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Last Updated on: 25 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Sandesh Ltd

Basic Stock Data

Last Updated: June 25, 2024, 10:18 pm

Market Cap 1,226 Cr.
Current Price 1,608
High / Low1,777/901
Stock P/E6.50
Book Value 1,662
Dividend Yield0.31 %
ROCE20.9 %
ROE16.3 %
Face Value 10.0
PEG Ratio0.25

Competitors of Sandesh Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
TCPL Packaging Ltd 1,919 Cr. 2,1092,499/1,34318.0 5931.04 %20.1 %21.5 % 10.0
Sundaram Multi Pap Ltd 146 Cr. 3.094.20/2.05 1.950.00 %0.19 %3.38 % 1.00
Vasa Retail and Overseas Ltd (VASA) 2.73 Cr. 4.558.15/4.55 29.60.00 %5.27 %% 10.0
Jagran Prakashan Ltd 1,976 Cr. 90.8130/77.012.0 88.64.41 %10.6 %8.97 % 2.00
Alkosign Ltd 88.0 Cr. 122261/70.0113 40.60.00 %7.19 %6.41 % 10.0
Industry Average1,197.57 Cr308.5331.56104.150.89%10.62%8.92%6.36

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales915373771048281997772729186
Expenses67414555906657657056576560
Operating Profit2412282214162434816152626
OPM %26%22%39%29%14%19%29%34%10%23%20%28%30%
Other Income39692553412829214966
Interest0000000000000
Depreciation2222111122222
Profit before tax25193229382056451444347390
Tax %24%21%29%23%22%31%21%26%17%24%23%21%20%
Net Profit19152322291344331133265872
EPS in Rs25.2619.7630.3129.6538.6017.8258.2543.7714.9443.7734.2776.2395.01

Last Updated: June 9, 2024, 3:05 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: June 25, 2024, 8:45 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales307313345374354375417341272307339320
Expenses226230248246248257330271197231244238
Operating Profit818397128106118877075769682
OPM %26%26%28%34%30%31%21%20%28%25%28%26%
Other Income1311414142012494844166
Interest584210000000
Depreciation888889987666
Profit before tax8168861231111239774116118134241
Tax %28%33%34%35%36%35%35%21%23%24%24%22%
Net Profit58465780718063588990102189
EPS in Rs76.1260.5275.36105.2493.65105.3283.3877.10117.99118.32134.78249.28
Dividend Payout %5%7%5%5%5%5%6%6%4%4%4%2%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-20.69%23.91%40.35%-11.25%12.68%-21.25%-7.94%53.45%1.12%13.33%85.29%
Change in YoY Net Profit Growth (%)0.00%44.60%16.44%-51.60%23.93%-33.93%13.31%61.38%-52.32%12.21%71.96%

Growth

Compounded Sales Growth
10 Years:0%
5 Years:-5%
3 Years:6%
TTM:-6%
Compounded Profit Growth
10 Years:15%
5 Years:24%
3 Years:29%
TTM:93%
Stock Price CAGR
10 Years:17%
5 Years:19%
3 Years:26%
1 Year:76%
Return on Equity
10 Years:11%
5 Years:11%
3 Years:12%
Last Year:16%

Last Updated: June 25, 2024, 4:48 pm

Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital9888888888888
Reserves3253513934475635826577167708779391,0441,103
Borrowings826856101420000000
Other Liabilities998090841189587695575636262
Total Liabilities5145075475497026867527938329601,0101,1131,172
Fixed Assets7875687173126138132128120110111110
CWIP20010110000000
Investments146159159171393285387497419508508662763
Other Assets289273319307236264227163285331392339300
Total Assets5145075475497026867527938329601,0101,1131,172

Reserves and Borrowings Chart

Sandesh Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity -8074285597968048-90482296
Cash from Investing Activity -63-5-2-22-39-31-112-10286-4033-113
Cash from Financing Activity 65-46-15-50-4-17-6-5-5-4-4-4
Net Cash Flow-782211-175549-38-58-10451-20

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow13.0027.0087.00114.00104.00118.0087.0070.0075.0076.0096.0082.00

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 Days606060626869647268504354
Inventory Days71871586812812848661251324761
Days Payable223618373750241887272133
Cash Conversion Cycle10811120092158146891201061556983
Working Capital Days1531031101650565921713814598881
ROCE %18%17%19%24%19%20%14%10%14%11%13%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters74.81%74.81%74.81%74.81%74.81%74.81%74.81%74.81%74.81%74.81%74.81%74.81%
Public25.18%25.18%25.18%25.18%25.18%25.18%25.19%25.19%25.18%25.20%25.19%25.19%
No. of Shareholders4,8344,8825,6895,6165,5315,6565,5625,5846,1355,9665,9345,629

