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Last Updated on: 08 October, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Murudeshwar Ceramics Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 7, 2024, 11:13 pm

Market Cap 325 Cr.
Current Price 53.3
High / Low71.9/38.3
Stock P/E54.9
Book Value 60.2
Dividend Yield0.94 %
ROCE4.81 %
ROE1.46 %
Face Value 10.0
PEG Ratio2.16

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

View Share Price Target for Murudeshwar Ceramics Ltd

Competitors of Murudeshwar Ceramics Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Exxaro Tiles Ltd 399 Cr. 89.6148/76.0 61.90.00 %4.54 %0.72 % 10.0
Carysil Ltd 2,137 Cr. 7511,151/59334.4 1320.27 %17.1 %17.6 % 2.00
Somany Ceramics Ltd 2,882 Cr. 703873/56131.4 1760.43 %14.4 %12.9 % 2.00
Orient Bell Ltd 496 Cr. 339480/3011,272 2150.15 %0.97 %0.34 % 10.0
Nitco Ltd 565 Cr. 78.395.0/18.0 71.30.00 %14.0 %% 10.0
Industry Average4,498.00 Cr1,130.44248.72201.510.34%11.55%19.42%7.00

All Competitor Stocks of Murudeshwar Ceramics Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales28.0228.6017.1230.7337.7737.2931.5739.8343.8557.1537.9045.7151.04
Expenses20.0920.8713.6223.1431.3528.9325.1332.1236.6747.6230.3938.5643.62
Operating Profit7.937.733.507.596.428.366.447.717.189.537.517.157.42
OPM %28.30%27.03%20.44%24.70%17.00%22.42%20.40%19.36%16.37%16.68%19.82%15.64%14.54%
Other Income0.171.000.080.120.470.750.050.090.090.760.070.080.03
Interest3.675.022.653.682.944.022.763.652.894.072.962.532.34
Depreciation2.422.432.402.452.442.982.522.592.613.372.762.772.75
Profit before tax2.011.28-1.471.581.512.111.211.561.772.851.861.932.36
Tax %0.00%-317.97%0.00%1.27%17.22%61.61%16.53%7.69%16.95%4.91%39.25%37.82%30.93%
Net Profit2.015.36-1.481.571.250.811.001.431.472.701.121.201.63
EPS in Rs0.421.02-0.280.300.240.150.170.250.250.470.190.210.28

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
Sales17814414513811510511912610380122170192
Expenses13611211410788798897827196140160
Operating Profit4231313127263229219263132
OPM %24%22%21%22%24%25%26%23%20%11%21%18%16%
Other Income1011111291111
Interest24222121201719161616131312
Depreciation1799978991010101112
Profit before tax312222553-16479
Tax %-42%6%22%15%7%47%4%9%47%26%42%10%
Net Profit411221552-12277
EPS in Rs1.020.220.290.420.380.311.091.010.37-2.270.391.141.15
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%44%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-75.00%0.00%100.00%0.00%-50.00%400.00%0.00%-60.00%-700.00%116.67%250.00%
Change in YoY Net Profit Growth (%)0.00%75.00%100.00%-100.00%-50.00%450.00%-400.00%-60.00%-640.00%816.67%133.33%

Murudeshwar Ceramics 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:8%
3 Years:32%
TTM:7%
Compounded Profit Growth
10 Years:17%
5 Years:2%
3 Years:35%
TTM:-12%
Stock Price CAGR
10 Years:9%
5 Years:27%
3 Years:26%
1 Year:5%
Return on Equity
10 Years:1%
5 Years:0%
3 Years:1%
Last Year:1%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital394141414345484852555861
Reserves264267269274281275285287281283292304
Borrowings13312410910310010493798583120110
Other Liabilities423138495451485954547173
Total Liabilities479463456467477475474473472475540548
Fixed Assets277280278278309302298306297298297361
CWIP220192512867810
Investments444444444999
Other Assets196178174166163165171161163162156167
Total Assets479463456467477475474473472475540548

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 2736364623515470244231
Cash from Investing Activity -7-11-4-25-20-4-1-18-6-12-81-5
Cash from Financing Activity -20-24-32-19-4-3-15-295-835-13
Net Cash Flow-01-12-1-2-1003-413

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow42.00-102.00-93.00-78.00-76.00-74.00-72.00-64.00-58.00-76.00-57.00-89.00

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 Days9793131106107100134146145663533
Inventory Days1,2968478061,4091,6241,4217597791,2401,201975954
Days Payable239113182322335249112184223203228205
Cash Conversion Cycle1,1548277561,1931,3951,2727817411,1621,065782781
Working Capital Days393369361382141167187164517347214191
ROCE %5%5%5%5%5%6%5%5%-0%4%5%5%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters69.84%69.84%71.28%72.65%72.65%72.65%72.65%72.65%72.65%72.65%73.93%73.93%
FIIs0.00%0.00%0.00%0.00%0.04%0.00%0.00%0.04%0.00%0.01%0.02%0.00%
DIIs0.14%0.14%0.01%0.01%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Public30.01%30.02%28.71%27.34%27.30%27.34%27.35%27.30%27.34%27.33%26.03%26.05%
No. of Shareholders18,92818,88119,00618,76318,43521,14020,48120,27120,41321,30320,89921,364

