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Last Updated on: 23 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Shriram Pistons & Rings Ltd

Basic Stock Data

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

Market Cap 8,534 Cr.
Current Price 1,937
High / Low2,206/801
Stock P/E19.4
Book Value 437
Dividend Yield0.26 %
ROCE28.3 %
ROE25.4 %
Face Value 10.0
PEG Ratio0.44

Competitors of Shriram Pistons & Rings Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Rane Engine Valve Ltd 301 Cr. 416506/26219.5 1671.20 %12.9 %13.7 % 10.0
Talbros Automotive Components Ltd 1,877 Cr. 304351/13024.0 87.00.20 %21.6 %17.3 % 2.00
Sintercom India Ltd 374 Cr. 136141/114325 36.60.00 %4.59 %1.15 % 10.0
Jullundur Motor Agency (Delhi) Ltd 251 Cr. 110141/65.412.0 86.21.83 %14.7 %11.1 % 2.00
Autoline Industries Ltd 466 Cr. 119165/67.129.4 34.80.00 %11.1 %15.0 % 10.0
Industry Average4,987.57 Cr429.1468.36103.091.04%15.71%14.41%5.29

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales546434533511587620652636701716752766856
Expenses450373446438503526537519566570594604679
Operating Profit956186738594115117135146158161177
OPM %17%14%16%14%14%15%18%18%19%20%21%21%21%
Other Income775710712121619231924
Interest4333235566789
Depreciation26252626252424232423222934
Profit before tax72396251687398100121136151143158
Tax %26%26%25%26%26%26%25%25%25%26%25%25%26%
Net Profit532947385055737591101113108116
EPS in Rs11.866.4910.448.5311.4512.4216.5917.0120.6723.1725.8024.3727.15

Last Updated: June 10, 2024, 5:55 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 26, 2024, 1:32 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales1,0521,1701,2441,3931,4631,7291,9551,6071,5972,0652,6093,089
Expenses8739401,0541,1611,2071,4361,6601,4251,3811,7602,1492,447
Operating Profit180229190232255293295182216304460642
OPM %17%20%15%17%17%17%15%11%14%15%18%21%
Other Income101017182624222019294785
Interest323832262016141213111930
Depreciation88101969390909410310310295108
Profit before tax701017913117121120986120220393589
Tax %30%31%28%30%31%34%34%15%26%26%25%26%
Net Profit497057921181391387389164294439
EPS in Rs10.9515.5812.8220.5026.4231.0730.9716.3419.8537.1866.70100.47
Dividend Payout %16%11%14%10%13%16%16%18%15%13%11%10%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)42.86%-18.57%61.40%28.26%17.80%-0.72%-47.10%21.92%84.27%79.27%49.32%
Change in YoY Net Profit Growth (%)0.00%-61.43%79.97%-33.14%-10.46%-18.52%-46.38%69.02%62.35%-5.00%-29.95%

Growth

Compounded Sales Growth
10 Years:10%
5 Years:10%
3 Years:25%
TTM:18%
Compounded Profit Growth
10 Years:20%
5 Years:26%
3 Years:71%
TTM:52%
Stock Price CAGR
10 Years:%
5 Years:32%
3 Years:64%
1 Year:134%
Return on Equity
10 Years:15%
5 Years:16%
3 Years:21%
Last Year:25%

Last Updated: June 17, 2024, 2:44 pm

Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital22222222222222222222222244
Reserves4404785385856737728911,0041,0481,1261,2331,5051,690
Borrowings32843138131028922617997135146157333333
Other Liabilities253248253272308334398445352409438512581
Total Liabilities1,0441,1791,1941,1891,2921,3541,4911,5681,5581,7041,8502,3732,648
Fixed Assets555725713667597577555613741703689733730
CWIP742494691117198653
Investments00001882066134327233
Other Assets4164304725186727609049347379591,1241,5631,882
Total Assets1,0441,1791,1941,1891,2921,3541,4911,5681,5581,7041,8502,3732,648

