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Last Updated on: 17 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Remsons Industries Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 16, 2024, 2:34 am

Market Cap 541 Cr.
Current Price 155
High / Low235/103
Stock P/E49.5
Book Value 30.7
Dividend Yield0.19 %
ROCE13.6 %
ROE12.3 %
Face Value 2.00
PEG Ratio7.86

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

View Share Price Target for Remsons Industries Ltd

Competitors of Remsons Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Frontier Springs Ltd 812 Cr. 2,0602,412/80936.0 2670.07 %20.5 %15.5 % 10.0
Auto Pins (India) Ltd 114 Cr. 200223/115223 14.70.00 %22.0 %13.3 % 10.0
Remsons Industries Ltd 541 Cr. 155235/10349.5 30.70.19 %13.6 %12.3 % 2.00
Jamna Auto Industries Ltd 4,160 Cr. 104150/10421.2 23.53.26 %30.7 %24.5 % 1.00
Industry Average1,406.75 Cr629.7582.4383.980.88%21.70%16.40%5.75

All Competitor Stocks of Remsons Industries Ltd

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales60.4035.2361.4264.7861.8664.8070.2665.7663.1459.9262.2570.3364.47
Expenses55.7935.2957.5959.2357.1760.8064.7560.0658.0655.1356.0562.9759.64
Operating Profit4.61-0.063.835.554.694.005.515.705.084.796.207.364.83
OPM %7.63%-0.17%6.24%8.57%7.58%6.17%7.84%8.67%8.05%7.99%9.96%10.46%7.49%
Other Income3.930.860.270.150.630.050.060.900.680.400.220.680.81
Interest1.131.321.371.231.321.171.251.421.371.561.461.321.21
Depreciation0.931.251.351.431.451.391.511.631.661.792.021.882.11
Profit before tax6.48-1.771.383.042.551.492.813.552.731.842.944.842.32
Tax %24.54%20.90%24.64%34.21%25.49%26.85%27.76%24.79%28.21%31.52%25.51%24.38%25.43%
Net Profit4.89-1.411.052.001.901.092.032.671.961.252.203.671.73
EPS in Rs8.56-2.471.843.503.331.913.554.673.432.193.856.422.48

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
Sales102105109112119128149159195223264257
Expenses9799105107116120140148186209243234
Operating Profit56453891110142023
OPM %5%6%4%4%2%6%6%7%5%6%8%9%
Other Income010111025212
Interest322323233556
Depreciation222223233568
Profit before tax1201-1557951112
Tax %42%33%67%25%46%24%30%28%25%32%27%26%
Net Profit0100-13357489
EPS in Rs0.682.610.070.79-1.376.046.029.3511.666.2113.5812.69
Dividend Payout %0%0%0%0%0%22%25%16%9%16%11%12%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2014-20152017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-100.00%400.00%0.00%66.67%40.00%-42.86%100.00%12.50%
Change in YoY Net Profit Growth (%)0.00%500.00%-400.00%66.67%-26.67%-82.86%142.86%-87.50%

Remsons Industries Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 8 years from 2014-2015 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:9%
5 Years:11%
3 Years:10%
TTM:7%
Compounded Profit Growth
10 Years:20%
5 Years:19%
3 Years:29%
TTM:35%
Stock Price CAGR
10 Years:36%
5 Years:58%
3 Years:48%
1 Year:52%
Return on Equity
10 Years:13%
5 Years:15%
3 Years:14%
Last Year:12%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 7:46 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital6666666666677
Reserves101111111014161926293699100
Borrowings25222728272927305766655066
Other Liabilities13151519162132305044494553
Total Liabilities5454596460708085139145155201227
Fixed Assets20212021222223243436394762
CWIP0000000001126
Investments00000000620191926
Other Assets3433384237475761998896133132
Total Assets5454596460708085139145155201227

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +68156485941319
Cash from Investing Activity +-1-2-3-4-3-2-4-2-26-7-7-48
Cash from Financing Activity +-5-63-2-3-1-5-2163-729
Net Cash Flow-100-0-01-11-11-10

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-20.00-16.00-23.00-23.00-24.00-21.00-18.00-19.00-47.00-52.00-45.00-27.00

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 Days635865695157655161616258
Inventory Days727784948610610512596847687
Days Payable51565774668511094111868189
Cash Conversion Cycle838091897077608246595756
Working Capital Days706775766068606857676066
ROCE %8%11%5%8%2%16%16%19%12%10%15%14%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%65.29%65.29%
FIIs0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%2.93%2.83%
DIIs0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.21%0.21%
Public25.00%25.00%25.00%25.00%25.01%25.00%25.00%25.01%24.99%25.01%31.55%31.65%
No. of Shareholders2,7622,4862,4552,5912,7752,5922,5702,9423,3213,2164,2765,573

