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Last Updated on: 24 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Sanghi Industries Ltd

About the Company - Sanghi Industries Ltd

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., Hayatnagar Mandal, Hyderabad Telangana 501511companysecretary@sanghicement.com
http://www.sanghicement.com
Management
NamePosition Held
Mr. Ravi SanghiChairman & Managing Director
Mr. Aditya SanghiExecutive Director
Mr. Alok SanghiExecutive Director
Mrs. Bina EngineerExecutive Director
Mr. N B GohilExecutive Director
Mr. S BalasubramanianIndependent Director
Ms. Raina DesaiIndependent Director
Mr. Arvind AgarwalIndependent Director
Mr. G M YadwadkarIndependent Director
Mr. Sudhir NanavatiIndependent Director

Sanghi Industries Ltd. Share Price Update

Share PriceValue
Today₹114.95
Previous Day₹113.90

Basic Stock Data of Sanghi Industries Ltd

Market Cap 2,964 Cr.
Current Price 115
High / Low156/54.6
Stock P/E
Book Value 51.5
Dividend Yield0.00 %
ROCE2.76 %
ROE19.2 %
Face Value 10.0

Data Source: screener.in

Competitors of Sanghi Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Ramco Industries Ltd 2,019 Cr. 233274/11717.1 4590.42 %3.42 %3.15 % 1.00
Visaka Industries Ltd 1,153 Cr. 133178/64.4201 88.21.55 %9.89 %7.78 % 2.00
BIGBLOC Construction Ltd 1,695 Cr. 240266/11761.4 12.40.16 %35.7 %49.9 % 2.00
Industry Average1.33 Cr20293.17186.530.71%16.34%20.28%1.67

Sanghi Industries Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales172291328282211281355339230134226167181
Expenses136218234216171239311320232152238263209
Operating Profit3673946640424419-2-18-13-96-28
OPM %21%25%29%23%19%15%12%6%-1%-13%-6%-58%-15%
Other Income233234261211495
Interest18182021212020454677707378
Depreciation16161716161617242323232427
Profit before tax44260326109-44-59-118-105-189-39
Tax %0%0%57%30%25%25%29%25%25%-22%0%0%0%
Net Profit4422622486-33-44-144-105-189-39
EPS in Rs0.161.671.040.890.180.300.25-1.31-1.77-5.57-4.05-7.33-1.50

Sanghi Industries Ltd Quarterly Chart

Sanghi Industries Ltd Profit & Loss

MonthJun 2012Jun 2013Jun 2014Jun 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales9431,0551,0489328409981,0261,0618889391,129928707
Expenses757854851775689799811907695696938942861
Operating Profit186201197157151198216154193244192-14-155
OPM %20%19%19%17%18%20%21%15%22%26%17%-1%-22%
Other Income101287-59222271261119100
Interest2515142722647257787382238299
Depreciation98145148106547372716264649397
Profit before tax73534431166393536511357-326-451
Tax %-12%13%-14%0%2%0%0%0%0%31%28%0%
Net Profit8246503116639353657841-326-477
EPS in Rs3.722.092.251.390.732.873.722.102.603.121.62-12.61-18.45
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%0%

Sanghi Industries Ltd Profit & Loss Yearly Chart

Sanghi Industries Ltd Growth

Compounded Sales Growth
10 Years:0%
5 Years:-2%
3 Years:2%
TTM:-28%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:%
TTM:-163%
Stock Price CAGR
10 Years:23%
5 Years:18%
3 Years:45%
1 Year:105%
Return on Equity
10 Years:2%
5 Years:-1%
3 Years:-4%
Last Year:-19%

Sanghi Industries Ltd Balance Sheet

MonthJun 2012Jun 2013Jun 2014Jun 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital220220220220220220251251251251251258258
Reserves5746206706918318941,3471,3991,4641,5431,5831,3011,073
Preference Capital8076704300000000
Borrowings8366755814926035997407711,2561,4151,3971,5481,828
Other Liabilities320366286357366352316394433395589602405
Total Liabilities1,9501,8811,7571,7602,0202,0662,6542,8163,4043,6043,8203,7103,565
Fixed Assets1,3741,3811,2661,2381,4781,4521,5091,6051,7061,6523,1633,1173,105
CWIP155555956821672944371,0041,338424242
Investments0000000000000
Other Assets421445432466460447852774694614614550418
Total Assets1,9501,8811,7571,7602,0202,0662,6542,8163,4043,6043,8203,7103,565

Sanghi Industries Ltd Reserves and Borrowings Chart

Sanghi Industries Ltd Cash Flow

MonthJun 2012Jun 2013Jun 2014Jun 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 1091452101971427622212271302402-25
Cash from Investing Activity -16-24-44-44-124-8-684-112-471-342-29829
Cash from Financing Activity -90-124-167-152-19-68463-1040139-105-3
Net Cash Flow2-3-00-0-0002-1-11

