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Last Updated on: 24 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Spectrum Electrical Industries Ltd

About the Company - Spectrum Electrical Industries Ltd

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

Spectrum Electrical Industries Ltd. Share Price Update

Share PriceValue
Today₹1,779.95
Previous Day₹1,755.00

Basic Stock Data of Spectrum Electrical Industries Ltd

Market Cap 2,622 Cr.
Current Price 1,734
High / Low1,898/260
Stock P/E205
Book Value 64.6
Dividend Yield0.06 %
ROCE11.4 %
ROE9.60 %
Face Value 10.0

Data Source: screener.in

Competitors of Spectrum Electrical Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
HPL Electric & Power Ltd 2,392 Cr. 372399/74.158.1 1260.27 %8.85 %3.87 % 10.0
Orient Electric Ltd 4,497 Cr. 211279/18962.1 28.80.71 %19.2 %13.5 % 1.00
WS Industries (India) Ltd 744 Cr. 158194/17.426.7 20.60.00 %1.22 %63.8 % 10.0
Servotech Power Systems Ltd 2,074 Cr. 97.6109/16.5149 4.150.04 %17.7 %16.8 % 1.00
Swelect Energy Systems Ltd 1,700 Cr. 1,1211,159/26363.6 5340.11 %4.41 %0.21 % 10.0
Industry Average150.6 Cr167.9271.9142.710.23%10.28%19.64%6.4

Spectrum Electrical Industries Ltd Quarterly Results

MonthSep 2019Mar 2020Sep 2020Mar 2021Sep 2021Mar 2022Sep 2022Mar 2023Sep 2023
Sales74695598123129126132135
Expenses64634884109118114116117
Operating Profit1067141512121618
OPM %14%8%12%14%12%9%10%12%13%
Other Income000000000
Interest213344434
Depreciation333344455
Profit before tax5118744810
Tax %28%28%27%28%28%28%28%28%29%
Net Profit410653367
EPS in Rs2.450.640.273.643.361.711.813.764.68

Spectrum Electrical Industries Ltd Quarterly Chart

Spectrum Electrical Industries Ltd Profit & Loss

MonthMar 2011Mar 2012Mar 2013Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales00027120147141151251253267
Expenses00025103129126133226230233
Operating Profit0000116181519252334
OPM %23%19%14%12%10%12%10%9%13%
Other Income000000112150
Interest000004336877
Depreciation000004666899
Profit before tax0000181068111218
Tax %23%20%27%28%28%28%28%28%
Net Profit0000167568813
EPS in Rs0.000.000.006.0110.6252.964.853.103.915.065.578.44
Dividend Payout %0%0%0%0%0%26%20%0%

Spectrum Electrical Industries Ltd Profit & Loss Yearly Chart

Spectrum Electrical Industries Ltd Growth

Compounded Sales Growth
10 Years:%
5 Years:16%
3 Years:22%
TTM:5%
Compounded Profit Growth
10 Years:%
5 Years:7%
3 Years:22%
TTM:140%
Stock Price CAGR
10 Years:%
5 Years:91%
3 Years:211%
1 Year:598%
Return on Equity
10 Years:%
5 Years:9%
3 Years:9%
Last Year:10%

Spectrum Electrical Industries Ltd Balance Sheet

MonthMar 2011Mar 2012Mar 2013Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital0005511151515151515
Reserves0000123515662687782
Borrowings00081138466777778488
Other Liabilities0002835312234566464
Total Liabilities0001525108143159188216239249
Fixed Assets0002650454570807576
CWIP000914062013712
Investments00000491014151615
Other Assets00055548384103117141146
Total Assets0001525108143159188216239249

Spectrum Electrical Industries Ltd Reserves and Borrowings Chart

Spectrum Electrical Industries Ltd Cash Flow

MonthMar 2011Mar 2012Mar 2013Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 000-29-9-17312248
Cash from Investing Activity 000-5-10-35-12-20-11-21-3
Cash from Financing Activity 000824429185-90
Net Cash Flow00011-0016-66

Spectrum Electrical Industries Ltd Financial Efficiency Indicators

MonthMar 2011Mar 2012Mar 2013Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days-0-0696361615067
Inventory Days19095106139157207135143
Days Payable19069514898558678102
Cash Conversion Cycle-0-60126105163183107108
Working Capital Days461-281488711812686105
ROCE %-0%-0%6%28%14%8%10%12%11%

Spectrum Electrical Industries Ltd Financial Efficiency Indicators Chart

Spectrum Electrical Industries Ltd Share Holding Pattern

MonthSep 2018Mar 2019Sep 2019Mar 2020Sep 2020Mar 2021Sep 2021Mar 2022Sep 2022Mar 2023Sep 2023
Promoters68.64%68.64%68.64%68.64%68.64%68.91%69.48%71.45%71.45%71.45%74.88%
FIIs0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.56%
DIIs0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.07%0.00%
Public31.36%31.38%31.37%31.37%31.37%31.09%30.51%28.55%28.55%28.48%24.56%
No. of Shareholders595121118116109101109104109170272

Spectrum Electrical Industries Ltd Shareholding Pattern Chart

No. of Spectrum Electrical Industries Ltd Shareholders

This stock is not held by any mutual fund

Spectrum Electrical Industries Ltd ROCE Trend

Spectrum Electrical Industries Ltd EPS Trend

Spectrum Electrical Industries Ltd 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

Spectrum Electrical Industries Ltd Profitability Ratios (%)

Spectrum Electrical Industries Ltd Liquidity Ratios

Spectrum Electrical Industries Ltd Liquidity Ratios (%)

Spectrum Electrical Industries Ltd Interest Coverage Ratios (X)

Spectrum Electrical Industries Ltd Valuation Ratios

Fair Value / Intrinsic Value of Spectrum Electrical Industries Ltd

Fair Value: ₹1272.09

The stock is overvalued by 26.64% compared to the current price ₹1734

*Investments are subject to market risks

Strength and Weakness of Spectrum Electrical Industries Ltd

StrengthWeakness
  1. The company has shown consistent growth in sales (111.58 cr) and profit (6.17 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 9.83 and average Dividend Yield of 7.98%.
  2. The stock has a low average ROCE of 8.09%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 68.18, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 8.27, which may not be favorable.
  5. The company has higher borrowings (41.33) compared to reserves (35.00), which may suggest financial risk.

Should I Buy Spectrum Electrical Industries Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding 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: 9.56%)
      • 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. 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.
    4. 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.
    5. ✗ Stock P/E: 208 (Industry average Stock P/E: 149.28)
      • 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.
    6. ✗ 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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