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Last Updated on: 18 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Pacific Industries Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 18, 2024, 5:08 pm

Market Cap 198 Cr.
Current Price 288
High / Low411/133
Stock P/E16.8
Book Value 635
Dividend Yield0.00 %
ROCE3.51 %
ROE2.71 %
Face Value 10.0
PEG Ratio0.18

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

View Share Price Target for Pacific Industries Ltd

Competitors of Pacific Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Inani Marbles & Industries Ltd 53.3 Cr. 28.638.2/18.013.1 29.40.16 %4.56 %1.74 % 2.00
Glittek Granites Ltd 9.87 Cr. 3.805.77/2.65 4.130.00 %15.2 %76.6 % 5.00
Elegant Marbles and Grani Industries Ltd 98.8 Cr. 270364/21519.0 4380.98 %5.53 %4.10 % 10.0
Divyashakti Ltd 70.0 Cr. 68.298.3/65.040.2 1212.91 %2.69 %1.88 % 10.0
Dhyaani Tradeventtures Ltd 19.6 Cr. 11.543.3/11.525.5 20.30.00 %21.9 %17.4 % 10.0
Industry Average1,742.50 Cr183.4423.77173.140.41%8.34%13.44%7.90

All Competitor Stocks of Pacific Industries Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales42.3269.84100.6067.7161.7453.5263.1361.0022.8240.4750.3135.2644.88
Expenses39.2564.9988.3360.3457.2351.6358.4157.4421.4943.0248.8735.1041.16
Operating Profit3.074.8512.277.374.511.894.723.561.33-2.551.440.163.72
OPM %7.25%6.94%12.20%10.88%7.30%3.53%7.48%5.84%5.83%-6.30%2.86%0.45%8.29%
Other Income0.813.902.072.542.622.622.222.773.428.023.695.064.75
Interest0.610.930.880.560.951.131.061.181.050.600.970.970.84
Depreciation2.032.762.082.102.564.052.872.862.852.832.652.702.72
Profit before tax1.245.0611.387.253.62-0.673.012.290.852.041.511.554.91
Tax %16.13%52.96%26.45%23.03%30.11%17.91%21.59%24.89%10.59%19.12%-76.16%5.16%38.70%
Net Profit1.052.398.375.582.52-0.552.361.730.781.652.661.473.03
EPS in Rs1.523.4612.138.093.65-0.803.422.511.132.393.862.134.40

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales95679796178283187190
Expenses93659795159257180179
Operating Profit22-011926711
OPM %2%2%-0%1%11%9%4%6%
Other Income456108101617
Interest13133443
Depreciation43478111111
Profit before tax11011522813
Tax %21%45%155%27%31%26%21%11%
Net Profit10-001016712
EPS in Rs0.770.51-0.170.6515.0923.079.4417.24
Dividend Payout %0%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2017-20182021-20222022-20232023-2024
YoY Net Profit Growth (%)-100.00%60.00%-56.25%71.43%
Change in YoY Net Profit Growth (%)0.00%160.00%-116.25%127.68%

Pacific Industries Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 4 years from 2017-2018 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:%
5 Years:14%
3 Years:2%
TTM:52%
Compounded Profit Growth
10 Years:%
5 Years:160%
3 Years:4%
TTM:79%
Stock Price CAGR
10 Years:10%
5 Years:40%
3 Years:-9%
1 Year:89%
Return on Equity
10 Years:%
5 Years:2%
3 Years:3%
Last Year:3%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital11133377
Reserves314314314337348364414427
Borrowings3944384250735650
Other Liabilities5366784274714170
Total Liabilities407425431423475511518554
Fixed Assets2728368889115104115
CWIP49470246120
Investments577711614695101104115
Other Assets319311232189267289299323
Total Assets407425431423475511518554

Reserves and Borrowings Chart

Cash Flow

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-1255987-72561036
Cash from Investing Activity +124-64-79-14-20-41-38-29
Cash from Financing Activity +33-82242727-9
Net Cash Flow2-2-019-8-0-1

Free Cash Flow

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-37.00-42.00-38.00-41.00-31.00-47.00-49.00-39.00

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 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days18330920014984569396
Inventory Days366800296420294170152167
Days Payable26768824821616310855179
Cash Conversion Cycle28242124835221511819084
Working Capital Days858920320362230157177115
ROCE %1%0%1%5%6%3%4%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters73.99%73.99%73.99%73.99%73.99%73.99%67.14%67.16%67.16%67.13%67.16%67.16%
DIIs0.13%0.13%0.13%0.13%0.13%0.13%0.07%0.07%0.07%0.07%0.07%0.07%
Government0.00%0.00%0.01%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Public25.88%25.88%25.87%25.88%25.87%25.87%32.79%32.78%32.78%32.80%32.77%32.78%
No. of Shareholders16,66916,85816,92516,89716,88816,79717,36917,29317,38517,35717,29417,164

