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

Fundamental Analysis of Satia Industries Ltd

Basic Stock Data

Last Updated: June 25, 2024, 9:52 am

Market Cap 1,288 Cr.
Current Price 129
High / Low155/100
Stock P/E6.10
Book Value 93.2
Dividend Yield0.77 %
ROCE23.4 %
ROE25.4 %
Face Value 1.00
PEG Ratio0.34

Competitors of Satia Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Balkrishna Paper Mills Ltd 84.2 Cr. 26.139.1/17.38,422 68.90.00 %9.43 %% 10.0
Kuantum Papers Ltd 1,399 Cr. 161226/1267.61 1291.87 %18.5 %17.6 % 1.00
Bandaram Pharma Packtech Ltd 39.7 Cr. 33.147.8/24.040.9 10.20.30 %9.10 %12.6 % 10.0
Andhra Paper Ltd 2,213 Cr. 558675/4036.51 4762.24 %25.2 %19.6 % 10.0
Seshasayee Paper & Boards Ltd (SESHAPAPER) 2,200 Cr. 349422/2548.12 3031.43 %20.1 %15.3 % 2.00
Industry Average1,160.40 Cr179.38408.56158.930.84%20.90%75.41%6.50

West Coast Paper Mills Ltd Quarterly Results

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales173191187216297417459487521481373436431
Expenses126141151177239347366375384332287343340
Operating Profit46503639587093112136149869291
OPM %27%26%19%18%19%17%20%23%26%31%23%21%21%
Other Income417127453336-28
Interest54548798108787
Depreciation161813142030323211233333847
Profit before tax302925343536577317112514445
Tax %29%25%17%14%16%17%11%12%-178%25%7%10%12%
Net Profit21222029303051654684484039
EPS in Rs2.092.192.032.892.963.025.086.484.638.424.793.963.94

Last Updated: June 9, 2024, 10:12 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: June 25, 2024, 8:51 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales2783813924335406317388095878911,8801,721
Expenses2373203273804495095746344517061,4691,302
Operating Profit4161655491122164175136185412419
OPM %15%16%17%12%17%19%22%22%23%21%22%24%
Other Income3-9415213014157261415
Interest151616252424212018223530
Depreciation10275333404548555866207151
Profit before tax1911-010488311011567123184253
Tax %27%-28%39,300%-30%4%18%20%20%26%18%-5%16%
Net Profit14148134669889250101192211
EPS in Rs1.391.350.781.314.566.878.789.184.9610.0719.2221.12
Dividend Payout %0%0%13%0%4%4%3%2%2%2%2%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%-42.86%62.50%253.85%50.00%27.54%4.55%-45.65%102.00%90.10%9.90%
Change in YoY Net Profit Growth (%)0.00%-42.86%105.36%191.35%-203.85%-22.46%-22.99%-50.20%147.65%-11.90%-80.20%

Growth

Compounded Sales Growth
10 Years:16%
5 Years:18%
3 Years:43%
TTM:-8%
Compounded Profit Growth
10 Years:28%
5 Years:19%
3 Years:62%
TTM:10%
Stock Price CAGR
10 Years:%
5 Years:14%
3 Years:12%
1 Year:13%
Return on Equity
10 Years:24%
5 Years:24%
3 Years:26%
Last Year:25%

Last Updated: June 25, 2024, 4:22 am

Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital10101010101010101010101010
Reserves4862768194148213298385435535723843
Borrowings9582176267310204201206272345443435425
Other Liabilities114121564945133159147178211249204164
Total Liabilities2672763184074604965826608451,0011,2371,3721,441
Fixed Assets123163156204250291312383371432814704759
CWIP38633452310305621531881138110
Investments711117733334777
Other Assets9995117151180192237218256248335524566
Total Assets2672763184074604965826608451,0011,2371,3721,441

Reserves and Borrowings Chart

Satia Industries Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 2738334043112120167150154160282
Cash from Investing Activity -27-22-50-114-60-60-84-145-206-224-202-194
Cash from Financing Activity -0-15187517-53-34-23576943-88
Net Cash Flow0111-101-11-10-1

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-41.00-115.00-202.00-256.00-113.00-79.00-42.00-97.00-209.00-258.00-23.00100.00

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 Days617170827168526056443735
Inventory Days825910699438377551471356587
Days Payable7257644745705855801024532
Cash Conversion Cycle717311213468817160123775789
Working Capital Days785781876364514664755667
ROCE %22%18%6%7%18%27%28%23%12%16%20%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters51.79%51.79%51.79%51.79%51.79%51.79%51.79%51.79%52.46%52.46%52.46%52.46%
FIIs0.00%0.00%0.06%0.19%0.12%0.28%1.10%0.96%0.78%3.78%2.84%2.07%
DIIs0.23%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.10%0.08%0.00%
Public47.99%48.21%48.16%48.02%48.10%47.92%47.12%47.26%46.76%43.66%44.62%45.46%
No. of Shareholders7,38717,18616,07518,13719,75622,17728,20028,37231,06143,86561,38662,650

