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

Panache Digilife Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 7, 2024, 2:17 pm

Market Cap 287 Cr.
Current Price 188
High / Low200/64.4
Stock P/E75.8
Book Value 26.6
Dividend Yield0.00 %
ROCE12.8 %
ROE13.2 %
Face Value 10.0
PEG Ratio2.10

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

View Share Price Target for Panache Digilife Ltd

Competitors of Panache Digilife Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Computer Point Ltd 20.0 Cr. 6.6511.6/3.70399 11.10.00 %0.03 %0.03 % 10.0
ACI Infocom Ltd 36.9 Cr. 3.343.67/1.16132 1.530.00 %1.07 %0.53 % 1.00
TVS Electronics Ltd 730 Cr. 391490/235 53.00.26 %0.73 %0.08 % 10.0
Panache Digilife Ltd 287 Cr. 188200/64.475.8 26.60.00 %12.8 %13.2 % 10.0
HCL Infosystems Ltd 553 Cr. 16.826.7/13.6 8.180.00 %28.0 %% 2.00
Industry Average1,166.89 Cr478.12111.8169.950.25%14.80%17.64%6.50

All Competitor Stocks of Panache Digilife Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales19.0022.7716.268.7710.6349.6129.1423.434.7854.455.9620.5815.21
Expenses17.0224.2815.869.069.8447.0527.8722.273.9452.115.9019.3614.23
Operating Profit1.98-1.510.40-0.290.792.561.271.160.842.340.061.220.98
OPM %10.42%-6.63%2.46%-3.31%7.43%5.16%4.36%4.95%17.57%4.30%1.01%5.93%6.44%
Other Income0.360.030.031.270.600.29-0.060.160.200.111.140.391.00
Interest1.08-0.030.660.730.791.090.870.960.971.131.061.081.16
Depreciation0.41-0.070.180.180.170.160.160.210.190.230.220.220.22
Profit before tax0.85-1.38-0.410.070.431.600.180.15-0.121.09-0.080.310.60
Tax %31.76%-39.86%-4.88%200.00%2.33%44.38%50.00%20.00%41.67%34.86%0.00%6.45%5.00%
Net Profit0.59-1.94-0.43-0.060.410.880.080.12-0.080.71-0.080.290.56
EPS in Rs0.49-1.62-0.36-0.050.340.730.070.10-0.070.59-0.070.240.47

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales78.52102.4593.1571.2377.5885.91111.8096.20
Expenses71.6895.3686.2969.8969.5781.36106.0791.60
Operating Profit6.847.096.861.348.014.555.734.60
OPM %8.71%6.92%7.36%1.88%10.32%5.30%5.13%4.78%
Other Income0.520.530.890.48-1.611.200.412.64
Interest1.861.232.092.573.533.384.064.43
Depreciation0.160.150.201.141.080.700.790.89
Profit before tax5.346.245.46-1.891.791.671.291.92
Tax %17.23%21.96%32.42%-53.97%79.89%52.69%35.66%
Net Profit4.424.863.72-2.930.360.800.821.48
EPS in Rs5.264.053.10-2.440.300.670.681.23
Dividend Payout %0.00%6.17%8.06%-10.24%0.00%0.00%0.00%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)9.95%-23.46%-178.76%112.29%122.22%2.50%
Change in YoY Net Profit Growth (%)0.00%-33.41%-155.31%291.05%9.94%-119.72%

Panache Digilife Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 6 years from 2017-2018 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:%
5 Years:1%
3 Years:8%
TTM:15%
Compounded Profit Growth
10 Years:%
5 Years:2%
3 Years:13%
TTM:267%
Stock Price CAGR
10 Years:%
5 Years:32%
3 Years:46%
1 Year:136%
Return on Equity
10 Years:%
5 Years:4%
3 Years:7%
Last Year:13%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital4661212121212
Reserves522261717181920
Borrowings1813244329243533
Other Liabilities3649513737423532
Total Liabilities6491107110959710297
Fixed Assets33425541212
CWIP00066600
Investments00010000
Other Assets60871027883879085
Total Assets6491107110959710297

Reserves and Borrowings Chart

Cash Flow

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 0-7-5767-75
Cash from Investing Activity 0-10-23-1669
Cash from Financing Activity 07-214-5-6-15-12
Net Cash Flow0-0-7-3-17-161

Free Cash Flow

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow-11.16-5.91-17.14-41.66-20.99-19.45-29.27

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 Days200173250205181134157180
Inventory Days83124120178102129
Days Payable1831892192087572
Cash Conversion Cycle101109151176208191157180
Working Capital Days107127174199219187181200
ROCE %22%15%1%12%10%10%13%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Aug 2024
Promoters65.49%65.49%65.49%65.49%65.49%65.49%65.49%65.49%65.49%65.49%65.49%51.61%
Public34.51%34.51%34.50%34.51%34.51%34.51%34.51%34.51%34.51%34.51%34.51%48.39%
No. of Shareholders2,9943,1702,7472,7502,7982,6782,7082,5492,5852,7823,4503,131

