Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post
Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Sarveshwar Foods Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

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

Market Cap 859 Cr.
Current Price 8.78
High / Low15.7/4.50
Stock P/E42.4
Book Value 2.95
Dividend Yield0.00 %
ROCE11.8 %
ROE7.95 %
Face Value 1.00
PEG Ratio2.61

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

View Share Price Target for Sarveshwar Foods Ltd

Competitors of Sarveshwar Foods Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
ICL Organic Dairy Products Ltd 23.8 Cr. 39.741.8/39.71,192 20.10.00 %0.25 %0.17 % 10.0
Himalaya Food International Ltd 117 Cr. 20.229.9/18.018.7 24.40.00 %3.63 %3.61 % 10.0
Goldcoin Health Foods Ltd 3.37 Cr. 11.213.6/5.80 3.430.00 %18.4 %24.2 % 10.0
Galaxy Cloud Kitchens Ltd 274 Cr. 61.167.5/12.2 4.780.00 %%% 10.0
Foods & Inns Ltd 832 Cr. 114179/11030.6 70.20.26 %16.1 %12.3 % 1.00
Industry Average18,135.57 Cr910.24200.40130.350.20%18.91%18.90%6.26

All Competitor Stocks of Sarveshwar Foods Ltd

Quarterly Result

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales148.89202.35197.41178.20183.91129.81187.68205.22229.38247.32
Expenses141.25196.73189.57170.42178.42118.57176.62191.20212.98233.58
Operating Profit7.645.627.847.785.4911.2411.0614.0216.4013.74
OPM %5.13%2.78%3.97%4.37%2.99%8.66%5.89%6.83%7.15%5.56%
Other Income0.500.222.301.453.440.861.561.851.152.72
Interest7.083.226.246.526.407.748.319.4110.3811.31
Depreciation0.420.430.350.350.331.690.290.290.260.27
Profit before tax0.642.193.552.362.202.674.026.176.914.88
Tax %62.50%54.79%21.41%37.29%21.82%32.21%27.86%21.56%28.51%14.96%
Net Profit0.251.002.801.471.721.812.904.834.934.14
EPS in Rs0.000.010.040.020.020.020.030.050.050.04

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales259354418481566488514605689870
Expenses232325381439531463494577657814
Operating Profit28303742362520273255
OPM %11%8%9%9%6%5%4%5%5%6%
Other Income3121442387
Interest18201918142013202739
Depreciation3333222231
Profit before tax1071822237891122
Tax %21%22%27%24%23%18%34%28%27%23%
Net Profit86131718653817
EPS in Rs0.290.200.240.220.250.080.070.050.110.17
Dividend Payout %-0%-0%-0%-0%-0%-0%-0%-0%-0%-0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-25.00%116.67%30.77%5.88%-66.67%-16.67%-40.00%166.67%112.50%
Change in YoY Net Profit Growth (%)0.00%141.67%-85.90%-24.89%-72.55%50.00%-23.33%206.67%-54.17%

Sarveshwar Foods Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 9 years from 2015-2016 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:%
5 Years:9%
3 Years:19%
TTM:39%
Compounded Profit Growth
10 Years:%
5 Years:-2%
3 Years:58%
TTM:80%
Stock Price CAGR
10 Years:%
5 Years:68%
3 Years:121%
1 Year:83%
Return on Equity
10 Years:%
5 Years:5%
3 Years:5%
Last Year:8%

Last Updated: Unknown

Balance Sheet

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

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital99182525252525299898
Reserves21263090107112113116163133190
Borrowings184199205204249246288288310320304
Other Liabilities7341721154946548570240311
Total Liabilities287275325433430429480514571791904
Fixed Assets3027252423222019161615
CWIP00000000000
Investments00000041111
Other Assets257248300409407407456494554775888
Total Assets287275325433430429480514571791904

Reserves and Borrowings Chart

Cash Flow

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +261822-15-3411-3522-25-9
Cash from Investing Activity +-7-3-9-1-1-32-3-1716
Cash from Financing Activity +-18-14-153219-831-1941-6
Net Cash Flow10-116-161-1-0-00

Free Cash Flow

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-156.00-169.00-168.00-162.00-213.00-221.00-268.00-261.00-278.00-265.00

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 2023Mar 2024
Debtor Days31885873581461431329379
Inventory Days422198231247217162196148160167
Days Payable83416596313240441771
Cash Conversion Cycle370246224225245276299236236175
Working Capital Days293212190209230269285246256224
ROCE %12%15%14%11%7%5%7%8%12%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2020Mar 2021Sep 2021Mar 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters73.67%73.67%73.67%73.67%68.20%68.20%57.85%55.75%54.91%54.91%54.91%54.91%
FIIs0.00%0.00%0.00%0.00%0.91%0.91%2.50%2.37%3.76%2.59%1.05%0.00%
Public26.33%26.32%26.33%26.32%30.89%30.88%39.65%41.90%41.32%42.49%44.02%45.09%
No. of Shareholders1,5201,4601,4321,3901,2831,7692,0992,36028,41443,8532,03,8882,13,791