Reserves and Borrowings Chart

Shriram Pistons & Rings Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 129153180129255183175157297190219395
Cash from Investing Activity -229-197-65-45-67-55-65-157-214-10-56-209
Cash from Financing Activity 7668-101-111-113-89-88-61-111-28-9153
Net Cash Flow-242414-27753921-62-2815272240

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-251.00-152.00-120.00-57.0029.00114.00198.0047.0070.00147.00127.00155.00

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 Days545663585968665474635556
Inventory Days185197196175213190184182175155113114
Days Payable132149129157185178144144184142115104
Cash Conversion Cycle1081041307587801079265755366
Working Capital Days634050414750645562614964
ROCE %12%15%12%16%19%21%20%8%11%17%25%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters47.31%47.31%46.75%46.75%46.75%46.75%46.75%46.75%46.75%46.75%46.75%46.75%
FIIs0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.03%0.08%1.07%1.35%
DIIs10.36%10.36%10.28%10.28%10.28%10.17%10.11%10.05%9.59%9.29%13.07%12.55%
Public42.33%42.33%42.97%42.97%42.97%43.08%43.14%43.20%43.63%43.88%39.11%39.35%
No. of Shareholders2,2252,4322,3802,4672,4062,4822,6163,0434,6728,21822,62736,292

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Taurus Flexi Cap Fund6,6980.310.986,6982024-06-100%
Taurus Mid Cap Fund5,0000.650.736,6982024-06-10-25.35%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)100.47133.4374.2639.6732.64
Diluted EPS (Rs.)100.47133.4374.2639.6732.64
Cash EPS (Rs.)124.03176.43120.6085.5078.69
Book Value[Excl.RevalReserv]/Share (Rs.)458.69695.48565.40508.79474.09
Book Value[Incl.RevalReserv]/Share (Rs.)458.69699.90569.82513.14478.44
Revenue From Operations / Share (Rs.)701.321184.71937.42713.56718.11
PBDIT / Share (Rs.)165.11230.20151.50105.0790.21
PBIT / Share (Rs.)140.66187.20105.1759.2344.15
PBT / Share (Rs.)133.74178.4499.9853.6238.62
Net Profit / Share (Rs.)99.58133.4374.2639.6632.64
NP After MI And SOA / Share (Rs.)100.47133.2474.2639.6632.64
PBDIT Margin (%)23.5419.4316.1614.7212.56
PBIT Margin (%)20.0515.8011.218.306.14
PBT Margin (%)19.0615.0610.667.515.37
Net Profit Margin (%)14.1911.267.925.554.54
NP After MI And SOA Margin (%)14.3211.247.925.554.54
Return on Networth / Equity (%)22.9819.3313.137.796.88
Return on Capital Employeed (%)26.5523.2116.8610.488.31
Return On Assets (%)14.1012.358.845.204.68
Long Term Debt / Equity (X)0.100.090.030.040.03
Total Debt / Equity (X)0.230.190.100.080.08
Asset Turnover Ratio (%)1.121.241.160.971.03
Current Ratio (X)2.432.512.312.101.95
Quick Ratio (X)1.951.941.611.471.16
Inventory Turnover Ratio (X)3.202.972.521.791.53
Dividend Payout Ratio (NP) (%)0.0010.508.0715.1244.48
Dividend Payout Ratio (CP) (%)0.007.944.977.0118.45
Earning Retention Ratio (%)0.0089.5091.9384.8855.52
Cash Earning Retention Ratio (%)0.0092.0695.0392.9981.55
Interest Coverage Ratio (X)23.8826.2829.2118.7116.30
Interest Coverage Ratio (Post Tax) (X)15.4016.2315.328.066.90
Enterprise Value (Cr.)8324.481884.071334.911625.85883.94
EV / Net Operating Revenue (X)2.690.720.641.020.55
EV / EBITDA (X)11.453.724.006.924.38
MarketCap / Net Operating Revenue (X)2.800.850.751.120.55
Retention Ratios (%)0.0089.4991.9284.8755.51
Price / BV (X)4.491.461.251.560.84
Price / Net Operating Revenue (X)2.800.850.751.120.55
EarningsYield0.050.130.100.040.08

