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Last Updated on: 22 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Pennar Industries Ltd

About the Company - Pennar Industries Ltd

Pennar Industries Ltd. is a Public Limited Listed company incorporated on 08/08/1975 and has its registered office in the State of Andhra Pradesh, India. Company’s Corporate Identification Number(CIN) is L27109TG1975PLC001919 and registration number is 001919. Currently Company is involved in the business activities of Manufacture of hot-rolled and cold-rolled products of steel. Company’s Total Operating Revenue is Rs. 1994.75 Cr. and Equity Capital is Rs. 71.08 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Steel - CR/HR StripsFloor No. 3, Hyderabad Telangana 500084corporatecommunications@pennarindia.com
http://www.pennarindia.com
Management
NamePosition Held
Mr. Aditya RaoVice Chairman & Mng.Director
Mr. P V RaoNon Executive Director
Mr. K Lavanya KumarWhole Time Director
Mr. RVS RamakrishnaChairman & Ind.Director
Mr. Eric James BrownNon Executive Director
Mr. Manish SabharwalIndependent Director
Mr. B Kamalaker RaoIndependent Director
Mr. Chandrasekhar SripadaIndependent Director
Ms. Virginia SharmaIndependent Director

Pennar Industries Ltd. Share Price Update

Share PriceValue
Today₹145.00
Previous Day₹143.05

Basic Stock Data of Pennar Industries Ltd

Market Cap 1,882 Cr.
Current Price 139
High / Low163/66.4
Stock P/E20.3
Book Value 61.0
Dividend Yield0.00 %
ROCE13.3 %
ROE9.97 %
Face Value 5.00

Data Source: screener.in

Competitors of Pennar Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Mahamaya Steel Industries Ltd 181 Cr. 110144/49.032.2 83.70.00 %5.54 %3.73 % 10.0
Industry Average181 Cr11032.283.70%5.54%3.73%10

Pennar Industries Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales412557488552533693700834692668749814745
Expenses379511451511490642655788634600687744669
Operating Profit33463840435145465868627076
OPM %8%8%8%7%8%7%6%6%8%10%8%9%10%
Other Income52933471116821266
Interest22181820192122252223283031
Depreciation12121313131516161617161718
Profit before tax345911142219222831293033
Tax %20%25%30%26%24%23%25%24%23%22%26%25%23%
Net Profit33468111714162124222225
EPS in Rs0.192.360.450.570.751.161.001.241.581.731.621.671.88

Pennar Industries Ltd Quarterly Chart

Pennar Industries Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1,2191,1151,1251,3131,3561,5411,7682,1332,1071,5252,2662,8952,924
Expenses1,0741,0021,0351,1951,2081,3871,5621,9591,9371,4322,0942,6732,665
Operating Profit1451139011814815420617516993171221259
OPM %12%10%8%9%11%10%12%8%8%6%8%8%9%
Other Income45433829252039173328
Interest313126363862677583807891103
Depreciation17181918192529284348546567
Profit before tax1016948679475138976345698117
Tax %36%34%36%35%38%33%34%31%15%22%25%23%
Net Profit6546314358509067533427589
EPS in Rs5.083.432.152.983.642.877.435.523.650.182.945.596.60
Dividend Payout %20%29%0%0%0%0%0%0%0%0%0%0%

Pennar Industries Ltd Profit & Loss Yearly Chart

Pennar Industries Ltd Growth

Compounded Sales Growth
10 Years:10%
5 Years:10%
3 Years:11%
TTM:2%
Compounded Profit Growth
10 Years:6%
5 Years:-1%
3 Years:12%
TTM:36%
Stock Price CAGR
10 Years:21%
5 Years:33%
3 Years:88%
1 Year:81%
Return on Equity
10 Years:8%
5 Years:6%
3 Years:5%
Last Year:10%

Pennar Industries Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital61616060606076767371716767
Reserves244278311342454416528591628625664711756
Preference Capital996300000000
Borrowings174163156195267299355445490618646685736
Other Liabilities212251306334644709553631663579760855901
Total Liabilities6917548329311,4251,4841,5121,7441,8531,8932,1412,3182,460
Fixed Assets246235268282464441342454626603644721709
CWIP217133312271183361761855
Investments032626333569524518452745
Other Assets4444995266209259961,0731,1201,1491,2111,3761,5521,650
Total Assets6917548329311,4251,4841,5121,7441,8531,8932,1412,3182,460

Pennar Industries Ltd Reserves and Borrowings Chart

Pennar Industries Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 88888430205-19-2174191-43195244
Cash from Investing Activity -58-27-72-30-26841-39-204-72-6-98-26
Cash from Financing Activity -30-43-35-4115-211613-9543-92-113
Net Cash Flow119-23-3511-26-1824-54105

