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Last Updated on: 17 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Nagarjuna Fertilizers & Chemicals Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 15, 2024, 2:15 pm

Market Cap 575 Cr.
Current Price 9.61
High / Low15.8/8.50
Stock P/E0.28
Book Value 15.3
Dividend Yield0.00 %
ROCE242 %
ROE%
Face Value 1.00
PEG Ratio-0.01

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

View Share Price Target for Nagarjuna Fertilizers & Chemicals Ltd

Competitors of Nagarjuna Fertilizers & Chemicals Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Gujarat State Fertilizers & Chemicals Ltd 7,746 Cr. 194322/17914.7 3372.06 %5.77 %4.55 % 2.00
Bharat Agri Fert & Realty Ltd 398 Cr. 75.2132/73.3 9.970.07 %6.14 %14.8 % 1.00
Basant Agro Tech (India) Ltd 171 Cr. 18.928.9/17.620.6 19.50.26 %5.65 %1.30 % 1.00
Zuari Agro Chemicals Ltd 910 Cr. 216260/1515.08 4220.00 %8.50 %3.44 % 10.0
Southern Petrochemicals Industries Corporation Ltd (SPIC) 1,498 Cr. 73.6108/64.49.67 56.42.04 %17.8 %14.4 % 10.0
Industry Average9,540.71 Cr337.3945.00166.020.68%21.98%10.61%7.35

All Competitor Stocks of Nagarjuna Fertilizers & Chemicals Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales4304016446955757791,4932,0701,2458351,0741,3241,208
Expenses4185066847316298391,5312,0901,0841,5341,7571,3341,241
Operating Profit12-105-40-35-54-60-38-20161-698-683-10-33
OPM %3%-26%-6%-5%-9%-8%-3%-1%13%-84%-64%-1%-3%
Other Income410-892281262441101
Interest898487949593103154152117115120110
Depreciation21202121212020211919121212
Profit before tax-94-200-237-148-169-166-149-189-8-791-810-133-154
Tax %8%-10%2%4%11%1%4%3%75%28%1%3%3%
Net Profit-86-219-232-142-150-165-142-183-2-573-805-129-150
EPS in Rs-1.44-3.66-3.87-2.38-2.52-2.75-2.38-3.05-0.03-9.58-13.47-2.16-2.51

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
Sales4,9925,4853,4482,5323,9783,3763,9211,9401,7051,5752,6925,6424,479
Expenses4,5204,9673,1922,4743,7053,1553,5932,0701,8151,6762,8826,2385,710
Operating Profit47251725658273221328-130-110-101-190-595-1,231
OPM %9%9%7%2%7%7%8%-7%-6%-6%-7%-11%-27%
Other Income3135-174-115263543529-122-786357
Interest153264282236329325308308329348370526504
Depreciation11712312694938989898282827963
Profit before tax233165-326-387-123-158-27-522-492-653-720-1,137-1,742
Tax %41%49%28%-1%27%23%19%7%7%6%4%21%
Net Profit13884-236-392-89-122-22-486-459-615-689-900-1,510
EPS in Rs2.311.40-3.94-6.55-1.49-2.04-0.36-8.13-7.67-10.29-11.52-15.05-25.24
Dividend Payout %43%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 (%)-39.13%-380.95%-66.10%77.30%-37.08%81.97%-2109.09%5.56%-33.99%-12.03%-30.62%
Change in YoY Net Profit Growth (%)0.00%-341.82%314.85%143.40%-114.37%119.05%-2191.06%2114.65%-39.54%21.95%-18.59%

Nagarjuna Fertilizers & Chemicals 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:3%
5 Years:20%
3 Years:45%
TTM:-28%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:%
TTM:238%
Stock Price CAGR
10 Years:%
5 Years:19%
3 Years:7%
1 Year:12%
Return on Equity
10 Years:%
5 Years:%
3 Years:%
Last Year:%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 8:00 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital60606060606060606060606060
Reserves2,3262,1031,6421,1541,0331,01352772-544-1,232-2,130-3,412-972
Borrowings3,0341,5801,3391,7461,7191,6081,7051,7431,7022,5612,8423,26119
Other Liabilities8431,1991,2502,2471,4832,0101,4372,1631,4651,3691,1701,4711,580
Total Liabilities6,2634,9424,2915,2074,2954,6923,7284,0372,6822,7571,9421,380687
Fixed Assets3,1063,0222,8662,7822,6582,5782,4802,3982,1882,1061,3536700
CWIP63037822282840000
Investments0000000000000
Other Assets3,1501,8901,4222,4181,6292,0911,2201,610490651589710687
Total Assets6,2634,9424,2915,2074,2954,6923,7284,0372,6822,7571,9421,380687

