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Last Updated on: 25 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Renaissance Global Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 24, 2024, 9:10 pm

Market Cap 1,674 Cr.
Current Price 174
High / Low196/87.4
Stock P/E22.6
Book Value 124
Dividend Yield0.00 %
ROCE8.25 %
ROE6.51 %
Face Value 2.00
PEG Ratio-5.41

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

View Share Price Target for Renaissance Global Ltd

Competitors of Renaissance Global Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Thangamayil Jewellery Ltd 5,469 Cr. 1,9932,650/1,14057.4 1880.50 %20.3 %28.0 % 10.0
Silgo Retail Ltd 70.0 Cr. 37.853.4/19.919.5 30.10.00 %10.1 %7.43 % 10.0
Shubhlaxmi Jewel Art Ltd 21.9 Cr. 24.993.9/24.018.0 25.70.00 %9.44 %6.31 % 10.0
Renaissance Global Ltd 1,674 Cr. 174196/87.422.6 1240.00 %8.25 %6.51 % 2.00
Rajesh Exports Ltd 6,914 Cr. 234403/231181 5260.00 %3.23 %2.24 % 1.00
Industry Average4,183.00 Cr348.73191.93125.500.06%7.25%11.62%7.88

All Competitor Stocks of Renaissance Global Ltd

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales583410477774529573440724499473442655537
Expenses550378424706499533404675463440411604494
Operating Profit33315367304036493634305242
OPM %6%8%11%9%6%7%8%7%7%7%7%8%8%
Other Income11011721123123
Interest66788810111211121414
Depreciation98910889887878
Profit before tax19283751212619311818123223
Tax %20%15%24%35%-2%6%18%11%-7%20%14%14%9%
Net Profit16242833212416282014102821
EPS in Rs1.612.482.963.532.242.571.642.862.151.511.102.912.05

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
Sales9521,2221,2761,3201,4731,8112,5912,5022,0312,1902,2372,107
Expenses9081,1611,2191,2411,4101,7452,4692,3521,9362,0142,0631,949
Operating Profit44615779636612215095176173158
OPM %5%5%4%6%4%4%5%6%5%8%8%7%
Other Income3117418342161630410
Interest131212111314253025355152
Depreciation111217151411183131353230
Profit before tax23384657547481106551369485
Tax %36%23%13%17%21%14%4%17%23%22%7%14%
Net Profit1529404743647788421068774
EPS in Rs1.553.094.214.974.416.688.139.324.5011.219.227.53
Dividend Payout %13%6%5%8%0%0%0%0%20%15%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)93.33%37.93%17.50%-8.51%48.84%20.31%14.29%-52.27%152.38%-17.92%-14.94%
Change in YoY Net Profit Growth (%)0.00%-55.40%-20.43%-26.01%57.35%-28.52%-6.03%-66.56%204.65%-170.31%2.98%

Renaissance Global 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:6%
5 Years:-4%
3 Years:1%
TTM:-4%
Compounded Profit Growth
10 Years:9%
5 Years:-2%
3 Years:19%
TTM:3%
Stock Price CAGR
10 Years:30%
5 Years:31%
3 Years:1%
1 Year:75%
Return on Equity
10 Years:10%
5 Years:9%
3 Years:9%
Last Year:7%

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 Capital19191919181919191919191919
Reserves3063553804424945306466818249051,0071,1291,176
Borrowings242342272252344348567524528706611655717
Other Liabilities170223258314247328422349275372283222317
Total Liabilities7369399291,0271,1031,2251,6541,5731,6462,0021,9202,0262,230
Fixed Assets899178717249829880218258258249
CWIP1007030009210
Investments00243687652371117499119128
Other Assets6478488279139441,1081,5481,4041,5551,7001,5621,6471,853
Total Assets7369399291,0271,1031,2251,6541,5731,6462,0021,9202,0262,230

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +67-4997735-34-30320211786229-41
Cash from Investing Activity +-16-12-28-25-5822-2-7161-115-66-23
Cash from Financing Activity +-4377-76-4071-7277-76-7830-217-17
Net Cash Flow817-6819-19-29561000-54-80

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-198.00-281.00-215.00-173.00-281.00-282.00-445.00-374.00-433.00-530.00-438.00-497.00

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 Days637368735371535968747384
Inventory Days204201180194176143174147188212196243
Days Payable8084871077474502632565146
Cash Conversion Cycle188190160160155140176180224230217280
Working Capital Days160163140140147139159148201183177225
ROCE %6%8%8%10%9%10%10%11%6%11%9%8%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters70.78%70.78%70.78%70.64%70.69%70.69%70.82%70.82%69.56%69.56%69.56%67.47%
FIIs1.36%1.67%1.55%1.63%1.48%1.42%1.73%1.75%1.70%1.66%0.92%0.76%
DIIs0.00%0.36%0.37%0.13%0.14%0.26%0.19%0.13%0.12%0.12%0.00%0.00%
Government0.03%0.03%0.03%0.03%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Public26.79%26.12%27.27%27.56%27.68%27.62%27.23%27.29%28.63%28.66%29.52%31.78%
Others1.04%1.04%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
No. of Shareholders7,6897,7577,5677,8709,76710,52410,70011,01015,64316,89718,00517,560

