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Last Updated on: 21 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Prakash Industries Ltd

Basic Stock Data

Last Updated: June 17, 2024, 8:18 pm

Market Cap 3,192 Cr.
Current Price 178
High / Low224/64.1
Stock P/E9.17
Book Value 169
Dividend Yield0.00 %
ROCE11.6 %
ROE11.6 %
Face Value 10.0
PEG Ratio0.40

Competitors of Prakash Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Steel Exchange India Ltd 1,554 Cr. 13.118.4/7.80143 5.570.00 %8.29 %1.86 % 1.00
Tata Steel Ltd 2,25,515 Cr. 181185/108 73.71.97 %7.67 %2.21 % 1.00
Beekay Steel Industries Ltd 1,189 Cr. 624778/4158.95 4940.16 %14.6 %15.2 % 10.0
Adishakti Loha & Ispat ltd 5.47 Cr. 12.016.0/7.75182 11.20.00 %1.57 %0.59 % 10.0
Ecofinity Atomix Ltd 15.8 Cr. 40.940.9/26.458.4 8.540.00 %8.85 %8.56 % 10.0
Industry Average38,781.68 Cr395.4364.01164.590.30%9.67%7.58%6.79

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: June 11, 2024, 3:13 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 27, 2024, 5:55 am

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%

Growth

Compounded Sales Growth
10 Years:4%
5 Years:1%
3 Years:5%
TTM:7%
Compounded Profit Growth
10 Years:7%
5 Years:-9%
3 Years:54%
TTM:83%
Stock Price CAGR
10 Years:7%
5 Years:22%
3 Years:33%
1 Year:173%
Return on Equity
10 Years:8%
5 Years:6%
3 Years:8%
Last Year:12%

Last Updated: June 17, 2024, 2:48 pm

Balance Sheet

Last Updated: June 1, 2024, 2:04 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital134134134134139157163171179179179179
Reserves1,9592,0982,0712,0032,0822,5792,6052,7332,7202,6332,7752,845
Borrowings924953913857935818661572557548599362
Other Liabilities244266326368260339511394428552698673
Total Liabilities3,2613,4523,4453,3623,4163,8933,9413,8703,8843,9124,2514,059
Fixed Assets1,7191,7471,7331,6351,5782,3772,3573,0132,9762,9393,1182,720
CWIP7908939449551,14169071017112246172495
Investments163522-00-0-0-0-0-0-0
Other Assets737777765770697825873687786927961843
Total Assets3,2613,4523,4453,3623,4163,8933,9413,8703,8843,9124,2514,059

Reserves and Borrowings Chart

Prakash Industries Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 260193314232242269476696388159350585
Cash from Investing Activity -503-133-230-109-149-248-480-535-248-129-299-545
Cash from Financing Activity 230-85-88-108-103-1410-169-126-43-59-38
Net Cash Flow-13-24-515-1077-814-13-82

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 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days16131213141312152416610
Inventory Days474348364646504025474445
Days Payable101010142224282527251930
Cash Conversion Cycle534650343835343023383126
Working Capital Days1014-2-3-17-109111036256
ROCE %11%7%8%10%3%5%14%19%6%5%7%8%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters40.98%40.98%40.98%42.94%43.29%43.29%43.31%43.31%44.11%44.24%44.24%44.24%
FIIs3.04%1.93%1.45%1.53%1.74%1.83%1.92%3.42%3.57%6.35%5.90%4.91%
DIIs0.03%0.02%0.03%0.01%0.01%0.03%0.03%0.03%0.03%0.01%0.01%0.09%
Public55.95%57.07%57.55%55.52%54.96%54.84%54.74%53.24%52.29%49.39%49.84%50.75%
No. of Shareholders1,09,4041,10,8971,06,63699,85197,47897,33195,62191,79089,47085,17291,96394,294

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: 183.36

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: 3.01% compared to the current price 178

Intrinsic Value: 225.57

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: 26.73% compared to the current price ₹178

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 7.42, which is a positive sign.
  2. The company has higher reserves (2,425.25 cr) compared to borrowings (724.92 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 36.50, 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: 9.35%)
      • 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: 6.23%)
      • 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: 9.17 (Industry average Stock P/E: 80)
      • 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

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, Delhi Road, 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. Y N ChughIndependent Director
Mr. M R AgarwalIndependent Director
Mrs. Purnima GuptaIndependent Director
Mr. Sunil KumarIndependent Director
Dr. S C GosainIndependent Director
Mr. Sanjay JainWhole Time Director

FAQ

What is the latest fair value of Prakash Industries Ltd?

The latest fair value of Prakash Industries Ltd is ₹183.36.

What is the Market Cap of Prakash Industries Ltd?

The Market Cap of Prakash Industries Ltd is 3,192 Cr..

What is the current Stock Price of Prakash Industries Ltd as on 21 June 2024?

The current stock price of Prakash Industries Ltd as on 21 June 2024 is ₹178.

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 224/64.1.

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

The Stock P/E of Prakash Industries Ltd is 9.17.

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 0.00 %.

What is the ROCE of Prakash Industries Ltd?

The ROCE of Prakash Industries Ltd is 11.6 %.

What is the ROE of Prakash Industries Ltd?

The ROE of Prakash Industries Ltd is 11.6 %.

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