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Last Updated on: 13 June, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 543686 | NSE: SIRCA

Fundamental Analysis of Sirca Paints India Ltd

Basic Stock Data

Last Updated: June 13, 2024, 6:33 am

Market Cap 1,785 Cr.
Current Price 326
High / Low444/282
Stock P/E34.7
Book Value 56.3
Dividend Yield0.46 %
ROCE24.1 %
ROE17.9 %
Face Value 10.0
PEG Ratio2.25

Competitors of Sirca Paints India Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Berger Paints India Ltd 57,474 Cr. 493680/43949.2 46.10.53 %27.6 %23.7 % 1.00
Shalimar Paints Ltd 1,303 Cr. 156226/134 47.00.00 %12.3 %19.8 % 2.00
Asian Paints Ltd 2,78,091 Cr. 2,8993,568/2,67051.0 1951.16 %37.5 %31.4 % 1.00
Kansai Nerolac Paints Ltd 22,905 Cr. 283357/25235.4 69.10.89 %16.6 %12.8 % 1.00
Industry Average89,943.25 Cr957.7533.9089.300.65%23.50%21.93%1.25

Asian Paints Ltd Quarterly Results

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales48326153546173656873847283
Expenses38294741454654515556625966
Operating Profit93131291519141317211416
OPM %20%9%22%23%17%25%26%22%19%24%25%19%20%
Other Income12111112111122
Interest0000000000000
Depreciation1111111111222
Profit before tax213141291520141318211417
Tax %26%26%26%25%32%24%26%26%27%27%26%24%26%
Net Profit1521096121411913161113
EPS in Rs2.780.401.851.671.132.132.631.921.732.352.831.922.28

Last Updated: June 9, 2024, 5:31 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 26, 2024, 5:55 pm

MonthMar 2011Mar 2012Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales222965718389116134141196264312
Expenses20276061626384103128158202243
Operating Profit226102026323112386269
OPM %8%7%9%14%25%29%27%23%9%20%23%22%
Other Income0042246614456
Interest000000000000
Depreciation000101124446
Profit before tax229112230373423386269
Tax %36%32%35%35%36%34%30%26%27%27%26%26%
Net Profit11671419262517284651
EPS in Rs37.3345.00206.00242.67456.674.824.734.593.035.068.419.39
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%

Asian Paints Ltd Growth

Compounded Sales Growth
10 Years:%
5 Years:22%
3 Years:30%
TTM:18%
Compounded Profit Growth
10 Years:%
5 Years:15%
3 Years:46%
TTM:12%
Stock Price CAGR
10 Years:%
5 Years:28%
3 Years:21%
1 Year:-6%
Return on Equity
10 Years:%
5 Years:15%
3 Years:17%
Last Year:18%

Last Updated: June 7, 2024, 9:29 am

Balance Sheet

MonthMar 2011Mar 2012Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital0000013182727272755
Reserves3413203454150157174198238231
Borrowings291211450013000
Other Liabilities478142322232540374740
Total Liabilities92033456195191210255262312326
Fixed Assets1222820255041535460
CWIP000000902150
Investments022320000000
Other Assets81529405175157160212208252266
Total Assets92033456195191210255262312326

Reserves and Borrowings Chart

Cash Flow

MonthMar 2011Mar 2012Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 00511-112-81935-19
Cash from Investing Activity 00-1-5-13-71515-119
Cash from Financing Activity 00-1-71668-8-0-17-6
Net Cash Flow002-219-11347-15

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 2023
Debtor Days8911162831061371251241128571
Inventory Days264576120144265282217248
Days Payable22447056921051519890
Cash Conversion Cycle891116784112201177285242204229
Working Capital Days6291445864145157223235159209
ROCE %21%40%63%54%31%19%11%18%25%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 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%0.00%0.00%5.80%5.59%5.55%5.90%5.94%5.93%5.48%
DIIs5.39%4.46%5.71%5.57%5.90%3.81%4.41%3.88%0.00%0.00%0.80%0.75%
Public27.06%27.99%26.75%26.88%26.55%22.85%22.45%23.03%26.56%26.51%25.73%26.22%
No. of Shareholders7,6619,47211,75513,05412,36914,50917,83120,88235,58345,02551,91157,376

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) (%)0.0011.8814.820.000.00
Dividend Payout Ratio (CP) (%)0.0010.8412.900.000.00
Earning Retention Ratio (%)0.0088.1285.180.000.00
Cash Earning Retention Ratio (%)0.0089.1687.100.000.00
Interest Coverage Ratio (X)3714.611710.88540.44252.81412.06
Interest Coverage Ratio (Post Tax) (X)2547.211186.26356.43160.29283.67
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 (%)0.0088.1185.170.000.00
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: 351.30

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: 7.76% compared to the current price 326

Intrinsic Value: 405.37

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: 24.35% compared to the current price ₹326

Last 5 Year EPS CAGR: 15.39%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 25.64%, which is a positive sign.
  2. The company has higher reserves (106.33 cr) compared to borrowings (4.67 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (126.83 cr) and profit (28.25 cr) over the years.
  1. The stock has a high average Working Capital Days of 131.55, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 163.73, 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: 23.5%)
      • 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: 21.93%)
      • 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): 2547.21
      • 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: 34.7 (Industry average Stock P/E: 33.93)
      • 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: 0.00
      • 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

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 110015info@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. Anil Kumar MehrotraInd. Non-Executive Director

FAQ

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

The latest fair value of Sirca Paints India Ltd is ₹351.30.

What is the Market Cap of Sirca Paints India Ltd?

The Market Cap of Sirca Paints India Ltd is 1,785 Cr..

What is the current Stock Price of Sirca Paints India Ltd as on 13 June 2024?

The current stock price of Sirca Paints India Ltd as on 13 June 2024 is ₹326.

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 34.7.

What is the Book Value of Sirca Paints India Ltd?

The Book Value of Sirca Paints India Ltd is 56.3.

What is the Dividend Yield of Sirca Paints India Ltd?

The Dividend Yield of Sirca Paints India Ltd is 0.46 %.

What is the ROCE of Sirca Paints India Ltd?

The ROCE of Sirca Paints India Ltd is 24.1 %.

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