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Last Updated on: 27 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Sandesh Ltd

About the Company - Sandesh Ltd

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

Sandesh Ltd. Share Price Update

Share PriceValue
Today₹1,300.00
Previous Day₹1,247.45

Basic Stock Data of Sandesh Ltd

Market Cap 984 Cr.
Current Price 1,300
High / Low1,437/782
Stock P/E7.70
Book Value 1,467
Dividend Yield0.38 %
ROCE12.9 %
ROE9.77 %
Face Value 10.0

Data Source: screener.in

Competitors of Sandesh Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Orient Press Ltd 96.8 Cr. 96.8132/54.0 67.80.00 %2.27 %4.70 % 10.0
Sundaram Multi Pap Ltd 163 Cr. 3.434.20/1.95 1.990.00 %7.48 %5.77 % 1.00
Sambhaav Media Ltd 111 Cr. 5.806.10/2.22 4.220.00 %2.05 %3.38 % 1.00
MPS Ltd 2,568 Cr. 1,5011,885/80924.3 2132.02 %33.7 %25.4 % 10.0
Navneet Education Ltd 3,433 Cr. 152176/88.126.6 56.31.70 %19.4 %15.0 % 2.00
Industry Average1,274.36 Cr351.8110.1868.660.74%12.98%10.85%4.80

Sandesh Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales607891537377104828199777272
Expenses37566741455590665765705657
Operating Profit2222241228221416243481615
OPM %38%29%26%22%39%29%14%19%29%34%10%23%20%
Other Income8233969255341282921
Interest0000000000000
Depreciation2222221111222
Profit before tax29432519322938205645144434
Tax %23%22%24%21%29%23%22%31%21%26%17%24%23%
Net Profit22341915232229134433113326
EPS in Rs29.0544.7225.2619.7630.3129.6538.6017.8258.2543.7714.9443.7734.27

Sandesh Ltd Quarterly Chart

Sandesh Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales266307313345374354375417341272307339320
Expenses193226230248246248257330271197231244248
Operating Profit73818397128106118877075769672
OPM %28%26%26%28%34%30%31%21%20%28%25%28%23%
Other Income2131141414201249484470
Interest10584210000000
Depreciation7888889987666
Profit before tax598168861231111239774116118134136
Tax %33%28%33%34%35%36%35%35%21%23%24%24%
Net Profit3958465780718063588990102104
EPS in Rs45.9076.1260.5275.36105.2493.65105.3283.3877.10117.99118.32134.78136.75
Dividend Payout %8%5%7%5%5%5%5%6%6%4%4%4%

Sandesh Ltd Profit & Loss Yearly Chart

YoY Net Profit Growth
Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)48.72%-20.69%23.91%40.35%-11.25%12.68%-21.25%-7.94%53.45%1.12%13.33%
Change in YoY Net Profit Growth (%)0.00%-69.41%44.60%16.44%-51.60%23.93%-33.93%13.31%61.38%-52.32%12.21%

Sandesh Ltd Growth

Compounded Sales Growth
10 Years:1%
5 Years:-2%
3 Years:0%
TTM:-7%
Compounded Profit Growth
10 Years:7%
5 Years:4%
3 Years:19%
TTM:-4%
Stock Price CAGR
10 Years:18%
5 Years:14%
3 Years:25%
1 Year:44%
Return on Equity
10 Years:11%
5 Years:9%
3 Years:9%
Last Year:10%

Sandesh Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital9888888888888
Reserves3253513934475635826577167708779391,0441,103
Borrowings8268561014200000-0-0
Other Liabilities998090841189587695575636262
Total Liabilities5145075475497026867527938329601,0101,1131,172
Fixed Assets7875687173126138132128120110111110
CWIP20010110000-0-0-0
Investments146159159171393285387497419508508662763
Other Assets289273319307236264227163285331392339300
Total Assets5145075475497026867527938329601,0101,1131,172

Sandesh Ltd 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

Sandesh Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days856060606268696472685043
Inventory Days90718715868128128486612513247
Days Payable402236183737502418872721
Cash Conversion Cycle136108111200921581468912010615569
Working Capital Days2641531031101650565921713814598
ROCE %19%18%17%19%24%19%20%14%10%14%11%13%