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21
FaceValue10.0010.0010.0010.00
Basic EPS (Rs.)19.0914.659.397.85
Diluted EPS (Rs.)19.0914.659.397.85
Cash EPS (Rs.)34.8730.6523.2715.56
Book Value[Excl.RevalReserv]/Share (Rs.)159.5273.9860.4452.02
Book Value[Incl.RevalReserv]/Share (Rs.)159.5273.9860.4452.02
Revenue From Operations / Share (Rs.)447.70547.49501.37395.82
PBDIT / Share (Rs.)49.3748.2036.7022.00
PBIT / Share (Rs.)33.5932.1922.8114.29
PBT / Share (Rs.)23.2821.1012.8513.86
Net Profit / Share (Rs.)19.0914.659.387.85
NP After MI And SOA / Share (Rs.)19.0914.659.387.85
PBDIT Margin (%)11.028.807.315.55
PBIT Margin (%)7.505.884.553.61
PBT Margin (%)5.203.852.563.50
Net Profit Margin (%)4.262.671.871.98
NP After MI And SOA Margin (%)4.262.671.871.98
Return on Networth / Equity (%)11.9619.8015.5315.09
Return on Capital Employeed (%)17.2021.9917.3710.60
Return On Assets (%)5.604.393.062.71
Long Term Debt / Equity (X)0.130.760.851.16
Total Debt / Equity (X)0.541.822.092.00
Asset Turnover Ratio (%)1.461.711.440.00
Current Ratio (X)1.611.151.101.15
Quick Ratio (X)1.120.700.630.61
Inventory Turnover Ratio (X)3.624.103.570.00
Dividend Payout Ratio (NP) (%)0.006.8210.650.00
Dividend Payout Ratio (CP) (%)0.003.264.290.00
Earning Retention Ratio (%)0.0093.1889.350.00
Cash Earning Retention Ratio (%)0.0096.7495.710.00
Interest Coverage Ratio (X)5.064.353.263.55
Interest Coverage Ratio (Post Tax) (X)3.012.321.721.34
Enterprise Value (Cr.)653.93172.65170.18137.74
EV / Net Operating Revenue (X)2.090.550.590.60
EV / EBITDA (X)18.996.278.1210.96
MarketCap / Net Operating Revenue (X)2.050.350.360.35
Retention Ratios (%)0.0093.1789.340.00
Price / BV (X)5.772.633.022.71
Price / Net Operating Revenue (X)2.050.350.360.35
EarningsYield0.020.070.050.05

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Remsons Industries Ltd as of November 17, 2024 is: 187.27

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 17, 2024, Remsons Industries Ltd is Undervalued by 20.82% compared to the current share price 155.00

Intrinsic Value of Remsons Industries Ltd as of November 17, 2024 is: 199.07

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 17, 2024, Remsons Industries Ltd is Undervalued by 28.43% compared to the current share price 155.00

Last 5 Year EPS CAGR: 6.30%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has shown consistent growth in sales (160.17 cr) and profit (4.75 cr) over the years.
  1. The stock has a low average ROCE of 11.33%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 66.17, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 70.83, which may not be favorable.
  4. The company has higher borrowings (39.92) compared to reserves (30.15), 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 Remsons Industries Ltd:
    1. Net Profit Margin: 4.26%
      • 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: 17.2% (Industry Average ROCE: 21.7%)
      • 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%: 11.96% (Industry Average ROE: 16.4%)
      • 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): 3.01
      • 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: 1.12
      • 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: 49.5 (Industry average Stock P/E: 82.43)
      • 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: 0.54
      • 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

Remsons Industries Ltd. is a Public Limited Listed company incorporated on 11/05/1971 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L51900MH1971PLC015141 and registration number is 015141. Currently Company is involved in the business activities of Manufacture of diverse parts and accessories for motor vehecles sucs as brakes, gearboxes, axles, road wheels, suspension shock absorbers, radiators, silencers, exhaust pipes, catalysers, clutches, steering wheels, steering columns and steering boxes etc.. Company’s Total Operating Revenue is Rs. 223.28 Cr. and Equity Capital is Rs. 5.71 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Auto Ancl - Susp. & Braking - Springs401, 4th Floor, Gladdiola, Mumbai Maharashtra 400057corporate@remsons.com
http://www.remsons.com
Management
NamePosition Held
Mr. Krishna KejriwalChairman & Managing Director
Mrs. Chand KejriwalWhole Time Director
Mr. Rahul KejriwalWhole Time Director
Mr. Shishir Vasant DalalIndependent Director
Mrs. Visalakshi SridharIndependent Director
Mr. Anil Kumar AgrawalNon Executive Director
Mr. Suresh RamaraoIndependent Director

FAQ

What is the latest intrinsic value of Remsons Industries Ltd?

The latest intrinsic value of Remsons Industries Ltd as on 16 November 2024 is ₹187.27, which is 20.82% higher than the current market price of ₹155.00.

What is the Market Cap of Remsons Industries Ltd?

The Market Cap of Remsons Industries Ltd is 541 Cr..

What is the current Stock Price of Remsons Industries Ltd as on 16 November 2024?

The current stock price of Remsons Industries Ltd as on 16 November 2024 is ₹155.

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

In FY 2024, the High / Low of Remsons Industries Ltd stocks is 235/103.

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

The Stock P/E of Remsons Industries Ltd is 49.5.

What is the Book Value of Remsons Industries Ltd?

The Book Value of Remsons Industries Ltd is 30.7.

What is the Dividend Yield of Remsons Industries Ltd?

The Dividend Yield of Remsons Industries Ltd is 0.19 %.

What is the ROCE of Remsons Industries Ltd?

The ROCE of Remsons Industries Ltd is 13.6 %.

What is the ROE of Remsons Industries Ltd?

The ROE of Remsons Industries Ltd is 12.3 %.

What is the Face Value of Remsons Industries Ltd?

The Face Value of Remsons Industries 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 Remsons 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