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Last Updated on: 24 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Pokarna Ltd

About the Company - Pokarna Ltd

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

Pokarna Ltd. Share Price Update

Share PriceValue
Today₹490.40
Previous Day₹492.90

Basic Stock Data of Pokarna Ltd

Market Cap 1,573 Cr.
Current Price 507
High / Low600/234
Stock P/E19.0
Book Value 179
Dividend Yield0.12 %
ROCE14.6 %
ROE13.8 %
Face Value 2.00

Data Source: screener.in

Competitors of Pokarna Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Oriental Trimex Ltd 37.9 Cr. 12.914.4/5.15 23.30.00 %3.58 %6.26 % 10.0
Pacific Industries Ltd 137 Cr. 199225/10415.6 6170.00 %2.64 %1.63 % 10.0
Industry Average87.45 Cr105.957.8320.150%3.11%3.95%10

Pokarna Ltd Quarterly Results

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

Pokarna Ltd Quarterly Chart

Pokarna Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales178199226324391365335459393295650727637
Expenses149164178239256234240315262212473556465
Operating Profit293648851341319514413283176171172
OPM %16%18%21%26%34%36%28%31%33%28%27%24%27%
Other Income417915-1210695671112
Interest44353334383330272322425045
Depreciation19222023181720262321394242
Profit before tax-30-534366905110191451029197
Tax %-2%-29%-325%28%22%22%17%20%22%37%23%28%
Net Profit-31-71231517042817128786664
EPS in Rs-9.98-2.143.7710.1216.5222.6613.6226.0222.819.1225.2521.2320.63
Dividend Payout %0%0%11%6%12%3%4%2%3%7%2%3%

Pokarna Ltd Profit & Loss Yearly Chart

Pokarna Ltd Growth

Compounded Sales Growth
10 Years:14%
5 Years:17%
3 Years:23%
TTM:-25%
Compounded Profit Growth
10 Years:20%
5 Years:9%
3 Years:-2%
TTM:-40%
Stock Price CAGR
10 Years:37%
5 Years:25%
3 Years:28%
1 Year:36%
Return on Equity
10 Years:24%
5 Years:18%
3 Years:14%
Last Year:14%

Pokarna Ltd 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

Pokarna Ltd 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

Pokarna Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days776586787367765431548055
Inventory Days479550569311354468466251272463285218
Days Payable179178203126971341379810219216771
Cash Conversion Cycle377437452264330401405208202325198202
Working Capital Days-76-2756706373102533670101110
ROCE %5%6%9%20%34%31%19%27%20%10%18%15%

Pokarna Ltd Financial Efficiency Indicators Chart

Pokarna Ltd Share Holding Pattern

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Promoters56.66%56.66%56.66%56.66%56.66%56.66%56.66%56.66%56.66%56.66%56.66%56.66%
FIIs0.14%2.13%1.63%1.68%1.73%2.39%2.77%2.82%3.65%3.63%3.66%3.95%
DIIs8.90%6.88%7.07%6.10%9.82%10.22%9.86%9.89%10.19%10.34%10.34%10.38%
Public34.30%34.33%34.64%35.56%31.79%30.73%30.71%30.63%29.49%29.36%29.34%29.00%
No. of Shareholders13,36215,15820,94018,63718,25518,60919,61320,92619,36419,23918,71418,344

Pokarna Ltd Shareholding Pattern Chart

No. of Pokarna Ltd Shareholders

Pokarna Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Kotak Multicap Fund13556721.0171.65
Nippon India Small Cap Fund12236450.1664.67
Kotak Debt Hybrid Fund - Regular Plan1522900.347.38
Kotak India Growth Fund Series 4623022.733.29