Sandesh Ltd Financial Efficiency Indicators Chart

Sandesh Ltd 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

Sandesh Ltd Shareholding Pattern Chart

No. of Sandesh Ltd Shareholders

This stock is not held by any mutual fund

Sandesh Ltd ROCE Trend

Sandesh Ltd EPS Trend

Sandesh Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)133.98118.67118.8880.7285.62
Diluted EPS (Rs.)133.98118.67118.8880.7285.62
Cash EPS (Rs.)141.74127.16128.0488.5096.21
Book Value[Excl.RevalReserv]/Share (Rs.)1393.791256.041173.811039.69964.94
Book Value[Incl.RevalReserv]/Share (Rs.)1393.791256.041173.811039.69964.94
Revenue From Operations / Share (Rs.)450.18408.01361.61453.42553.49
PBDIT / Share (Rs.)181.79161.81162.63108.71142.44
PBIT / Share (Rs.)174.03153.32153.4798.33130.74
PBT / Share (Rs.)176.42156.10154.8899.02129.94
Net Profit / Share (Rs.)133.98118.67118.8878.1284.51
NP After MI And SOA / Share (Rs.)133.98118.67118.8880.7285.62
PBDIT Margin (%)40.3839.6544.9723.9725.73
PBIT Margin (%)38.6537.5742.4421.6823.62
PBT Margin (%)39.1838.2542.8321.8323.47
Net Profit Margin (%)29.7629.0832.8717.2215.26
NP After MI And SOA Margin (%)29.7629.0832.8717.8015.46
Return on Networth / Equity (%)9.619.4410.127.768.87
Return on Capital Employeed (%)12.3912.1612.989.3913.32
Return On Assets (%)9.078.859.337.258.09
Asset Turnover Ratio (%)0.310.310.300.410.53
Current Ratio (X)10.617.966.869.227.20
Quick Ratio (X)10.287.256.408.756.77
Inventory Turnover Ratio (X)4.312.332.525.394.54
Dividend Payout Ratio (NP) (%)3.734.215.077.467.04
Dividend Payout Ratio (CP) (%)3.523.934.706.616.19
Earning Retention Ratio (%)96.2795.7994.9392.5492.96
Cash Earning Retention Ratio (%)96.4896.0795.3093.3993.81
Interest Coverage Ratio (X)919.84611.79267.04197.34260.61
Interest Coverage Ratio (Post Tax) (X)665.81438.18192.88140.54156.08
Enterprise Value (Cr.)677.64423.85469.39315.94551.32
EV / Net Operating Revenue (X)1.991.371.710.921.32
EV / EBITDA (X)4.923.463.813.845.11
MarketCap / Net Operating Revenue (X)2.141.601.780.961.37
Retention Ratios (%)96.2695.7894.9292.5392.95
Price / BV (X)0.680.510.540.420.78
Price / Net Operating Revenue (X)2.141.601.780.961.37
EarningsYield0.130.180.180.180.11

Sandesh Ltd Profitability Ratios (%)

Sandesh Ltd Liquidity Ratios

Sandesh Ltd Liquidity Ratios (%)

Sandesh Ltd Interest Coverage Ratios (X)

Sandesh Ltd Valuation Ratios

Fair Value / Intrinsic Value of Sandesh Ltd

Fair Value: ₹1107.80

The stock is overvalued by 14.78% compared to the current price ₹1300

*Investments are subject to market risks

Strength and Weakness of Sandesh Ltd

StrengthWeakness
  1. The stock has a high average ROCE of 16.50%, which is a positive sign.
  2. The company has higher reserves (674.38 cr) compared to borrowings (17.85 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (332.46 cr) and profit (104.15 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 141.98 and average Dividend Yield of 32.79%.
  2. The stock has a high average Working Capital Days of 117.42, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 124.17, which may not be favorable.

Should I Buy Sandesh Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Sandesh Ltd:
    1. Net Profit Margin: 29.76%
      • 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: 12.39% (Industry Average ROCE: 13.61%)
      • 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. Interest Coverage Ratio (Post Tax): 665.81
      • 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.
    4. Quick Ratio: 10.28
      • 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.
    5. ✓ Stock P/E: 7.90 (Industry average Stock P/E: 28.1)
      • 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.
    6. ✗ 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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