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Last Updated on: 23 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Rossari Biotech Ltd

Basic Stock Data

Last Updated: June 17, 2024, 8:16 pm

Market Cap 4,250 Cr.
Current Price 769
High / Low904/657
Stock P/E32.5
Book Value 190
Dividend Yield0.06 %
ROCE18.3 %
ROE13.3 %
Face Value 2.00
PEG Ratio2.51

Competitors of Rossari Biotech Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Aarti Surfactants Ltd 584 Cr. 690854/54327.4 2580.00 %14.1 %11.0 % 10.0
Panama Petrochem Ltd 2,491 Cr. 412429/28012.8 1821.94 %24.9 %19.0 % 2.00
Savita Oil Technologies Ltd 3,671 Cr. 531615/27918.0 2350.75 %19.8 %13.3 % 2.00
Vadivarhe Speciality Chemicals Ltd 57.5 Cr. 45.055.0/27.4959 5.080.00 %8.36 %0.93 % 10.0
Apar Industries Ltd 33,645 Cr. 8,3768,740/3,01340.8 9650.48 %42.9 %27.0 % 10.0
Industry Average13,484.49 Cr1,122.4183.44199.330.42%14.39%10.42%6.86

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales218231385428439435425389406411483464473
Expenses182194339381387377369335352353420400409
Operating Profit36374648525857545558646464
OPM %17%16%12%11%12%13%13%14%13%14%13%14%13%
Other Income2326311132141
Interest1125558546543
Depreciation761016171516161614151516
Profit before tax30333633343934353739454846
Tax %26%26%27%30%30%26%29%26%22%26%26%28%25%
Net Profit22252623242924262929333434
EPS in Rs4.324.464.764.144.375.214.344.665.255.305.976.236.18

Last Updated: June 9, 2024, 7:23 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 27, 2024, 6:01 am

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales5166007091,4831,6561,831
Expenses4384955861,2991,4331,581
Operating Profit78105124184223250
OPM %15%17%17%12%13%14%
Other Income1491368
Interest343132219
Depreciation121723486360
Profit before tax6388107136144178
Tax %28%26%25%28%26%26%
Net Profit46658098107131
EPS in Rs103.8212.8615.4517.7419.4523.66
Dividend Payout %0%4%3%3%3%2%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)41.30%23.08%22.50%9.18%22.43%
Change in YoY Net Profit Growth (%)0.00%-18.23%-0.58%-13.32%13.25%

Growth

Compounded Sales Growth
10 Years:%
5 Years:29%
3 Years:37%
TTM:11%
Compounded Profit Growth
10 Years:%
5 Years:23%
3 Years:18%
TTM:22%
Stock Price CAGR
10 Years:%
5 Years:%
3 Years:-14%
1 Year:-9%
Return on Equity
10 Years:%
5 Years:16%
3 Years:14%
Last Year:13%

Last Updated: June 17, 2024, 2:46 pm

Balance Sheet

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital41010111111
Reserves119277398794904967
Borrowings8670874132
Other Liabilities118118152442375424
Total Liabilities2504715611,2551,3641,534
Fixed Assets7494181607584600
CWIP322011624
Investments0180365124
Other Assets173338379611714885
Total Assets2504715611,2551,3641,534

Reserves and Borrowings Chart

Rossari Biotech Ltd Cash Flow

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 71574829152
Cash from Investing Activity -37-190-37-299-181
Cash from Financing Activity -29157-2529261
Net Cash Flow523-142232

Free Cash Flow

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow70.0038.00124.00176.00149.00131.00

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 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days6157747578
Inventory Days5957756359
Days Payable114951046158
Cash Conversion Cycle619467679
Working Capital Days2539606458
ROCE %38%29%24%18%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters68.70%68.56%68.56%68.56%68.56%68.46%68.44%68.44%68.44%68.35%68.34%68.32%
FIIs7.82%8.46%9.13%9.03%8.51%8.84%8.63%7.46%6.12%5.74%4.14%4.02%
DIIs13.60%12.87%12.77%12.29%13.02%14.15%14.08%15.09%17.71%17.68%18.06%17.74%
Public9.88%10.10%9.54%10.12%9.91%8.55%8.85%9.01%7.73%8.23%9.45%9.90%
No. of Shareholders49,32465,83176,49492,09998,56595,66497,08196,63495,37195,2001,00,42398,859