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +628286431-48360423200681236524245
Cash from Investing Activity +-8468-38-4049-32-44-16619-18
Cash from Financing Activity +-544-464-425117-392-527-253-104-139-183-320-147
Net Cash Flow-0-110-322817-135-97-3651-99-78-95

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow472.00514.00255.0057.00272.00220.00327.00-131.00-111.00-102.00-192.00-597.00

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 Days162141154183129158156263466626
Inventory Days244337414929385023139
Days Payable39152229300219288278619211276137
Cash Conversion Cycle14633-37-76-41-102-84-307-142-197-102
Working Capital Days134677413526-62-119-197-61-35
ROCE %9%4%0%7%6%10%-8%-8%-10%-19%-57%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Promoters57.13%57.13%57.13%57.13%57.13%57.13%57.13%57.13%57.13%57.13%57.13%57.13%
FIIs0.05%0.05%0.06%0.05%0.05%0.15%0.23%0.02%0.03%0.02%0.03%0.05%
DIIs0.50%0.06%0.06%0.06%0.06%0.06%0.06%0.06%0.06%0.06%0.06%0.06%
Public42.32%42.76%42.75%42.75%42.76%42.66%42.58%42.77%42.79%42.79%42.78%42.76%
No. of Shareholders2,98,6522,95,6362,97,9492,96,7712,98,7583,01,0053,02,4733,02,0513,05,2702,97,0632,95,0113,01,569

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
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)-21.47-15.05-11.52-10.29-7.67
Diluted EPS (Rs.)-21.47-15.05-11.52-10.29-7.67
Cash EPS (Rs.)-20.64-13.73-10.15-8.91-6.30
Book Value[Excl.RevalReserv]/Share (Rs.)-56.05-34.61-19.60-8.102.20
Book Value[Incl.RevalReserv]/Share (Rs.)-56.05-34.61-19.60-8.102.20
Revenue From Operations / Share (Rs.)79.6894.3445.0226.3328.50
PBDIT / Share (Rs.)-12.86-8.89-2.67-1.38-1.36
PBIT / Share (Rs.)-13.69-10.22-4.04-2.75-2.73
PBT / Share (Rs.)-21.70-19.01-12.03-10.92-8.23
Net Profit / Share (Rs.)-21.47-15.05-11.52-10.29-7.67
NP After MI And SOA / Share (Rs.)-21.47-15.05-11.52-10.29-7.67
PBDIT Margin (%)-16.13-9.42-5.92-5.22-4.77
PBIT Margin (%)-17.17-10.83-8.97-10.44-9.59
PBT Margin (%)-27.23-20.15-26.73-41.46-28.88
Net Profit Margin (%)-26.94-15.95-25.59-39.07-26.92
NP After MI And SOA Margin (%)-26.94-15.95-25.59-39.07-26.92
Return on Networth / Equity (%)0.000.000.000.00-348.71
Return on Capital Employeed (%)24.9330.9129.04169.09-29.09
Return On Assets (%)-93.03-46.35-24.99-22.94-11.36
Long Term Debt / Equity (X)0.00-0.01-0.01-0.050.23
Total Debt / Equity (X)-0.97-1.37-2.18-3.3011.47
Asset Turnover Ratio (%)2.872.400.980.470.44
Current Ratio (X)0.140.140.170.160.45
Quick Ratio (X)0.130.130.160.140.42
Inventory Turnover Ratio (X)35.4788.5628.309.547.55
Interest Coverage Ratio (X)-1.60-1.01-0.43-0.23-0.24
Interest Coverage Ratio (Post Tax) (X)-1.68-0.71-0.57-0.36-0.39
Enterprise Value (Cr.)3767.873357.693285.341870.281556.65
EV / Net Operating Revenue (X)0.790.591.221.190.91
EV / EBITDA (X)-4.90-6.31-20.60-22.74-19.12
MarketCap / Net Operating Revenue (X)0.110.090.280.230.10
Price / BV (X)-0.16-0.26-0.65-0.771.42
Price / Net Operating Revenue (X)0.110.090.280.230.10
EarningsYield-2.39-1.62-0.89-1.64-2.46