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.)17.2317.0646.1930.221.71
Diluted EPS (Rs.)17.2317.0646.1930.221.71
Cash EPS (Rs.)32.8725.9877.5254.7121.96
Book Value[Excl.RevalReserv]/Share (Rs.)629.16610.431064.821019.42987.22
Book Value[Incl.RevalReserv]/Share (Rs.)629.16610.431064.821019.42987.22
Revenue From Operations / Share (Rs.)275.65271.92822.81517.25286.79
PBDIT / Share (Rs.)39.7434.08104.1176.3931.51
PBIT / Share (Rs.)24.1017.5372.7851.8910.85
PBT / Share (Rs.)19.3211.8962.5643.501.78
Net Profit / Share (Rs.)17.239.4446.1930.221.29
NP After MI And SOA / Share (Rs.)17.239.4446.1930.221.29
PBDIT Margin (%)14.4112.5312.6514.7610.98
PBIT Margin (%)8.746.448.8410.033.78
PBT Margin (%)7.004.377.608.410.62
Net Profit Margin (%)6.253.475.615.840.45
NP After MI And SOA Margin (%)6.253.475.615.840.45
Return on Networth / Equity (%)2.731.544.332.960.13
Return on Capital Employeed (%)3.662.736.284.721.02
Return On Assets (%)2.141.253.112.180.10
Long Term Debt / Equity (X)0.020.040.060.060.06
Total Debt / Equity (X)0.110.130.190.120.10
Asset Turnover Ratio (%)0.350.360.720.490.30
Current Ratio (X)1.982.692.152.432.90
Quick Ratio (X)1.522.091.481.741.95
Inventory Turnover Ratio (X)2.291.141.611.040.75
Interest Coverage Ratio (X)8.326.0410.209.103.48
Interest Coverage Ratio (Post Tax) (X)4.612.675.524.601.14
Enterprise Value (Cr.)125.3691.07203.5361.3749.50
EV / Net Operating Revenue (X)0.650.480.710.340.50
EV / EBITDA (X)4.583.885.672.334.56
MarketCap / Net Operating Revenue (X)0.630.420.550.280.24
Price / BV (X)0.280.190.420.140.07
Price / Net Operating Revenue (X)0.630.420.550.280.24
EarningsYield0.090.080.100.200.01

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Pacific Industries Ltd as of November 18, 2024 is: 294.88

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 18, 2024, Pacific Industries Ltd is Undervalued by 2.39% compared to the current share price 288.00

Intrinsic Value of Pacific Industries Ltd as of November 18, 2024 is: 568.03

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 18, 2024, Pacific Industries Ltd is Undervalued by 97.23% compared to the current share price 288.00

Last 5 Year EPS CAGR: 92.63%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (354.00 cr) compared to borrowings (49.00 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (149.13 cr) and profit (7.63 cr) over the years.
  1. The stock has a low average ROCE of 2.50%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 392.38, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 238.75, 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 Pacific Industries Ltd:
    1. Net Profit Margin: 6.25%
      • 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: 3.66% (Industry Average ROCE: 8.34%)
      • 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%: 2.73% (Industry Average ROE: 13.44%)
      • 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): 4.61
      • 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: 1.52
      • 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: 16.8 (Industry average Stock P/E: 14.26)
      • 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: 0.11
      • 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

Pacific Industries Ltd. is a Public Limited Listed company incorporated on 13/07/1989 and has its registered office in the State of Karnataka, India. Company’s Corporate Identification Number(CIN) is L14101KA1989PLC062041 and registration number is 062041. Currently Company is involved in the business activities of Quarrying of stone, sand and clay. Company’s Total Operating Revenue is Rs. 282.03 Cr. and Equity Capital is Rs. 3.45 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Granites/MarblesSurvey No. 13, N.H.48, Kempalingahalli, Bengaluru Karnataka 562123pilnorth@pacificgranites.com
http://www.pacificindustriesltd.com
Management
NamePosition Held
Mr. Jagdish Prasad AgarwalChairman & Managing Director
Mr. Kapil AgarwalExecutive Director & CFO
Mrs. Geetadevi Jagdish AgarwalNon Executive Director
Ms. Neelam TaterInd. Non-Executive Director
Mrs. Nehal MehtaInd. Non-Executive Director
Ms. Rekha Kumari SutharInd. Non-Executive Director

FAQ

What is the latest intrinsic value of Pacific Industries Ltd?

The latest intrinsic value of Pacific Industries Ltd as on 18 November 2024 is ₹294.88, which is 2.39% higher than the current market price of ₹288.00.

What is the Market Cap of Pacific Industries Ltd?

The Market Cap of Pacific Industries Ltd is 198 Cr..

What is the current Stock Price of Pacific Industries Ltd as on 18 November 2024?

The current stock price of Pacific Industries Ltd as on 18 November 2024 is ₹288.

What is the High / Low of Pacific Industries Ltd stocks in FY 2024?

In FY 2024, the High / Low of Pacific Industries Ltd stocks is 411/133.

What is the Stock P/E of Pacific Industries Ltd?

The Stock P/E of Pacific Industries Ltd is 16.8.

What is the Book Value of Pacific Industries Ltd?

The Book Value of Pacific Industries Ltd is 635.

What is the Dividend Yield of Pacific Industries Ltd?

The Dividend Yield of Pacific Industries Ltd is 0.00 %.

What is the ROCE of Pacific Industries Ltd?

The ROCE of Pacific Industries Ltd is 3.51 %.

What is the ROE of Pacific Industries Ltd?

The ROE of Pacific Industries Ltd is 2.71 %.

What is the Face Value of Pacific Industries Ltd?

The Face Value of Pacific Industries 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 Pacific Industries 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