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Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 526521 | NSE: SANGHIIND

Sanghi Industries Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 20, 2024, 9:07 pm

Market Cap 2,102 Cr.
Current Price 81.4
High / Low156/71.7
Stock P/E
Book Value 31.9
Dividend Yield0.00 %
ROCE5.45 %
ROE34.1 %
Face Value 10.0
PEG Ratio0.00

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Sanghi Industries Ltd

Competitors of Sanghi Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Visaka Industries Ltd 789 Cr. 91.3178/82.3 86.40.55 %3.33 %0.33 % 2.00
Sanghi Industries Ltd 2,102 Cr. 81.4156/71.7 31.90.00 %5.45 %34.1 % 10.0
Ramco Industries Ltd 2,446 Cr. 282310/19219.3 4740.27 %3.15 %2.67 % 1.00
BIGBLOC Construction Ltd 1,452 Cr. 103148/75.270.9 9.340.39 %24.0 %34.2 % 2.00
Industry Average1,697.25 Cr139.4345.10150.410.30%8.98%17.83%3.75

All Competitor Stocks of Sanghi Industries Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales282211281355339230134226167181189285223
Expenses216171239311320232152238263209212226228
Operating Profit6640424419-2-18-13-96-28-2359-5
OPM %23%19%15%12%6%-1%-13%-6%-58%-15%-12%21%-2%
Other Income234261211495-58-108
Interest21212020454677707378904248
Depreciation16161617242323232427312543
Profit before tax326109-44-59-118-105-189-39-201-19-89
Tax %30%25%25%29%-25%-25%22%0%0%0%0%0%0%
Net Profit22486-33-44-144-105-189-39-202-19-89
EPS in Rs0.890.180.300.25-1.31-1.77-5.57-4.05-7.33-1.50-7.80-0.74-3.44

Last Updated: October 25, 2024, 4:25 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: October 25, 2024, 4:25 pm

MonthJun 2013Jun 2014Jun 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales1,0551,0489328409981,0261,0618889391,129928821878
Expenses854851775689799811907695696938942899875
Operating Profit201197157151198216154193244192-14-773
OPM %19%19%17%18%20%21%15%22%26%17%-1%-9%0%
Other Income1287-592222712611191934
Interest15142722647257787382238284259
Depreciation1451481065473727162646493107127
Profit before tax534431166393536511357-326-449-348
Tax %13%-14%0%2%0%0%0%0%31%28%0%0%
Net Profit46503116639353657841-326-449-348
EPS in Rs2.092.251.390.732.873.722.102.603.121.62-12.61-17.37-13.48
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)293.75%47.62%-43.01%22.64%20.00%-47.44%-895.12%-37.73%
Change in YoY Net Profit Growth (%)0.00%-246.13%-90.63%65.65%-2.64%-67.44%-847.69%857.39%

Sanghi Industries Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 8 years from 2016-2017 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:-2%
5 Years:-5%
3 Years:-4%
TTM:20%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:%
TTM:45%
Stock Price CAGR
10 Years:6%
5 Years:17%
3 Years:10%
1 Year:-28%
Return on Equity
10 Years:-2%
5 Years:-7%
3 Years:-15%
Last Year:-34%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 7:43 pm

MonthJun 2013Jun 2014Jun 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital220220220220220251251251251251258258258
Reserves6206706918318941,3471,3991,4641,5431,5831,301852566
Borrowings7516515356035997407711,2561,4151,3971,5482,0842,679
Other Liabilities290217314366352316394433395589602434495
Total Liabilities1,8811,7571,7602,0202,0662,6542,8163,4043,6043,8203,7103,6283,998
Fixed Assets1,3811,2661,2381,4781,4521,5091,6051,7061,6523,1633,1173,1853,154
CWIP555956821672944371,0041,3384242455
Investments0000000000000
Other Assets445432466460447852774694614614550439790
Total Assets1,8811,7571,7602,0202,0662,6542,8163,4043,6043,8203,7103,6283,998

Reserves and Borrowings Chart

Cash Flow

MonthJun 2013Jun 2014Jun 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +1452101971427622212271302402-25-243
Cash from Investing Activity +-24-44-44-124-8-684-112-471-342-29829234
Cash from Financing Activity +-124-167-152-19-68463-1040139-105-3182
Net Cash Flow-3-00-0-0002-1-11172

Free Cash Flow

MonthJun 2013Jun 2014Jun 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-550.00-454.00-378.00-452.00-401.00-524.00-617.00192.00243.00191.00-15.00-79.00

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

MonthJun 2013Jun 2014Jun 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days946891115161930200
Inventory Days5617298638118911,8141,5001,612308
Days Payable2907586587307256685891,34898
Cash Conversion Cycle92756-21214931811,16393029420210
Working Capital Days7026-4-14322612328632-40-73
ROCE %4%4%4%6%8%8%5%5%6%4%-3%-5%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters70.33%70.33%70.33%71.93%72.72%72.72%72.72%72.72%72.59%78.52%75.00%75.00%
FIIs0.23%0.19%0.16%0.66%0.90%1.01%2.09%1.31%1.02%0.13%0.18%0.18%
DIIs0.00%0.00%0.00%0.00%0.00%0.00%0.00%1.36%0.62%0.09%0.30%0.34%
Government0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.08%0.00%0.00%
Public29.44%29.48%29.51%27.42%26.36%26.28%25.19%24.61%25.76%21.17%24.52%24.47%
No. of Shareholders57,42858,19262,17857,05449,22546,54842,92646,46148,46757,09572,59476,040