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 22
FaceValue10.0010.0010.00
Basic EPS (Rs.)0.861.130.40
Diluted EPS (Rs.)0.821.070.39
Cash EPS (Rs.)2.833.072.26
Book Value[Excl.RevalReserv]/Share (Rs.)60.3761.3661.84
Book Value[Incl.RevalReserv]/Share (Rs.)60.3761.3661.84
Revenue From Operations / Share (Rs.)30.7729.8822.37
PBDIT / Share (Rs.)5.705.524.97
PBIT / Share (Rs.)3.723.593.10
PBT / Share (Rs.)1.901.280.67
Net Profit / Share (Rs.)0.841.140.39
NP After MI And SOA / Share (Rs.)0.861.140.39
PBDIT Margin (%)18.5318.4622.20
PBIT Margin (%)12.0912.0213.84
PBT Margin (%)6.164.273.02
Net Profit Margin (%)2.753.821.74
NP After MI And SOA Margin (%)2.813.821.74
Return on Networth / Equity (%)1.431.860.63
Return on Capital Employeed (%)5.244.864.56
Return On Assets (%)0.951.220.45
Long Term Debt / Equity (X)0.110.150.04
Total Debt / Equity (X)0.290.150.04
Asset Turnover Ratio (%)0.340.330.00
Current Ratio (X)1.381.331.55
Quick Ratio (X)0.400.300.46
Inventory Turnover Ratio (X)0.380.330.00
Interest Coverage Ratio (X)3.132.382.05
Interest Coverage Ratio (Post Tax) (X)1.461.491.16
Enterprise Value (Cr.)373.80226.18148.62
EV / Net Operating Revenue (X)2.011.311.21
EV / EBITDA (X)10.837.115.45
MarketCap / Net Operating Revenue (X)1.511.011.13
Price / BV (X)0.760.480.40
Price / Net Operating Revenue (X)1.511.011.13
EarningsYield0.010.030.01

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Murudeshwar Ceramics Ltd as of October 8, 2024 is: ₹48.71

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 October 8, 2024, Murudeshwar Ceramics Ltd is Overvalued by 8.61% compared to the current share price ₹53.30

Intrinsic Value of Murudeshwar Ceramics Ltd as of October 8, 2024 is: ₹61.11

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 8, 2024, Murudeshwar Ceramics Ltd is Undervalued by 14.65% compared to the current share price ₹53.30

Last 5 Year EPS CAGR: 25.46%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (280.17 cr) compared to borrowings (103.58 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (133.62 cr) and profit (2.23 cr) over the years.
  1. The stock has a low average ROCE of 4.58%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 286.08, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 389.50, 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 Murudeshwar Ceramics Ltd:
    1. Net Profit Margin: 2.75%
      • 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: 5.24% (Industry Average ROCE: 11.55%)
      • 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%: 1.43% (Industry Average ROE: 17.47%)
      • 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): 1.46
      • 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: 0.4
      • 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: 54.9 (Industry average Stock P/E: 149.23)
      • 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: 0.29
      • 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

Murudeshwar Ceramics Ltd. is a Public Limited Listed company incorporated on 29/06/1983 and has its registered office in the State of Karnataka, India. Company’s Corporate Identification Number(CIN) is L26914KA1983PLC005401 and registration number is 005401. Currently Company is involved in the business activities of Manufacture of refractory ceramic products. Company’s Total Operating Revenue is Rs. 122.92 Cr. and Equity Capital is Rs. 54.95 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Ceramics/Tiles/Sanitaryware604/B, Murudeshwar Bhavan, Gokul Road, Hubballi Karnataka 580030mclho@naveentile.com
http://www.naveentiles.co.in
Management
NamePosition Held
Mr. Satish R ShettyChairman & Managing Director
Mr. Karan Satish ShettyWhole Time Director
Mr. Sunil R ShettyNon Executive Director
Mr. Naveen R ShettyNon Executive Director
Dr. S S HiremathIndependent Director
Mr. AnnappayyaIndependent Director
Mr. Sankappa K ShettyIndependent Director
Mrs. Sarvani AlvaIndependent Director
Mr. Ravindra BhandaryIndependent Director

FAQ

What is the latest fair value of Murudeshwar Ceramics Ltd?

The latest fair value of Murudeshwar Ceramics Ltd is ₹48.71.

What is the Market Cap of Murudeshwar Ceramics Ltd?

The Market Cap of Murudeshwar Ceramics Ltd is 325 Cr..

What is the current Stock Price of Murudeshwar Ceramics Ltd as on 08 October 2024?

The current stock price of Murudeshwar Ceramics Ltd as on 08 October 2024 is ₹53.3.

What is the High / Low of Murudeshwar Ceramics Ltd stocks in FY 2024?

In FY 2024, the High / Low of Murudeshwar Ceramics Ltd stocks is 71.9/38.3.

What is the Stock P/E of Murudeshwar Ceramics Ltd?

The Stock P/E of Murudeshwar Ceramics Ltd is 54.9.

What is the Book Value of Murudeshwar Ceramics Ltd?

The Book Value of Murudeshwar Ceramics Ltd is 60.2.

What is the Dividend Yield of Murudeshwar Ceramics Ltd?

The Dividend Yield of Murudeshwar Ceramics Ltd is 0.94 %.

What is the ROCE of Murudeshwar Ceramics Ltd?

The ROCE of Murudeshwar Ceramics Ltd is 4.81 %.

What is the ROE of Murudeshwar Ceramics Ltd?

The ROE of Murudeshwar Ceramics Ltd is 1.46 %.

What is the Face Value of Murudeshwar Ceramics Ltd?

The Face Value of Murudeshwar Ceramics 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 Murudeshwar Ceramics 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