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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

Parshva Enterprises Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 4, 2024, 5:09 pm

Market Cap 179 Cr.
Current Price 176
High / Low314/144
Stock P/E578
Book Value 13.3
Dividend Yield0.00 %
ROCE3.63 %
ROE2.25 %
Face Value 10.0
PEG Ratio75.74

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

View Share Price Target for Parshva Enterprises Ltd

Competitors of Parshva Enterprises Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Thangamayil Jewellery Ltd 6,515 Cr. 2,3742,525/1,14053.8 1800.42 %20.3 %28.0 % 10.0
Silgo Retail Ltd 79.9 Cr. 43.253.4/19.524.4 29.20.00 %10.1 %7.43 % 10.0
Shubhlaxmi Jewel Art Ltd 35.8 Cr. 40.699.0/24.028.6 24.60.00 %9.44 %6.31 % 10.0
Renaissance Global Ltd 1,252 Cr. 130164/87.417.0 1190.00 %8.25 %6.51 % 2.00
Rajesh Exports Ltd 8,310 Cr. 281510/259219 5160.00 %3.23 %2.24 % 1.00
Industry Average4,728.40 Cr401.62153.47121.030.05%7.25%11.62%7.88

All Competitor Stocks of Parshva Enterprises Ltd

Quarterly Result

MonthMar 2020Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales10.041.694.643.693.494.303.964.755.284.555.556.368.66
Expenses9.581.614.543.593.394.163.884.645.174.455.426.218.50
Operating Profit0.460.080.100.100.100.140.080.110.110.100.130.150.16
OPM %4.58%4.73%2.16%2.71%2.87%3.26%2.02%2.32%2.08%2.20%2.34%2.36%1.85%
Other Income-0.130.010.010.000.000.000.000.000.000.000.000.00-0.03
Interest0.020.010.010.010.010.030.020.030.020.030.030.030.03
Depreciation0.080.030.030.010.010.040.000.000.000.010.010.010.02
Profit before tax0.230.050.070.080.080.070.060.080.090.060.090.110.08
Tax %26.09%40.00%28.57%25.00%25.00%28.57%16.67%25.00%22.22%33.33%22.22%27.27%25.00%
Net Profit0.170.040.050.060.060.050.040.060.070.050.070.080.06
EPS in Rs0.180.040.050.060.060.050.040.060.070.050.070.080.06

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales4.767.0910.0410.3113.5118.2925.12
Expenses4.696.689.5710.0013.1017.8324.59
Operating Profit0.070.410.470.310.410.460.53
OPM %1.47%5.78%4.68%3.01%3.03%2.52%2.11%
Other Income0.010.04-0.130.02-0.00-0.01-0.03
Interest-0.00-0.000.030.030.060.110.12
Depreciation0.020.050.080.070.060.050.04
Profit before tax0.060.400.230.230.290.290.34
Tax %33.33%27.50%26.09%26.09%27.59%27.59%23.53%
Net Profit0.040.300.170.170.210.210.26
EPS in Rs0.070.450.180.180.210.210.26
Dividend Payout %-0.00%-0.00%-0.00%-0.00%-0.00%-0.00%-0.00%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)650.00%-43.33%0.00%23.53%0.00%23.81%
Change in YoY Net Profit Growth (%)0.00%-693.33%43.33%23.53%-23.53%23.81%

Parshva Enterprises Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 6 years from 2018-2019 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:%
5 Years:29%
3 Years:35%
TTM:41%
Compounded Profit Growth
10 Years:%
5 Years:-2%
3 Years:14%
TTM:41%
Stock Price CAGR
10 Years:%
5 Years:45%
3 Years:74%
1 Year:3%
Return on Equity
10 Years:%
5 Years:3%
3 Years:2%
Last Year:2%

Last Updated: Unknown

Balance Sheet

Last Updated: September 15, 2024, 2:58 pm

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital2.002.203.013.0110.0510.0510.19
Reserves0.041.044.054.210.230.453.36
Borrowings0.000.230.181.060.970.930.94
Other Liabilities0.020.110.100.100.330.182.14
Total Liabilities2.063.587.348.3811.5811.6116.63
Fixed Assets0.130.270.190.190.160.120.22
CWIP0.000.000.000.000.000.000.00
Investments0.000.000.000.000.000.000.00
Other Assets1.933.317.158.1911.4211.4916.41
Total Assets2.063.587.348.3811.5811.6116.63

Reserves and Borrowings Chart

Cash Flow

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity -1.59-1.37-2.35-0.09-3.410.061.67
Cash from Investing Activity -0.170.01-1.240.010.36-0.01-4.15
Cash from Financing Activity 2.000.903.65-0.032.80-0.102.68
Net Cash Flow0.24-0.460.05-0.10-0.25-0.050.19

Free Cash Flow

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow0.070.180.29-0.75-0.56-0.47-0.41

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 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days0.000.0021.8165.49123.20114.35116.53
Inventory Days72.36150.29180.92167.181,477.55687.50
Days Payable0.000.000.000.000.000.00
Cash Conversion Cycle72.36150.29202.73232.68123.201,591.90804.03
Working Capital Days128.82161.65253.39284.64296.65224.11205.17
ROCE %14.52%8.22%3.61%3.79%3.62%3.63%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2021Sep 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters73.09%73.09%73.90%73.97%74.53%74.53%74.53%74.63%74.69%74.71%74.74%74.74%
Public26.91%26.91%26.10%26.03%25.47%25.47%25.47%25.37%25.31%25.29%25.27%25.26%
No. of Shareholders686973363340335578546537552569613

