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Last Updated on: 30 May, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Shoppers Stop Ltd

Basic Stock Data

Last Updated: May 29, 2024, 5:06 pm

Market Cap 8,447 Cr.
Current Price 768
High / Low890/616
Stock P/E103
Book Value 27.4
Dividend Yield0.00 %
ROCE11.9 %
ROE32.3 %
Face Value 5.00
PEG Ratio1.23

Competitors of Shoppers Stop Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
V-Mart Retail Ltd 4,351 Cr. 2,2002,445/1,591 3780.00 %0.55 %12.1 % 10.0
Praxis Home Retail Ltd 209 Cr. 16.738.2/11.0 3.450.00 %39.1 %% 5.00
Spencers Retail Ltd 763 Cr. 84.6139/56.5 46.10.00 %9.89 %% 5.00
Osia Hyper Retail Ltd 330 Cr. 27.978.2/25.222.4 13.90.00 %17.5 %9.48 % 1.00
Industry Average1,413.25 Cr582.305.60110.360.00%16.76%5.40%5.25

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales6802056429587139481,0131,1379249941,0391,2381,046
Expenses5862685707746377868489247698228781,020880
Operating Profit95-637218476162165213155172161217167
OPM %14%-31%11%19%11%17%16%19%17%17%15%18%16%
Other Income246468412162242376333
Interest51515350535151525554555958
Depreciation92899281938593100104105108111112
Profit before tax-24-139-594-48322386182035130
Tax %1%25%23%17%69%29%30%27%21%27%22%28%23%
Net Profit-24-105-477-16231663141433723
EPS in Rs-2.20-9.59-0.337.06-1.452.081.485.721.301.320.253.352.11

Last Updated: May 10, 2024, 7:14 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 27, 2024, 6:04 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales3,1193,7184,2174,5953,7573,6973,5783,4641,7492,5194,0224,317
Expenses3,0223,5833,9484,4153,6293,5463,3322,9121,7052,2493,3273,600
Operating Profit9713526918012815124655244270695717
OPM %3%4%6%4%3%4%7%16%3%11%17%17%
Other Income5413281823218242241945549
Interest55657885863814197223207209225
Depreciation7998125130119115141450392355382437
Profit before tax-31-2578-7-58231110-72-347-98159104
Tax %-72%-105%37%-482%-35%8%41%-98%23%53%27%26%
Net Profit-54-5049-40-7821465-142-267-4711677
EPS in Rs-1.09-0.804.090.23-3.5922.345.94-12.98-24.43-4.2910.587.03
Dividend Payout %-56%-75%15%260%-17%3%10%0%0%0%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 (%)7.41%198.00%-181.63%-95.00%374.36%-69.63%-318.46%-88.03%82.40%346.81%-33.62%
Change in YoY Net Profit Growth (%)0.00%190.59%-379.63%86.63%469.36%-443.99%-248.84%230.43%170.43%264.41%-380.43%

Growth

Compounded Sales Growth
10 Years:2%
5 Years:4%
3 Years:35%
TTM:7%
Compounded Profit Growth
10 Years:28%
5 Years:5%
3 Years:32%
TTM:-28%
Stock Price CAGR
10 Years:7%
5 Years:11%
3 Years:51%
1 Year:2%
Return on Equity
10 Years:-5%
5 Years:-27%
3 Years:24%
Last Year:32%

Last Updated: May 23, 2024, 4:14 pm

Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital41414242424244444455555555
Reserves475459449487473437860871236521151183
Borrowings436498645751829885125742,2472,1062,1152,3752,505
Other Liabilities4555356417026886927581,4861,7681,2901,5912,0232,184
Total Liabilities1,4061,5341,7771,9812,0322,0561,7882,4764,0813,5163,7834,6034,926
Fixed Assets7157418609039079226736151,9011,7211,7232,0972,240
CWIP3232372833201835443143426
Investments00003920282258191128146480
Other Assets6597618811,0511,0531,0948141,5671,9451,6641,8992,4242,660
Total Assets1,4061,5341,7771,9812,0322,0561,7882,4764,0813,5163,7834,6034,926

