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Last Updated on: 06 October, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Onward Technologies Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 5, 2024, 12:17 am

Market Cap 908 Cr.
Current Price 401
High / Low740/334
Stock P/E30.1
Book Value 92.0
Dividend Yield1.25 %
ROCE21.7 %
ROE17.7 %
Face Value 10.0
PEG Ratio0.95

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

View Share Price Target for Onward Technologies Ltd

Competitors of Onward Technologies Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Globalspace Technologies Ltd 61.6 Cr. 17.927.0/16.2187 11.20.00 %%% 10.0
First Fintec Ltd 7.31 Cr. 7.0210.9/4.51 10.20.00 %2.41 %1.77 % 10.0
ERP Soft Systems Ltd 45.1 Cr. 114190/65.6376 44.30.00 %1.25 %0.98 % 10.0
Equippp Social Impact Technologies Ltd 229 Cr. 22.236.7/20.22,544 0.650.00 %1.86 %4.06 % 1.00
Empower India Ltd 251 Cr. 2.163.86/0.9229.1 2.580.00 %2.36 %2.33 % 1.00
Industry Average35,964.53N/A119.62N/AN/A17.1917.17N/A

All Competitor Stocks of Onward Technologies Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales57.8366.3369.6072.9477.2687.4793.67110.11115.78121.37119.62120.24114.09
Expenses53.8562.4971.4765.6867.5781.1390.75106.94109.23107.30105.14105.23104.75
Operating Profit3.983.84-1.877.269.696.342.923.176.5514.0714.4815.019.34
OPM %6.88%5.79%-2.69%9.95%12.54%7.25%3.12%2.88%5.66%11.59%12.10%12.48%8.19%
Other Income2.172.0215.544.110.281.602.101.011.121.742.641.434.11
Interest0.640.420.230.240.260.290.410.430.430.390.360.330.31
Depreciation2.402.492.422.522.462.703.073.263.393.253.263.283.31
Profit before tax3.112.9511.028.617.254.951.540.493.8512.1713.5012.839.83
Tax %24.44%26.78%10.25%35.08%31.31%34.95%20.78%-18.37%36.10%40.51%19.41%25.33%31.03%
Net Profit2.352.179.895.594.983.221.210.582.467.2410.889.576.79
EPS in Rs1.441.335.653.182.271.460.550.261.113.254.864.273.02

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
Sales131146167189198224244261272240307441475
Expenses120133158177184212233239248223286414422
Operating Profit1114913141111222317222753
OPM %8%9%5%7%7%5%5%9%9%7%7%6%11%
Other Income221123511521510
Interest3333433332121
Depreciation544544561110101313
Profit before tax5835878151010321848
Tax %-24%32%97%37%61%38%11%33%35%25%26%36%
Net Profit75033471067241134
EPS in Rs4.833.870.062.002.142.704.326.413.894.4910.755.1515.40
Dividend Payout %0%0%0%0%47%37%23%23%39%67%28%58%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-28.57%-100.00%0.00%33.33%75.00%42.86%-40.00%16.67%242.86%-54.17%
Change in YoY Net Profit Growth (%)0.00%-71.43%100.00%33.33%41.67%-32.14%-82.86%56.67%226.19%-297.02%

Onward Technologies Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 10 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:11%
5 Years:13%
3 Years:25%
TTM:1%
Compounded Profit Growth
10 Years:77%
5 Years:27%
3 Years:67%
TTM:42%
Stock Price CAGR
10 Years:23%
5 Years:44%
3 Years:22%
1 Year:-29%
Return on Equity
10 Years:13%
5 Years:13%
3 Years:14%
Last Year:18%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital141415151516161616222223
Reserves91217212734455258141152185
Borrowings353729232523183525191728
Other Liabilities212327312228273338455050
Total Liabilities8086889190100106135138227240285
Fixed Assets121212111816152830575463
CWIP000000000001
Investments000000000000
Other Assets68747680728591107108170187222
Total Assets8086889190100106135138227240285

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 2315101416112933-4662
Cash from Investing Activity -3-3-4-1-11-5-5-5-10-326-62
Cash from Financing Activity 3-1-11-9-0-10-9-10-1257-14-16
Net Cash Flow1-10032-3131121-2-16

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow11.00-21.00-28.00-16.00-9.00-14.00-12.004.00-12.00-8.003.0010.00

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 Days918675717968686762799178
Inventory Days
Days Payable
Cash Conversion Cycle918675717968686762799178
Working Capital Days755642574846554142566095
ROCE %20%10%14%19%15%15%24%14%12%23%10%22%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters57.33%45.97%45.79%45.69%45.51%45.43%45.21%45.07%44.96%38.15%38.12%38.02%
FIIs0.01%0.22%0.03%0.00%24.38%0.01%0.00%0.06%0.09%2.14%2.50%1.64%
DIIs0.72%0.54%0.25%0.24%0.23%0.31%0.55%0.87%0.84%6.15%7.65%7.58%
Public41.95%53.28%53.93%54.07%29.87%54.25%54.24%54.02%54.12%53.56%51.73%52.75%
No. of Shareholders11,79511,24211,57111,55211,62310,91110,68112,13314,27815,36516,93119,327

