltd 197 Cr. 66.997.4/52.215.7 75.40.75 %14.8 %7.22 % 10.0
Industry Average4,465.43 Cr212.2141.7679.550.79%12.39%9.72%7.55

All Competitor Stocks of Manali Petrochemicals Ltd

Quarterly Result

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales217349366330436491414324286238334301270
Expenses179222240217277339311274268234327294255
Operating Profit37127126113159152103511846815
OPM %17%36%34%34%36%31%25%16%6%2%2%3%5%
Other Income-6-220534666579
Interest1112224223222
Depreciation41044465566766
Profit before tax2711412310715814898491722615
Tax %22%24%26%25%26%25%25%26%30%-89%119%30%27%
Net Profit218691801171107436123-0411
EPS in Rs1.215.005.314.646.826.404.302.110.680.18-0.030.240.63

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales5796267488108031,0241,6721,1811,143
Expenses5115746517107337231,1431,1031,110
Operating Profit685297100703025297932
OPM %12%8%13%12%9%29%32%7%3%
Other Income9183275-8112427
Interest3232659910
Depreciation689111421202324
Profit before tax696088113542685117025
Tax %31%37%34%33%14%25%25%28%
Net Profit48385877472013815118
EPS in Rs2.792.203.374.452.7111.7022.162.951.02
Dividend Payout %18%23%15%17%28%13%11%25%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-20.83%52.63%32.76%-38.96%327.66%89.55%-86.61%
Change in YoY Net Profit Growth (%)0.00%73.46%-19.87%-71.72%366.62%-238.11%-176.17%

Manali Petrochemicals Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 7 years from 2016-2017 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:%
5 Years:5%
3 Years:0%
TTM:-18%
Compounded Profit Growth
10 Years:%
5 Years:-18%
3 Years:-52%
TTM:4%
Stock Price CAGR
10 Years:14%
5 Years:30%
3 Years:-19%
1 Year:-5%
Return on Equity
10 Years:%
5 Years:18%
3 Years:16%
Last Year:2%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 8:34 pm

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital86868686868686868686
Reserves196225306369395594944958976985
Borrowings226233426141972289
Other Liabilities215195141165153198241223224161
Total Liabilities4995325566546608921,2901,2741,3081,322
Fixed Assets105206273283302292343552559561
CWIP1628126262814231729
Investments691657041000296
Other Assets310282214364291572933700704726
Total Assets4995325566546608921,2901,2741,3081,322

Reserves and Borrowings Chart

Cash Flow

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-6875813872193739263
Cash from Investing Activity +-7-133-8-20-18-4-16-262-70
Cash from Financing Activity +-116-17-2-29-28-26-64-7
Net Cash Flow-24-3933-941186331-234-14

Free Cash Flow

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow66.0026.0074.0066.0044.00288.00510.0072.00

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 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days574849514961354943
Inventory Days9610153815847354755
Days Payable12410947643654382731
Cash Conversion Cycle293955687154327067
Working Capital Days443132655038274640
ROCE %20%24%22%14%49%60%8%5%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters44.86%44.86%44.86%44.86%44.87%44.87%44.87%44.87%44.87%44.87%44.87%44.87%
FIIs1.80%2.68%2.90%3.05%2.24%1.95%2.17%1.96%0.81%0.86%0.79%1.32%
DIIs0.05%0.05%0.05%0.05%0.03%0.03%0.03%0.03%0.07%0.02%0.02%0.07%
Public53.28%52.40%52.18%52.03%52.86%53.16%52.92%53.15%54.24%54.26%54.33%53.74%
No. of Shareholders1,40,8241,57,1891,69,5431,85,6651,98,2072,00,6312,00,7601,98,9771,96,6731,91,8751,88,5401,71,175

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
FaceValue5.005.005.005.005.00
Basic EPS (Rs.)1.122.9522.1611.702.71
Diluted EPS (Rs.)1.122.9522.1611.702.71
Cash EPS (Rs.)2.594.2923.3112.923.55
Book Value[Excl.RevalReserv]/Share (Rs.)61.7360.7059.8839.5227.97
Book Value[Incl.RevalReserv]/Share (Rs.)61.7360.7059.8839.5227.97
Revenue From Operations / Share (Rs.)60.0268.6697.1759.2546.67
PBDIT / Share (Rs.)4.295.9531.7718.274.77
PBIT / Share (Rs.)2.824.6030.6017.053.93
PBT / Share (Rs.)1.944.0729.6715.573.15
Net Profit / Share (Rs.)1.122.9422.1511.692.71
NP After MI And SOA / Share (Rs.)1.122.9422.1511.692.71
PBDIT Margin (%)7.148.6632.6930.8210.21
PBIT Margin (%)4.696.7031.4928.768.41
PBT Margin (%)3.235.9230.5326.276.75
Net Profit Margin (%)1.864.2822.7919.735.80
NP After MI And SOA Margin (%)1.864.2822.7919.735.80
Return on Networth / Equity (%)1.804.8536.9829.599.69
Return on Capital Employeed (%)4.237.0247.6240.5812.65
Return On Assets (%)1.463.9729.5322.697.06
Total Debt / Equity (X)0.020.010.010.020.05
Asset Turnover Ratio (%)0.790.921.381.241.07
Current Ratio (X)4.314.584.923.362.46
Quick Ratio (X)3.643.844.442.931.75
Inventory Turnover Ratio (X)6.658.8610.516.514.70
Dividend Payout Ratio (NP) (%)67.2084.886.776.4133.33
Dividend Payout Ratio (CP) (%)28.9958.246.435.8025.44
Earning Retention Ratio (%)32.8015.1293.2393.5966.67
Cash Earning Retention Ratio (%)71.0141.7693.5794.2074.56
Interest Coverage Ratio (X)7.6911.1058.6966.8013.11
Interest Coverage Ratio (Post Tax) (X)3.586.5042.6348.189.59
Enterprise Value (Cr.)566.51656.341266.42747.69139.21
EV / Net Operating Revenue (X)0.540.550.750.730.17
EV / EBITDA (X)7.686.412.322.381.70
MarketCap / Net Operating Revenue (X)0.930.871.121.000.21
Retention Ratios (%)32.7915.1193.2293.5866.66
Price / BV (X)0.910.991.811.500.36
Price / Net Operating Revenue (X)0.930.871.121.000.21
EarningsYield0.010.040.200.190.26