Reserves and Borrowings Chart

Shoppers Stop Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity -5878811115564298202576-3383543
Cash from Investing Activity -172-122-208-162-172-111-35-125-284-24-102-29
Cash from Financing Activity 172471184510-10-171-63-433167-270-537
Net Cash Flow-612-2-6-6-579213-14114011-23

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-401.00-510.00-482.00-649.00-757.0026.00172.00550.0042.00268.00693.00715.00

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 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days345946554653
Inventory Days65656769749057188225290244235
Days Payable63666564637684224277391349287
Cash Conversion Cycle626141519-21-31-48-94-101-49
Working Capital Days-10-8-15-5-13-23-23-18-27-37-40-16
ROCE %6%3%4%13%6%3%4%12%8%-5%4%15%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters65.46%65.41%65.51%65.55%65.55%65.51%65.46%65.46%65.46%65.55%65.55%65.54%
FIIs5.76%5.83%5.94%6.10%6.38%6.71%7.04%6.82%6.83%6.78%6.85%7.43%
DIIs19.93%20.21%20.15%19.82%20.45%20.03%20.36%20.81%21.37%21.57%21.97%22.17%
Public8.85%8.54%8.40%8.53%7.62%7.75%7.14%6.90%6.34%6.11%5.64%4.85%
No. of Shareholders31,02228,17126,63325,83629,55638,71036,98338,74739,37341,11241,37625,677

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Aditya Birla Sun Life ELSS Tax Saver Fund5,341,0502.47369.07
Nippon India Multi Cap Fund4,694,9651.32324.42
Kotak Small Cap Fund - Regular Plan3,644,1381.79251.81
HDFC Small Cap Fund - Regular Plan3,603,2590.93248.99
DSP Small Cap Fund1,831,2190.94126.54
Tata Small Cap Fund1,428,7011.798.72
L&T Large and Midcap Fund - Regular Plan553,8982.5641.52
HDFC Multi Cap Fund413,9610.2628.6
HDFC ELSS Tax Saver Fund390,0000.2126.95
Aditya Birla Sun Life Multi Asset Allocation Fund334,6440.7823.12

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue5.005.005.005.005.00
Basic EPS (Rs.)10.59-4.29-28.38-16.147.38
Diluted EPS (Rs.)10.51-4.29-28.38-16.147.38
Cash EPS (Rs.)45.3828.2611.4435.0423.36
Book Value[Excl.RevalReserv]/Share (Rs.)18.776.9310.957.57103.95
Book Value[Incl.RevalReserv]/Share (Rs.)18.776.9310.957.57103.95
Revenue From Operations / Share (Rs.)366.78229.98159.90393.62406.63
PBDIT / Share (Rs.)68.5739.9024.5466.5630.04
PBIT / Share (Rs.)33.777.50-11.3315.3814.06
PBT / Share (Rs.)14.52-8.90-31.71-8.1412.49
Net Profit / Share (Rs.)10.58-4.15-24.42-16.147.38
NP After MI And SOA / Share (Rs.)10.58-4.29-24.42-16.147.38
PBDIT Margin (%)18.6917.3515.3416.907.38
PBIT Margin (%)9.203.26-7.083.903.45
PBT Margin (%)3.95-3.87-19.83-2.063.07
Net Profit Margin (%)2.88-1.80-15.27-4.101.81
NP After MI And SOA Margin (%)2.88-1.86-15.27-4.101.81
Return on Networth / Equity (%)56.36-61.89-223.13-213.117.10
Return on Capital Employeed (%)16.804.45-6.466.3113.48
Return On Assets (%)2.52-1.24-7.59-3.482.62
Long Term Debt / Equity (X)0.101.180.790.000.00
Total Debt / Equity (X)0.612.841.552.330.03
Asset Turnover Ratio (%)0.950.680.451.031.63
Current Ratio (X)0.800.770.800.860.90
Quick Ratio (X)0.170.250.260.220.21
Dividend Payout Ratio (NP) (%)0.000.000.00-4.6410.15
Dividend Payout Ratio (CP) (%)0.000.000.002.143.21
Earning Retention Ratio (%)0.000.000.00104.6489.85
Cash Earning Retention Ratio (%)0.000.000.0097.8696.79
Interest Coverage Ratio (X)3.602.121.202.9719.17
Interest Coverage Ratio (Post Tax) (X)1.560.64-0.190.325.71
Enterprise Value (Cr.)7196.865290.012495.581853.494161.77
EV / Net Operating Revenue (X)1.792.101.430.531.16
EV / EBITDA (X)9.5712.109.303.1615.75
MarketCap / Net Operating Revenue (X)1.772.031.340.491.16
Retention Ratios (%)0.000.000.00104.6489.84
Price / BV (X)34.5167.2619.6425.554.53
Price / Net Operating Revenue (X)1.772.031.340.491.16
EarningsYield0.01-0.01-0.11-0.080.01

