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Last Updated on: 19 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Shrenik Ltd

Basic Stock Data

Last Updated: June 17, 2024, 8:14 pm

Market Cap 60.6 Cr.
Current Price 0.99
High / Low1.70/0.85
Stock P/E
Book Value 2.88
Dividend Yield0.00 %
ROCE141 %
ROE%
Face Value 1.00
PEG Ratio0.00

Competitors of Shrenik Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Emami Paper Mills Ltd 725 Cr. 120150/1018.60 1281.34 %11.3 %13.7 % 2.00
NR Agarwal Industries Ltd 771 Cr. 453538/2626.14 4470.00 %13.9 %18.0 % 10.0
Balkrishna Paper Mills Ltd 83.8 Cr. 26.039.1/17.38,377 68.90.00 %9.43 %% 10.0
Star Paper Mills Ltd 401 Cr. 257288/1666.14 4151.38 %13.4 %10.5 % 10.0
Malu Paper Mills Ltd 61.1 Cr. 35.869.9/31.167.9 3.990.00 %9.25 %13.7 % 10.0
Industry Average1,181.83 Cr180.32406.81163.040.89%15.55%76.57%6.50

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales833499121214111299106
Expenses8435861210114069118-9410114
Operating Profit-0-013-022-29-57-1091030-108
OPM %-0%-1%13%34%-0%14%18%-267%-473%-1,270%1,124%2%-1,809%
Other Income3000000305662-5600
Interest4374411120000
Depreciation0000000-000000
Profit before tax-1-3-6-1-4120-3-4747-0-108
Tax %-6%0%0%0%6%0%0%0%4%0%0%0%0%
Net Profit-1-3-6-1-4120-3-4747-0-108
EPS in Rs-0.02-0.06-0.09-0.02-0.070.010.030.01-0.05-0.780.77-0.00-1.77

Last Updated: June 9, 2024, 4:20 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
Sales54213266329428593836796364644934
Expenses5220425631841457280776235060130147
Operating Profit29101114213033144-82-113
OPM %4%4%4%3%3%4%4%4%4%6%-168%-331%
Other Income00-00011150865
Interest2786791317191840
Depreciation000001122110
Profit before tax01256121716-1-150-109
Tax %47%33%32%35%35%35%36%28%-3%2%-109%0%
Net Profit0113481111-1-140-109
EPS in Rs0.010.050.060.070.090.130.180.18-0.02-0.240.00-1.78
Dividend Payout %0%31%0%0%0%26%19%18%-414%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)0.00%200.00%33.33%100.00%37.50%0.00%-109.09%-1300.00%100.00%
Change in YoY Net Profit Growth (%)0.00%200.00%-166.67%66.67%-62.50%-37.50%-109.09%-1190.91%1400.00%

Growth

Compounded Sales Growth
10 Years:-17%
5 Years:-47%
3 Years:-55%
TTM:-30%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:%
TTM:-51981%
Stock Price CAGR
10 Years:%
5 Years:-41%
3 Years:-22%
1 Year:-14%
Return on Equity
10 Years:%
5 Years:%
3 Years:%
Last Year:%

Last Updated: April 25, 2024, 6:05 am

Balance Sheet

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital6.006.006.0015.0015.0020.4020.4020.4061.2061.2061.2061.20
Reserves0.100.712.098.6313.0634.6943.1855.2812.34-1.97-1.74-2.23
Borrowings40.8955.0659.6063.5092.95123.61164.99174.19175.81197.88146.42142.45
Other Liabilities4.2010.9912.5526.2725.9926.7968.8283.45104.16101.8257.7257.95
Total Liabilities51.1972.7680.24113.40147.00205.49297.39333.32353.51358.93263.60259.37
Fixed Assets1.531.541.992.943.425.656.5712.169.602.892.061.81
CWIP0.000.000.000.000.590.004.920.000.000.000.000.00
Investments0.520.520.520.520.000.000.000.000.000.000.000.00
Other Assets49.1470.7077.73109.94142.99199.84285.90321.16343.91356.04261.54257.56
Total Assets51.1972.7680.24113.40147.00205.49297.39333.32353.51358.93263.60259.37

Reserves and Borrowings Chart

Shrenik Ltd Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity -41.26-7.265.96-7.45-13.09-47.14-18.1010.4526.87-7.6646.85
Cash from Investing Activity -2.030.04-0.56-1.00-10.252.32-7.52-0.293.326.601.97
Cash from Financing Activity 44.936.60-3.108.1022.1743.4126.63-7.70-32.46-0.49-48.83
Net Cash Flow1.64-0.632.30-0.36-1.18-1.401.012.47-2.27-1.55-0.01

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-39.00-46.00-50.00-53.00-79.00-103.00-135.00-141.00-162.00-194.00-228.00-237.00

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 2023
Debtor Days110.5651.9957.6153.4441.5233.4953.0058.68143.91879.841,021.19
Inventory Days213.0167.6643.1766.0368.5986.7668.9990.14478.87
Days Payable27.4617.8416.1627.8813.4412.6423.3533.79222.17
Cash Conversion Cycle296.10101.8084.6291.5896.67107.6198.64115.02143.91879.841,277.88
Working Capital Days281.2496.4081.1583.8491.2299.3788.81104.83233.461,430.321,512.77
ROCE %16.15%14.80%14.06%13.29%14.43%14.89%13.51%6.94%1.24%1.56%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters60.81%54.25%46.36%46.36%46.10%45.29%44.42%42.07%39.42%36.30%33.00%30.72%
DIIs0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.05%0.00%0.00%
Public39.19%45.74%53.64%53.64%53.90%54.71%55.58%57.93%60.58%63.65%67.00%69.28%
No. of Shareholders30,60340,43186,4511,22,2611,18,4061,14,3061,10,2231,08,0051,08,0051,06,5531,12,7101,14,800