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23
FaceValue10.0010.00
Basic EPS (Rs.)0.250.21
Diluted EPS (Rs.)0.250.21
Cash EPS (Rs.)0.290.26
Book Value[Excl.RevalReserv]/Share (Rs.)13.3010.44
Book Value[Incl.RevalReserv]/Share (Rs.)13.3010.44
Revenue From Operations / Share (Rs.)24.6618.20
PBDIT / Share (Rs.)0.510.45
PBIT / Share (Rs.)0.470.40
PBT / Share (Rs.)0.340.30
Net Profit / Share (Rs.)0.250.21
NP After MI And SOA / Share (Rs.)0.250.21
PBDIT Margin (%)2.072.48
PBIT Margin (%)1.902.21
PBT Margin (%)1.411.66
Net Profit Margin (%)1.011.17
NP After MI And SOA Margin (%)1.011.17
Return on Networth / Equity (%)1.882.04
Return on Capital Employeed (%)3.423.76
Return On Assets (%)1.531.84
Long Term Debt / Equity (X)0.030.02
Total Debt / Equity (X)0.070.08
Asset Turnover Ratio (%)1.770.00
Current Ratio (X)6.0713.85
Quick Ratio (X)5.048.74
Inventory Turnover Ratio (X)6.490.00
Interest Coverage Ratio (X)4.184.45
Interest Coverage Ratio (Post Tax) (X)3.153.17
Enterprise Value (Cr.)215.27171.76
EV / Net Operating Revenue (X)8.579.39
EV / EBITDA (X)413.42378.33
MarketCap / Net Operating Revenue (X)8.539.34
Price / BV (X)15.8216.28
Price / Net Operating Revenue (X)8.539.34

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Parshva Enterprises Ltd as of October 6, 2024 is: ₹176.43

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, Parshva Enterprises Ltd is Undervalued by 0.24% compared to the current share price ₹176.00

Intrinsic Value of Parshva Enterprises Ltd as of October 6, 2024 is: ₹189.89

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, Parshva Enterprises Ltd is Undervalued by 7.89% compared to the current share price ₹176.00

Last 5 Year EPS CAGR: 7.63%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (1.91 cr) compared to borrowings (0.62 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (12.73 cr) and profit (0.26 cr) over the years.
  1. The stock has a low average ROCE of 5.34%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 222.06, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 226.61, 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 Parshva Enterprises Ltd:
    1. Net Profit Margin: 1.01%
      • 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: 3.42% (Industry Average ROCE: 7.25%)
      • 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%: 1.88% (Industry Average ROE: 11.62%)
      • 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): 3.15
      • 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: 5.04
      • 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: 578 (Industry average Stock P/E: 153.47)
      • 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: 0.07
      • 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

Parshva Enterprises Ltd. is a Public Limited Listed company incorporated on 27/07/2017 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L51909MH2017PLC297910 and registration number is 297910. Currently company belongs to the Industry of Diamond Cutting/Precious Metals/Jewellery. Company’s Total Operating Revenue is Rs. 13.51 Cr. and Equity Capital is Rs. 10.05 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Gems, Jewellery & Precious MetalsHo. No. 219, Vill Brahmangaon, Palghar District Maharashtra 421303info@parshvaenterprises.co.in
http://www.parshvaenterprises.co.in
Management
NamePosition Held
Mr. Prashant VoraChairman & Managing Director
Mr. Harsh VoraWhole Time Director
Mr. Mehul ShahNon Exe.Non Ind.Director
Ms. Meghna SavlaIndependent Director
Mrs. Mamta PatelIndependent Director
Mr. Tejas ShahIndependent Director

FAQ

What is the latest fair value of Parshva Enterprises Ltd?

The latest fair value of Parshva Enterprises Ltd is ₹176.43.

What is the Market Cap of Parshva Enterprises Ltd?

The Market Cap of Parshva Enterprises Ltd is 179 Cr..

What is the current Stock Price of Parshva Enterprises Ltd as on 06 October 2024?

The current stock price of Parshva Enterprises Ltd as on 06 October 2024 is ₹176.

What is the High / Low of Parshva Enterprises Ltd stocks in FY 2024?

In FY 2024, the High / Low of Parshva Enterprises Ltd stocks is 314/144.

What is the Stock P/E of Parshva Enterprises Ltd?

The Stock P/E of Parshva Enterprises Ltd is 578.

What is the Book Value of Parshva Enterprises Ltd?

The Book Value of Parshva Enterprises Ltd is 13.3.

What is the Dividend Yield of Parshva Enterprises Ltd?

The Dividend Yield of Parshva Enterprises Ltd is 0.00 %.

What is the ROCE of Parshva Enterprises Ltd?

The ROCE of Parshva Enterprises Ltd is 3.63 %.

What is the ROE of Parshva Enterprises Ltd?

The ROE of Parshva Enterprises Ltd is 2.25 %.

What is the Face Value of Parshva Enterprises Ltd?

The Face Value of Parshva Enterprises 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 Parshva Enterprises 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