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

Fundamental Analysis of Prakash Steelage Ltd

Basic Stock Data

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

Market Cap 159 Cr.
Current Price 9.11
High / Low16.6/4.25
Stock P/E6.82
Book Value 0.44
Dividend Yield0.00 %
ROCE%
ROE%
Face Value 1.00
PEG Ratio0.37

Competitors of Prakash Steelage Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Crimson Metal Engineering Company Ltd 3.96 Cr. 8.948.95/8.94 12.30.00 %7.27 %21.7 % 10.0
Surya Roshni Ltd 6,774 Cr. 624842/36420.6 1990.96 %21.0 %16.3 % 5.00
Surani Steel Tubes Ltd 381 Cr. 359735/158763 51.70.00 %2.08 %2.19 % 10.0
Ratnamani Metals & Tubes Ltd 24,641 Cr. 3,5113,939/2,25939.6 4480.34 %27.8 %21.7 % 2.00
Welspun Corp Ltd 13,773 Cr. 527637/25812.4 2150.95 %21.6 %21.5 % 5.00
Industry Average7,748.77 Cr681.54109.71166.180.39%15.72%14.30%4.56

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales6.388.958.769.0712.3816.0116.7219.5727.3231.3729.0425.1425.86
Expenses7.889.657.569.8710.8814.2716.0818.8325.3132.2627.8324.1024.58
Operating Profit-1.50-0.701.20-0.801.501.740.640.742.01-0.891.211.041.28
OPM %-23.51%-7.82%13.70%-8.82%12.12%10.87%3.83%3.78%7.36%-2.84%4.17%4.14%4.95%
Other Income0.1847.010.000.0839.41124.001.490.040.000.0620.120.030.05
Interest0.030.050.030.020.622.490.020.050.10-0.090.040.060.07
Depreciation0.370.330.220.230.250.240.220.220.240.230.200.210.22
Profit before tax-1.7245.930.95-0.9740.04123.011.890.511.67-0.9721.090.801.04
Tax %0.00%-14.06%0.00%0.00%0.00%-0.39%0.00%0.00%0.00%109.28%0.28%0.00%2.88%
Net Profit-1.7252.390.95-0.9740.04123.491.890.501.670.0821.020.801.01
EPS in Rs-0.102.990.05-0.062.297.060.110.030.100.001.200.050.06

Last Updated: June 11, 2024, 3:13 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 27, 2024, 5:58 am

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales6847939441,072555145464332244695111
Expenses6317458811,005590191444029274092109
Operating Profit52486367-35-46134-2623
OPM %8%6%7%6%-6%-32%2%6%11%-9%13%3%2%
Other Income61052-9-91-24713-248161220
Interest2430353629110000300
Depreciation77811833222111
Profit before tax27212521-81-151-24814-144163322
Tax %37%32%35%34%-1%-0%3%0%71%-15%-0%-34%
Net Profit17141714-81-152-24114-051164423
EPS in Rs0.970.800.950.80-4.65-8.66-13.760.79-0.012.909.340.241.31
Dividend Payout %10%12%11%6%0%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202021-20222022-2023
YoY Net Profit Growth (%)-17.65%21.43%-17.65%-678.57%-87.65%-58.55%105.81%-100.00%221.57%-97.56%
Change in YoY Net Profit Growth (%)0.00%39.08%-39.08%-660.92%590.92%29.10%164.36%-205.81%321.57%-319.13%

Growth

Compounded Sales Growth
10 Years:-19%
5 Years:16%
3 Years:43%
TTM:40%
Compounded Profit Growth
10 Years:-12%
5 Years:-11%
3 Years:13%
TTM:542%
Stock Price CAGR
10 Years:-3%
5 Years:96%
3 Years:121%
1 Year:94%
Return on Equity
10 Years:%
5 Years:%
3 Years:%
Last Year:%

Last Updated: April 16, 2024, 6:09 pm

Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital18181818181818181818181818
Reserves13614816217493-58-299-286-286-235-72-68-46
Borrowings196205264245203247243243243192342926
Other Liabilities182164193361183124104786355585932
Total Liabilities53153563779749733066533830373729
Fixed Assets7771848119141613119665
CWIP31411560000000
Investments0000333330000
Other Assets45145055271547030846372420313224
Total Assets53153563779749733066533830373729

Reserves and Borrowings Chart

Prakash Steelage Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 1827-95125-541-2000386
Cash from Investing Activity -13-4-9-14521420-051-0-1
Cash from Financing Activity -13-2223-58-7133-4-00-51-38-5
Net Cash Flow-815-7-2-00-0-0000

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow52.00-157.00-201.00-178.00-238.00-293.00-242.00-240.00-239.00-194.00-28.00-27.00

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 Days9310812419634318311810090314041
Inventory Days9990102303877952071802557375
Days Payable716912278217917918941912661244111
Cash Conversion Cycle121128105148165-658-706-634-642-375-1316
Working Capital Days121128116197474-430-309-371-521-217-1142
ROCE %14%15%15%-9%-13%0%

Financial Efficiency Indicators Chart

Prakash Steelage Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters48.18%48.18%48.18%39.42%33.10%33.10%33.09%33.30%33.38%33.41%33.48%33.51%
FIIs2.18%2.18%2.18%2.18%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
DIIs2.38%1.98%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Government0.02%0.02%0.02%0.07%0.07%0.07%0.07%0.15%0.15%0.15%0.15%0.15%
Public47.24%47.64%49.61%58.33%66.84%66.84%66.83%66.56%66.48%66.44%66.38%66.34%
No. of Shareholders13,59815,25122,85353,83085,38495,3131,00,13996,97993,78593,6331,06,6261,19,612

