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Last Updated on: 20 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Signet Industries Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 19, 2024, 6:27 pm

Market Cap 201 Cr.
Current Price 68.0
High / Low97.4/52.2
Stock P/E16.0
Book Value 75.4
Dividend Yield0.74 %
ROCE14.8 %
ROE7.22 %
Face Value 10.0
PEG Ratio2.89

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Signet Industries Ltd

Competitors of Signet Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Hindustan Fluoro Carbons Ltd 33.1 Cr. 16.923.7/13.025.3 41.90.00 %3.05 %% 10.0
Gujarat Petrosynthese Ltd 40.6 Cr. 68.098.0/44.232.2 81.90.00 %2.73 %3.46 % 10.0
AVI Polymers Ltd 4.92 Cr. 12.014.0/9.4598.3 12.00.00 %0.57 %0.41 % 10.0
Supreme Petrochem Ltd 13,121 Cr. 693927/52131.9 1121.30 %22.5 %16.8 % 2.00
Signet Industries Ltd 201 Cr. 68.097.4/52.216.0 75.40.74 %14.8 %7.22 % 10.0
Industry Average4,501.57 Cr213.3041.4579.550.78%12.39%9.72%7.55

All Competitor Stocks of Signet Industries Ltd

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales274.64180.26204.87180.99311.14219.14222.65263.39312.52288.82268.78311.31344.13
Expenses256.97166.25190.05165.66293.58203.75208.13244.24292.10270.59248.98286.44322.92
Operating Profit17.6714.0114.8215.3317.5615.3914.5219.1520.4218.2319.8024.8721.21
OPM %6.43%7.77%7.23%8.47%5.64%7.02%6.52%7.27%6.53%6.31%7.37%7.99%6.16%
Other Income2.160.340.440.390.240.310.750.581.160.481.000.593.10
Interest10.7110.6410.5810.0611.5311.3610.3610.3512.0012.0413.5915.6615.19
Depreciation2.072.192.162.132.142.182.262.322.322.412.442.452.44
Profit before tax7.051.522.523.534.132.162.657.067.264.264.777.356.68
Tax %15.60%31.58%29.37%26.91%30.99%32.41%29.06%26.63%37.88%25.12%28.30%26.53%48.50%
Net Profit5.951.041.782.582.851.471.885.184.523.203.415.403.44
EPS in Rs2.020.350.600.880.970.500.641.761.541.091.161.831.17

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales5656126507869129049768838278771,0181,213
Expenses5125495937198498349058167648169481,129
Operating Profit526457676370716763626984
OPM %9%10%9%9%7%8%7%8%8%7%7%7%
Other Income988344223135
Interest384543403841444446434456
Depreciation6667777889910
Profit before tax182116232326221712121923
Tax %32%26%26%25%21%28%38%31%-19%30%32%33%
Net Profit12161217181814121481315
EPS in Rs4.115.404.035.966.266.284.664.014.742.804.435.25
Dividend Payout %29%22%0%8%8%8%11%12%11%18%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 (%)33.33%-25.00%41.67%5.88%0.00%-22.22%-14.29%16.67%-42.86%62.50%15.38%
Change in YoY Net Profit Growth (%)0.00%-58.33%66.67%-35.78%-5.88%-22.22%7.94%30.95%-59.52%105.36%-47.12%

Signet Industries Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:7%
5 Years:4%
3 Years:14%
TTM:3%
Compounded Profit Growth
10 Years:2%
5 Years:2%
3 Years:7%
TTM:-23%
Stock Price CAGR
10 Years:-6%
5 Years:28%
3 Years:19%
1 Year:9%
Return on Equity
10 Years:9%
5 Years:6%
3 Years:6%
Last Year:7%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital292929292929292929292929
Reserves14255876109126137147159166177191
Borrowings272267201205207245211244295307309336
Other Liabilities142186212205242216277234246216213212
Total Liabilities457506501515588616655654729718729768
Fixed Assets788281777279827781798279
CWIP000041002510
Investments800000000011
Other Assets371424420437511535572577646634645687
Total Assets457506501515588616655654729718729768

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +32436528152084127345130
Cash from Investing Activity +-285374-5-9-99-13-9-60
Cash from Financing Activity +-16-49-91-35-22-7-80-133-32-44-32
Net Cash Flow-12-211-3-114-57-3-71-1

