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Last Updated on: 21 July, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Fundamental Analysis of Remsons Industries Ltd

Basic Stock Data

Last Updated: July 20, 2024, 10:40 pm

Market Cap 673 Cr.
Current Price 193
High / Low221/47.5
Stock P/E73.7
Book Value 30.3
Dividend Yield0.16 %
ROCE13.6 %
ROE12.4 %
Face Value 2.00
PEG Ratio11.70

Data Source: screener.in

Competitors of Remsons Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Jamna Auto Industries Ltd 4,968 Cr. 125144/10224.2 22.61.53 %30.4 %24.4 % 1.00
Auto Pins (India) Ltd 96.7 Cr. 170215/65.093.9 14.50.00 %22.0 %13.3 % 10.0
Industry Average2,532.35 Cr147.5059.0518.550.77%26.20%18.85%5.50

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: July 10, 2024, 9:14 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: July 10, 2024, 9:14 pm

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%

Growth

Compounded Sales Growth
10 Years:9%
5 Years:11%
3 Years:10%
TTM:-3%
Compounded Profit Growth
10 Years:20%
5 Years:20%
3 Years:29%
TTM:16%
Stock Price CAGR
10 Years:45%
5 Years:60%
3 Years:55%
1 Year:290%
Return on Equity
10 Years:13%
5 Years:15%
3 Years:14%
Last Year:12%

Last Updated: July 17, 2024, 5:14 pm

Balance Sheet

Last Updated: July 10, 2024, 9:14 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital666666666667
Reserves101111111014161926293699
Borrowings252227282729273057666550
Other Liabilities131515191621323050444945
Total Liabilities5454596460708085139145155201
Fixed Assets202120212222232434363948
CWIP000000000111
Investments000000006201919
Other Assets3433384237475761998896133
Total Assets5454596460708085139145155201

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 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days636358656951576551616162
Inventory Days877277849486106105125968476
Days Payable72515657746685110941118681
Cash Conversion Cycle778380918970776082465957
Working Capital Days677067757660686068576760
ROCE %20%8%11%5%8%2%16%16%19%12%10%15%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%65.29%
FIIs0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%2.93%
DIIs0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.21%
Public25.00%25.00%25.00%25.00%25.00%25.01%25.00%25.00%25.01%24.99%25.01%31.55%
No. of Shareholders2,4482,7622,4862,4552,5912,7752,5922,5702,9423,3213,2164,276

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: 277.35

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: 43.70% compared to the current price 193

Intrinsic Value: 294.82

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: 52.76% compared to the current price 193

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 11.83%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 66.25, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 72.58, which may not be favorable.
  4. The company has higher borrowings (37.75) compared to reserves (24.33), 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: 17.20% (Industry Average ROCE: %)
      • 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: %)
      • 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: 73.7 (Industry average Stock P/E: )
      • 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

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. Paresh BhagatIndependent 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 fair value of Remsons Industries Ltd?

The latest fair value of Remsons Industries Ltd is ₹277.35.

What is the Market Cap of Remsons Industries Ltd?

The Market Cap of Remsons Industries Ltd is 673 Cr..

What is the current Stock Price of Remsons Industries Ltd as on 21 July 2024?

The current stock price of Remsons Industries Ltd as on 21 July 2024 is 193.

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 221/47.5.

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

The Stock P/E of Remsons Industries Ltd is 73.7.

What is the Book Value of Remsons Industries Ltd?

The Book Value of Remsons Industries Ltd is 30.3.

What is the Dividend Yield of Remsons Industries Ltd?

The Dividend Yield of Remsons Industries Ltd is 0.16 %.

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 12.4 %.

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