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Last Updated on: 10 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Spectrum Electrical Industries Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 9, 2024, 11:46 pm

Market Cap 2,755 Cr.
Current Price 1,765
High / Low2,520/1,023
Stock P/E142
Book Value 107
Dividend Yield0.06 %
ROCE16.6 %
ROE15.1 %
Face Value 10.0
PEG Ratio4.42

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

View Share Price Target for Spectrum Electrical Industries Ltd

Competitors of Spectrum Electrical Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Evans Electric Ltd 115 Cr. 420504/16140.7 74.60.71 %36.4 %28.0 % 10.0
Epic Energy Ltd 66.6 Cr. 92.492.4/5.9788.9 10.00.00 %5.03 %5.49 % 10.0
Edvenswa Enterprises Ltd 232 Cr. 63.199.8/42.427.0 18.70.00 %23.6 %15.4 % 10.0
Cospower Engineering Ltd 102 Cr. 681681/200929 48.10.00 %8.12 %1.54 % 10.0
Continental Controls Ltd 7.25 Cr. 11.818.5/5.80362 3.430.00 %7.82 %14.0 % 10.0
Industry Average16,281.70 Cr679.20182.0869.590.10%16.28%19.86%6.12

All Competitor Stocks of Spectrum Electrical Industries Ltd

Quarterly Result

MonthSep 2019Mar 2020Sep 2020Mar 2021Sep 2021Mar 2022Sep 2022Mar 2023Sep 2023Mar 2024
Sales74695598123129126132135193
Expenses64634884109118114116117167
Operating Profit106714151212161826
OPM %14%8%12%14%12%9%10%12%13%14%
Other Income0000000000
Interest2133444345
Depreciation3333444554
Profit before tax511874481017
Tax %28%28%27%28%28%28%28%28%29%27%
Net Profit41065336712
EPS in Rs2.450.640.273.643.361.711.813.764.687.93

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2011Mar 2012Mar 2013Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales00027120147141151251253328
Expenses00025103129126133226230284
Operating Profit0000116181519252345
OPM %23%19%14%12%10%12%10%9%14%
Other Income000000112150
Interest000004336879
Depreciation000004666899
Profit before tax0000181068111227
Tax %23%20%27%28%28%28%28%28%28%
Net Profit0000167568819
EPS in Rs0.000.000.006.0110.6252.964.853.103.915.065.5712.47
Dividend Payout %0%0%0%0%0%26%20%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)500.00%16.67%-28.57%20.00%33.33%0.00%137.50%
Change in YoY Net Profit Growth (%)0.00%-483.33%-45.24%48.57%13.33%-33.33%137.50%

Spectrum Electrical Industries Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 7 years from 2017-2018 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:%
5 Years:17%
3 Years:29%
TTM:27%
Compounded Profit Growth
10 Years:%
5 Years:22%
3 Years:49%
TTM:131%
Stock Price CAGR
10 Years:%
5 Years:98%
3 Years:209%
1 Year:67%
Return on Equity
10 Years:%
5 Years:10%
3 Years:12%
Last Year:15%

Last Updated: Unknown

Balance Sheet

Last Updated: September 15, 2024, 2:43 pm

MonthMar 2011Mar 2012Mar 2013Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital0005511151515151516
Reserves00001235156626877151
Borrowings00081138466777778488
Other Liabilities0002835312234566461
Total Liabilities0001525108143159188216239316
Fixed Assets0002650454570807577
CWIP000914062013710
Investments00000491014151638
Other Assets00055548384103117141191
Total Assets0001525108143159188216239316

Reserves and Borrowings Chart

Cash Flow

MonthMar 2011Mar 2012Mar 2013Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 000-29-9-17312248-20
Cash from Investing Activity 000-5-10-35-12-20-11-21-3-30
Cash from Financing Activity 000824429185-9054
Net Cash Flow00011-0016-664

Free Cash Flow

MonthMar 2011Mar 2012Mar 2013Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow0.000.000.00-8.00-10.00-22.00-28.00-52.00-58.00-52.00-61.00-43.00

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 2013Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days0069636161506791
Inventory Days19095106139157207135143102
Days Payable1906951489855867810261
Cash Conversion Cycle0-60126105163183107108133
Working Capital Days461-281488711812686105137
ROCE %0%0%6%28%14%8%10%12%11%17%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2018Mar 2019Sep 2019Mar 2020Sep 2020Mar 2021Sep 2021Mar 2022Sep 2022Mar 2023Sep 2023Mar 2024
Promoters68.64%68.64%68.64%68.64%68.64%68.91%69.48%71.45%71.45%71.45%74.88%72.53%
FIIs0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.56%2.51%
DIIs0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.07%0.00%0.31%
Public31.36%31.38%31.37%31.37%31.37%31.09%30.51%28.55%28.55%28.48%24.56%24.64%
No. of Shareholders595121118116109101109104109170272628

