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Last Updated on: 15 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

New India Assurance Company Ltd (NIACL): Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 14, 2024, 9:10 pm

Market Cap 28,978 Cr.
Current Price 176
High / Low325/143
Stock P/E21.3
Book Value 185
Dividend Yield1.17 %
ROCE0.56 %
ROE1.19 %
Face Value 5.00
PEG Ratio-4.26

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

View Share Price Target for New India Assurance Company Ltd (NIACL)

Competitors of New India Assurance Company Ltd (NIACL)

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
New India Assurance Company Ltd (NIACL) 28,978 Cr. 176325/14321.3 1851.17 %0.56 %1.19 % 5.00
ICICI Lombard General Insurance Company Ltd 94,924 Cr. 1,9182,302/1,33642.7 2750.32 %22.5 %17.0 % 10.0
Industry Average61,951.00 Cr1,047.0032.00230.000.75%11.53%9.10%7.50

All Competitor Stocks of New India Assurance Company Ltd (NIACL)

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales9,1968,1169,6829,4688,5048,59511,59010,55810,1829,90010,56711,36611,686
Expenses8,9588,0019,5798,8759,2348,43611,5569,66810,0739,55710,81310,50011,252
Operating Profit238115103593-72915833891109343-246866434
OPM %3%1%1%6%-9%2%0%8%1%3%-2%8%4%
Other Income87233159341741-254036
Interest0000000000000
Depreciation0000000000000
Profit before tax324117136595-67016138908150318-242866470
Tax %26%14%2%17%-18%19%-12%18%4%16%-19%18%34%
Net Profit231102146504-55413753736124261-175722313
EPS in Rs1.410.600.883.05-3.350.810.314.470.771.58-1.074.381.89

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
Sales9,59910,99413,35415,21520,23419,79827,66028,34333,06635,82141,00743,518
Expenses12,29714,40317,10718,19520,69224,59027,94429,40630,93135,64439,72842,121
Operating Profit-2,698-3,409-3,753-2,980-458-4,793-284-1,0632,1361771,2791,397
OPM %-28%-31%-28%-20%-2%-24%-1%-4%6%0%3%3%
Other Income3,8264,3925,4874,0631,7047,6011,0502,81627876015
Interest3234612000000
Depreciation433828344774909310387820
Profit before tax1,0829431,7031,0451,1942,7226771,6592,0601781,2561,412
Tax %16%15%19%11%14%20%11%13%21%-0%16%23%
Net Profit9288301,4129591,0502,1906101,4471,6451981,0501,120
EPS in Rs22.9220.7535.4024.0326.1513.293.678.759.951.186.366.77
Dividend Payout %19%27%21%26%30%33%41%0%0%25%30%28%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-10.56%70.12%-32.08%9.49%108.57%-72.15%137.21%13.68%-87.96%430.30%6.67%
Change in YoY Net Profit Growth (%)0.00%80.68%-102.20%41.57%99.08%-180.72%209.36%-123.53%-101.65%518.27%-423.64%

New India Assurance Company Ltd (NIACL) 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:15%
5 Years:10%
3 Years:10%
TTM:7%
Compounded Profit Growth
10 Years:16%
5 Years:25%
3 Years:-42%
TTM:44%
Stock Price CAGR
10 Years:%
5 Years:2%
3 Years:5%
1 Year:19%
Return on Equity
10 Years:2%
5 Years:3%
3 Years:0%
Last Year:1%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 6:43 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital200200200200200412824824824824824824824
Reserves15,28517,38720,03519,42620,48424,22823,30320,72124,73224,98125,04027,47229,669
Borrowings0000000000000
Other Liabilities31,15936,79142,72644,78049,47351,09456,42655,70766,91470,69172,35979,82980,870
Total Liabilities46,64454,37962,96164,40770,15775,73480,55377,25292,47096,49698,223108,125111,364
Fixed Assets212223302350399560561558547563564471486
CWIP02001557334525161814200
Investments31,56635,71145,36544,97251,90756,02459,80152,02967,02571,31974,36082,06988,185
Other Assets14,86618,42417,29319,06917,79519,11720,14724,64024,88324,59723,28525,56522,693
Total Assets46,64454,37962,96164,40770,15775,73480,55377,25292,47096,49698,223108,125111,364

