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

Fundamental Analysis of Sandhar Technologies Ltd

Basic Stock Data

Last Updated: June 17, 2024, 8:15 pm

Market Cap 3,385 Cr.
Current Price 562
High / Low599/254
Stock P/E30.8
Book Value 169
Dividend Yield0.44 %
ROCE12.0 %
ROE11.3 %
Face Value 10.0
PEG Ratio2.19

Competitors of Sandhar Technologies Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Pricol Ltd 5,547 Cr. 455468/21139.4 69.40.00 %23.8 %18.2 % 1.00
Sharda Motor Industries Ltd 5,915 Cr. 1,9982,006/76120.1 3450.86 %42.8 %32.6 % 2.00
Shivam Autotech Ltd 509 Cr. 41.849.8/24.8 4.550.00 %2.82 %62.7 % 2.00
Lumax Auto Technologies Ltd 3,624 Cr. 532536/33227.8 1160.85 %17.7 %17.9 % 2.00
Akar Auto Industries Ltd 111 Cr. 103170/80.320.3 41.20.50 %17.7 %13.1 % 5.00
Industry Average3,947.38 Cr705.46118.48138.000.65%17.15%15.74%5.13

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales642410618612684675746723765829885890918
Expenses566382562563623623690657697756804801820
Operating Profit76285649605257656873818998
OPM %12%7%9%8%9%8%8%9%9%9%9%10%11%
Other Income3221133283435
Interest444467891111131314
Depreciation24242525272929313335374042
Profit before tax5123022281923273230353946
Tax %20%-20%28%39%38%32%28%27%22%27%22%34%23%
Net Profit4022113181316202522282536
EPS in Rs6.670.373.522.162.912.112.703.274.043.554.544.195.96

Last Updated: June 9, 2024, 6:03 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: June 25, 2024, 8:50 pm

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales1,4821,5131,6111,9462,3361,9431,8642,3242,9093,521
Expenses1,3431,3721,4661,7432,0911,7571,6862,1302,6633,180
Operating Profit139141146203245187177193246341
OPM %9%9%9%10%10%10%10%8%8%10%
Other Income61746101161115
Interest41424343242016183652
Depreciation52555868819894100122154
Profit before tax51455297145787881100150
Tax %25%25%20%32%34%27%26%31%27%27%
Net Profit383442669657585674110
EPS in Rs7.486.548.0710.8015.819.459.599.2612.1218.24
Dividend Payout %25%54%25%19%16%21%23%24%21%18%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-10.53%23.53%57.14%45.45%-40.62%1.75%-3.45%32.14%48.65%
Change in YoY Net Profit Growth (%)0.00%34.06%33.61%-11.69%-86.08%42.38%-5.20%35.59%16.51%

Growth

Compounded Sales Growth
10 Years:%
5 Years:8%
3 Years:14%
TTM:19%
Compounded Profit Growth
10 Years:%
5 Years:2%
3 Years:8%
TTM:46%
Stock Price CAGR
10 Years:%
5 Years:14%
3 Years:36%
1 Year:147%
Return on Equity
10 Years:%
5 Years:9%
3 Years:7%
Last Year:8%

Last Updated: April 13, 2024, 9:51 am

Sandhar Technologies Ltd Balance Sheet

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital10515160606060606060
Reserves249222251574659702744799860895
Borrowings370395460484268283310614666668
Other Liabilities286296305467475321482503563645
Total Liabilities9169651,0671,5851,4621,3671,5971,9762,1502,268
Fixed Assets4765285956787438318429421,1721,220
CWIP40552972373315128115117
Investments341124394858534951
Other Assets396377433811642454682853814880
Total Assets9169651,0671,5851,4621,3671,5971,9762,1502,268

Reserves and Borrowings Chart

Sandhar Technologies Ltd Cash Flow

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 1001449618813323912449308
Cash from Investing Activity -118-103-107-186-141-112-98-310-269
Cash from Financing Activity 20-4114247-243-124-26260-37
Net Cash Flow2-02249-2513-1-22