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Nagarjuna Fertilizers & Chemicals Ltd as of November 17, 2024 is: 0.66

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 17, 2024, Nagarjuna Fertilizers & Chemicals Ltd is Overvalued by 93.13% compared to the current share price 9.61

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

Intrinsic Value of Nagarjuna Fertilizers & Chemicals Ltd as of November 17, 2024 is: 0.37

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 17, 2024, Nagarjuna Fertilizers & Chemicals Ltd is Overvalued by 96.15% compared to the current share price 9.61

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

Last 5 Year EPS CAGR: -44.25%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -13.67, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -75.75, which is a positive sign.
  1. The stock has a low average ROCE of -5.50%, which may not be favorable.
  2. The company has higher borrowings (1,912.23) compared to reserves (121.54), which may suggest financial risk.
  3. The company has not shown consistent growth in sales (2.85) and profit (-231.69).

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 Nagarjuna Fertilizers & Chemicals Ltd:
    1. Net Profit Margin: -26.94%
      • 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: 24.93% (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%: 0% (Industry Average ROE: 10.61%)
      • 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): -1.68
      • 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: 0.13
      • 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: 0.28 (Industry average Stock P/E: 45)
      • 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: -0.97
      • 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

Nagarjuna Fertilizers and Chemicals Ltd. is a Public Limited Listed company incorporated on 28/01/1976 and has its registered office in the State of Andhra Pradesh, India. Company’s Corporate Identification Number(CIN) is L24129TG2006PLC076238 and registration number is 076238. Currently Company is involved in the business activities of Manufacture of urea and other organic fertilizers. Company’s Total Operating Revenue is Rs. 2692.33 Cr. and Equity Capital is Rs. 59.81 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
FertilisersD.No.8-2-248, Nagarjuna Hills, Hyderabad Telangana 500082investors@nagarjunagroup.com
http://www.nagarjunafertilizers.com
Management
NamePosition Held
Mr. Uday Shankar JhaChairman
Mr. K Rahul RajuManaging Director
Mrs. Lalitha RaghuramIndependent Director
Mr. Rajendra Mohan GonelaIndependent Director
Mr. Sudhakar KudvaIndependent Director
Mr. Chandrapal Singh YadavDirector

FAQ

What is the latest intrinsic value of Nagarjuna Fertilizers & Chemicals Ltd?

The latest intrinsic value of Nagarjuna Fertilizers & Chemicals Ltd as on 16 November 2024 is ₹0.66, which is 93.13% lower than the current market price of ₹9.61.

What is the Market Cap of Nagarjuna Fertilizers & Chemicals Ltd?

The Market Cap of Nagarjuna Fertilizers & Chemicals Ltd is 575 Cr..

What is the current Stock Price of Nagarjuna Fertilizers & Chemicals Ltd as on 16 November 2024?

The current stock price of Nagarjuna Fertilizers & Chemicals Ltd as on 16 November 2024 is ₹9.61.

What is the High / Low of Nagarjuna Fertilizers & Chemicals Ltd stocks in FY 2024?

In FY 2024, the High / Low of Nagarjuna Fertilizers & Chemicals Ltd stocks is 15.8/8.50.

What is the Stock P/E of Nagarjuna Fertilizers & Chemicals Ltd?

The Stock P/E of Nagarjuna Fertilizers & Chemicals Ltd is 0.28.

What is the Book Value of Nagarjuna Fertilizers & Chemicals Ltd?

The Book Value of Nagarjuna Fertilizers & Chemicals Ltd is 15.3.

What is the Dividend Yield of Nagarjuna Fertilizers & Chemicals Ltd?

The Dividend Yield of Nagarjuna Fertilizers & Chemicals Ltd is 0.00 %.

What is the ROCE of Nagarjuna Fertilizers & Chemicals Ltd?

The ROCE of Nagarjuna Fertilizers & Chemicals Ltd is 242 %.

What is the ROE of Nagarjuna Fertilizers & Chemicals Ltd?

The ROE of Nagarjuna Fertilizers & Chemicals Ltd is %.

What is the Face Value of Nagarjuna Fertilizers & Chemicals Ltd?

The Face Value of Nagarjuna Fertilizers & Chemicals Ltd is 1.00.

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 Nagarjuna Fertilizers & Chemicals 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