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue1.001.001.002.002.00
Basic EPS (Rs.)0.00-0.23-0.021.141.09
Diluted EPS (Rs.)0.00-0.23-0.021.141.09
Cash EPS (Rs.)0.01-0.220.001.030.90
Book Value[Excl.RevalReserv]/Share (Rs.)0.970.961.207.316.23
Book Value[Incl.RevalReserv]/Share (Rs.)0.970.961.207.316.23
Dividend / Share (Rs.)0.000.000.000.200.20
Revenue From Operations / Share (Rs.)0.791.045.9478.0082.04
PBDIT / Share (Rs.)0.060.060.293.062.74
PBIT / Share (Rs.)0.050.050.262.942.66
PBT / Share (Rs.)0.00-0.23-0.021.331.44
Net Profit / Share (Rs.)0.00-0.23-0.020.900.83
PBDIT Margin (%)8.516.194.943.913.33
PBIT Margin (%)7.404.824.503.763.24
PBT Margin (%)0.23-22.96-0.391.701.75
Net Profit Margin (%)0.47-22.54-0.401.161.01
Return on Networth / Equity (%)0.38-24.29-2.0112.4113.34
Return on Capital Employeed (%)5.532.7915.2624.8826.66
Return On Assets (%)0.08-4.00-0.412.782.85
Long Term Debt / Equity (X)0.090.850.450.610.60
Total Debt / Equity (X)2.453.332.362.312.52
Asset Turnover Ratio (%)0.150.171.062.533.33
Current Ratio (X)1.311.421.381.491.42
Quick Ratio (X)0.750.640.590.630.66
Inventory Turnover Ratio (X)0.300.301.924.625.72
Dividend Payout Ratio (NP) (%)0.000.00-137.420.000.00
Dividend Payout Ratio (CP) (%)0.000.001842.900.000.00
Earning Retention Ratio (%)0.000.00237.420.000.00
Cash Earning Retention Ratio (%)0.000.00-1742.900.000.00
Interest Coverage Ratio (X)1.180.221.021.902.24
Interest Coverage Ratio (Post Tax) (X)1.060.180.921.571.68
Enterprise Value (Cr.)201.00347.29285.58301.42898.38
EV / Net Operating Revenue (X)4.145.440.780.371.07
EV / EBITDA (X)48.5987.8015.899.6732.15
MarketCap / Net Operating Revenue (X)1.132.350.310.160.88
Retention Ratios (%)0.000.00237.420.000.00
Price / BV (X)0.922.531.541.7811.63
Price / Net Operating Revenue (X)1.132.350.310.160.88
EarningsYield0.00-0.09-0.010.060.01

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 6.61

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: 567.64% compared to the current price 0.99

Default values used*: Deafault value of 15 for Stock P/E is used, Deafault value of 15% for ROE is used

Intrinsic Value: 5.32

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: 437.38% compared to the current price ₹0.99

Default values used*: Deafault value of 15 for Stock P/E is used, Deafault value of 15% for ROE is used

Last 5 Year EPS CAGR: -19.51%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock is trading at a low valuation with an average P/B ratio of 1.24 and average Dividend Yield of 4.74%.
  1. The stock has a low average ROCE of 10.08%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 105.67, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 183.34, which may not be favorable.
  4. The company has higher borrowings (118.33) compared to reserves (-5.92), which may suggest financial risk.
  5. The company has not shown consistent growth in sales (335.50) and profit (-5.50).

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 Shrenik Ltd:
    1. Net Profit Margin: 0.47%
      • 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: 5.53% (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%: 0.38% (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): 1.06
      • 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: 0.75
      • 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: (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: 2.45
      • 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

Shrenik Ltd. is a Public Limited Listed company incorporated on 20/12/2012 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L51396GJ2012PLC073061 and registration number is 073061. Currently Company is involved in the business activities of Wholesale of paper in bulk. Company’s Total Operating Revenue is Rs. 63.82 Cr. and Equity Capital is Rs. 61.20 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Paper & Paper Products505-508, TEN/11, Ahmedabad Gujarat 380009info@shrenik.co.in
https://www.shrenikltd.com
Management
NamePosition Held
Mr. Shrenik VimawalaChairman & Managing Director
Mr. Rishit VimawalaWhole Time Director
Mr. Kaivan VimawalaWhole Time Director
Mrs. Jalpika JoshiIndependent Director
Mr. Devarsh ShahIndependent Director
Mr. Shalin KusumgarIndependent Director

FAQ

What is the latest fair value of Shrenik Ltd?

The latest fair value of Shrenik Ltd is ₹6.61.

What is the Market Cap of Shrenik Ltd?

The Market Cap of Shrenik Ltd is 60.6 Cr..

What is the current Stock Price of Shrenik Ltd as on 18 June 2024?

The current stock price of Shrenik Ltd as on 18 June 2024 is ₹0.99.

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

In FY 2024, the High / Low of Shrenik Ltd stocks is 1.70/0.85.

What is the Stock P/E of Shrenik Ltd?

The Stock P/E of Shrenik Ltd is .

What is the Book Value of Shrenik Ltd?

The Book Value of Shrenik Ltd is 2.88.

What is the Dividend Yield of Shrenik Ltd?

The Dividend Yield of Shrenik Ltd is 0.00 %.

What is the ROCE of Shrenik Ltd?

The ROCE of Shrenik Ltd is 141 %.

What is the ROE of Shrenik Ltd?

The ROE of Shrenik Ltd is %.

What is the Face Value of Shrenik Ltd?

The Face Value of Shrenik 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 Shrenik 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