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Last Updated on: 14 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Prakash Industries Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 10, 2024, 9:57 am

Market Cap 3,037 Cr.
Current Price 170
High / Low237/128
Stock P/E8.70
Book Value 169
Dividend Yield0.71 %
ROCE10.6 %
ROE10.4 %
Face Value 10.0
PEG Ratio0.38

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

View Share Price Target for Prakash Industries Ltd

Competitors of Prakash Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Eastcoast Steel Ltd 10.7 Cr. 19.835.1/17.721.0 35.90.00 %3.78 %4.64 % 10.0
Bonlon Industries Ltd 47.8 Cr. 33.756.0/29.516.9 56.60.00 %4.56 %2.99 % 10.0
Beekay Steel Industries Ltd 1,202 Cr. 630845/5499.42 5260.16 %10.7 %11.2 % 10.0
Ecofinity Atomix Ltd 22.4 Cr. 58.369.7/32.130.7 9.840.00 %8.85 %8.56 % 10.0
Aerpace Industries Ltd 683 Cr. 45.760.0/3.54 2.340.00 %12.7 %15.8 % 1.00
Industry Average29,994.18N/A45.94N/AN/A8.728.90N/A

All Competitor Stocks of Prakash Industries Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales8911,0321,0318948471,1578957777611,0111,013889885
Expenses8049289347947601,050795674659902895761762
Operating Profit87104969987108101103101108118128123
OPM %10%10%9%11%10%9%11%13%13%11%12%14%14%
Other Income233132233430167
Interest18161918181722232116191712
Depreciation39393940403938383838393838
Profit before tax31524143325343444558898981
Tax %0%0%0%0%0%0%0%0%0%0%0%0%0%
Net Profit31524143325343444558898981
EPS in Rs1.832.882.282.411.802.942.412.462.533.244.994.994.50

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales2,5102,5952,8302,0532,1742,9353,5882,9743,2163,9293,4443,678
Expenses2,1832,2192,4201,8631,9092,3512,7992,6242,9013,5383,0313,185
Operating Profit326376410190264584788350315391413493
OPM %13%14%14%9%12%20%22%12%10%10%12%13%
Other Income24-241421507881164
Interest5558616975891029474738257
Depreciation10611898102103121134145154158152153
Profit before tax1672049238838855311895169190346
Tax %1%15%0%0%8%1%2%0%0%0%0%-1%
Net Profit1651739238138653911895169190348
EPS in Rs12.2612.870.691.745.8324.6233.026.905.329.4210.6419.44
Dividend Payout %8%8%0%0%0%0%4%0%0%0%0%6%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)4.85%-94.80%155.56%252.17%376.54%39.64%-78.11%-19.49%77.89%12.43%83.16%
Change in YoY Net Profit Growth (%)0.00%-99.65%250.35%96.62%124.37%-336.91%-117.74%58.62%97.39%-65.47%70.73%

Prakash Industries Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:4%
5 Years:1%
3 Years:5%
TTM:9%
Compounded Profit Growth
10 Years:6%
5 Years:-11%
3 Years:49%
TTM:24%
Stock Price CAGR
10 Years:13%
5 Years:28%
3 Years:36%
1 Year:13%
Return on Equity
10 Years:8%
5 Years:6%
3 Years:8%
Last Year:10%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 7:51 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital134134134134139157163171179179179179179
Reserves1,9592,0982,0712,0032,0822,5792,6052,7332,7202,6332,7752,8452,991
Borrowings924953913857935818661572557548599362378
Other Liabilities244266326368260339511394428552698673752
Total Liabilities3,2613,4523,4453,3623,4163,8933,9413,8703,8843,9124,2514,0594,299
Fixed Assets1,7191,7471,7331,6351,5782,3772,3573,0132,9762,9393,1182,7202,651
CWIP7908939449551,14169071017112246172495503
Investments163522000000000
Other Assets7377777657706978258736877869279618431,146
Total Assets3,2613,4523,4453,3623,4163,8933,9413,8703,8843,9124,2514,0594,299

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +193314232242269476696388159350585601
Cash from Investing Activity +-133-230-109-149-248-480-535-248-129-299-545-320
Cash from Financing Activity +-85-88-108-103-1410-169-126-43-59-38-288
Net Cash Flow-24-515-1077-814-13-82-6

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-598.00-577.00-503.00-667.00-671.00-234.00127.00-222.00-242.00-157.00-186.00131.00

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 Days1312131413121524166108
Inventory Days434836464650402547444543
Days Payable101014222428252725193027
Cash Conversion Cycle465034383534302338312624
Working Capital Days14-2-3-17-109111036256-2
ROCE %7%8%10%3%5%14%19%6%5%7%8%11%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters40.98%42.94%43.29%43.29%43.31%43.31%44.11%44.24%44.24%44.24%44.24%44.27%
FIIs1.45%1.53%1.74%1.83%1.92%3.42%3.57%6.35%5.90%4.91%4.95%3.95%
DIIs0.03%0.01%0.01%0.03%0.03%0.03%0.03%0.01%0.01%0.09%0.11%0.01%
Public57.55%55.52%54.96%54.84%54.74%53.24%52.29%49.39%49.84%50.75%50.70%51.77%
No. of Shareholders1,06,63699,85197,47897,33195,62191,79089,47085,17291,96394,29491,5771,02,493

