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Last Updated on: 22 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 543686 | NSE: SIRCA

Sirca Paints India Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 9:27 pm

Market Cap 1,766 Cr.
Current Price 322
High / Low444/282
Stock P/E38.0
Book Value 59.1
Dividend Yield0.47 %
ROCE24.0 %
ROE17.9 %
Face Value 10.0
PEG Ratio1.58

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

View Share Price Target for Sirca Paints India Ltd

Competitors of Sirca Paints India Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Sirca Paints India Ltd 1,766 Cr. 322444/28238.0 59.10.47 %24.0 %17.9 % 10.0
Shalimar Paints Ltd 826 Cr. 98.7226/97.0 41.40.00 %13.0 %21.2 % 2.00
Kansai Nerolac Paints Ltd 20,706 Cr. 255357/25233.9 69.80.98 %16.6 %12.8 % 1.00
Berger Paints India Ltd 54,302 Cr. 466630/43947.4 48.00.75 %27.5 %23.5 % 1.00
Akzo Nobel India Ltd 16,538 Cr. 3,6314,674/2,26538.0 3132.07 %42.3 %32.3 % 10.0
Industry Average54,515.50 Cr1,200.1241.38119.880.94%26.82%23.18%4.17

All Competitor Stocks of Sirca Paints India Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales32615354617365687384728379
Expenses29474145465451555662596665
Operating Profit313129151914131721141614
OPM %9%22%23%17%25%26%22%19%24%25%19%20%18%
Other Income1111121111221
Interest0000000000000
Depreciation1111111112222
Profit before tax314129152014131821141714
Tax %26%26%25%32%24%26%26%27%27%26%24%26%27%
Net Profit2109612141191316111310
EPS in Rs0.401.851.671.132.132.631.921.732.352.831.922.281.86

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2011Mar 2012Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales222965718389116134141196264311317
Expenses20276061626384103128158202243252
Operating Profit22610202632311238626965
OPM %8%7%9%14%25%29%27%23%9%20%23%22%21%
Other Income00422466144566
Interest0000000000000
Depreciation0001011244466
Profit before tax22911223037342338626965
Tax %36%32%35%35%36%34%30%26%27%27%26%26%
Net Profit1167141926251728465149
EPS in Rs37.3345.00206.00242.67456.674.824.734.593.035.068.419.398.89
Dividend Payout %0%0%0%0%0%0%7%16%25%20%9%16%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2011-20122015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)0.00%16.67%100.00%35.71%36.84%-3.85%-32.00%64.71%64.29%10.87%
Change in YoY Net Profit Growth (%)0.00%16.67%83.33%-64.29%1.13%-40.69%-28.15%96.71%-0.42%-53.42%

Sirca Paints India Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 10 years from 2011-2012 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:%
5 Years:22%
3 Years:30%
TTM:17%
Compounded Profit Growth
10 Years:%
5 Years:15%
3 Years:46%
TTM:-4%
Stock Price CAGR
10 Years:%
5 Years:21%
3 Years:10%
1 Year:-14%
Return on Equity
10 Years:%
5 Years:15%
3 Years:17%
Last Year:18%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 7:38 pm

MonthMar 2011Mar 2012Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital0.100.100.100.100.101318272727275555
Reserves3413203454150157174198238254269
Borrowings2912114500130000
Other Liabilities47814232223254037474245
Total Liabilities92033456195191210255262312351369
Fixed Assets122282025504153545882
CWIP0000009021560
Investments0223200000007
Other Assets81529405175157160212208252287280
Total Assets92033456195191210255262312351369

Reserves and Borrowings Chart

Cash Flow

MonthMar 2011Mar 2012Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +00511-112-81935-1932
Cash from Investing Activity +00-1-5-13-71515-119-12
Cash from Financing Activity +00-1-71668-8-0-17-6-8
Net Cash Flow002-219-11347-1512

Free Cash Flow

MonthMar 2011Mar 2012Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow0.00-7.00-6.00-1.0016.0021.0032.0031.00-1.0038.0062.0069.00

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 2011Mar 2012Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days891116283106137125124112857177
Inventory Days264576120144265282217248206
Days Payable2244705692105151989070
Cash Conversion Cycle891116784112201177285242204229213
Working Capital Days6291445864145157223235159209201
ROCE %21%40%63%54%31%19%11%18%25%24%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters67.55%67.55%67.55%67.55%67.55%67.55%67.55%67.55%67.55%67.55%67.55%67.55%
FIIs0.00%0.00%0.00%5.80%5.59%5.55%5.90%5.94%5.93%5.48%5.36%4.61%
DIIs5.71%5.57%5.90%3.81%4.41%3.88%0.00%0.00%0.80%0.75%0.69%0.69%
Public26.75%26.88%26.55%22.85%22.45%23.03%26.56%26.51%25.73%26.22%26.41%27.15%
No. of Shareholders11,75513,05412,36914,50917,83120,88235,58345,02551,91157,37657,68956,926