Pennar Industries Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days63768194103828379691026846
Inventory Days71829388116157147122128193167159
Days Payable48548885196173125125139176142118
Cash Conversion Cycle851048698246610476571209486
Working Capital Days7178799154659573561378359
ROCE %28%19%13%17%18%16%21%17%13%5%10%13%

Pennar Industries Ltd Financial Efficiency Indicators Chart

Pennar Industries Ltd Share Holding Pattern

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Promoters37.69%37.69%37.69%37.69%37.69%37.71%38.20%39.75%39.75%39.75%39.75%39.75%
FIIs9.83%8.82%0.36%0.17%0.36%0.20%0.14%0.65%4.08%4.86%4.25%4.69%
DIIs6.41%5.86%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.03%0.00%0.10%
Public46.07%47.62%61.95%62.13%61.94%62.09%61.66%59.60%56.18%55.37%56.01%55.47%
No. of Shareholders42,56142,62552,72463,31962,54062,30659,59455,53155,14660,97564,18483,318

Pennar Industries Ltd Shareholding Pattern Chart

No. of Pennar Industries Ltd Shareholders

This stock is not held by any mutual fund

Pennar Industries Ltd ROCE Trend

Pennar Industries Ltd EPS Trend

Pennar Industries Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue5.005.005.005.005.00
Basic EPS (Rs.)5.492.940.183.514.36
Diluted EPS (Rs.)5.492.940.183.514.36
Cash EPS (Rs.)10.406.763.596.626.21
Book Value[Excl.RevalReserv]/Share (Rs.)57.7351.7849.0148.2643.82
Book Value[Incl.RevalReserv]/Share (Rs.)57.7351.7849.0148.2643.82
Revenue From Operations / Share (Rs.)214.51159.38107.30145.04140.00
PBDIT / Share (Rs.)18.8713.257.8413.0413.12
PBIT / Share (Rs.)14.059.454.4610.0911.29
PBT / Share (Rs.)7.293.930.254.356.35
Net Profit / Share (Rs.)5.592.950.193.684.38
NP After MI And SOA / Share (Rs.)5.592.940.173.654.36
PBDIT Margin (%)8.798.317.318.999.37
PBIT Margin (%)6.555.924.156.958.06
PBT Margin (%)3.402.460.232.994.53
Net Profit Margin (%)2.601.840.182.533.12
NP After MI And SOA Margin (%)2.601.840.162.513.11
Return on Networth / Equity (%)9.695.680.367.579.95
Return on Capital Employeed (%)19.9814.697.2416.7021.11
Return On Assets (%)3.251.950.132.863.81
Long Term Debt / Equity (X)0.120.130.160.140.15
Total Debt / Equity (X)0.790.790.760.570.61
Asset Turnover Ratio (%)1.301.010.811.171.30
Current Ratio (X)1.091.121.161.131.22
Quick Ratio (X)0.520.590.680.670.74
Inventory Turnover Ratio (X)2.482.422.002.702.87
Interest Coverage Ratio (X)2.792.401.402.272.66
Interest Coverage Ratio (Post Tax) (X)1.831.530.781.641.89
Enterprise Value (Cr.)1400.21992.68708.76544.57932.71
EV / Net Operating Revenue (X)0.480.430.460.250.43
EV / EBITDA (X)5.505.276.352.884.67
MarketCap / Net Operating Revenue (X)0.320.210.150.090.26
Price / BV (X)1.220.660.330.290.83
Price / Net Operating Revenue (X)0.320.210.150.090.26
EarningsYield0.070.080.010.260.11

Pennar Industries Ltd Profitability Ratios (%)

Pennar Industries Ltd Liquidity Ratios

Pennar Industries Ltd Liquidity Ratios (%)

Pennar Industries Ltd Interest Coverage Ratios (%)

Pennar Industries Ltd Valuation Ratios

Fair Value / Intrinsic Value of Pennar Industries Ltd

Fair Value: ₹125.93

The stock is overvalued by 9.40% compared to the current price ₹139

*Investments are subject to market risks

Strength and Weakness of Pennar Industries Ltd

StrengthWeakness
  1. The stock has a high average ROCE of 15.83%, which is a positive sign.
  2. The company has higher reserves (503.69 cr) compared to borrowings (2.08 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (1.38 cr) and profit (79.00 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 9.87 and average Dividend Yield of 6.33%.
  2. The stock has a high average Working Capital Days of 78.42, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 83.33, which may not be favorable.

Should I Buy Pennar Industries Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Pennar Industries Ltd:
    1. Net Profit Margin: 2.60%
      • 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: 19.98% (Industry Average ROCE: 5.54%)
      • 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. Interest Coverage Ratio (Post Tax): 1.83
      • 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.
    4. Quick Ratio: 0.52
      • 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.
    5. ✓ Stock P/E: 20.3 (Industry average Stock P/E: 32.2)
      • 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.
    6. ✓ Total Debt / Equity: 0.79
      • 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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 Pennar 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