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.)15.135.1712.624.523.90
Diluted EPS (Rs.)14.815.0512.174.353.76
Cash EPS (Rs.)20.8210.9715.3410.8810.95
Book Value[Excl.RevalReserv]/Share (Rs.)91.9877.9474.0945.5742.39
Book Value[Incl.RevalReserv]/Share (Rs.)91.9877.9474.0945.5742.39
Revenue From Operations / Share (Rs.)209.77197.68139.54147.11169.26
PBDIT / Share (Rs.)26.4114.6519.5013.8215.23
PBIT / Share (Rs.)20.658.8314.917.438.17
PBT / Share (Rs.)20.058.0814.456.006.01
Net Profit / Share (Rs.)15.065.1510.764.493.89
NP After MI And SOA / Share (Rs.)15.065.1510.764.493.89
PBDIT Margin (%)12.587.4113.979.398.99
PBIT Margin (%)9.844.4610.685.044.82
PBT Margin (%)9.554.0810.354.083.55
Net Profit Margin (%)7.172.607.703.052.29
NP After MI And SOA Margin (%)7.172.607.703.052.29
Return on Networth / Equity (%)16.376.6014.519.859.17
Return on Capital Employeed (%)19.8410.5218.1114.2215.96
Return On Assets (%)11.824.7310.325.324.58
Long Term Debt / Equity (X)0.000.000.000.010.00
Total Debt / Equity (X)0.000.000.000.200.26
Asset Turnover Ratio (%)1.791.871.331.361.61
Current Ratio (X)3.763.013.071.731.53
Quick Ratio (X)3.763.013.071.731.53
Dividend Payout Ratio (NP) (%)19.7857.8822.1533.1438.42
Dividend Payout Ratio (CP) (%)14.3127.1615.5313.6713.64
Earning Retention Ratio (%)80.2242.1277.8566.8661.58
Cash Earning Retention Ratio (%)85.6972.8484.4786.3386.36
Interest Coverage Ratio (X)44.3519.6442.709.727.05
Interest Coverage Ratio (Post Tax) (X)26.297.9024.554.162.80
Enterprise Value (Cr.)966.26595.40733.46170.7366.50
EV / Net Operating Revenue (X)2.051.352.390.710.24
EV / EBITDA (X)16.2518.2217.087.562.72
MarketCap / Net Operating Revenue (X)2.111.462.580.760.25
Retention Ratios (%)80.2142.1177.8466.8561.57
Price / BV (X)4.823.704.862.481.04
Price / Net Operating Revenue (X)2.111.462.580.760.25
EarningsYield0.030.010.020.030.08

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Onward Technologies Ltd as of October 6, 2024 is: ₹496.28

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 6, 2024, Onward Technologies Ltd is Undervalued by 23.76% compared to the current share price ₹401.00

Intrinsic Value of Onward Technologies Ltd as of October 6, 2024 is: ₹653.49

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 6, 2024, Onward Technologies Ltd is Undervalued by 62.97% compared to the current share price ₹401.00

Last 5 Year EPS CAGR: 31.68%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 16.50%, which is a positive sign.
  2. The company has higher reserves (62.75 cr) compared to borrowings (26.17 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (253.46 cr) and profit (13.62 cr) over the years.
  1. The stock has a high average Working Capital Days of 56.08, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 76.25, 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 Onward Technologies Ltd:
    1. Net Profit Margin: 7.17%
      • 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: 19.84% (Industry Average ROCE: 17.19%)
      • 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%: 16.37% (Industry Average ROE: 17.17%)
      • 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): 26.29
      • 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: 3.76
      • 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: 30.1 (Industry average Stock P/E: 119.62)
      • 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

Onward Technologies Ltd. is a Public Limited Listed company incorporated on 18/07/1991 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L28920MH1991PLC062542 and registration number is 062542. Currently Company is involved in the business activities of Research and experimental development on social sciences and humanities. Company’s Total Operating Revenue is Rs. 234.40 Cr. and Equity Capital is Rs. 22.02 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
IT Consulting & SoftwareSterling Centre, 2nd Floor, Mumbai Maharashtra 400018investors@onwardgroup.com
http://www.onwardgroup.com
Management
NamePosition Held
Mr. Harish MehtaFounder & Executive Chairman
Mr. Jigar MehtaManaging Director
Mr. Harsha RaghavanNon Exe.Non Ind.Director
Ms. Niranjani ChandramouliInd. Non-Executive Director
Mr. Jai Shishir DiwanjiInd. Non-Executive Director
Mr. Dhanpal Arvind JhaveriInd. Non-Executive Director
Mr. Jay SonawalaInd. Non-Executive Director

FAQ

What is the latest fair value of Onward Technologies Ltd?

The latest fair value of Onward Technologies Ltd is ₹496.28.

What is the Market Cap of Onward Technologies Ltd?

The Market Cap of Onward Technologies Ltd is 908 Cr..

What is the current Stock Price of Onward Technologies Ltd as on 06 October 2024?

The current stock price of Onward Technologies Ltd as on 06 October 2024 is ₹401.

What is the High / Low of Onward Technologies Ltd stocks in FY 2024?

In FY 2024, the High / Low of Onward Technologies Ltd stocks is 740/334.

What is the Stock P/E of Onward Technologies Ltd?

The Stock P/E of Onward Technologies Ltd is 30.1.

What is the Book Value of Onward Technologies Ltd?

The Book Value of Onward Technologies Ltd is 92.0.

What is the Dividend Yield of Onward Technologies Ltd?

The Dividend Yield of Onward Technologies Ltd is 1.25 %.

What is the ROCE of Onward Technologies Ltd?

The ROCE of Onward Technologies Ltd is 21.7 %.

What is the ROE of Onward Technologies Ltd?

The ROE of Onward Technologies Ltd is 17.7 %.

What is the Face Value of Onward Technologies Ltd?

The Face Value of Onward Technologies 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 Onward Technologies 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