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Small Cap Fund2,016,7980.64145.68143,5972024-06-171304.48%
UTI Flexi Cap Fund1,915,7520.54138.38143,5972024-06-171234.12%
SBI Flexi Cap Fund1,648,0080.64119.04143,5972024-06-171047.66%
Canara Robeco Small Cap Fund1,067,2930.9385.29143,5972024-06-17643.26%
UTI Small Cap Fund407,2150.8529.42143,5972024-06-17183.58%
Bandhan Focused Equity Fund228,9331.2318.3143,5972024-06-1759.43%
UTI Unit Linked Insurance Plan (ULIP) - Fifteen Year Plan143,5970.210.37143,5972024-06-170%
UTI Unit Linked Insurance Plan (ULIP) - Ten Year Plan143,5970.210.37143,5972024-06-170%
Nippon India Nifty Smallcap 250 Index Fund12,0150.10.96143,5972024-06-17-91.63%
SBI Tax Advantage Fund - Series III7,0001.550.51143,5972024-06-17-95.13%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)23.6719.4617.8115.5613.42
Diluted EPS (Rs.)23.6219.3817.7015.4713.23
Cash EPS (Rs.)34.5630.6826.1919.7316.22
Book Value[Excl.RevalReserv]/Share (Rs.)189.65165.93146.2578.7256.39
Book Value[Incl.RevalReserv]/Share (Rs.)189.65165.93146.2578.7256.39
Revenue From Operations / Share (Rs.)331.35300.22269.36136.60118.23
PBDIT / Share (Rs.)46.5641.4335.5025.4721.37
PBIT / Share (Rs.)35.6330.0226.7721.0718.05
PBT / Share (Rs.)32.1225.9724.4720.4917.35
Net Profit / Share (Rs.)23.6219.2717.4615.3412.90
NP After MI And SOA / Share (Rs.)23.6619.4517.7415.4512.86
PBDIT Margin (%)14.0513.7913.1718.6418.07
PBIT Margin (%)10.759.999.9315.4215.26
PBT Margin (%)9.698.659.0815.0014.67
Net Profit Margin (%)7.126.416.4811.2210.91
NP After MI And SOA Margin (%)7.136.476.5811.3010.87
Return on Networth / Equity (%)12.4711.7112.1319.6222.80
Return on Capital Employeed (%)17.1516.2215.3126.6128.38
Return On Assets (%)8.317.847.7714.2913.83
Long Term Debt / Equity (X)0.030.030.000.000.11
Total Debt / Equity (X)0.100.080.010.000.21
Asset Turnover Ratio (%)1.250.811.441.361.67
Current Ratio (X)1.992.082.072.362.19
Quick Ratio (X)1.321.541.421.731.80
Inventory Turnover Ratio (X)5.223.666.985.926.53
Dividend Payout Ratio (NP) (%)0.002.562.813.164.05
Dividend Payout Ratio (CP) (%)0.001.611.882.463.22
Earning Retention Ratio (%)0.0097.4497.1996.8495.95
Cash Earning Retention Ratio (%)0.0098.3998.1297.5496.78
Interest Coverage Ratio (X)13.2810.2415.4444.2030.49
Interest Coverage Ratio (Post Tax) (X)7.745.768.6027.6219.41
Enterprise Value (Cr.)3801.343233.014985.625300.000.00
EV / Net Operating Revenue (X)2.081.953.367.470.00
EV / EBITDA (X)14.7814.1525.5140.080.00
MarketCap / Net Operating Revenue (X)2.041.983.397.600.00
Retention Ratios (%)0.0097.4397.1896.8395.94
Price / BV (X)3.563.596.2513.180.00
Price / Net Operating Revenue (X)2.041.983.397.600.00
EarningsYield0.030.030.010.010.00

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 821.77

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: 6.86% compared to the current price 769

Intrinsic Value: 928.33

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: 20.72% compared to the current price ₹769

Last 5 Year EPS CAGR: 12.97%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 21.80%, which is a positive sign.
  2. The company has higher reserves (588.17 cr) compared to borrowings (46.00 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (304.67 cr) and profit (119.33 cr) over the years.
  1. The stock has a high average Working Capital Days of 49.20, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 45.20, 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 Rossari Biotech Ltd:
    1. Net Profit Margin: 7.12%
      • 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: 17.15% (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%: 12.47% (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): 7.74
      • 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: 1.32
      • 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: 32.5 (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: 0.10
      • 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

Rossari Biotech Ltd. is a Public Limited Listed company incorporated on 10/08/2009 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L24100MH2009PLC194818 and registration number is 194818. Currently Company is involved in the business activities of Manufacture of organic and inorganic chemical compounds. Company’s Total Operating Revenue is Rs. 1072.84 Cr. and Equity Capital is Rs. 11.01 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Chemicals - Speciality - Others201 A-B, 2nd Floor, Akruti Corporate Park, Mumbai Maharashtra 400078investors@rossari.com
http://www.rossari.com
Management
NamePosition Held
Mr. Edward MenezesExecutive Chairman
Mr. Sunil ChariManaging Director
Ms. Meher CastelinoIndependent Director
Mr. Goutam BhattacharyaIndependent Director
Mr. Aseem DhruIndependent Director
Mr. Robin BanerjeeIndependent Director
Maj.Gen.(Retd.) Sharabh PachoryIndependent Director

FAQ

What is the latest fair value of Rossari Biotech Ltd?

The latest fair value of Rossari Biotech Ltd is ₹821.77.

What is the Market Cap of Rossari Biotech Ltd?

The Market Cap of Rossari Biotech Ltd is 4,250 Cr..

What is the current Stock Price of Rossari Biotech Ltd as on 23 June 2024?

The current stock price of Rossari Biotech Ltd as on 23 June 2024 is ₹769.

What is the High / Low of Rossari Biotech Ltd stocks in FY 2024?

In FY 2024, the High / Low of Rossari Biotech Ltd stocks is 904/657.

What is the Stock P/E of Rossari Biotech Ltd?

The Stock P/E of Rossari Biotech Ltd is 32.5.

What is the Book Value of Rossari Biotech Ltd?

The Book Value of Rossari Biotech Ltd is 190.

What is the Dividend Yield of Rossari Biotech Ltd?

The Dividend Yield of Rossari Biotech Ltd is 0.06 %.

What is the ROCE of Rossari Biotech Ltd?

The ROCE of Rossari Biotech Ltd is 18.3 %.

What is the ROE of Rossari Biotech Ltd?

The ROE of Rossari Biotech Ltd is 13.3 %.

What is the Face Value of Rossari Biotech Ltd?

The Face Value of Rossari Biotech 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 Rossari Biotech 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