Free Cash Flow

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-231.00-254.00-314.00-281.00-23.00-96.00-133.00-421.00-420.00-400.00

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 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days464047505336777045
Inventory Days636563665864716760
Days Payable909190112947913110382
Cash Conversion Cycle19141951722173523
Working Capital Days241812-332725384731
ROCE %14%13%15%16%10%9%8%9%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters70.37%70.37%70.38%70.38%70.38%70.38%70.38%70.38%70.38%70.38%70.38%70.38%
FIIs1.70%1.47%1.25%0.98%1.05%1.09%0.90%0.91%1.65%1.35%1.52%1.48%
DIIs16.24%15.88%15.68%15.46%16.11%15.58%16.81%16.52%16.96%16.96%16.41%16.15%
Public11.69%12.27%12.69%13.18%12.46%12.95%11.92%12.19%11.01%11.30%11.69%11.99%
No. of Shareholders25,04032,12333,24633,66432,64734,12532,18130,73128,41229,34631,28637,270

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Nippon India Small Cap Fund2,425,8520.27119.64200,0002024-06-161112.93%
DSP Small Cap Fund2,353,8940.91118.84200,0002024-06-161076.95%
Kotak Small Cap Fund - Regular Plan1,933,8580.6895.38200,0002024-06-16866.93%
Bandhan ELSS Tax Saver Fund1,350,0001.1666.58200,0002024-06-16575%
ICICI Prudential Equity & Debt Fund341,7370.0617.25200,0002024-06-1670.87%
ICICI Prudential Dividend Yield Equity Fund313,6890.5515.84200,0002024-06-1656.84%
Bandhan Transportation and Logistics Fund200,0002.559.86200,0002024-06-160%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)18.3212.229.299.619.47
Diluted EPS (Rs.)18.3212.229.299.619.47
Cash EPS (Rs.)43.1932.8828.0227.0827.39
Book Value[Excl.RevalReserv]/Share (Rs.)168.90153.66143.35134.25127.27
Book Value[Incl.RevalReserv]/Share (Rs.)168.90153.66143.35134.25127.27
Revenue From Operations / Share (Rs.)584.99483.28386.06309.61322.87
PBDIT / Share (Rs.)58.3843.4635.3933.0934.29
PBIT / Share (Rs.)32.8623.2718.7717.4817.94
PBT / Share (Rs.)24.3017.1415.6414.8214.54
Net Profit / Share (Rs.)17.6612.6911.4011.4711.04
NP After MI And SOA / Share (Rs.)18.2412.129.269.609.45
PBDIT Margin (%)9.978.999.1610.6810.62
PBIT Margin (%)5.614.814.865.645.55
PBT Margin (%)4.153.544.054.784.50
Net Profit Margin (%)3.012.622.953.703.42
NP After MI And SOA Margin (%)3.112.502.393.092.92
Return on Networth / Equity (%)10.797.926.487.177.46
Return on Capital Employeed (%)13.5510.209.3610.4712.45
Return On Assets (%)4.523.382.823.614.16
Long Term Debt / Equity (X)0.280.330.280.120.01
Total Debt / Equity (X)0.610.590.600.260.25
Asset Turnover Ratio (%)1.541.431.271.211.31
Current Ratio (X)0.940.991.041.120.88
Quick Ratio (X)0.600.610.700.760.49
Inventory Turnover Ratio (X)6.767.737.156.186.06
Dividend Payout Ratio (NP) (%)0.0018.6010.9020.9426.87
Dividend Payout Ratio (CP) (%)0.006.973.907.979.84
Earning Retention Ratio (%)0.0081.4089.1079.0673.13
Cash Earning Retention Ratio (%)0.0093.0396.1092.0390.16
Interest Coverage Ratio (X)6.827.3112.0312.4310.09
Interest Coverage Ratio (Post Tax) (X)3.063.174.945.314.25
Enterprise Value (Cr.)3735.331760.671827.161443.78965.80
EV / Net Operating Revenue (X)1.060.600.780.770.49
EV / EBITDA (X)10.636.738.587.254.68
MarketCap / Net Operating Revenue (X)0.890.410.560.660.39
Retention Ratios (%)0.0081.3989.0979.0573.12
Price / BV (X)3.091.321.531.541.02
Price / Net Operating Revenue (X)0.890.410.560.660.39
EarningsYield0.030.060.040.040.07

