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Last Updated on: 21 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Selan Explorations Technology Ltd

Basic Stock Data

Last Updated: June 20, 2024, 10:27 pm

Market Cap 1,095 Cr.
Current Price 720
High / Low792/300
Stock P/E33.4
Book Value 259
Dividend Yield0.00 %
ROCE12.3 %
ROE8.69 %
Face Value 10.0
PEG Ratio4.25

Competitors of Selan Explorations Technology Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
South West Pinnacle Exploration Ltd 369 Cr. 132192/97.352.1 44.60.38 %9.12 %5.85 % 10.0
Oil India Ltd 75,849 Cr. 699709/2419.67 4462.86 %17.7 %18.1 % 10.0
Galaxy Surfactants Ltd 9,581 Cr. 2,7042,974/2,24131.8 6150.81 %17.4 %14.8 % 10.0
Aban Offshore Ltd 416 Cr. 71.293.5/38.4 4,0900.00 %%% 2.00
Oil & Natural Gas Corpn Ltd (ONGC) 3,46,461 Cr. 275293/1556.89 2684.08 %18.4 %16.3 % 5.00
Industry Average62,162.86 Cr673.4675.02855.801.17%10.72%9.37%7.43

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales15161819233033292728394455
Expenses18151617221922222323293639
Operating Profit-31231111074511716
OPM %-22%9%11%14%5%35%32%23%15%18%27%17%29%
Other Income2222222343322
Interest0000000000000
Depreciation1111111111111
Profit before tax-23343121297813917
Tax %164%43%32%22%-19%26%24%18%25%34%26%32%29%
Net Profit12233998559612
EPS in Rs0.721.101.412.041.995.975.805.013.523.326.203.978.06

Last Updated: June 9, 2024, 5:43 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 27, 2024, 6:03 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales971017962567793904977118166
Expenses3720222421302934375067127
Operating Profit608257383547645512275139
OPM %61%81%72%61%63%61%69%62%24%35%43%23%
Other Income121312108811-11081211
Interest100200000000
Depreciation1262426282121222222223
Profit before tax7068442015345432-1134046
Tax %35%35%36%35%40%34%4%30%611%21%23%29%
Net Profit4545281392252226103133
EPS in Rs26.8527.1617.267.875.3813.4531.4114.764.116.5320.3021.54
Dividend Payout %19%18%29%64%93%37%15%34%122%77%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%-37.78%-53.57%-30.77%144.44%136.36%-57.69%-72.73%66.67%210.00%6.45%
Change in YoY Net Profit Growth (%)0.00%-37.78%-15.79%22.80%175.21%-8.08%-194.06%-15.03%139.39%143.33%-203.55%

Growth

Compounded Sales Growth
10 Years:5%
5 Years:12%
3 Years:50%
TTM:40%
Compounded Profit Growth
10 Years:-3%
5 Years:-6%
3 Years:114%
TTM:6%
Stock Price CAGR
10 Years:3%
5 Years:35%
3 Years:73%
1 Year:142%
Return on Equity
10 Years:7%
5 Years:6%
3 Years:7%
Last Year:9%

Last Updated: June 16, 2024, 4:55 pm

Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital17171616161616161515151515
Reserves191221245264267266278310313311314345359
Borrowings12000000111044
Other Liabilities564977102856773626449476371
Total Liabilities275287339382368349368388393376376427449
Fixed Assets66811109121198713257
CWIP1211131592072081992031971801641491660
Investments00000035133127129135176114
Other Assets148167172164150140119487674857378
Total Assets275287339382368349368388393376376427449

Reserves and Borrowings Chart

Selan Explorations Technology Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 474875621737671004136-1869
Cash from Investing Activity -18-1-58-63-16-11-54-100-12-2-6-72
Cash from Financing Activity -35-28-21-10-12-10-9-20-21-8-8-0
Net Cash Flow-719-4-12-11173-20826-32-3

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow60.0082.0057.0038.0035.0047.0063.0054.0011.0027.0047.0035.00

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 Days588769658789727194895876
Inventory Days
Days Payable
Cash Conversion Cycle588769658789727194895876
Working Capital Days6355-2968128106957714410885206
ROCE %31%27%16%8%5%11%15%10%-2%4%12%

Financial Efficiency Indicators Chart

Selan Explorations Technology Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters30.09%30.09%30.09%30.09%30.09%39.56%39.54%30.46%30.46%30.46%30.46%30.46%
FIIs2.53%3.43%2.96%3.53%4.21%3.78%3.78%3.78%3.78%3.78%3.78%3.71%
DIIs1.91%1.90%1.91%1.91%1.25%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Public65.47%64.58%65.04%64.47%64.45%56.66%56.66%65.74%65.75%65.75%65.76%65.83%
No. of Shareholders22,65822,38523,38722,83921,68720,19821,21220,07519,32118,91019,32918,703