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
FaceValue1.0010.0010.0010.0010.00
Basic EPS (Rs.)0.232.971.282.132.32
Diluted EPS (Rs.)0.232.971.282.132.32
Cash EPS (Rs.)0.183.673.102.923.23
Book Value[Excl.RevalReserv]/Share (Rs.)2.5873.8257.6256.2655.86
Book Value[Incl.RevalReserv]/Share (Rs.)2.5873.8257.6256.2655.86
Revenue From Operations / Share (Rs.)8.88237.97246.15209.50198.58
PBDIT / Share (Rs.)0.6413.9812.229.1411.73
PBIT / Share (Rs.)0.6313.0511.558.3610.82
PBT / Share (Rs.)0.223.763.553.252.85
Net Profit / Share (Rs.)0.172.732.432.132.33
NP After MI And SOA / Share (Rs.)0.172.691.282.132.32
PBDIT Margin (%)7.255.874.964.365.90
PBIT Margin (%)7.125.484.693.995.44
PBT Margin (%)2.581.581.441.551.43
Net Profit Margin (%)1.991.140.981.011.17
NP After MI And SOA Margin (%)1.921.130.511.011.17
Return on Networth / Equity (%)6.633.642.213.784.16
Return on Capital Employeed (%)17.9114.5813.2210.2516.58
Return On Assets (%)2.111.380.661.031.33
Long Term Debt / Equity (X)0.360.200.360.290.01
Total Debt / Equity (X)1.181.341.881.921.62
Asset Turnover Ratio (%)1.291.340.700.650.58
Current Ratio (X)1.741.801.751.571.51
Quick Ratio (X)0.930.890.890.770.79
Inventory Turnover Ratio (X)0.811.610.710.460.42
Interest Coverage Ratio (X)1.601.511.531.791.47
Interest Coverage Ratio (Post Tax) (X)1.441.291.301.421.29
Enterprise Value (Cr.)1220.34475.57392.45341.47267.21
EV / Net Operating Revenue (X)1.400.680.640.660.54
EV / EBITDA (X)19.3511.7413.0715.209.27
MarketCap / Net Operating Revenue (X)1.060.270.170.100.05
Price / BV (X)3.650.880.740.390.18
Price / Net Operating Revenue (X)1.060.270.170.100.05
EarningsYield0.010.040.020.090.22

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Sarveshwar Foods Ltd as of November 21, 2024 is: 10.14

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, Sarveshwar Foods Ltd is Undervalued by 15.49% compared to the current share price 8.78

Intrinsic Value of Sarveshwar Foods Ltd as of November 21, 2024 is: 11.79

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, Sarveshwar Foods Ltd is Undervalued by 34.28% compared to the current share price 8.78

Last 5 Year EPS CAGR: 16.27%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has shown consistent growth in sales (524.40 cr) and profit (13.70 cr) over the years.
  1. The stock has a low average ROCE of 9.10%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 241.40, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 253.20, which may not be favorable.
  4. The company has higher borrowings (254.27) compared to reserves (100.09), which may suggest financial risk.

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 Sarveshwar Foods Ltd:
    1. Net Profit Margin: 1.99%
      • 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: 17.91% (Industry Average ROCE: 18.21%)
      • 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%: 6.63% (Industry Average ROE: 18.2%)
      • 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): 1.44
      • 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: 0.93
      • 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: 42.4 (Industry average Stock P/E: 163.29)
      • 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: 1.18
      • 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

Sarveshwar Foods Ltd. is a Public Limited Listed company incorporated on 03/08/2004 and has its registered office in the State of Jammu & Kashmir, India. Company’s Corporate Identification Number(CIN) is L15312JK2004PLC002444 and registration number is 002444. Currently Company is involved in the business activities of Rice milling. Company’s Total Operating Revenue is Rs. 272.91 Cr. and Equity Capital is Rs. 24.57 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Food Processing - Bakery/Dairy/Fruits/OthersSarveshwar House, Below Gummat, Jammu Jammu & Kashmir 180001investorrelations@sarveshwarrice.com
http://www.sarveshwarfoods.com
Management
NamePosition Held
Mr. Rohit GuptaChairman
Mr. Anil KumarManaging Director
Mr. Harbans LalExecutive Director
Mr. Mahadeep Singh JamwalExecutive Director
Ms. Seema RaniWhole Time Director
Dr. Uttama Kumar PadhaIndependent Director
Dr. Tej PartapIndependent Director
Dr. Pradeep Kumar SharmaIndependent Director
Mr. Mubarak SinghIndependent Director
Mr. Adarsh Kumar GuptaIndependent Director

FAQ

What is the latest intrinsic value of Sarveshwar Foods Ltd?

The latest intrinsic value of Sarveshwar Foods Ltd as on 21 November 2024 is ₹10.14, which is 15.49% higher than the current market price of ₹8.78.

What is the Market Cap of Sarveshwar Foods Ltd?

The Market Cap of Sarveshwar Foods Ltd is 859 Cr..

What is the current Stock Price of Sarveshwar Foods Ltd as on 21 November 2024?

The current stock price of Sarveshwar Foods Ltd as on 21 November 2024 is ₹8.78.

What is the High / Low of Sarveshwar Foods Ltd stocks in FY 2024?

In FY 2024, the High / Low of Sarveshwar Foods Ltd stocks is 15.7/4.50.

What is the Stock P/E of Sarveshwar Foods Ltd?

The Stock P/E of Sarveshwar Foods Ltd is 42.4.

What is the Book Value of Sarveshwar Foods Ltd?

The Book Value of Sarveshwar Foods Ltd is 2.95.

What is the Dividend Yield of Sarveshwar Foods Ltd?

The Dividend Yield of Sarveshwar Foods Ltd is 0.00 %.

What is the ROCE of Sarveshwar Foods Ltd?

The ROCE of Sarveshwar Foods Ltd is 11.8 %.

What is the ROE of Sarveshwar Foods Ltd?

The ROE of Sarveshwar Foods Ltd is 7.95 %.

What is the Face Value of Sarveshwar Foods Ltd?

The Face Value of Sarveshwar Foods 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 Sarveshwar Foods 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