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 21Mar 20
FaceValue2.002.0010.0010.0010.00
Basic EPS (Rs.)7.599.2256.4922.7447.10
Diluted EPS (Rs.)7.549.1656.4922.6847.10
Cash EPS (Rs.)10.8012.6474.9639.4163.59
Book Value[Excl.RevalReserv]/Share (Rs.)119.47108.26484.20447.41371.29
Book Value[Incl.RevalReserv]/Share (Rs.)119.47108.26484.20447.41371.29
Revenue From Operations / Share (Rs.)219.19236.931159.891087.211339.10
PBDIT / Share (Rs.)17.4317.80106.1961.8691.43
PBIT / Share (Rs.)14.2814.4187.6245.0874.81
PBT / Share (Rs.)8.8810.0472.2831.7058.88
Net Profit / Share (Rs.)7.669.2556.3822.6346.97
NP After MI And SOA / Share (Rs.)7.539.2256.0322.7447.10
PBDIT Margin (%)7.947.519.155.686.82
PBIT Margin (%)6.516.087.554.145.58
PBT Margin (%)4.054.236.232.914.39
Net Profit Margin (%)3.493.904.862.083.50
NP After MI And SOA Margin (%)3.433.894.832.093.51
Return on Networth / Equity (%)6.308.5211.575.0812.68
Return on Capital Employeed (%)10.4511.2615.008.7717.14
Return On Assets (%)3.574.535.282.585.59
Long Term Debt / Equity (X)0.020.040.040.030.00
Total Debt / Equity (X)0.440.450.610.580.74
Asset Turnover Ratio (%)1.071.141.120.891.00
Current Ratio (X)2.402.251.922.221.86
Quick Ratio (X)1.041.040.870.980.77
Inventory Turnover Ratio (X)1.291.101.851.531.30
Dividend Payout Ratio (NP) (%)0.006.509.8119.990.00
Dividend Payout Ratio (CP) (%)0.004.757.3711.500.00
Earning Retention Ratio (%)0.0093.5090.1980.010.00
Cash Earning Retention Ratio (%)0.0095.2592.6388.500.00
Interest Coverage Ratio (X)3.234.076.924.635.74
Interest Coverage Ratio (Post Tax) (X)2.423.134.682.854.10
Enterprise Value (Cr.)1392.031104.091994.88838.02808.69
EV / Net Operating Revenue (X)0.660.490.910.410.32
EV / EBITDA (X)8.316.579.957.254.73
MarketCap / Net Operating Revenue (X)0.450.350.740.270.15
Retention Ratios (%)0.0093.4990.1880.000.00
Price / BV (X)0.830.771.770.650.55
Price / Net Operating Revenue (X)0.450.350.740.270.15
EarningsYield0.070.110.060.070.22

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Renaissance Global Ltd as of November 25, 2024 is: 186.08

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 25, 2024, Renaissance Global Ltd is Undervalued by 6.94% compared to the current share price 174.00

Intrinsic Value of Renaissance Global Ltd as of November 25, 2024 is: 178.31

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 25, 2024, Renaissance Global Ltd is Undervalued by 2.48% compared to the current share price 174.00

Last 5 Year EPS CAGR: -4.18%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (682.69 cr) compared to borrowings (469.85 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (80.75 cr) and profit (70.75 cr) over the years.
  1. The stock has a low average ROCE of 8.83%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 165.17, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 191.67, 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 Renaissance Global Ltd:
    1. Net Profit Margin: 3.49%
      • 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: 10.45% (Industry Average ROCE: 7.25%)
      • 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%: 6.3% (Industry Average ROE: 11.62%)
      • 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): 2.42
      • 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: 1.04
      • 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: 22.6 (Industry average Stock P/E: 167.94)
      • 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: 0.44
      • 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

Renaissance Global Ltd. is a Public Limited Listed company incorporated on 04/12/1989 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L36911MH1989PLC054498 and registration number is 054498. Currently company belongs to the Industry of Diamond Cutting/Precious Metals/Jewellery. Company’s Total Operating Revenue is Rs. 1517.29 Cr. and Equity Capital is Rs. 18.88 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Gems, Jewellery & Precious MetalsPlot No. 36A & 37, SEEPZ, MIDC, Mumbai Maharashtra 400096investors@renaissanceglobal.com
http://www.renaissanceglobal.com
Management
NamePosition Held
Mr. Niranjan A ShahChairman Emeritus
Mr. Sumit N ShahChairman
Mr. Hitesh M ShahManaging Director
Mr. Neville R TataExecutive Director
Mr. Darshil A ShahExecutive Director
Mr. Rupal D JhaveriIndependent Director
Mr. Rahul R NarangIndependent Director
Mr. Bijou KurienIndependent Director
Mr. Deepak P ChindarkarIndependent Director

FAQ

What is the latest intrinsic value of Renaissance Global Ltd?

The latest intrinsic value of Renaissance Global Ltd as on 25 November 2024 is ₹186.08, which is 6.94% higher than the current market price of ₹174.00.

What is the Market Cap of Renaissance Global Ltd?

The Market Cap of Renaissance Global Ltd is 1,674 Cr..

What is the current Stock Price of Renaissance Global Ltd as on 25 November 2024?

The current stock price of Renaissance Global Ltd as on 25 November 2024 is 174.

What is the High / Low of Renaissance Global Ltd stocks in FY 2024?

In FY 2024, the High / Low of Renaissance Global Ltd stocks is 196/87.4.

What is the Stock P/E of Renaissance Global Ltd?

The Stock P/E of Renaissance Global Ltd is 22.6.

What is the Book Value of Renaissance Global Ltd?

The Book Value of Renaissance Global Ltd is 124.

What is the Dividend Yield of Renaissance Global Ltd?

The Dividend Yield of Renaissance Global Ltd is 0.00 %.

What is the ROCE of Renaissance Global Ltd?

The ROCE of Renaissance Global Ltd is 8.25 %.

What is the ROE of Renaissance Global Ltd?

The ROE of Renaissance Global Ltd is 6.51 %.

What is the Face Value of Renaissance Global Ltd?

The Face Value of Renaissance Global 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 Renaissance Global 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