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.)21.5420.296.534.1014.64
Diluted EPS (Rs.)21.4720.296.534.1014.64
Cash EPS (Rs.)23.6434.7921.085.7616.83
Book Value[Excl.RevalReserv]/Share (Rs.)259.06236.77216.27214.75215.63
Book Value[Incl.RevalReserv]/Share (Rs.)259.06236.77216.27214.75215.63
Dividend / Share (Rs.)0.000.005.005.005.00
Revenue From Operations / Share (Rs.)108.9577.5950.8632.1258.95
PBDIT / Share (Rs.)32.8541.2622.890.9329.34
PBIT / Share (Rs.)30.7526.768.34-0.7227.26
PBT / Share (Rs.)30.4926.488.28-0.8021.23
Net Profit / Share (Rs.)21.5420.296.534.1014.76
PBDIT Margin (%)30.1553.1645.002.9049.76
PBIT Margin (%)28.2234.4816.40-2.2446.24
PBT Margin (%)27.9834.1216.28-2.5036.01
Net Profit Margin (%)19.7726.1512.8312.7725.04
Return on Networth / Equity (%)8.318.573.011.916.84
Return on Capital Employeed (%)10.289.963.43-0.2910.85
Return On Assets (%)6.757.222.641.665.70
Asset Turnover Ratio (%)0.360.290.200.120.22
Current Ratio (X)5.8012.6030.5131.7618.06
Quick Ratio (X)5.1611.3429.4030.7117.40
Dividend Payout Ratio (NP) (%)0.000.0076.58121.8133.87
Dividend Payout Ratio (CP) (%)0.000.0023.7186.8029.70
Earning Retention Ratio (%)0.000.0023.42-21.8166.13
Cash Earning Retention Ratio (%)0.000.0076.2913.2070.30
Interest Coverage Ratio (X)128.05147.00382.3811.07261.84
Interest Coverage Ratio (Post Tax) (X)84.9573.31110.0549.63185.59
Enterprise Value (Cr.)633.22346.23233.25156.1258.10
EV / Net Operating Revenue (X)3.822.943.023.200.64
EV / EBITDA (X)12.685.526.70109.911.30
MarketCap / Net Operating Revenue (X)4.133.143.734.171.15
Retention Ratios (%)0.000.0023.41-21.8166.12
Price / BV (X)1.741.030.870.620.31
Price / Net Operating Revenue (X)4.133.143.734.171.15
EarningsYield0.040.080.030.030.21

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 766.77

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: 6.50% compared to the current price 720

Intrinsic Value: 826.99

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: 14.86% compared to the current price ₹720

Last 5 Year EPS CAGR: 7.85%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (292.75 cr) compared to borrowings (0.92 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (88.75 cr) and profit (36.25 cr) over the years.
  1. The stock has a low average ROCE of 11.42%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 92.17, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 76.25, 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 Selan Explorations Technology Ltd:
    1. Net Profit Margin: 19.77%
      • 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: 10.28% (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%: 8.31% (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): 84.95
      • 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: 5.16
      • 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: 33.4 (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: N/A
      • 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

Selan Exploration Technology Ltd. is a Public Limited Listed company incorporated on 05/07/1985 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L74899DL1985PLC021445 and registration number is 021445. Currently Company is involved in the business activities of Extraction of crude petroleum. Company’s Total Operating Revenue is Rs. 77.31 Cr. and Equity Capital is Rs. 15.20 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Oil Drilling And ExplorationUnit No. 455-457, 4th Floor, JMD Megapolis, Sector-48, Gurgaon Haryana 122018investors@selanoil.com
http://www.selanoil.com
Management
NamePosition Held
Mr. Suniti Kumar BhatManaging Director
Mr. Siva Kumar PothepalliWhole Time Director
Mr. Baikuntha Nath TalukdarInd. Non-Executive Director
Ms. Vishruta KaulInd. Non-Executive Director
Mr. Raman Singh SidhuInd. Non-Executive Director
Mr. Manjit SinghInd. Non-Executive Director

FAQ

What is the latest fair value of Selan Explorations Technology Ltd?

The latest fair value of Selan Explorations Technology Ltd is ₹766.77.

What is the Market Cap of Selan Explorations Technology Ltd?

The Market Cap of Selan Explorations Technology Ltd is 1,095 Cr..

What is the current Stock Price of Selan Explorations Technology Ltd as on 21 June 2024?

The current stock price of Selan Explorations Technology Ltd as on 21 June 2024 is ₹720.

What is the High / Low of Selan Explorations Technology Ltd stocks in FY 2024?

In FY 2024, the High / Low of Selan Explorations Technology Ltd stocks is 792/300.

What is the Stock P/E of Selan Explorations Technology Ltd?

The Stock P/E of Selan Explorations Technology Ltd is 33.4.

What is the Book Value of Selan Explorations Technology Ltd?

The Book Value of Selan Explorations Technology Ltd is 259.

What is the Dividend Yield of Selan Explorations Technology Ltd?

The Dividend Yield of Selan Explorations Technology Ltd is 0.00 %.

What is the ROCE of Selan Explorations Technology Ltd?

The ROCE of Selan Explorations Technology Ltd is 12.3 %.

What is the ROE of Selan Explorations Technology Ltd?

The ROE of Selan Explorations Technology Ltd is 8.69 %.

What is the Face Value of Selan Explorations Technology Ltd?

The Face Value of Selan Explorations Technology 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 Selan Explorations Technology 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