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-220.00-203.00-144.00-138.00-144.00-175.00-140.00-177.00-232.00-245.00-240.00-252.00

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 Days131144128123123118109125144130108104
Inventory Days566379575878869611812611599
Days Payable90110122959388110102116957866
Cash Conversion Cycle979784858810785118146161145136
Working Capital Days989282889411296129163165145136
ROCE %18%19%19%21%19%18%17%15%12%11%12%15%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters72.56%72.57%72.57%72.57%72.57%72.57%72.57%72.57%72.57%72.57%72.57%72.57%
Public27.44%27.43%27.43%27.43%27.43%27.42%27.43%27.42%27.44%27.43%27.43%27.43%
No. of Shareholders13,12913,16714,80214,45914,42214,14814,06715,34414,65814,98815,09014,761

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 12
FaceValue10.00
Basic EPS (Rs.)1.34
Diluted EPS (Rs.)1.34
PBDIT Margin (%)6.43
PBIT Margin (%)5.55
PBT Margin (%)1.57
Net Profit Margin (%)0.76
NP After MI And SOA Margin (%)0.76
Interest Coverage Ratio (X)1.39
Interest Coverage Ratio (Post Tax) (X)1.19

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Signet Industries Ltd as of November 20, 2024 is: 87.75

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.

As of November 20, 2024, Signet Industries Ltd is Undervalued by 29.04% compared to the current share price 68.00

Intrinsic Value of Signet Industries Ltd as of November 20, 2024 is: 92.61

Calculation basis:

  • Intrinsic 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 intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 20, 2024, Signet Industries Ltd is Undervalued by 36.19% compared to the current share price 68.00

Last 5 Year EPS CAGR: 5.54%

*Investments are subject to market risks

Strength and Weakness

Unable to fetch valid data for stock valuation.

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 Signet Industries Ltd:
    1. Net Profit Margin: 0.76%
      • 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: 0% (Industry Average ROCE: 12.39%)
      • 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% (Industry Average ROE: 8.84%)
      • 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): 1.19
      • 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
      • 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: 16 (Industry average Stock P/E: 37.68)
      • 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
      • 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 - Qualitative Analysis

Signet Industries Ltd. is a Public Limited Listed company incorporated on 29/01/1985 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L51900MH1985PLC035202 and registration number is 035202. Currently company belongs to the Industry of Petrochem - Polymers. Company’s Total Operating Revenue is Rs. 877.26 Cr. and Equity Capital is Rs. 29.44 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Petrochemicals - PolymersGala No. 02 & 03, Building No. A-2, Gr. Floor, Print World Industrial Complex, Survey No. 15/1, Road, Thane Maharashtra 421302info@groupsignet.com
http://www.groupsignet.com
Management
NamePosition Held
Mr. Mukesh SanglaChairman & Managing Director
Mr. Saurabh SanglaDirector
Ms. Palak MalviyaIndependent Woman Director
Mr. Mayank ShrivasIndependent Director
Mrs. Reshma LalwaniIndependent Woman Director
Mr. Rahul RajpootIndependent Director

FAQ

What is the latest intrinsic value of Signet Industries Ltd?

The latest intrinsic value of Signet Industries Ltd as on 20 November 2024 is ₹87.75, which is 29.04% higher than the current market price of ₹68.00.

What is the Market Cap of Signet Industries Ltd?

The Market Cap of Signet Industries Ltd is 201 Cr..

What is the current Stock Price of Signet Industries Ltd as on 20 November 2024?

The current stock price of Signet Industries Ltd as on 20 November 2024 is ₹68.0.

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

In FY 2024, the High / Low of Signet Industries Ltd stocks is 97.4/52.2.

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

The Stock P/E of Signet Industries Ltd is 16.0.

What is the Book Value of Signet Industries Ltd?

The Book Value of Signet Industries Ltd is 75.4.

What is the Dividend Yield of Signet Industries Ltd?

The Dividend Yield of Signet Industries Ltd is 0.74 %.

What is the ROCE of Signet Industries Ltd?

The ROCE of Signet Industries Ltd is 14.8 %.

What is the ROE of Signet Industries Ltd?

The ROE of Signet Industries Ltd is 7.22 %.

What is the Face Value of Signet Industries Ltd?

The Face Value of Signet Industries 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 Signet 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