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: ₹929.80

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: 21.07% compared to the current price ₹768

Intrinsic Value: ₹1,709.53

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: 122.59% compared to the current price ₹768

Last 5 Year EPS CAGR: 83.86%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -19.58, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -23.50, which is a positive sign.
  3. The company has shown consistent growth in sales (3.08 cr) and profit (3.67 cr) over the years.
  1. The stock has a low average ROCE of 6.08%, which may not be favorable.
  2. The company has higher borrowings (1,286.25) compared to reserves (378.50), 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 Shoppers Stop Ltd:
    1. Net Profit Margin: 2.88%
      • 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: 16.80% (Industry Average ROCE: 16.76%)
      • 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%: 56.36% (Industry Average ROE: 5.4%)
      • 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): 1.56
      • 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: 0.17
      • 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: 103 (Industry average Stock P/E: 5.6)
      • 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: 0.61
      • 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

Shoppers Stop Ltd. is a Public Limited Listed company incorporated on 16/06/1997 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L51900MH1997PLC108798 and registration number is 108798. Currently Company is involved in the business activities of Retail sale of other goods in specialized stores. Company’s Total Operating Revenue is Rs. 2493.81 Cr. and Equity Capital is Rs. 54.76 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Retail - Departmental StoresUmang Tower, 5th Floor, Mindspace, Mumbai Maharashtra 400064company.secretary@shoppersstop.com
http://www.shoppersstop.com
Management
NamePosition Held
Mr. B S NageshChairman & Non-Exe.Director
Mr. Venu NairManaging Director & CEO
Mr. Neel C RahejaNon Executive Director
Mr. Ravi C RahejaNon Executive Director
Mr. Arun SirdeshmukhIndependent Director
Ms. Christine KasoulisIndependent Director
Mr. Nirvik SinghIndependent Director
Mr. Manish ChokhaniIndependent Director
Mr. Mahesh ChhabriaIndependent Director
Ms. Smita JatiaIndependent Director

FAQ

What is the latest fair value of Shoppers Stop Ltd?

The latest fair value of Shoppers Stop Ltd is ₹929.80.

What is the Market Cap of Shoppers Stop Ltd?

The Market Cap of Shoppers Stop Ltd is 8,447 Cr..

What is the current Stock Price of Shoppers Stop Ltd as on 30 May 2024?

The current stock price of Shoppers Stop Ltd as on 30 May 2024 is ₹768.

What is the High / Low of Shoppers Stop Ltd stocks in FY 2024?

In FY 2024, the High / Low of Shoppers Stop Ltd stocks is 890/616.

What is the Stock P/E of Shoppers Stop Ltd?

The Stock P/E of Shoppers Stop Ltd is 103.

What is the Book Value of Shoppers Stop Ltd?

The Book Value of Shoppers Stop Ltd is 27.4.

What is the Dividend Yield of Shoppers Stop Ltd?

The Dividend Yield of Shoppers Stop Ltd is 0.00 %.

What is the ROCE of Shoppers Stop Ltd?

The ROCE of Shoppers Stop Ltd is 11.9 %.

What is the ROE of Shoppers Stop Ltd?

The ROE of Shoppers Stop Ltd is 32.3 %.

What is the Face Value of Shoppers Stop Ltd?

The Face Value of Shoppers Stop Ltd is 5.00.

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 Shoppers Stop 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