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 16Mar 15Mar 14
FaceValue1.0010.0010.00
Basic EPS (Rs.)-5.028.4112.23
Diluted EPS (Rs.)-5.028.4112.23
Cash EPS (Rs.)-4.5814.9016.85
Book Value[Excl.RevalReserv]/Share (Rs.)6.31112.86105.35
Book Value[Incl.RevalReserv]/Share (Rs.)6.31112.86105.35
Revenue From Operations / Share (Rs.)32.26641.81585.96
PBDIT / Share (Rs.)-1.6245.6441.04
PBIT / Share (Rs.)-2.0739.1536.42
PBT / Share (Rs.)-4.9712.6017.24
Net Profit / Share (Rs.)-5.028.4112.23
NP After MI And SOA / Share (Rs.)-5.028.4112.23
PBDIT Margin (%)-5.027.117.00
PBIT Margin (%)-6.416.106.21
PBT Margin (%)-15.401.962.94
Net Profit Margin (%)-15.561.302.08
NP After MI And SOA Margin (%)-15.561.302.08
Return on Networth / Equity (%)-79.547.4411.60
Return on Capital Employeed (%)-20.4927.0627.55
Return On Assets (%)-17.691.833.33
Long Term Debt / Equity (X)0.240.240.21
Total Debt / Equity (X)1.841.211.40
Asset Turnover Ratio (%)0.851.490.00
Current Ratio (X)1.401.281.33
Quick Ratio (X)1.250.790.82
Inventory Turnover Ratio (X)0.531.040.00
Dividend Payout Ratio (NP) (%)0.005.948.17
Dividend Payout Ratio (CP) (%)0.003.355.93
Earning Retention Ratio (%)0.0094.0691.83
Cash Earning Retention Ratio (%)0.0096.6594.07
Interest Coverage Ratio (X)-0.982.212.03
Interest Coverage Ratio (Post Tax) (X)-1.291.691.56
Enterprise Value (Cr.)338.86455.72465.19
EV / Net Operating Revenue (X)0.600.400.45
EV / EBITDA (X)-11.935.716.48
MarketCap / Net Operating Revenue (X)0.240.200.22
Retention Ratios (%)0.0094.0591.82
Price / BV (X)1.271.151.23
Price / Net Operating Revenue (X)0.240.200.22
EarningsYield-0.620.060.09

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 0.46

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.

Overvalued: 94.96% compared to the current price 9.11

Default values used*: Deafault value of 15% for ROE is used

Intrinsic Value: 0.54

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.

Overvalued: 94.04% compared to the current price ₹9.11

Default values used*: Deafault value of 15% for ROE is used

Last 5 Year EPS CAGR: 18.33%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -77.00, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -206.08, which is a positive sign.
  1. The stock has a low average ROCE of 1.83%, which may not be favorable.
  2. The company has higher borrowings (179.00) compared to reserves (-61.42), which may suggest financial risk.
  3. The company has not shown consistent growth in sales (270.69) and profit (-10.85).

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 Steelage Ltd:
    1. Net Profit Margin: -15.56%
      • 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: -20.49% (Industry Average ROCE: 11.48%)
      • 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%: -79.54% (Industry Average ROE: 9.98%)
      • 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): -1.29
      • 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: 1.25
      • 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: 6.82 (Industry average Stock P/E: 176.94)
      • 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: 1.84
      • 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 Steelage Ltd. is a Public Limited Listed company incorporated on 09/05/1991 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L27106MH1991PLC061595 and registration number is 061595. Currently Company is involved in the business activities of Manufacture of tube and tube fittings of basic iron and steel. Company’s Total Operating Revenue is Rs. 46.22 Cr. and Equity Capital is Rs. 17.50 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Steel - Tubes/Pipes101, 1st Floor, Shatrunjay Apartment, Mumbai Maharashtra 400004investorsgrievances@prakashsteelage.com
http://www.prakashsteelage.com
Management
NamePosition Held
Mr. Prakash C KanugoChairman & Managing Director
Mr. Ashok M SethExecutive Director
Mr. Hemant P KanugoExecutive Director
Mr. Kamal P KanugoExecutive Director
Mr. A Prakashchandra HegdeIndependent Director
Mr. Himanshu J ThakerIndependent Director
Mr. Neetta K BokariaIndependent Director
Mr. Rajesh Kumar AgrawalIndependent Director
Mr. Sundaram PadmanabhanIndependent Director
Mr. Sharad Chandra BohraIndependent Director

FAQ

What is the latest fair value of Prakash Steelage Ltd?

The latest fair value of Prakash Steelage Ltd is ₹0.46.

What is the Market Cap of Prakash Steelage Ltd?

The Market Cap of Prakash Steelage Ltd is 159 Cr..

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

The current stock price of Prakash Steelage Ltd as on 21 June 2024 is ₹9.11.

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

In FY 2024, the High / Low of Prakash Steelage Ltd stocks is 16.6/4.25.

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

The Stock P/E of Prakash Steelage Ltd is 6.82.

What is the Book Value of Prakash Steelage Ltd?

The Book Value of Prakash Steelage Ltd is 0.44.

What is the Dividend Yield of Prakash Steelage Ltd?

The Dividend Yield of Prakash Steelage Ltd is 0.00 %.

What is the ROCE of Prakash Steelage Ltd?

The ROCE of Prakash Steelage Ltd is %.

What is the ROE of Prakash Steelage Ltd?

The ROE of Prakash Steelage Ltd is %.

What is the Face Value of Prakash Steelage Ltd?

The Face Value of Prakash Steelage Ltd is 1.00.

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 Prakash Steelage 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