Sanghi Industries Ltd Financial Efficiency Indicators

MonthJun 2012Jun 2013Jun 2014Jun 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days794689111516193020
Inventory Days5617298638118911,8141,5001,612
Days Payable2907586587307256685891,348
Cash Conversion Cycle792756-21214931811,16393029420
Working Capital Days-367026-4-14322612328632-12
ROCE %6%4%4%4%6%8%8%5%5%6%4%-3%

Sanghi Industries Ltd Financial Efficiency Indicators Chart

Sanghi Industries Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters70.33%70.33%70.33%70.33%70.33%70.33%71.93%72.72%72.72%72.72%72.72%72.59%
FIIs0.34%0.09%0.05%0.23%0.19%0.16%0.66%0.90%1.01%2.09%1.31%1.02%
DIIs2.23%2.23%1.85%0.00%0.00%0.00%0.00%0.00%0.00%0.00%1.36%0.62%
Public27.10%27.35%27.77%29.44%29.48%29.51%27.42%26.36%26.28%25.19%24.61%25.76%
No. of Shareholders47,25062,46756,29957,42858,19262,17857,05449,22546,54842,92646,46148,467

Sanghi Industries Ltd Shareholding Pattern Chart

No. of Sanghi Industries Ltd Shareholders

This stock is not held by any mutual fund

Sanghi Industries Ltd ROCE Trend

Sanghi Industries Ltd EPS Trend

Sanghi Industries Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)-12.881.623.122.602.10
Diluted EPS (Rs.)-12.881.623.122.602.10
Cash EPS (Rs.)-8.994.175.655.084.94
Book Value[Excl.RevalReserv]/Share (Rs.)60.3573.0871.4668.3465.75
Book Value[Incl.RevalReserv]/Share (Rs.)60.3573.0871.4668.3465.75
Revenue From Operations / Share (Rs.)35.9445.0037.4235.3642.27
PBDIT / Share (Rs.)0.228.089.948.187.22
PBIT / Share (Rs.)-3.395.537.405.714.38
PBT / Share (Rs.)-12.612.264.492.602.10
Net Profit / Share (Rs.)-12.611.623.122.602.10
PBDIT Margin (%)0.6317.9626.5623.1417.08
PBIT Margin (%)-9.4212.2819.7716.1410.36
PBT Margin (%)-35.085.0211.987.364.95
Net Profit Margin (%)-35.083.598.327.364.95
Return on Networth / Equity (%)-20.882.214.353.803.18
Return on Capital Employeed (%)-2.864.586.265.324.81
Return On Assets (%)-8.771.062.161.911.85
Long Term Debt / Equity (X)0.860.540.590.510.32
Total Debt / Equity (X)0.980.750.740.660.45
Asset Turnover Ratio (%)0.240.300.260.280.38
Current Ratio (X)0.760.710.870.821.10
Quick Ratio (X)0.310.300.310.320.66
Inventory Turnover Ratio (X)1.721.390.801.052.02
Interest Coverage Ratio (X)0.022.483.412.633.16
Interest Coverage Ratio (Post Tax) (X)-0.361.502.071.841.92
Enterprise Value (Cr.)3174.342426.942373.811560.512151.77
EV / Net Operating Revenue (X)3.422.152.531.762.03
EV / EBITDA (X)542.6211.969.527.6011.87
MarketCap / Net Operating Revenue (X)1.830.961.130.531.47
Price / BV (X)1.090.590.590.270.94
Price / Net Operating Revenue (X)1.830.961.130.531.47
EarningsYield-0.190.030.070.130.03

Sanghi Industries Ltd Profitability Ratios (%)

Sanghi Industries Ltd Liquidity Ratios

Sanghi Industries Ltd Liquidity Ratios (%)

Sanghi Industries Ltd Interest Coverage Ratios (X)

Sanghi Industries Ltd Valuation Ratios

Fair Value / Intrinsic Value of Sanghi Industries Ltd

Fair Value: ₹151.29

The stock is undervalued by 31.55% compared to the current price ₹115

*Investments are subject to market risks

Strength and Weakness of Sanghi Industries Ltd

StrengthWeakness
  1. The stock has a low average Working Capital Days of 20.83, which is a positive sign.
  2. The company has higher reserves (1,076.15 cr) compared to borrowings (20.69 cr), indicating strong financial stability.
  1. The stock is trading at a high valuation with an average P/B ratio of 3.93 and average Dividend Yield of -1.15%.
  2. The stock has a low average ROCE of 4.75%, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 167.42, which may not be favorable.
  4. The company has not shown consistent growth in sales (552.31) and profit (-8.92).

Should I Buy Sanghi Industries Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Sanghi Industries Ltd:
    1. Net Profit Margin: -35.08%
      • 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: -2.86% (Industry Average ROCE: 16.34%)
      • 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): -0.36
      • 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: 0.31
      • 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 of N/A (Industry average Stock P/E: 94.43)
      • 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: 0.98
      • 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 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