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Manali Petrochemicals Ltd as of November 25, 2024 is: 82.71

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 25, 2024, Manali Petrochemicals Ltd is Undervalued by 32.97% compared to the current share price 62.20

Intrinsic Value of Manali Petrochemicals Ltd as of November 25, 2024 is: 68.03

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 25, 2024, Manali Petrochemicals Ltd is Undervalued by 9.37% compared to the current share price 62.20

Last 5 Year EPS CAGR: -17.75%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 22.44%, which is a positive sign.
  2. The company has higher reserves (594.80 cr) compared to borrowings (26.20 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (396.67 cr) and profit (139.78 cr) over the years.
  1. The stock has a high average Working Capital Days of 41.44, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 53.89, 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 Manali Petrochemicals Ltd:
    1. Net Profit Margin: 1.86%
      • 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: 4.23% (Industry Average ROCE: 12.39%)
      • 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%: 1.8% (Industry Average ROE: 8.84%)
      • 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): 3.58
      • 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: 3.64
      • 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: 58.3 (Industry average Stock P/E: 37.96)
      • 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: 0.02
      • 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

Manali Petrochemicals Ltd. is a Public Limited Listed company incorporated on 11/06/1986 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L24294TN1986PLC013087 and registration number is 013087. Currently Company is involved in the business activities of Manufacture of plastic in primary forms (includes amino-resins, polyurethanes etc.). Company’s Total Operating Revenue is Rs. 1443.67 Cr. and Equity Capital is Rs. 86.03 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Petrochemicals - PolymersSPIC HOUSE, Chennai (Madras) Tamil Nadu 600032companysecretary@manalipetro.com
http://www.manalipetro.com
Management
NamePosition Held
Mr. Ashwin C MuthiahChairman
Mr. R ChandrasekarManaging Director
Mr. G R SridharWhole Time Director
Lt. Col. (Retd). Chatapuram Swaminathan ShankarDirector
Ms. R BhuvaneswariDirector
Mr. Thanjavur Kanakaraj ArunDirector
Dr. N SundaradevanDirector
Mr. Govindarajan Dattatreyan SharmaDirector
Ms. Devaki Ashwin MuthiahDirector
Ms. Latha RamanathanDirector

FAQ

What is the latest intrinsic value of Manali Petrochemicals Ltd?

The latest intrinsic value of Manali Petrochemicals Ltd as on 25 November 2024 is ₹82.71, which is 32.97% higher than the current market price of ₹62.20.

What is the Market Cap of Manali Petrochemicals Ltd?

The Market Cap of Manali Petrochemicals Ltd is 1,070 Cr..

What is the current Stock Price of Manali Petrochemicals Ltd as on 25 November 2024?

The current stock price of Manali Petrochemicals Ltd as on 25 November 2024 is 62.2.

What is the High / Low of Manali Petrochemicals Ltd stocks in FY 2024?

In FY 2024, the High / Low of Manali Petrochemicals Ltd stocks is 105/55.9.

What is the Stock P/E of Manali Petrochemicals Ltd?

The Stock P/E of Manali Petrochemicals Ltd is 58.3.

What is the Book Value of Manali Petrochemicals Ltd?

The Book Value of Manali Petrochemicals Ltd is 62.3.

What is the Dividend Yield of Manali Petrochemicals Ltd?

The Dividend Yield of Manali Petrochemicals Ltd is 1.21 %.

What is the ROCE of Manali Petrochemicals Ltd?

The ROCE of Manali Petrochemicals Ltd is 4.75 %.

What is the ROE of Manali Petrochemicals Ltd?

The ROE of Manali Petrochemicals Ltd is 2.25 %.

What is the Face Value of Manali Petrochemicals Ltd?

The Face Value of Manali Petrochemicals Ltd is 5.00.

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 Manali Petrochemicals 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