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Last Updated on: 25 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Pokarna Ltd

Basic Stock Data

Last Updated: June 25, 2024, 10:26 pm

Market Cap 2,264 Cr.
Current Price 731
High / Low752/360
Stock P/E24.8
Book Value 191
Dividend Yield0.08 %
ROCE18.3 %
ROE16.6 %
Face Value 2.00
PEG Ratio5.74

Competitors of Pokarna Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Pacific Industries Ltd 148 Cr. 215244/12512.4 6290.00 %3.46 %2.78 % 10.0
Dhyaani Tradeventtures Ltd 10.0 Cr. 23.669.2/17.312.5 11.60.00 %31.7 %18.8 % 10.0
Madhav Marbles and Granites Ltd 37.9 Cr. 42.392.0/37.0 1400.00 %0.03 %1.15 % 10.0
Oriental Trimex Ltd 34.3 Cr. 11.714.4/5.15 20.80.00 %7.28 %11.4 % 10.0
Industry Average57.55 Cr73.156.23200.350.00%10.62%8.53%10.00

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales8292105148192204240213113162162200165
Expenses55738310313115918016187130116131113
Operating Profit27192345614561532632466852
OPM %33%20%21%30%32%22%25%25%23%20%28%34%31%
Other Income1411051114252
Interest56810913129121110119
Depreciation5699101010101110121011
Profit before tax181152643273934413275234
Tax %29%64%24%23%22%25%28%29%40%20%34%37%38%
Net Profit13442034202824311183321
EPS in Rs4.141.221.306.5810.896.499.197.740.853.455.7810.556.85

Last Updated: June 11, 2024, 3:12 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 27, 2024, 5:54 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales199226324391365335459393295650727688
Expenses164178239256234240315262212473556478
Operating Profit3648851341319514413283176171210
OPM %18%21%26%34%36%28%31%33%28%27%24%30%
Other Income17915-121069567118
Interest353334383330272322425039
Depreciation222023181720262321394243
Profit before tax-5343669051101914510291136
Tax %-29%-325%28%22%22%17%20%22%37%23%28%36%
Net Profit-71231517042817128786687
EPS in Rs-2.143.7710.1216.5222.6613.6226.0222.819.1225.2521.2328.18
Dividend Payout %0%11%6%12%3%4%2%3%7%2%3%2%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)271.43%158.33%64.52%37.25%-40.00%92.86%-12.35%-60.56%178.57%-15.38%31.82%
Change in YoY Net Profit Growth (%)0.00%-113.10%-93.82%-27.26%-77.25%132.86%-105.20%-48.22%239.13%-193.96%47.20%

Growth

Compounded Sales Growth
10 Years:12%
5 Years:8%
3 Years:33%
TTM:-5%
Compounded Profit Growth
10 Years:29%
5 Years:3%
3 Years:48%
TTM:39%
Stock Price CAGR
10 Years:33%
5 Years:25%
3 Years:14%
1 Year:50%
Return on Equity
10 Years:23%
5 Years:16%
3 Years:16%
Last Year:17%

Last Updated: June 2, 2024, 12:48 pm

Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital6666666666666
Reserves169204791145185264332359437501550
Borrowings252274310290272271255238288312515459419
Other Liabilities148125918599766089292325214138152
Total Liabilities4224144264284684975065979181,0031,1721,1041,127
Fixed Assets295280259241239260270259269699758733717
CWIP423620335543165111
Investments0000000000000
Other Assets123132165182209235234283218239412371410
Total Assets4224144264284684975065979181,0031,1721,1041,127

Reserves and Borrowings Chart

Pokarna Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 438-1561106111771083799859136
Cash from Investing Activity -3-9-5-15-30-31-28-64-386-84-210-25
Cash from Financing Activity -38316-41-75-65-52-44-1-12161-115
Net Cash Flow22-45-016-31-7110-3

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-238.00-262.00-205.00-138.00-140.00-160.00-94.00-156.00-229.00-339.00-288.00-180.00

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 Days658678736776543154805564
Inventory Days550569311354468466251272463285218242
Days Payable178203126971341379810219216771110
Cash Conversion Cycle437452264330401405208202325198202195
Working Capital Days-2756706373102533670101110110
ROCE %6%9%20%34%31%19%27%20%10%18%15%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters56.66%56.66%56.66%56.66%56.66%56.66%56.66%56.66%56.66%56.66%56.66%56.66%
FIIs1.63%1.68%1.73%2.39%2.77%2.82%3.65%3.63%3.66%3.95%4.05%4.27%
DIIs7.07%6.10%9.82%10.22%9.86%9.89%10.19%10.34%10.34%10.38%10.25%11.16%
Public34.64%35.56%31.79%30.73%30.71%30.63%29.49%29.36%29.34%29.00%29.03%27.93%
No. of Shareholders20,94018,63718,25518,60919,61320,92619,36419,23918,71418,34419,70920,682