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.)0.450.691.212.39-1.61
Diluted EPS (Rs.)0.450.691.222.39-1.61
Cash EPS (Rs.)1.181.351.241.20-1.41
Book Value[Excl.RevalReserv]/Share (Rs.)26.5626.2025.3624.5124.31
Book Value[Incl.RevalReserv]/Share (Rs.)26.5626.2025.3624.5124.31
Revenue From Operations / Share (Rs.)80.4593.1671.0664.6559.40
PBDIT / Share (Rs.)7.675.425.387.365.77
PBIT / Share (Rs.)6.934.764.806.464.75
PBT / Share (Rs.)-0.401.481.953.582.33
Net Profit / Share (Rs.)0.440.690.660.30-2.43
NP After MI And SOA / Share (Rs.)0.450.680.660.29-2.44
PBDIT Margin (%)9.535.817.5711.389.71
PBIT Margin (%)8.615.106.759.997.99
PBT Margin (%)-0.491.592.735.543.93
Net Profit Margin (%)0.550.740.930.46-4.08
NP After MI And SOA Margin (%)0.560.730.930.46-4.11
Return on Networth / Equity (%)1.712.622.621.22-10.05
Return on Capital Employeed (%)23.9315.7716.0022.3112.89
Return On Assets (%)0.560.800.820.37-2.68
Long Term Debt / Equity (X)0.040.090.150.140.47
Total Debt / Equity (X)1.001.090.780.941.43
Asset Turnover Ratio (%)0.971.120.970.820.70
Current Ratio (X)1.371.371.421.391.19
Quick Ratio (X)0.950.980.981.100.76
Inventory Turnover Ratio (X)3.233.783.792.342.20
Dividend Payout Ratio (NP) (%)0.000.000.0026.92-3.06
Dividend Payout Ratio (CP) (%)0.000.000.006.73-5.27
Earning Retention Ratio (%)0.000.000.0073.08103.06
Cash Earning Retention Ratio (%)0.000.000.0093.27105.27
Interest Coverage Ratio (X)2.071.651.972.562.39
Interest Coverage Ratio (Post Tax) (X)1.851.341.491.831.67
Enterprise Value (Cr.)120.50108.6683.3796.0693.81
EV / Net Operating Revenue (X)1.250.970.971.241.32
EV / EBITDA (X)13.1016.7212.9110.8813.54
MarketCap / Net Operating Revenue (X)0.920.660.700.880.75
Retention Ratios (%)0.000.000.0073.07103.06
Price / BV (X)2.802.381.992.341.85
Price / Net Operating Revenue (X)0.920.660.700.880.75
EarningsYield0.010.010.010.01-0.05

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Panache Digilife Ltd as of November 8, 2024 is: 271.47

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 8, 2024, Panache Digilife Ltd is Undervalued by 44.40% compared to the current share price ₹188.00

Intrinsic Value of Panache Digilife Ltd as of November 8, 2024 is: 369.48

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 8, 2024, Panache Digilife Ltd is Undervalued by 96.53% compared to the current share price ₹188.00

Last 5 Year EPS CAGR: 36.10%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has shown consistent growth in sales (89.61 cr) and profit (2.73 cr) over the years.
  1. The stock has a low average ROCE of 10.38%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 174.25, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 159.13, which may not be favorable.
  4. The company has higher borrowings (27.38) compared to reserves (18.00), which may suggest financial risk.

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 Panache Digilife Ltd:
    1. Net Profit Margin: 0.55%
      • 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: 23.93% (Industry Average ROCE: 14.8%)
      • 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%: 1.71% (Industry Average ROE: 17.64%)
      • 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): 1.85
      • 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: 0.95
      • 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: 75.8 (Industry average Stock P/E: 111.81)
      • 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: 1
      • 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

Panache Digilife Ltd. is a Public Limited Listed company incorporated on 30/03/2007 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L72200MH2007PLC169415 and registration number is 169415. Currently Company is involved in the business activities of Manufacture of computers and peripheral equipment. Company’s Total Operating Revenue is Rs. 85.28 Cr. and Equity Capital is Rs. 12.00 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
IT Consulting & SoftwareBldg. A3, 102-108 & 201-208, Babosa Industrial park, Thane District Maharashtra 421302info@panachedigilife.com
http://www.panachedigilife.com
Management
NamePosition Held
Mr. Amit Devchand RambhiaChairman & Managing Director
Mr. Nikit Devchand RambhiaJoint Managing Director
Mr. Nitesh Manilal SavlaWholeTime Director & CFO
Mr. Shailesh Premji GalaIndependent Director
Ms. Tejaswini Chandrashekhar MoreIndependent Director
Mr. Jayesh Khimji RambhiaIndependent Director

FAQ

What is the latest fair value of Panache Digilife Ltd?

The latest fair value of Panache Digilife Ltd is ₹271.47.

What is the Market Cap of Panache Digilife Ltd?

The Market Cap of Panache Digilife Ltd is 287 Cr..

What is the current Stock Price of Panache Digilife Ltd as on 08 November 2024?

The current stock price of Panache Digilife Ltd as on 08 November 2024 is 188.

What is the High / Low of Panache Digilife Ltd stocks in FY 2024?

In FY 2024, the High / Low of Panache Digilife Ltd stocks is 200/64.4.

What is the Stock P/E of Panache Digilife Ltd?

The Stock P/E of Panache Digilife Ltd is 75.8.

What is the Book Value of Panache Digilife Ltd?

The Book Value of Panache Digilife Ltd is 26.6.

What is the Dividend Yield of Panache Digilife Ltd?

The Dividend Yield of Panache Digilife Ltd is 0.00 %.

What is the ROCE of Panache Digilife Ltd?

The ROCE of Panache Digilife Ltd is 12.8 %.

What is the ROE of Panache Digilife Ltd?

The ROE of Panache Digilife Ltd is 13.2 %.

What is the Face Value of Panache Digilife Ltd?

The Face Value of Panache Digilife 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 Panache Digilife 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