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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

Sarla Performance Fibers Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 9:31 pm

Market Cap 731 Cr.
Current Price 87.3
High / Low119/47.5
Stock P/E13.1
Book Value 55.6
Dividend Yield0.00 %
ROCE9.51 %
ROE7.94 %
Face Value 1.00
PEG Ratio5.75

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

View Share Price Target for Sarla Performance Fibers Ltd

Competitors of Sarla Performance Fibers Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Gujarat Cotex Ltd 16.4 Cr. 11.514.4/3.1937.2 4.890.00 %3.52 %2.90 % 5.00
Gini Silk Mills Ltd 71.4 Cr. 128164/59.534.3 87.60.00 %5.66 %4.64 % 10.0
Dhanlaxmi Fabrics Ltd 54.5 Cr. 63.580.0/44.9 55.20.00 %12.2 %14.6 % 10.0
Bluechip Tex Industries Ltd 27.1 Cr. 138226/136 1350.73 %3.29 %1.84 % 10.0
Arex Industries Ltd 68.3 Cr. 173244/11123.6 61.70.00 %11.3 %8.34 % 10.0
Industry Average1,153.29 Cr116.78173.6768.610.12%10.37%13.84%7.33

All Competitor Stocks of Sarla Performance Fibers Ltd

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales91861051141211191168270859696106
Expenses6764869610498100746073828387
Operating Profit2522201817211581012131319
OPM %27%25%19%16%14%18%13%10%15%15%14%14%18%
Other Income4287116426664
Interest6111111221112
Depreciation7677777788866
Profit before tax1716201711131332991215
Tax %41%27%27%28%31%28%28%38%99%32%30%26%24%
Net Profit10121512710102067811
EPS in Rs1.171.431.771.450.891.141.140.260.020.760.781.021.38

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales259262312299322304324311258426387383
Expenses212215262238267251272260201347331325
Operating Profit474750625553525157795758
OPM %18%18%16%21%17%18%16%16%22%19%15%15%
Other Income2912112720171816171021
Interest67668891212556
Depreciation81114152020222526273028
Profit before tax353840515445383235653245
Tax %20%26%30%11%36%47%34%8%25%28%34%27%
Net Profit282828453424262927472133
EPS in Rs4.033.993.355.394.082.893.043.523.145.672.563.94
Dividend Payout %29%19%24%19%27%38%36%0%0%35%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)0.00%0.00%60.71%-24.44%-29.41%8.33%11.54%-6.90%74.07%-55.32%57.14%
Change in YoY Net Profit Growth (%)0.00%0.00%60.71%-85.16%-4.97%37.75%3.21%-18.44%80.97%-129.39%112.46%

Sarla Performance Fibers Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:4%
5 Years:3%
3 Years:14%
TTM:28%
Compounded Profit Growth
10 Years:2%
5 Years:5%
3 Years:8%
TTM:273%
Stock Price CAGR
10 Years:8%
5 Years:33%
3 Years:16%
1 Year:72%
Return on Equity
10 Years:10%
5 Years:9%
3 Years:9%
Last Year:8%

Last Updated: Unknown

Balance Sheet

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

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital7788888888888
Reserves136162221253250265283310336384387420456
Borrowings114233259302254211241266149135109137151
Other Liabilities546169638677827491100778592
Total Liabilities311463558627598560615659585627580651708
Fixed Assets102196189211263241255263251232259240245
CWIP271-0-0-03101016-00-0
Investments3555885687075851751125194257
Other Assets179212311331266245274309317329196216205
Total Assets311463558627598560615659585627580651708

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +273528361493045303710231
Cash from Investing Activity +-54-128-6-57-3918-60-4831-26-56-56
Cash from Financing Activity +36-10861-10-27-60193-56-18-4624
Net Cash Flow9-2025716-57-1014-71-1

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-67.00-186.00-209.00-240.00-199.00-158.00-189.00-215.00-92.00-56.00-52.00-79.00

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

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days821059293939590107132865787
Inventory Days161187211276175141122135239191179155
Days Payable305067404331345595765871
Cash Conversion Cycle213243236329225205179186276201178170
Working Capital Days14412914213681110119108200143114131
ROCE %18%13%10%11%12%9%9%8%9%14%7%10%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters55.11%55.19%55.25%55.80%55.90%55.91%56.41%56.48%56.48%56.48%56.48%56.61%
FIIs0.02%0.67%1.00%0.85%0.87%0.89%0.70%0.64%0.65%0.71%0.65%0.73%
Public44.87%44.14%43.75%43.35%43.23%43.20%42.90%42.89%42.87%42.81%42.86%42.66%
No. of Shareholders18,20720,95221,82024,60224,25725,21325,20325,30525,90827,95427,35928,342