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Kotak Multicap Fund1,355,6721.0171.651,223,6452024-06-2410.79%
Nippon India Small Cap Fund1,223,6450.1664.671,223,6452024-06-240%
Kotak Debt Hybrid Fund - Regular Plan152,2900.347.381,223,6452024-06-24-87.55%
Kotak India Growth Fund Series 462,3022.733.291,223,6452024-06-24-94.91%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)28.1821.2325.259.1222.81
Diluted EPS (Rs.)28.1821.2325.259.1222.81
Cash EPS (Rs.)41.9134.7137.7016.0230.30
Book Value[Excl.RevalReserv]/Share (Rs.)191.05163.58142.85117.91109.24
Book Value[Incl.RevalReserv]/Share (Rs.)191.05163.58142.85117.91109.24
Revenue From Operations / Share (Rs.)221.78234.81209.7195.16127.05
PBDIT / Share (Rs.)71.3458.3856.9428.3343.89
PBIT / Share (Rs.)57.6144.8944.4921.4336.41
PBT / Share (Rs.)45.0329.3332.8614.5829.28
Net Profit / Share (Rs.)28.1821.2325.259.1222.81
NP After MI And SOA / Share (Rs.)28.1821.2325.259.1222.81
PBDIT Margin (%)32.1624.8627.1429.7634.54
PBIT Margin (%)25.9719.1121.2122.5228.65
PBT Margin (%)20.3012.4815.6715.3223.04
Net Profit Margin (%)12.709.0412.049.5817.95
NP After MI And SOA Margin (%)12.709.0412.049.5817.95
Return on Networth / Equity (%)14.7412.9717.677.7320.88
Return on Capital Employeed (%)17.7915.7016.068.3414.77
Return On Assets (%)7.185.966.682.827.68
Long Term Debt / Equity (X)0.510.680.860.610.66
Total Debt / Equity (X)0.650.891.150.780.80
Asset Turnover Ratio (%)0.590.630.110.130.18
Current Ratio (X)1.971.641.271.011.13
Quick Ratio (X)1.200.800.680.470.54
Inventory Turnover Ratio (X)1.381.590.080.090.14
Dividend Payout Ratio (NP) (%)0.002.822.376.572.63
Dividend Payout Ratio (CP) (%)0.001.721.593.741.98
Earning Retention Ratio (%)0.0097.1897.6393.4397.37
Cash Earning Retention Ratio (%)0.0098.2898.4196.2698.02
Interest Coverage Ratio (X)5.673.754.904.146.16
Interest Coverage Ratio (Post Tax) (X)3.342.363.172.334.20
Enterprise Value (Cr.)1626.501180.302785.151078.40394.23
EV / Net Operating Revenue (X)2.371.624.283.661.00
EV / EBITDA (X)7.356.5215.7812.282.90
MarketCap / Net Operating Revenue (X)1.921.043.552.770.38
Retention Ratios (%)0.0097.1797.6293.4297.36
Price / BV (X)2.231.495.212.230.45
Price / Net Operating Revenue (X)1.921.043.552.770.38
EarningsYield0.060.080.030.030.46

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 786.94

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.

Undervalued: 7.65% compared to the current price 731

Intrinsic Value: 820.93

Calculation basis:

  • Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 12.30% compared to the current price ₹731

Last 5 Year EPS CAGR: 4.32%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 17.42%, which is a positive sign.
  2. The company has shown consistent growth in sales (421.00 cr) and profit (67.83 cr) over the years.
  1. The stock has a high average Working Capital Days of 68.08, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 301.58, which may not be favorable.
  3. The company has higher borrowings (322.83) compared to reserves (248.00), 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 Pokarna Ltd:
    1. Net Profit Margin: 12.70%
      • 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: 17.79% (Industry Average ROCE: %)
      • 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%: 14.74% (Industry Average ROE: %)
      • 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): 3.34
      • 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: 1.20
      • 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: 24.8 (Industry average Stock P/E: )
      • 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: 0.65
      • 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

Pokarna Ltd. is a Public Limited Listed company incorporated on 09/10/1991 and has its registered office in the State of Telangana, India. Company’s Corporate Identification Number(CIN) is L14102TG1991PLC013299 and registration number is 013299. Currently Company is involved in the business activities of Manufacture of wearing apparel, except fur apparel. Company’s Total Operating Revenue is Rs. 69.70 Cr. and Equity Capital is Rs. 6.20 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Granites/Marbles105, First Floor, Surya Towers, Secunderabad Telangana 500003contact@pokarna.com
http://www.pokarna.com
Management
NamePosition Held
Mr. Gautam Chand JainChairman & Managing Director
Mr. Rahul JainManaging Director
Mrs. Apurva JainExecutive Director
Mr. Prakash Chand JainNon Executive Director
Mr. Mahender ChandIndependent Director
Mr. Meka YugandharIndependent Director
Mr. Vinayak Rao JuvvadiIndependent Director
Dr. Jayshree Rajesh SanghaniIndependent Director

FAQ

What is the latest fair value of Pokarna Ltd?

The latest fair value of Pokarna Ltd is ₹786.94.

What is the Market Cap of Pokarna Ltd?

The Market Cap of Pokarna Ltd is 2,264 Cr..

What is the current Stock Price of Pokarna Ltd as on 25 June 2024?

The current stock price of Pokarna Ltd as on 25 June 2024 is ₹731.

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

In FY 2024, the High / Low of Pokarna Ltd stocks is 752/360.

What is the Stock P/E of Pokarna Ltd?

The Stock P/E of Pokarna Ltd is 24.8.

What is the Book Value of Pokarna Ltd?

The Book Value of Pokarna Ltd is 191.

What is the Dividend Yield of Pokarna Ltd?

The Dividend Yield of Pokarna Ltd is 0.08 %.

What is the ROCE of Pokarna Ltd?

The ROCE of Pokarna Ltd is 18.3 %.

What is the ROE of Pokarna Ltd?

The ROE of Pokarna Ltd is 16.6 %.

What is the Face Value of Pokarna Ltd?

The Face Value of Pokarna Ltd is 2.00.

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 Pokarna 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