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

Fundamental Analysis of Renaissance Global Ltd

Basic Stock Data

Last Updated: July 24, 2024, 10:42 pm

Market Cap 974 Cr.
Current Price 102
High / Low146/93.0
Stock P/E13.5
Book Value 119
Dividend Yield0.00 %
ROCE7.98 %
ROE6.66 %
Face Value 2.00
PEG Ratio-3.23

Data Source: screener.in

Competitors of Renaissance Global Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Thangamayil Jewellery Ltd 5,279 Cr. 1,9431,967/1,04642.8 1800.51 %20.3 %28.0 % 10.0
Silgo Retail Ltd 61.6 Cr. 33.341.0/18.119.6 29.20.00 %9.95 %7.43 % 10.0
Shubhlaxmi Jewel Art Ltd 29.2 Cr. 33.299.0/30.424.0 24.60.00 %9.44 %6.80 % 10.0
Renaissance Global Ltd 974 Cr. 102146/93.013.5 1190.00 %7.98 %6.66 % 2.00
Rajesh Exports Ltd 9,385 Cr. 318560/25928.0 5160.00 %3.23 %2.24 % 1.00
Industry Average4,614.75 Cr369.49134.68121.340.07%7.08%12.42%8.71

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: July 11, 2024, 7:22 am

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
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%

Growth

Compounded Sales Growth
10 Years:6%
5 Years:-4%
3 Years:1%
TTM:-6%
Compounded Profit Growth
10 Years:9%
5 Years:-1%
3 Years:20%
TTM:-18%
Stock Price CAGR
10 Years:24%
5 Years:14%
3 Years:-3%
1 Year:1%
Return on Equity
10 Years:10%
5 Years:9%
3 Years:9%
Last Year:7%

Last Updated: July 25, 2024, 7:33 am

Balance Sheet

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

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital191919191819191919191919
Reserves3063553804424945306466818249051,0071,129
Borrowings242342272252344348567524528706611655
Other Liabilities170223258314247328422349275372285220
Total Liabilities7369399291,0271,1031,2251,6541,5731,6462,0021,9212,024
Fixed Assets899178717249829880218258258
CWIP100703000921
Investments00243687652371117499119
Other Assets6478488279139441,1081,5481,4041,5551,7001,5631,645
Total Assets7369399291,0271,1031,2251,6541,5731,6462,0021,9212,024

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 67-4997735-34-30320211786230-41
Cash from Investing Activity -16-12-28-25-5822-2-7161-115-67-23
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 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days396373687353715359687473
Inventory Days203204201180194176143174147188212196
Days Payable2480848710774745026325651
Cash Conversion Cycle218188190160160155140176180224230217
Working Capital Days168160163140140147139159148201183177
ROCE %10%6%8%8%10%9%10%10%11%6%11%9%

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 (%)1.070.891.120.891.00
Current Ratio (X)2.402.251.922.221.86
Quick Ratio (X)1.041.040.870.980.77
Inventory Turnover Ratio (X)1.291.351.851.531.30
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: 109.13

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: 6.99% compared to the current price 102

Intrinsic Value: 104.58

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: 2.53% compared to the current price 102

Last 5 Year EPS CAGR: -4.18%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (641.58 cr) compared to borrowings (449.25 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 9.00%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 160.42, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 186.50, 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 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: 7.08%)
      • 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%: 6.30% (Industry Average ROE: 12.42%)
      • 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: 13.5 (Industry average Stock P/E: 134.68)
      • 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

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 MetailsPlot 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. Veerkumar C ShahIndependent Director
Mr. Vishwas V MehendaleIndependent Director
Mrs. Madhavi S PetheIndependent Director
Mr. Arun P SatheIndependent Director
Mr. Darshil A ShahExecutive Director
Mr. Bijou KurienIndependent Director

FAQ

What is the latest fair value of Renaissance Global Ltd?

The latest fair value of Renaissance Global Ltd is ₹109.13.

What is the Market Cap of Renaissance Global Ltd?

The Market Cap of Renaissance Global Ltd is 974 Cr..

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

The current stock price of Renaissance Global Ltd as on 25 July 2024 is 102.

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 146/93.0.

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

The Stock P/E of Renaissance Global Ltd is 13.5.

What is the Book Value of Renaissance Global Ltd?

The Book Value of Renaissance Global Ltd is 119.

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 7.98 %.

What is the ROE of Renaissance Global Ltd?

The ROE of Renaissance Global Ltd is 6.66 %.

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