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Last Updated on: 23 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 500890 | NSE: MODIRUBBER

Modi Rubber Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 22, 2024, 9:53 pm

Market Cap 318 Cr.
Current Price 127
High / Low157/79.1
Stock P/E14.6
Book Value 279
Dividend Yield0.00 %
ROCE3.72 %
ROE1.97 %
Face Value 10.0
PEG Ratio0.28

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

View Share Price Target for Modi Rubber Ltd

Competitors of Modi Rubber Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Indag Rubber Ltd 495 Cr. 189308/12846.8 87.61.59 %%% 2.00
Eastern Treads Ltd 23.4 Cr. 44.851.4/31.0 22.80.00 %0.62 %% 10.0
Dolfin Rubbers Ltd 199 Cr. 198290/11637.6 31.10.00 %19.1 %17.9 % 10.0
Vikas Ecotech Ltd 571 Cr. 3.225.65/3.0036.2 3.100.00 %4.53 %2.07 % 1.00
Modi Rubber Ltd 318 Cr. 127157/79.114.6 2790.00 %3.72 %1.97 % 10.0
Industry Average826.57 Cr553.3840.55114.930.41%8.91%8.07%6.88

All Competitor Stocks of Modi Rubber Ltd

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales0.880.210.622.491.820.500.561.402.864.794.997.225.44
Expenses5.283.355.087.3611.144.945.686.857.328.108.1811.2513.09
Operating Profit-4.40-3.14-4.46-4.87-9.32-4.44-5.12-5.45-4.46-3.31-3.19-4.03-7.65
OPM %-500.00%-1,495.24%-719.35%-195.58%-512.09%-888.00%-914.29%-389.29%-155.94%-69.10%-63.93%-55.82%-140.62%
Other Income7.5210.4914.8413.7613.4314.4416.6913.279.1010.1211.4212.3716.81
Interest0.380.150.140.110.190.130.130.120.110.430.650.571.89
Depreciation0.670.650.660.640.660.530.520.540.540.530.710.820.85
Profit before tax2.076.559.588.143.269.3410.927.163.995.856.876.956.42
Tax %-42.03%0.00%-1.98%28.99%-7.98%-4.82%42.31%-16.62%19.30%38.12%53.71%19.57%50.78%
Net Profit2.946.559.775.783.529.796.308.353.223.613.185.593.16
EPS in Rs1.172.623.902.311.413.912.523.331.291.441.272.231.26

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales95144146565535522
Expenses24191191272026212017272541
Operating Profit-15-152519-14-20-16-15-14-22-19-18
OPM %-157%-331%17%13%-279%-339%-304%-313%-503%-425%-366%-81%
Other Income48229114061332021535351
Interest000001111104
Depreciation216713333323
Profit before tax316272323371314283126
Tax %8%25%42%32%-5%59%31%433%-24%7%12%40%
Net Profit295161624159-25262816
EPS in Rs11.501.806.356.409.766.133.62-0.931.8510.2411.056.20
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-82.76%220.00%0.00%50.00%-37.50%-40.00%-122.22%350.00%420.00%7.69%-42.86%
Change in YoY Net Profit Growth (%)0.00%302.76%-220.00%50.00%-87.50%-2.50%-82.22%472.22%70.00%-412.31%-50.55%

Modi Rubber Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:17%
5 Years:34%
3 Years:101%
TTM:75%
Compounded Profit Growth
10 Years:14%
5 Years:27%
3 Years:25%
TTM:19%
Stock Price CAGR
10 Years:20%
5 Years:28%
3 Years:17%
1 Year:42%
Return on Equity
10 Years:3%
5 Years:3%
3 Years:4%
Last Year:2%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 8:31 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital25252525252525252525252525
Reserves175179300314370381391382409594613630674
Borrowings5333443345212122
Other Liabilities49425451414034302263676976
Total Liabilities254249383393439449453440460687726744797
Fixed Assets151554601332292927216248253253
CWIP001171900002101010
Investments129125186187291312347343370403377390429
Other Assets110108132139116105776862679191104
Total Assets254249383393439449453440460687726744797

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-48-6-110-13214-6-25-18-22
Cash from Investing Activity +4679-3-325-25-62272425
Cash from Financing Activity +0-0-2-21-0-1-0-1-1-1-4
Net Cash Flow-116-4-311-4-2-516-1

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-20.00-18.0022.0016.00-18.00-24.00-19.00-18.00-18.00-27.00-40.00-39.00

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 Days3512730205683052104211,240365
Inventory Days1381188296105
Days Payable110968531,1321,210
Cash Conversion Cycle3515551205683052104-749204-740
Working Capital Days-588-1,394718-943-891-1,828-1,7301,899-522370263
ROCE %-0%2%11%6%6%4%2%0%2%5%5%4%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters62.69%62.69%62.69%62.69%62.69%62.67%62.69%62.69%59.50%59.50%62.69%62.69%
FIIs0.49%0.43%0.15%0.15%2.15%2.15%2.15%2.15%2.15%2.10%2.10%2.03%
DIIs2.01%2.01%2.01%2.01%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Public34.81%34.86%35.14%35.14%35.13%35.16%35.15%35.14%38.35%38.41%35.20%35.28%
No. of Shareholders13,24713,35213,61813,61213,49613,28413,18413,11713,15613,55313,91514,099