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
FaceValue1.001.001.0010.0010.00
Basic EPS (Rs.)21.1219.2210.074.959.18
Diluted EPS (Rs.)21.1219.2210.074.959.18
Cash EPS (Rs.)36.2539.9316.43107.97146.46
Book Value[Excl.RevalReserv]/Share (Rs.)93.2373.3254.50445.35395.48
Book Value[Incl.RevalReserv]/Share (Rs.)93.2373.3254.50445.35395.48
Dividend / Share (Rs.)1.000.400.201.001.50
Revenue From Operations / Share (Rs.)172.08188.3789.09588.44808.64
PBDIT / Share (Rs.)43.4042.5820.71142.83190.12
PBIT / Share (Rs.)28.2721.8714.3584.41135.50
PBT / Share (Rs.)25.2718.3512.2766.83115.28
Net Profit / Share (Rs.)21.1219.2210.0749.5591.84
PBDIT Margin (%)25.2222.6023.2424.2723.51
PBIT Margin (%)16.4211.6016.1014.3416.75
PBT Margin (%)14.689.7413.7611.3514.25
Net Profit Margin (%)12.2710.2011.298.4211.35
Return on Networth / Equity (%)22.6526.2118.4711.1223.22
Return on Capital Employeed (%)24.6020.3314.7610.4220.67
Return On Assets (%)15.0314.008.134.9410.86
Long Term Debt / Equity (X)0.160.350.490.510.40
Total Debt / Equity (X)0.320.570.560.660.55
Asset Turnover Ratio (%)1.241.440.790.631.07
Current Ratio (X)1.731.471.241.251.30
Quick Ratio (X)0.850.780.540.610.87
Inventory Turnover Ratio (X)3.384.492.562.353.92
Dividend Payout Ratio (NP) (%)0.002.080.990.003.26
Dividend Payout Ratio (CP) (%)0.001.000.600.002.04
Earning Retention Ratio (%)0.0097.9299.010.0096.74
Cash Earning Retention Ratio (%)0.0099.0099.400.0097.96
Interest Coverage Ratio (X)14.4912.109.948.139.40
Interest Coverage Ratio (Post Tax) (X)8.056.465.843.825.54
Enterprise Value (Cr.)1366.831455.461319.37365.58269.89
EV / Net Operating Revenue (X)0.790.771.480.620.33
EV / EBITDA (X)3.153.426.372.561.42
MarketCap / Net Operating Revenue (X)0.620.551.150.130.08
Retention Ratios (%)0.0097.9199.000.0096.73
Price / BV (X)1.161.441.880.180.16
Price / Net Operating Revenue (X)0.620.551.150.130.08
EarningsYield0.190.180.090.601.37

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 145.52

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: 12.80% compared to the current price 129

Intrinsic Value: 171.90

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: 33.26% compared to the current price ₹129

Last 5 Year EPS CAGR: 18.13%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 16.42%, which is a positive sign.
  2. The company has higher reserves (331.00 cr) compared to borrowings (271.67 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (473.50 cr) and profit (85.25 cr) over the years.
  1. The stock has a high average Working Capital Days of 65.75, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 84.67, 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 Satia Industries Ltd:
    1. Net Profit Margin: 12.27%
      • 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: 24.60% (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%: 22.65% (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): 8.05
      • 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: 0.85
      • 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: 6.10 (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: 0.32
      • 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

Satia Industries Ltd. is a Public Limited Listed company incorporated on 26/11/1980 and has its registered office in the State of Punjab, India. Company’s Corporate Identification Number(CIN) is L21012PB1980PLC004329 and registration number is 004329. Currently Company is involved in the business activities of Manufacture of printing, writing and photocopying paper ready for use. Company’s Total Operating Revenue is Rs. 890.93 Cr. and Equity Capital is Rs. 10.00 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Paper & Paper ProductsMalout - Muktsar Road, VPO. Rupana Muktsar Dist. Punjab 152032satiapaper@satiagroup.com
http://www.satiagroup.com
Management
NamePosition Held
Dr. Ajay SatiaChairman & Managing Director
Mr. R K BhandariJoint Managing Director
Mr. Chirag SatiaExecutive Director
Mr. Avinash Chander AhujaIndependent Director
Mr. Dinesh Chand SharmaIndependent Director
Mr. I D SinghIndependent Director
Mr. Ashok Kumar GuptaIndependent Director
Dr.(Mrs.) Priti Lal ShivhareIndependent Director
Mr. Vinod Kumar KathuriaIndependent Director
Mr. Hardev SinghDirector - Technical
Mr. Ajay VyasIndependent Director

FAQ

What is the latest fair value of Satia Industries Ltd?

The latest fair value of Satia Industries Ltd is ₹145.52.

What is the Market Cap of Satia Industries Ltd?

The Market Cap of Satia Industries Ltd is 1,288 Cr..

What is the current Stock Price of Satia Industries Ltd as on 25 June 2024?

The current stock price of Satia Industries Ltd as on 25 June 2024 is ₹129.

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

In FY 2024, the High / Low of Satia Industries Ltd stocks is 155/100.

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

The Stock P/E of Satia Industries Ltd is 6.10.

What is the Book Value of Satia Industries Ltd?

The Book Value of Satia Industries Ltd is 93.2.

What is the Dividend Yield of Satia Industries Ltd?

The Dividend Yield of Satia Industries Ltd is 0.77 %.

What is the ROCE of Satia Industries Ltd?

The ROCE of Satia Industries Ltd is 23.4 %.

What is the ROE of Satia Industries Ltd?

The ROE of Satia Industries Ltd is 25.4 %.

What is the Face Value of Satia Industries Ltd?

The Face Value of Satia Industries 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 Satia 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