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.)9.388.4110.126.059.18
Diluted EPS (Rs.)9.388.4110.126.059.18
Cash EPS (Rs.)10.4718.4311.627.3910.06
Book Value[Excl.RevalReserv]/Share (Rs.)56.3296.8882.1573.5667.38
Book Value[Incl.RevalReserv]/Share (Rs.)56.3296.8882.1573.5667.38
Revenue From Operations / Share (Rs.)56.8797.7072.9952.2549.28
PBDIT / Share (Rs.)13.6924.2915.389.6013.38
PBIT / Share (Rs.)12.6022.6813.888.2712.51
PBT / Share (Rs.)12.6022.6613.858.2312.47
Net Profit / Share (Rs.)9.3816.8210.126.059.18
NP After MI And SOA / Share (Rs.)9.3816.8210.126.059.18
PBDIT Margin (%)24.0724.8521.0718.3827.15
PBIT Margin (%)22.1623.2019.0115.8225.37
PBT Margin (%)22.1523.1918.9715.7525.31
Net Profit Margin (%)16.4917.2213.8511.5818.62
NP After MI And SOA Margin (%)16.4917.2213.8511.5818.62
Return on Networth / Equity (%)16.6617.3612.318.2213.62
Return on Capital Employeed (%)22.3323.3516.8811.2218.54
Return On Assets (%)14.6514.7710.566.5011.98
Total Debt / Equity (X)0.000.000.000.060.00
Asset Turnover Ratio (%)0.940.930.770.610.00
Current Ratio (X)6.805.425.513.966.28
Quick Ratio (X)4.513.243.642.734.22
Inventory Turnover Ratio (X)1.020.900.640.350.00
Dividend Payout Ratio (NP) (%)15.9811.8814.820.000.00
Dividend Payout Ratio (CP) (%)14.3210.8412.900.000.00
Earning Retention Ratio (%)84.0288.1285.180.000.00
Cash Earning Retention Ratio (%)85.6889.1687.100.000.00
Interest Coverage Ratio (X)3714.621710.88540.44252.81412.06
Interest Coverage Ratio (Post Tax) (X)2547.221186.26356.43160.29283.67
Enterprise Value (Cr.)1489.101713.651191.29800.03457.26
EV / Net Operating Revenue (X)4.786.405.965.593.39
EV / EBITDA (X)19.8525.7528.2630.4012.47
MarketCap / Net Operating Revenue (X)5.006.596.376.053.75
Retention Ratios (%)84.0188.1185.170.000.00
Price / BV (X)5.056.655.664.292.75
Price / Net Operating Revenue (X)5.006.596.376.053.75
EarningsYield0.030.020.020.010.04

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Sirca Paints India Ltd as of November 22, 2024 is: 403.89

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 22, 2024, Sirca Paints India Ltd is Undervalued by 25.43% compared to the current share price 322.00

Intrinsic Value of Sirca Paints India Ltd as of November 22, 2024 is: 500.90

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 22, 2024, Sirca Paints India Ltd is Undervalued by 55.56% compared to the current share price 322.00

Last 5 Year EPS CAGR: 24.02%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 25.50%, which is a positive sign.
  2. The company has higher reserves (120.62 cr) compared to borrowings (4.31 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (141.38 cr) and profit (31.08 cr) over the years.
  1. The stock has a high average Working Capital Days of 137.33, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 167.83, 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 Sirca Paints India Ltd:
    1. Net Profit Margin: 16.49%
      • 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: 22.33% (Industry Average ROCE: 26.82%)
      • 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%: 16.66% (Industry Average ROE: 23.18%)
      • 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): 2547.22
      • 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: 4.51
      • 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: 38 (Industry average Stock P/E: 41.38)
      • 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

Sirca Paints India Ltd. is a Public Limited Listed company incorporated on 19/01/2006 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L24219DL2006PLC145092 and registration number is 145092. Currently Company is involved in the business activities of Wholesale of paints, varnishes, and lacquers. Company’s Total Operating Revenue is Rs. 200.02 Cr. and Equity Capital is Rs. 27.40 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Paints/VarnishesG-82, Kirti Nagar, New Delhi Delhi 110015cs@sircapaints.com
https://www.sircapaints.com
Management
NamePosition Held
Mr. Sanjay AgarwalChairman & Managing Director
Mr. Apoorv AgarwalJoint Managing Director
Mr. Gurjit Singh BainsNon Executive Director
Mr. Ugo PelosinNon Executive Director
Mr. Shyam Lal GoyalInd. Non-Executive Director
Dr. Sanjay KapoorInd. Non-Executive Director
Mrs. Anu ChauhanInd. Non-Executive Director
Mr. Aman AroraInd. Non-Executive Director

FAQ

What is the latest intrinsic value of Sirca Paints India Ltd?

The latest intrinsic value of Sirca Paints India Ltd as on 21 November 2024 is ₹403.89, which is 25.43% higher than the current market price of ₹322.00.

What is the Market Cap of Sirca Paints India Ltd?

The Market Cap of Sirca Paints India Ltd is 1,766 Cr..

What is the current Stock Price of Sirca Paints India Ltd as on 21 November 2024?

The current stock price of Sirca Paints India Ltd as on 21 November 2024 is ₹322.

What is the High / Low of Sirca Paints India Ltd stocks in FY 2024?

In FY 2024, the High / Low of Sirca Paints India Ltd stocks is 444/282.

What is the Stock P/E of Sirca Paints India Ltd?

The Stock P/E of Sirca Paints India Ltd is 38.0.

What is the Book Value of Sirca Paints India Ltd?

The Book Value of Sirca Paints India Ltd is 59.1.

What is the Dividend Yield of Sirca Paints India Ltd?

The Dividend Yield of Sirca Paints India Ltd is 0.47 %.

What is the ROCE of Sirca Paints India Ltd?

The ROCE of Sirca Paints India Ltd is 24.0 %.

What is the ROE of Sirca Paints India Ltd?

The ROE of Sirca Paints India Ltd is 17.9 %.

What is the Face Value of Sirca Paints India Ltd?

The Face Value of Sirca Paints India 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 Sirca Paints India 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