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.)6.2011.0410.241.84-0.93
Diluted EPS (Rs.)6.2011.0410.241.84-0.93
Cash EPS (Rs.)-5.68-5.45-6.46-1.64-2.99
Book Value[Excl.RevalReserv]/Share (Rs.)203.08196.52247.21173.26162.41
Book Value[Incl.RevalReserv]/Share (Rs.)261.99255.42247.21173.26162.41
Revenue From Operations / Share (Rs.)8.982.132.051.111.95
PBDIT / Share (Rs.)-0.04-3.75-5.46-0.32-1.54
PBIT / Share (Rs.)-1.21-4.60-6.50-1.40-2.72
PBT / Share (Rs.)-2.63-4.79-6.74-3.06-2.96
Net Profit / Share (Rs.)-6.85-6.29-7.50-2.71-4.17
NP After MI And SOA / Share (Rs.)6.2111.0610.231.84-0.93
PBDIT Margin (%)-0.48-176.18-266.80-29.54-78.60
PBIT Margin (%)-13.49-216.06-317.48-126.23-139.36
PBT Margin (%)-29.27-225.04-329.11-276.95-151.74
Net Profit Margin (%)-76.30-295.57-366.35-244.81-213.58
NP After MI And SOA Margin (%)69.20519.48499.93166.53-47.65
Return on Networth / Equity (%)3.055.634.141.06-0.57
Return on Capital Employeed (%)-0.43-1.67-2.44-0.79-1.65
Return On Assets (%)2.083.813.711.00-0.53
Long Term Debt / Equity (X)0.010.010.000.010.01
Total Debt / Equity (X)0.030.040.000.010.01
Asset Turnover Ratio (%)0.030.000.000.010.01
Current Ratio (X)2.912.703.865.362.72
Quick Ratio (X)2.912.703.865.362.72
Interest Coverage Ratio (X)-0.03-19.63-23.07-1.29-6.35
Interest Coverage Ratio (Post Tax) (X)-3.83-31.93-30.67-4.10-16.26
Enterprise Value (Cr.)231.99155.71166.85233.4268.50
EV / Net Operating Revenue (X)10.3429.2532.5484.2214.00
EV / EBITDA (X)-2120.56-16.60-12.20-285.05-17.81
MarketCap / Net Operating Revenue (X)9.8527.1533.0284.3815.07
Price / BV (X)0.430.290.270.530.18
Price / Net Operating Revenue (X)9.8527.1633.0284.4515.07
EarningsYield0.070.190.150.01-0.03

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Modi Rubber Ltd as of November 23, 2024 is: 81.85

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 23, 2024, Modi Rubber Ltd is Overvalued by 35.55% compared to the current share price 127.00

Intrinsic Value of Modi Rubber Ltd as of November 23, 2024 is: 124.46

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 23, 2024, Modi Rubber Ltd is Overvalued by 2.00% compared to the current share price 127.00

Last 5 Year EPS CAGR: 52.06%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -190.67, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -55.50, which is a positive sign.
  3. The company has higher reserves (416.31 cr) compared to borrowings (7.77 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (30.00 cr) and profit (20.83 cr) over the years.
  1. The stock has a low average ROCE of 3.92%, 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 Modi Rubber Ltd:
    1. Net Profit Margin: -76.3%
      • 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: -0.43% (Industry Average ROCE: 8.91%)
      • 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%: 3.05% (Industry Average ROE: 8.07%)
      • 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): -3.83
      • 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: 2.91
      • 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: 14.6 (Industry average Stock P/E: 40.55)
      • 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: 0.03
      • 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

Modi Rubber Ltd. is a Public Limited Listed company incorporated on 27/02/1971 and has its registered office in the State of Uttar Pradesh, India. Company’s Corporate Identification Number(CIN) is L25199UP1971PLC003392 and registration number is 003392. Currently company belongs to the Industry of Tyres & Tubes. Company’s Total Operating Revenue is Rs. 2.16 Cr. and Equity Capital is Rs. 25.04 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Rubber Processing/Rubber ProductsModinagar, Ghaziabad District Uttar Pradesh 201204investors@modigroup.net
http://www.modirubberlimited.com
Management
NamePosition Held
Mr. Vinay Kumar ModiChairman
Mr. Alok ModiManaging Director
Ms. Piya ModiWhole Time Director
Ms. Nadira Faraz HamidIndependent Director
Mr. Umesh Kumar KhaitanIndependent Director

FAQ

What is the latest intrinsic value of Modi Rubber Ltd?

The latest intrinsic value of Modi Rubber Ltd as on 23 November 2024 is ₹81.85, which is 35.55% lower than the current market price of ₹127.00.

What is the Market Cap of Modi Rubber Ltd?

The Market Cap of Modi Rubber Ltd is 318 Cr..

What is the current Stock Price of Modi Rubber Ltd as on 23 November 2024?

The current stock price of Modi Rubber Ltd as on 23 November 2024 is 127.

What is the High / Low of Modi Rubber Ltd stocks in FY 2024?

In FY 2024, the High / Low of Modi Rubber Ltd stocks is 157/79.1.

What is the Stock P/E of Modi Rubber Ltd?

The Stock P/E of Modi Rubber Ltd is 14.6.

What is the Book Value of Modi Rubber Ltd?

The Book Value of Modi Rubber Ltd is 279.

What is the Dividend Yield of Modi Rubber Ltd?

The Dividend Yield of Modi Rubber Ltd is 0.00 %.

What is the ROCE of Modi Rubber Ltd?

The ROCE of Modi Rubber Ltd is 3.72 %.

What is the ROE of Modi Rubber Ltd?

The ROE of Modi Rubber Ltd is 1.97 %.

What is the Face Value of Modi Rubber Ltd?

The Face Value of Modi Rubber 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 Modi Rubber 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