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
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)5.595.063.913.104.86
Diluted EPS (Rs.)5.595.063.913.109.05
Cash EPS (Rs.)11.5410.318.167.108.56
Book Value[Excl.RevalReserv]/Share (Rs.)60.9055.1550.9346.8643.77
Book Value[Incl.RevalReserv]/Share (Rs.)60.9055.1550.9346.8643.77
Revenue From Operations / Share (Rs.)167.56166.21100.0793.3997.11
PBDIT / Share (Rs.)18.6217.3813.5310.4612.32
PBIT / Share (Rs.)12.6612.139.286.458.62
PBT / Share (Rs.)7.757.015.414.296.73
Net Profit / Share (Rs.)5.595.063.913.104.86
NP After MI And SOA / Share (Rs.)5.595.063.913.104.86
PBDIT Margin (%)11.1110.4513.5211.2012.68
PBIT Margin (%)7.557.309.276.918.87
PBT Margin (%)4.624.225.404.596.92
Net Profit Margin (%)3.333.043.903.315.00
NP After MI And SOA Margin (%)3.333.043.903.315.00
Return on Networth / Equity (%)9.179.187.666.6011.09
Return on Capital Employeed (%)14.0714.2711.138.9514.17
Return On Assets (%)3.303.513.122.935.12
Long Term Debt / Equity (X)0.410.440.610.520.38
Total Debt / Equity (X)1.080.941.010.940.69
Asset Turnover Ratio (%)1.071.240.870.930.00
Current Ratio (X)1.201.331.661.581.49
Quick Ratio (X)0.610.590.770.800.79
Inventory Turnover Ratio (X)2.592.932.142.560.00
Dividend Payout Ratio (NP) (%)0.0019.750.000.000.00
Dividend Payout Ratio (CP) (%)0.009.700.000.000.00
Earning Retention Ratio (%)0.0080.250.000.000.00
Cash Earning Retention Ratio (%)0.0090.300.000.000.00
Interest Coverage Ratio (X)3.793.393.504.836.53
Interest Coverage Ratio (Post Tax) (X)2.141.992.012.433.57
Enterprise Value (Cr.)612.26217.80155.28144.01133.36
EV / Net Operating Revenue (X)2.420.861.031.020.90
EV / EBITDA (X)21.758.297.599.107.16
MarketCap / Net Operating Revenue (X)2.060.560.560.560.60
Retention Ratios (%)0.0080.240.000.000.00
Price / BV (X)5.661.701.121.131.35
Price / Net Operating Revenue (X)2.060.560.560.560.60
EarningsYield0.010.050.060.050.08

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Spectrum Electrical Industries Ltd as of November 10, 2024 is: 2,295.67

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 10, 2024, Spectrum Electrical Industries Ltd is Undervalued by 30.07% compared to the current share price ₹1,765.00

Intrinsic Value of Spectrum Electrical Industries Ltd as of November 10, 2024 is: 3,032.57

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 10, 2024, Spectrum Electrical Industries Ltd is Undervalued by 71.82% compared to the current share price 1,765.00

Last 5 Year EPS CAGR: 32.10%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has shown consistent growth in sales (116.67 cr) and profit (6.92 cr) over the years.
  1. The stock has a low average ROCE of 8.83%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 73.92, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 18.67, which may not be favorable.
  4. The company has higher borrowings (41.33) compared to reserves (40.75), which may suggest financial risk.

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 Spectrum Electrical Industries Ltd:
    1. Net Profit Margin: 3.33%
      • 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: 14.07% (Industry Average ROCE: 16.28%)
      • 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%: 9.17% (Industry Average ROE: 19.86%)
      • 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): 2.14
      • 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: 0.61
      • 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: 142 (Industry average Stock P/E: 182.08)
      • 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: 1.08
      • 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

Spectrum Electrical Industries Ltd. is a Public Limited Listed company incorporated on 12/08/2008 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L28100MH2008PLC185764 and registration number is 185764. Currently company belongs to the Industry of Electric Equipment - General. Company’s Total Operating Revenue is Rs. 251.30 Cr. and Equity Capital is Rs. 15.12 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Electric Equipment - GeneralGat No. 139/1 and 139/2, Umala, Jalgaon Maharashtra 425003info@spectrum-india.com
http://www.spectrum-india.com
Management
NamePosition Held
Mr. Deepak Suresh ChaudhariChairman & Managing Director
Mrs. Bharti Deepak ChaudhariWhole Time Director
Mr. Devendra Sudhakar RaneExecutive Director
Mr. Sanjay Padmakar PawdeIndependent Director
Mr. Narendra Daulatrao WaghIndependent Director
Mr. Kishor Dalu DhakeIndependent Director
Mr. Saurabh Shrikant MalpaniIndependent Director

FAQ

What is the latest fair value of Spectrum Electrical Industries Ltd?

The latest fair value of Spectrum Electrical Industries Ltd is ₹2295.67.

What is the Market Cap of Spectrum Electrical Industries Ltd?

The Market Cap of Spectrum Electrical Industries Ltd is 2,755 Cr..

What is the current Stock Price of Spectrum Electrical Industries Ltd as on 10 November 2024?

The current stock price of Spectrum Electrical Industries Ltd as on 10 November 2024 is 1,765.

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

In FY 2024, the High / Low of Spectrum Electrical Industries Ltd stocks is 2,520/1,023.

What is the Stock P/E of Spectrum Electrical Industries Ltd?

The Stock P/E of Spectrum Electrical Industries Ltd is 142.

What is the Book Value of Spectrum Electrical Industries Ltd?

The Book Value of Spectrum Electrical Industries Ltd is 107.

What is the Dividend Yield of Spectrum Electrical Industries Ltd?

The Dividend Yield of Spectrum Electrical Industries Ltd is 0.06 %.

What is the ROCE of Spectrum Electrical Industries Ltd?

The ROCE of Spectrum Electrical Industries Ltd is 16.6 %.

What is the ROE of Spectrum Electrical Industries Ltd?

The ROE of Spectrum Electrical Industries Ltd is 15.1 %.

What is the Face Value of Spectrum Electrical Industries Ltd?

The Face Value of Spectrum Electrical 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 Spectrum Electrical 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