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
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)249.14133.98118.67118.8880.72
Diluted EPS (Rs.)249.14133.98118.67118.8880.72
Cash EPS (Rs.)257.90141.74127.16128.0488.50
Book Value[Excl.RevalReserv]/Share (Rs.)1667.031393.791256.041173.811039.69
Book Value[Incl.RevalReserv]/Share (Rs.)1667.031393.791256.041173.811039.69
Revenue From Operations / Share (Rs.)425.51450.18408.01361.61453.42
PBDIT / Share (Rs.)327.03181.79161.81162.63108.71
PBIT / Share (Rs.)318.27174.03153.32153.4798.33
PBT / Share (Rs.)318.10176.42156.10154.8899.02
Net Profit / Share (Rs.)249.14133.98118.67118.8878.12
NP After MI And SOA / Share (Rs.)249.14133.98118.67118.8880.72
PBDIT Margin (%)76.8540.3839.6544.9723.97
PBIT Margin (%)74.7938.6537.5742.4421.68
PBT Margin (%)74.7539.1838.2542.8321.83
Net Profit Margin (%)58.5529.7629.0832.8717.22
NP After MI And SOA Margin (%)58.5529.7629.0832.8717.80
Return on Networth / Equity (%)14.949.619.4410.127.76
Return on Capital Employeed (%)18.5512.3912.1612.989.39
Return On Assets (%)13.979.078.859.337.25
Asset Turnover Ratio (%)0.260.310.310.300.41
Current Ratio (X)17.5810.617.966.869.22
Quick Ratio (X)17.2210.287.256.408.75
Inventory Turnover Ratio (X)6.084.312.332.525.39
Dividend Payout Ratio (NP) (%)0.003.734.215.077.46
Dividend Payout Ratio (CP) (%)0.003.523.934.706.61
Earning Retention Ratio (%)0.0096.2795.7994.9392.54
Cash Earning Retention Ratio (%)0.0096.4896.0795.3093.39
Interest Coverage Ratio (X)964.33919.84611.79267.04197.34
Interest Coverage Ratio (Post Tax) (X)735.16665.81438.18192.88140.54
Enterprise Value (Cr.)823.08677.64423.85469.39315.94
EV / Net Operating Revenue (X)2.561.991.371.710.92
EV / EBITDA (X)3.324.923.463.813.84
MarketCap / Net Operating Revenue (X)2.762.141.601.780.96
Retention Ratios (%)0.0096.2695.7894.9292.53
Price / BV (X)0.700.680.510.540.42
Price / Net Operating Revenue (X)2.762.141.601.780.96
EarningsYield0.210.130.180.180.18

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 1,766.35

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: 9.85% compared to the current price 1608

Intrinsic Value: 2,233.59

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: 38.90% compared to the current price ₹1608

Last 5 Year EPS CAGR: 26.45%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (715.75 cr) compared to borrowings (12.50 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (338.67 cr) and profit (114.33 cr) over the years.
  1. The stock has a low average ROCE of 14.92%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 168.83, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 119.75, 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 Sandesh Ltd:
    1. Net Profit Margin: 58.55%
      • 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: 18.55% (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%: 14.94% (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): 735.16
      • 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: 17.22
      • 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: 6.50 (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: N/A
      • 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

Sandesh Ltd. is a Public Limited Listed company incorporated on 11/03/1943 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L22121GJ1943PLC000183 and registration number is 000183. Currently Company is involved in the business activities of Advertising. Company’s Total Operating Revenue is Rs. 306.97 Cr. and Equity Capital is Rs. 7.57 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Printing/Publishing/StationerySandesh Bhavan Lad Society Road, Ahmedabad Gujarat 380054cs@sandesh.com
http://www.sandesh.com
Management
NamePosition Held
Mr. Falgunbhai C PatelChairman & Managing Director
Mr. Parthiv F PatelManaging Director
Mr. Sanjay Kumar TandonWhole Time Director
Mr. Mukeshbhai PatelIndependent Director
Mr. Sudhirbhai NanavatiIndependent Director
Mrs. Pannaben F PatelDirector
Dr. Gauri TrivediIndependent Director
Mr. Sandeepbhai SinghiIndependent Director

FAQ

What is the latest fair value of Sandesh Ltd?

The latest fair value of Sandesh Ltd is ₹1766.35.

What is the Market Cap of Sandesh Ltd?

The Market Cap of Sandesh Ltd is 1,226 Cr..

What is the current Stock Price of Sandesh Ltd as on 25 June 2024?

The current stock price of Sandesh Ltd as on 25 June 2024 is ₹1,608.

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

In FY 2024, the High / Low of Sandesh Ltd stocks is 1,777/901.

What is the Stock P/E of Sandesh Ltd?

The Stock P/E of Sandesh Ltd is 6.50.

What is the Book Value of Sandesh Ltd?

The Book Value of Sandesh Ltd is 1,662.

What is the Dividend Yield of Sandesh Ltd?

The Dividend Yield of Sandesh Ltd is 0.31 %.

What is the ROCE of Sandesh Ltd?

The ROCE of Sandesh Ltd is 20.9 %.

What is the ROE of Sandesh Ltd?

The ROE of Sandesh Ltd is 16.3 %.

What is the Face Value of Sandesh Ltd?

The Face Value of Sandesh Ltd is 10.0.

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 Sandesh 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