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 2,158.96

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: 11.46% compared to the current price 1937

Intrinsic Value: 3,104.57

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: 60.28% compared to the current price ₹1937

Last 5 Year EPS CAGR: 43.80%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (977.92 cr) compared to borrowings (264.25 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (1.33 cr) and profit (198.33 cr) over the years.
  1. The stock has a low average ROCE of 14.67%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 53.83, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 86.83, 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 Shriram Pistons & Rings Ltd:
    1. Net Profit Margin: 14.19%
      • 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: 26.55% (Industry Average ROCE: 12.98%)
      • 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%: 22.98% (Industry Average ROE: 11.65%)
      • 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): 15.40
      • 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: 1.95
      • 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: 19.4 (Industry average Stock P/E: 82.58)
      • 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: 0.23
      • 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

Shriram Pistons & Rings Ltd. is a Public Limited Listed company incorporated on 09/12/1963 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L29112DL1963PLC004084 and registration number is 004084. Currently Company is involved in the business activities of Manufacture of engines and turbines, except aircraft, vehicle and cycle engines. Company’s Total Operating Revenue is Rs. 2064.66 Cr. and Equity Capital is Rs. 22.03 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Auto Ancl - Engine Parts3rd Floor, Himalaya House, 23, Kasturba Gandhi Marg, New Delhi Delhi 110001compliance.officer@shrirampistons.com
http://www.shrirampistons.com
Management
NamePosition Held
Mr. Pradeep DinodiaChairman
Mr. Krishnakumar SrinivasanManaging Director & CEO
Mr. Luv D ShriramWhole Time Director
Mr. Masaaki YamaguchiDirector
Mr. Hari S BhartiaDirector
Mrs. Meenakshi DassDirector
Mr. Inderdeep SinghDirector
Mrs. Ferida ChopraDirector
Mr. Alok RanjanDirector
Mr. Shinichi UnnoDirector
Mr. Sascha PutzDirector
Mr. Yasunori MaekawaAlternate Director

FAQ

What is the latest fair value of Shriram Pistons & Rings Ltd?

The latest fair value of Shriram Pistons & Rings Ltd is ₹2158.96.

What is the Market Cap of Shriram Pistons & Rings Ltd?

The Market Cap of Shriram Pistons & Rings Ltd is 8,534 Cr..

What is the current Stock Price of Shriram Pistons & Rings Ltd as on 23 June 2024?

The current stock price of Shriram Pistons & Rings Ltd as on 23 June 2024 is ₹1,937.

What is the High / Low of Shriram Pistons & Rings Ltd stocks in FY 2024?

In FY 2024, the High / Low of Shriram Pistons & Rings Ltd stocks is 2,206/801.

What is the Stock P/E of Shriram Pistons & Rings Ltd?

The Stock P/E of Shriram Pistons & Rings Ltd is 19.4.

What is the Book Value of Shriram Pistons & Rings Ltd?

The Book Value of Shriram Pistons & Rings Ltd is 437.

What is the Dividend Yield of Shriram Pistons & Rings Ltd?

The Dividend Yield of Shriram Pistons & Rings Ltd is 0.26 %.

What is the ROCE of Shriram Pistons & Rings Ltd?

The ROCE of Shriram Pistons & Rings Ltd is 28.3 %.

What is the ROE of Shriram Pistons & Rings Ltd?

The ROE of Shriram Pistons & Rings Ltd is 25.4 %.

What is the Face Value of Shriram Pistons & Rings Ltd?

The Face Value of Shriram Pistons & Rings 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 Shriram Pistons & Rings 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