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +847-1,605-124425-1,334-967777-4,052-5,855-4,672
Cash from Investing Activity +-1,3457411,340-4942,3372,825-3344,9005,7016,908
Cash from Financing Activity +-208-366-3071,125-476-30077-6-65-326
Net Cash Flow-706-1,2299101,0565271,558520842-2191,910

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-2.00-3.00-3.00-2.00-458.00-4.00-284.00-1.002.00177.001.001.00

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 Days000000000000
Inventory Days
Days Payable
Cash Conversion Cycle000000000000
Working Capital Days-544-568-549-533-447-506-421-486-471-469-436-437
ROCE %-1%1%-2%3%2%-1%7%9%1%5%5%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters85.44%85.44%85.44%85.44%85.44%85.44%85.44%85.44%85.44%85.44%85.44%85.44%
FIIs0.43%0.58%0.58%0.60%0.60%0.62%0.65%0.66%0.69%0.77%0.81%0.80%
DIIs12.81%12.57%12.42%12.16%11.90%11.92%11.93%11.93%11.93%11.71%11.76%11.64%
Public1.32%1.41%1.56%1.80%2.06%2.02%1.98%1.97%1.94%2.09%1.98%2.12%
No. of Shareholders1,25,3611,24,3551,28,2011,31,1471,34,0771,32,7991,32,2021,29,6911,27,0311,26,3661,41,7341,50,983

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Motilal Oswal Nifty Midcap 150 Index Fund118,7720.22.543,5652024-11-13172.63%
Nippon India ETF Nifty Midcap 150104,1020.22.1943,5652024-11-13138.96%
Nippon India Nifty Midcap 150 Index Fund99,3530.22.0943,5652024-11-13128.06%
Tata Nifty Midcap 150 Momentum 50 Index Fund71,0030.711.4943,5652024-11-1362.98%
Mirae Asset Nifty Midcap 150 ETF56,6300.21.1943,5652024-11-1329.99%
Edelweiss Nifty Midcap150 Momentum 50 Index Fund43,5650.710.9243,5652024-11-130%
Motilal Oswal S&P BSE Enhanced Value Index Fund31,2020.370.6643,5652024-11-13-28.38%
ICICI Prudential Nifty Midcap 150 Index Fund27,7580.20.5843,5652024-11-13-36.28%
SBI Nifty Midcap 150 Index Fund25,3560.20.5343,5652024-11-13-41.8%
ICICI Prudential Nifty Midcap 150 ETF24,7470.20.5243,5652024-11-13-43.2%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue5.005.005.005.005.00
Basic EPS (Rs.)6.776.361.189.958.75
Diluted EPS (Rs.)6.776.361.189.958.75
Cash EPS (Rs.)6.626.941.6110.509.28
Book Value[Excl.RevalReserv]/Share (Rs.)132.85157.29156.92155.37130.95
Book Value[Incl.RevalReserv]/Share (Rs.)132.85157.29156.92155.37130.95
Revenue From Operations / Share (Rs.)264.07248.83217.36200.64186.12
PBDIT / Share (Rs.)8.578.341.7913.2410.77
PBIT / Share (Rs.)8.577.841.2612.6110.20
PBT / Share (Rs.)8.577.621.0812.5010.07
Net Profit / Share (Rs.)6.626.441.089.888.71
NP After MI And SOA / Share (Rs.)6.776.361.189.958.75
PBDIT Margin (%)3.243.350.826.595.78
PBIT Margin (%)3.243.150.576.285.48
PBT Margin (%)3.243.060.496.225.40
Net Profit Margin (%)2.502.580.494.924.68
NP After MI And SOA Margin (%)2.562.550.544.964.70
Return on Networth / Equity (%)5.114.050.756.416.69
Return on Capital Employeed (%)3.103.280.525.395.91
Return On Assets (%)1.031.060.201.771.86
Asset Turnover Ratio (%)0.420.420.370.390.38
Current Ratio (X)0.390.370.400.420.45
Quick Ratio (X)0.390.370.400.420.45
Dividend Payout Ratio (NP) (%)0.000.000.000.0020.66
Dividend Payout Ratio (CP) (%)0.000.000.000.0019.40
Earning Retention Ratio (%)0.000.000.000.0079.34
Cash Earning Retention Ratio (%)0.000.000.000.0080.60
Interest Coverage Ratio (X)0.0038.139.80113.9979.31
Interest Coverage Ratio (Post Tax) (X)0.0030.436.9386.0565.16
Enterprise Value (Cr.)23229.833633.135818.0813698.027259.06
EV / Net Operating Revenue (X)0.530.080.160.410.23
EV / EBITDA (X)16.452.6419.776.284.09
MarketCap / Net Operating Revenue (X)0.860.380.510.760.60
Retention Ratios (%)0.000.000.000.0079.33
Price / BV (X)1.720.610.710.990.85
Price / Net Operating Revenue (X)0.860.380.510.760.60
EarningsYield0.020.060.010.060.07