Pokarna Ltd ROCE Trend

Pokarna Ltd EPS Trend

Pokarna Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)21.2325.259.1222.8126.02
Diluted EPS (Rs.)21.2325.259.1222.8126.02
Cash EPS (Rs.)34.7137.7016.0230.3034.26
Book Value[Excl.RevalReserv]/Share (Rs.)163.58142.85117.91109.2487.23
Book Value[Incl.RevalReserv]/Share (Rs.)163.58142.85117.91109.2487.23
Revenue From Operations / Share (Rs.)234.81209.7195.16127.05149.08
PBDIT / Share (Rs.)58.3856.9428.3343.8949.08
PBIT / Share (Rs.)44.8944.4921.4336.4140.84
PBT / Share (Rs.)29.3332.8614.5829.2832.65
Net Profit / Share (Rs.)21.2325.259.1222.8126.02
NP After MI And SOA / Share (Rs.)21.2325.259.1222.8126.02
PBDIT Margin (%)24.8627.1429.7634.5432.91
PBIT Margin (%)19.1121.2122.5228.6527.39
PBT Margin (%)12.4815.6715.3223.0421.90
Net Profit Margin (%)9.0412.049.5817.9517.45
NP After MI And SOA Margin (%)9.0412.049.5817.9517.45
Return on Networth / Equity (%)12.9717.677.7320.8829.83
Return on Capital Employeed (%)15.7016.068.3414.7729.31
Return On Assets (%)5.966.682.827.6813.37
Long Term Debt / Equity (X)0.680.860.610.660.56
Total Debt / Equity (X)0.891.150.780.800.76
Asset Turnover Ratio (%)0.630.110.130.180.39
Current Ratio (X)1.641.271.011.131.28
Quick Ratio (X)0.800.680.470.540.69
Inventory Turnover Ratio (X)1.590.080.090.140.24
Dividend Payout Ratio (NP) (%)2.822.376.572.632.30
Dividend Payout Ratio (CP) (%)1.721.593.741.981.75
Earning Retention Ratio (%)97.1897.6393.4397.3797.70
Cash Earning Retention Ratio (%)98.2898.4196.2698.0298.25
Interest Coverage Ratio (X)3.754.904.146.166.00
Interest Coverage Ratio (Post Tax) (X)2.363.172.334.204.18
Enterprise Value (Cr.)1180.302785.151078.40394.23701.03
EV / Net Operating Revenue (X)1.624.283.661.001.52
EV / EBITDA (X)6.5215.7812.282.904.61
MarketCap / Net Operating Revenue (X)1.043.552.770.381.15
Retention Ratios (%)97.1797.6293.4297.3697.69
Price / BV (X)1.495.212.230.451.96
Price / Net Operating Revenue (X)1.043.552.770.381.15
EarningsYield0.080.030.030.460.15

Pokarna Ltd Profitability Ratios (%)

Pokarna Ltd Liquidity Ratios

Pokarna Ltd Liquidity Ratios (%)

Pokarna Ltd Interest Coverage Ratios (%)

Pokarna Ltd Valuation Ratios

Fair Value / Intrinsic Value of Pokarna Ltd

Fair Value: ₹469.90

The stock is overvalued by 7.32% compared to the current price ₹507

*Investments are subject to market risks

Strength and Weakness of Pokarna Ltd

StrengthWeakness
  1. The stock has a high average ROCE of 17.83%, which is a positive sign.
  2. The company has shown consistent growth in sales (398.38 cr) and profit (57.31 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 37.61 and average Dividend Yield of 23.78%.
  2. The stock has a high average Working Capital Days of 52.58, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 316.75, which may not be favorable.
  4. The company has higher borrowings (319.62) compared to reserves (227.38), which may suggest financial risk.

Should I Buy Pokarna Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Pokarna Ltd:
    1. Net Profit Margin: 9.04%
      • 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: 15.70% (Industry Average ROCE: 3.11%)
      • 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): 2.36
      • 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: 0.80
      • 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: 19.0 (Industry average Stock P/E: 7.45)
      • 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: 0.89
      • 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 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