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
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)3.942.565.673.143.51
Diluted EPS (Rs.)3.942.565.673.143.51
Cash EPS (Rs.)7.266.108.856.266.50
Book Value[Excl.RevalReserv]/Share (Rs.)51.3047.3247.0541.2838.11
Book Value[Incl.RevalReserv]/Share (Rs.)51.3047.3247.0541.2838.11
Revenue From Operations / Share (Rs.)45.9046.3950.9830.8837.24
PBDIT / Share (Rs.)9.437.9911.458.698.07
PBIT / Share (Rs.)6.094.448.275.615.05
PBT / Share (Rs.)5.403.877.834.243.78
Net Profit / Share (Rs.)3.922.565.673.183.49
NP After MI And SOA / Share (Rs.)3.942.565.673.143.51
PBDIT Margin (%)20.5517.2122.4528.1521.66
PBIT Margin (%)13.279.5716.2118.1813.55
PBT Margin (%)11.768.3315.3513.7410.15
Net Profit Margin (%)8.535.5111.1210.299.36
NP After MI And SOA Margin (%)8.585.5011.1110.179.42
Return on Networth / Equity (%)7.685.4012.047.619.21
Return on Capital Employeed (%)10.638.7915.6711.458.24
Return On Assets (%)5.053.677.544.484.45
Long Term Debt / Equity (X)0.050.000.050.110.51
Total Debt / Equity (X)0.310.260.330.340.73
Asset Turnover Ratio (%)0.620.640.680.390.49
Current Ratio (X)1.491.321.731.741.63
Quick Ratio (X)0.990.701.151.351.27
Inventory Turnover Ratio (X)2.031.882.852.022.99
Dividend Payout Ratio (NP) (%)0.0078.260.000.0014.08
Dividend Payout Ratio (CP) (%)0.0032.780.000.007.57
Earning Retention Ratio (%)0.0021.740.000.0085.92
Cash Earning Retention Ratio (%)0.0067.220.000.0092.43
Interest Coverage Ratio (X)13.5613.8025.926.356.37
Interest Coverage Ratio (Post Tax) (X)6.635.4213.843.323.75
Enterprise Value (Cr.)568.56368.74538.57221.86269.73
EV / Net Operating Revenue (X)1.480.951.260.860.86
EV / EBITDA (X)7.225.535.633.064.00
MarketCap / Net Operating Revenue (X)1.160.711.110.770.34
Retention Ratios (%)0.0021.730.000.0085.91
Price / BV (X)1.040.701.200.580.33
Price / Net Operating Revenue (X)1.160.711.110.770.34
EarningsYield0.070.070.100.130.27

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Sarla Performance Fibers Ltd as of November 21, 2024 is: 58.99

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, Sarla Performance Fibers Ltd is Overvalued by 32.43% compared to the current share price 87.30

Intrinsic Value of Sarla Performance Fibers Ltd as of November 21, 2024 is: 60.33

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, Sarla Performance Fibers Ltd is Overvalued by 30.89% compared to the current share price 87.30

Last 5 Year EPS CAGR: 2.28%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (297.15 cr) compared to borrowings (197.00 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (320.58 cr) and profit (42.50 cr) over the years.
  1. The stock has a low average ROCE of 10.83%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 129.75, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 220.08, 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 Sarla Performance Fibers Ltd:
    1. Net Profit Margin: 8.53%
      • 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: 10.63% (Industry Average ROCE: 10.37%)
      • 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%: 7.68% (Industry Average ROE: 13.84%)
      • 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): 6.63
      • 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: 0.99
      • 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: 13.1 (Industry average Stock P/E: 173.67)
      • 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: 0.31
      • 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

Sarla Performance Fibers Ltd. is a Public Limited Listed company incorporated on 25/11/1993 and has its registered office in the State of Dadra & Nagar Haveli, India. Company’s Corporate Identification Number(CIN) is L31909DN1993PLC000056 and registration number is 000056. Currently Company is involved in the business activities of Manufacture of synthetic or artificial mono-filament or strip. Company’s Total Operating Revenue is Rs. 423.54 Cr. and Equity Capital is Rs. 8.35 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Textiles - Processing/TexturisingSurvey No.59/1/4, Amli Piparia Indutrial Estate, Silvassa Dadra & Nagar Haveli 396230investors@sarlafibers.com
http://www.sarlafibers.com
Management
NamePosition Held
Mr. Krishnakumar Madhusudan JhunjhunwalaManaging Director
Mr. Parantap DaveDirector
Ms. Shreya DesaiDirector
Mr. Paulo Manuel Ferreira Moura De CastroDirector
Ms. Neha JhunjhunwalaDirector
Mr. Kanav JhunjhunwalaDirector
Mr. Sachin Shashikant AbhyankarDirector
Mr. Bharat K JhamvarDirector

FAQ

What is the latest intrinsic value of Sarla Performance Fibers Ltd?

The latest intrinsic value of Sarla Performance Fibers Ltd as on 21 November 2024 is ₹58.99, which is 32.43% lower than the current market price of ₹87.30.

What is the Market Cap of Sarla Performance Fibers Ltd?

The Market Cap of Sarla Performance Fibers Ltd is 731 Cr..

What is the current Stock Price of Sarla Performance Fibers Ltd as on 21 November 2024?

The current stock price of Sarla Performance Fibers Ltd as on 21 November 2024 is ₹87.3.

What is the High / Low of Sarla Performance Fibers Ltd stocks in FY 2024?

In FY 2024, the High / Low of Sarla Performance Fibers Ltd stocks is 119/47.5.

What is the Stock P/E of Sarla Performance Fibers Ltd?

The Stock P/E of Sarla Performance Fibers Ltd is 13.1.

What is the Book Value of Sarla Performance Fibers Ltd?

The Book Value of Sarla Performance Fibers Ltd is 55.6.

What is the Dividend Yield of Sarla Performance Fibers Ltd?

The Dividend Yield of Sarla Performance Fibers Ltd is 0.00 %.

What is the ROCE of Sarla Performance Fibers Ltd?

The ROCE of Sarla Performance Fibers Ltd is 9.51 %.

What is the ROE of Sarla Performance Fibers Ltd?

The ROE of Sarla Performance Fibers Ltd is 7.94 %.

What is the Face Value of Sarla Performance Fibers Ltd?

The Face Value of Sarla Performance Fibers Ltd is 1.00.

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 Sarla Performance Fibers 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