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of New India Assurance Company Ltd (NIACL) as of November 15, 2024 is: 47.44

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 15, 2024, New India Assurance Company Ltd (NIACL) is Overvalued by 73.05% compared to the current share price 176.00

Intrinsic Value of New India Assurance Company Ltd (NIACL) as of November 15, 2024 is: 45.07

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 15, 2024, New India Assurance Company Ltd (NIACL) is Overvalued by 74.39% compared to the current share price 176.00

Last 5 Year EPS CAGR: -5.00%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -488.92, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of 0.00, which is a positive sign.
  3. The company has higher reserves (22,520.23 cr) compared to borrowings (0.00 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (24.42 cr) and profit (150.75 cr) over the years.
  1. The stock has a low average ROCE of 2.42%, 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 New India Assurance Company Ltd (NIACL):
    1. Net Profit Margin: 2.5%
      • 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: 3.1% (Industry Average ROCE: 11.53%)
      • 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%: 5.11% (Industry Average ROE: 9.1%)
      • 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): 0
      • 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: 0.39
      • 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: 21.3 (Industry average Stock P/E: 32)
      • 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
      • 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

The New India Assurance Company Ltd. is a Public Limited Listed company incorporated on 23/07/1919 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L66000MH1919GOI000526 and registration number is 000526. Currently Company is involved in the business activities of Non-life insurance. Company’s Total Operating Revenue is Rs. 35641.76 Cr. and Equity Capital is Rs. 824.00 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Finance - Non Life InsuranceNew India Assurance Building, No.87, M G Road, Mumbai Maharashtra 400001investors@newindia.co.in
http://www.newindia.co.in
Management
NamePosition Held
Ms. Girija SubramanianChairman & Managing Director
Mr. Titus Francis MaliakkelExecutive Director
Ms. Smita SrivastavaExecutive Director
Mr. Surender Kumar AgarwalIndependent Director
Ms. Akani DeviIndependent Director
Mr. Ratan Kumar DasIndependent Director
Ms. Mandakini BalodhiGovernment Nominee Director

FAQ

What is the latest intrinsic value of New India Assurance Company Ltd (NIACL)?

The latest intrinsic value of New India Assurance Company Ltd (NIACL) as on 15 November 2024 is ₹47.44, which is 73.05% lower than the current market price of ₹176.00.

What is the Market Cap of New India Assurance Company Ltd (NIACL)?

The Market Cap of New India Assurance Company Ltd (NIACL) is 28,978 Cr..

What is the current Stock Price of New India Assurance Company Ltd (NIACL) as on 15 November 2024?

The current stock price of New India Assurance Company Ltd (NIACL) as on 15 November 2024 is ₹176.

What is the High / Low of New India Assurance Company Ltd (NIACL) stocks in FY 2024?

In FY 2024, the High / Low of New India Assurance Company Ltd (NIACL) stocks is 325/143.

What is the Stock P/E of New India Assurance Company Ltd (NIACL)?

The Stock P/E of New India Assurance Company Ltd (NIACL) is 21.3.

What is the Book Value of New India Assurance Company Ltd (NIACL)?

The Book Value of New India Assurance Company Ltd (NIACL) is 185.

What is the Dividend Yield of New India Assurance Company Ltd (NIACL)?

The Dividend Yield of New India Assurance Company Ltd (NIACL) is 1.17 %.

What is the ROCE of New India Assurance Company Ltd (NIACL)?

The ROCE of New India Assurance Company Ltd (NIACL) is 0.56 %.

What is the ROE of New India Assurance Company Ltd (NIACL)?

The ROE of New India Assurance Company Ltd (NIACL) is 1.19 %.

What is the Face Value of New India Assurance Company Ltd (NIACL)?

The Face Value of New India Assurance Company Ltd (NIACL) 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 New India Assurance Company Ltd (NIACL). 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