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 18
FaceValue10.00
Basic EPS (Rs.)25.58
Diluted EPS (Rs.)23.05
Cash EPS (Rs.)32.33
Book Value[Excl.RevalReserv]/Share (Rs.)174.40
Book Value[Incl.RevalReserv]/Share (Rs.)174.40
Revenue From Operations / Share (Rs.)187.07
PBDIT / Share (Rs.)37.98
PBIT / Share (Rs.)30.27
PBT / Share (Rs.)24.75
Net Profit / Share (Rs.)24.62
NP After MI And SOA / Share (Rs.)24.62
PBDIT Margin (%)20.30
PBIT Margin (%)16.18
PBT Margin (%)13.23
Net Profit Margin (%)13.16
NP After MI And SOA Margin (%)13.16
Return on Networth / Equity (%)14.11
Return on Capital Employeed (%)14.09
Return On Assets (%)9.92
Long Term Debt / Equity (X)0.21
Total Debt / Equity (X)0.26
Current Ratio (X)1.01
Quick Ratio (X)0.53
Interest Coverage Ratio (X)6.88
Interest Coverage Ratio (Post Tax) (X)5.46
Enterprise Value (Cr.)3323.31
EV / Net Operating Revenue (X)1.13
EV / EBITDA (X)5.58
MarketCap / Net Operating Revenue (X)0.90
Price / BV (X)0.97
Price / Net Operating Revenue (X)0.90
EarningsYield0.14

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Prakash Industries Ltd as of November 14, 2024 is: 154.00

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 14, 2024, Prakash Industries Ltd is Overvalued by 9.41% compared to the current share price 170.00

Intrinsic Value of Prakash Industries Ltd as of November 14, 2024 is: 189.45

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 14, 2024, Prakash Industries Ltd is Undervalued by 11.44% compared to the current share price 170.00

Last 5 Year EPS CAGR: 23.02%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of 6.42, which is a positive sign.
  2. The company has higher reserves (2,468.77 cr) compared to borrowings (698.23 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (2.42 cr) and profit (195.83 cr) over the years.
  1. The stock has a low average ROCE of 8.58%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 34.08, 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 Prakash Industries Ltd:
    1. Net Profit Margin: 13.16%
      • 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: 14.09% (Industry Average ROCE: 8.72%)
      • 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%: 14.11% (Industry Average ROE: 8.9%)
      • 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): 5.46
      • 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: 0.53
      • 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: 8.7 (Industry average Stock P/E: 45.94)
      • 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: 0.26
      • 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

Prakash Industries Ltd. is a Public Limited Listed company incorporated on 31/07/1980 and has its registered office in the State of Haryana, India. Company’s Corporate Identification Number(CIN) is L27109HR1980PLC010724 and registration number is 010724. Currently company belongs to the Industry of Steel. Company’s Total Operating Revenue is Rs. 3928.72 Cr. and Equity Capital is Rs. 179.08 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Steel15 Km. Stone, Hissar Haryana 125044investorshelpline@prakash.com
http://www.prakash.com
Management
NamePosition Held
Mr. V P AgarwalChairman
Mr. Vikram AgarwalManaging Director
Mr. Kanha AgarwalJoint Managing Director
Mr. Sanjay JainWhole Time Director
Mr. Sunil KumarIndependent Director
Dr. S C GosainIndependent Director
Mrs. Ankita GargIndependent Director
Mr. Jatin GuptaIndependent Director
Mr. Harsh Vardhan AgarwalIndependent Director

FAQ

What is the latest intrinsic value of Prakash Industries Ltd?

The latest intrinsic value of Prakash Industries Ltd as on 14 November 2024 is ₹154.00, which is 9.41% lower than the current market price of ₹170.00.

What is the Market Cap of Prakash Industries Ltd?

The Market Cap of Prakash Industries Ltd is 3,037 Cr..

What is the current Stock Price of Prakash Industries Ltd as on 14 November 2024?

The current stock price of Prakash Industries Ltd as on 14 November 2024 is ₹170.

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

In FY 2024, the High / Low of Prakash Industries Ltd stocks is 237/128.

What is the Stock P/E of Prakash Industries Ltd?

The Stock P/E of Prakash Industries Ltd is 8.70.

What is the Book Value of Prakash Industries Ltd?

The Book Value of Prakash Industries Ltd is 169.

What is the Dividend Yield of Prakash Industries Ltd?

The Dividend Yield of Prakash Industries Ltd is 0.71 %.

What is the ROCE of Prakash Industries Ltd?

The ROCE of Prakash Industries Ltd is 10.6 %.

What is the ROE of Prakash Industries Ltd?

The ROE of Prakash Industries Ltd is 10.4 %.

What is the Face Value of Prakash Industries Ltd?

The Face Value of Prakash Industries 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 Prakash 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