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.)-17.37-12.881.623.122.60
Diluted EPS (Rs.)-17.37-12.881.623.122.60
Cash EPS (Rs.)-13.23-8.994.175.655.08
Book Value[Excl.RevalReserv]/Share (Rs.)43.0060.3573.0871.4668.34
Book Value[Incl.RevalReserv]/Share (Rs.)43.0060.3573.0871.4668.34
Revenue From Operations / Share (Rs.)31.7935.9445.0037.4235.36
PBDIT / Share (Rs.)-2.920.228.089.948.18
PBIT / Share (Rs.)-7.06-3.395.537.405.71
PBT / Share (Rs.)-17.36-12.612.264.492.60
Net Profit / Share (Rs.)-17.37-12.611.623.122.60
PBDIT Margin (%)-9.180.6317.9626.5623.14
PBIT Margin (%)-22.21-9.4212.2819.7716.14
PBT Margin (%)-54.61-35.085.0211.987.36
Net Profit Margin (%)-54.64-35.083.598.327.36
Return on Networth / Equity (%)-40.40-20.882.214.353.80
Return on Capital Employeed (%)-5.58-2.864.586.265.32
Return On Assets (%)-12.36-8.771.062.161.91
Long Term Debt / Equity (X)1.870.860.540.590.51
Total Debt / Equity (X)1.870.980.750.740.66
Asset Turnover Ratio (%)0.220.240.300.260.28
Current Ratio (X)1.070.760.710.870.82
Quick Ratio (X)0.690.310.300.310.32
Inventory Turnover Ratio (X)2.061.721.390.801.05
Interest Coverage Ratio (X)-0.260.022.483.412.63
Interest Coverage Ratio (Post Tax) (X)-0.64-0.361.502.071.84
Enterprise Value (Cr.)4226.923174.342426.942373.811560.51
EV / Net Operating Revenue (X)5.153.422.152.531.76
EV / EBITDA (X)-56.03542.6211.969.527.60
MarketCap / Net Operating Revenue (X)2.851.830.961.130.53
Price / BV (X)2.101.090.590.590.27
Price / Net Operating Revenue (X)2.851.830.961.130.53
EarningsYield-0.19-0.190.030.070.13

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Sanghi Industries Ltd as of November 21, 2024 is: 166.43

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.

As of November 21, 2024, Sanghi Industries Ltd is Undervalued by 104.46% compared to the current share price 81.40

Default values used*: Default value of 15 for Stock P/E is used

Intrinsic Value of Sanghi Industries Ltd as of November 21, 2024 is: 93.78

Calculation basis:

  • Intrinsic 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 intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 21, 2024, Sanghi Industries Ltd is Undervalued by 15.21% compared to the current share price 81.40

Default values used*: Default value of 15 for Stock P/E is used

Last 5 Year EPS CAGR: -43.65%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of 15.42, which is a positive sign.
  1. The stock has a low average ROCE of 3.83%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 184.33, which may not be favorable.
  3. The company has higher borrowings (1,156.08) compared to reserves (1,058.54), which may suggest financial risk.
  4. The company has not shown consistent growth in sales (556.08) and profit (-41.15).

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 Sanghi Industries Ltd:
    1. Net Profit Margin: -54.64%
      • 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: -5.58% (Industry Average ROCE: 8.98%)
      • 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%: -40.4% (Industry Average ROE: 17.83%)
      • 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): -0.64
      • 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: 0.69
      • 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: 0 (Industry average Stock P/E: 45.1)
      • 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.
    7. Total Debt / Equity: 1.87
      • 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 - Qualitative Analysis

Sanghi Industries Ltd. is a Public Limited Listed company incorporated on 14/06/1985 and has its registered office in the State of Andhra Pradesh, India. Company’s Corporate Identification Number(CIN) is L18209TG1985PLC005581 and registration number is 005581. Currently Company is involved in the business activities of Manufacture of cement, lime and plaster. Company’s Total Operating Revenue is Rs. 1129.42 Cr. and Equity Capital is Rs. 251.00 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Cement ProductsSanghinagar P.O., Hyderabad Telangana 501511companysecretary.sil@adani.com
http://www.sanghicement.com
Management
NamePosition Held
Mr. Ajay KapurChairman
Mr. Sukuru RamaraoWholeTime Director & CEO
Mr. Vinod BahetyNon Executive Director
Mr. Ravi KapoorIndependent Director
Ms. Shruti ShahIndependent Director
Mr. Sudhir NanavatiIndependent Director

FAQ

What is the latest intrinsic value of Sanghi Industries Ltd?

The latest intrinsic value of Sanghi Industries Ltd as on 21 November 2024 is ₹166.43, which is 104.46% higher than the current market price of ₹81.40.

What is the Market Cap of Sanghi Industries Ltd?

The Market Cap of Sanghi Industries Ltd is 2,102 Cr..

What is the current Stock Price of Sanghi Industries Ltd as on 21 November 2024?

The current stock price of Sanghi Industries Ltd as on 21 November 2024 is ₹81.4.

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

In FY 2024, the High / Low of Sanghi Industries Ltd stocks is 156/71.7.

What is the Stock P/E of Sanghi Industries Ltd?

The Stock P/E of Sanghi Industries Ltd is .

What is the Book Value of Sanghi Industries Ltd?

The Book Value of Sanghi Industries Ltd is 31.9.

What is the Dividend Yield of Sanghi Industries Ltd?

The Dividend Yield of Sanghi Industries Ltd is 0.00 %.

What is the ROCE of Sanghi Industries Ltd?

The ROCE of Sanghi Industries Ltd is 5.45 %.

What is the ROE of Sanghi Industries Ltd?

The ROE of Sanghi Industries Ltd is 34.1 %.

What is the Face Value of Sanghi Industries Ltd?

The Face Value of Sanghi Industries 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 Sanghi Industries 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