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 590.78

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: 5.12% compared to the current price 562

Intrinsic Value: 673.82

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: 19.90% compared to the current price ₹562

Last 5 Year EPS CAGR: 14.06%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of 21.00, which is a positive sign.
  2. The company has higher reserves (601.60 cr) compared to borrowings (459.10 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (1.50 cr) and profit (87.70 cr) over the years.
  1. The stock has a low average ROCE of 10.44%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 19.00, 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 Sandhar Technologies Ltd:
    1. Net Profit Margin: 3.01%
      • 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: 13.55% (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%: 10.79% (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): 3.06
      • 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: 0.60
      • 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: 30.8 (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: 0.61
      • 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

Sandhar Technologies Ltd. is a Public Limited Listed company incorporated on 19/10/1987 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L74999DL1987PLC029553 and registration number is 029553. Currently Company is involved in the business activities of Manufacture of parts and accessories of three wheelers and motorcycles including side cars. Company’s Total Operating Revenue is Rs. 1941.02 Cr. and Equity Capital is Rs. 60.19 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Auto Ancl - OthersB-6/20 L.S.C. Safdarjung Enclave, New Delhi Delhi 110029investors@sandhar.in
http://www.sandhar.co.in
Management
NamePosition Held
Mr. Dharmendar Nath DavarChairman, Non Ind & Non Exe Director
Mr. Jayant DavarCo-Chairman & Manag. Director
Mrs. Monica DavarNon Exe.Non Ind.Director
Mr. Sandeep DinodiaNon Exe.Non Ind.Director
Mr. Neel Jay DavarNon Exe.Non Ind.Director
Mr. Arvind KapurInd. Non-Executive Director
Mr. Vimal MahendruInd. Non-Executive Director
Mr. Bharat AnandInd. Non-Executive Director
Mrs. Archana CapoorInd. Non-Executive Director
Mr. Arjun SharmaInd. Non-Executive Director

FAQ

What is the latest fair value of Sandhar Technologies Ltd?

The latest fair value of Sandhar Technologies Ltd is ₹590.78.

What is the Market Cap of Sandhar Technologies Ltd?

The Market Cap of Sandhar Technologies Ltd is 3,385 Cr..

What is the current Stock Price of Sandhar Technologies Ltd as on 22 June 2024?

The current stock price of Sandhar Technologies Ltd as on 22 June 2024 is ₹562.

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

In FY 2024, the High / Low of Sandhar Technologies Ltd stocks is 599/254.

What is the Stock P/E of Sandhar Technologies Ltd?

The Stock P/E of Sandhar Technologies Ltd is 30.8.

What is the Book Value of Sandhar Technologies Ltd?

The Book Value of Sandhar Technologies Ltd is 169.

What is the Dividend Yield of Sandhar Technologies Ltd?

The Dividend Yield of Sandhar Technologies Ltd is 0.44 %.

What is the ROCE of Sandhar Technologies Ltd?

The ROCE of Sandhar Technologies Ltd is 12.0 %.

What is the ROE of Sandhar Technologies Ltd?

The ROE of Sandhar Technologies Ltd is 11.3 %.

What is the Face Value of Sandhar Technologies Ltd?

The Face Value of Sandhar Technologies 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 Sandhar Technologies 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