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Last Updated on: 23 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Spencers Retail Ltd

Basic Stock Data

Last Updated: June 22, 2024, 10:24 pm

Market Cap 828 Cr.
Current Price 91.9
High / Low139/57.9
Stock P/E
Book Value 46.1
Dividend Yield0.00 %
ROCE9.89 %
ROE%
Face Value 5.00
PEG Ratio0.00

Competitors of Spencers Retail Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
V-Mart Retail Ltd 5,610 Cr. 2,8362,880/1,591 3780.00 %0.55 %12.1 % 10.0
Shoppers Stop Ltd 8,289 Cr. 754890/616101 27.40.00 %11.9 %32.3 % 5.00
Osia Hyper Retail Ltd 267 Cr. 22.678.2/21.414.6 16.90.00 %22.8 %11.7 % 1.00
Praxis Home Retail Ltd 212 Cr. 16.938.2/14.0 3.450.00 %39.1 %% 5.00
Industry Average3,594.50 Cr907.3828.90106.440.00%18.59%14.03%5.25

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales592552582624542621649639543570574654547
Expenses585545569610552615648640546575581642559
Operating Profit771314-1062-1-3-5-712-12
OPM %1%1%2%2%-2%1%0%-0%-0%-1%-1%2%-2%
Other Income24231319231853612364
Interest27222426252627303334363841
Depreciation38323034313233343238313232
Profit before tax-35-24-29-27-43-34-54-62-61-64-70-51-81
Tax %0%1%0%0%0%0%0%0%0%0%0%0%0%
Net Profit-35-24-29-27-42-34-54-62-61-64-70-51-81
EPS in Rs-3.83-2.61-3.18-2.97-4.71-3.73-5.97-6.85-6.79-7.12-7.78-5.68-8.95

Last Updated: June 10, 2024, 6:03 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 26, 2024, 9:55 am

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales1,1492,1872,6452,4282,3002,4532,345
Expenses1,1532,1782,5872,4202,2752,4482,357
Operating Profit-49578254-12
OPM %-0%0%2%0%1%0%-0%
Other Income9283253763226
Interest47829197115148
Depreciation1525138134126132132
Profit before tax-144-131-164-122-211-267
Tax %0%43%0%0%0%0%0%
Net Profit-142-131-164-121-210-266
EPS in Rs0.27-14.51-18.18-13.48-23.34-29.53
Dividend Payout %0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)114.29%-6650.00%-25.19%26.22%-73.55%-26.67%
Change in YoY Net Profit Growth (%)0.00%-6764.29%6624.81%51.41%-99.77%46.89%

Growth

Compounded Sales Growth
10 Years:%
5 Years:1%
3 Years:-1%
TTM:-4%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:-23%
TTM:-27%
Stock Price CAGR
10 Years:%
5 Years:-1%
3 Years:6%
1 Year:39%
Return on Equity
10 Years:%
5 Years:%
3 Years:%
Last Year:%

Last Updated: June 16, 2024, 4:53 pm

Balance Sheet

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital0404045454545
Reserves50750823414117-196-331
Preference Capital100000
Borrowings008499441,0691,3411,445
Other Liabilities373365471429435439487
Total Liabilities8819141,5941,5591,5651,6291,646
Fixed Assets2392631,0551,0531,0491,1321,128
CWIP01103823
Investments7232435949488
Other Assets635627505468415401427
Total Assets8819141,5941,5591,5651,6291,646

Reserves and Borrowings Chart

Spencers Retail Ltd Cash Flow

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity -48-13114-25527
Cash from Investing Activity -18922-7-18-40-26
Cash from Financing Activity 38-0-54-3-54-5
Net Cash Flow-199953-24-40-4

Free Cash Flow

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-5.009.0057.008.0025.004.00-12.00

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 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days12794434
Inventory Days109574451524952
Days Payable123666663676475
Cash Conversion Cycle-2-1-13-8-10-12-19
Working Capital Days-1-2-15-10-12-11-18
ROCE %2%-6%-7%-2%-8%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters56.51%58.81%58.81%58.81%58.81%58.81%58.81%58.81%58.81%58.81%58.81%58.81%
FIIs5.68%5.92%7.61%7.35%7.60%7.87%7.98%8.35%8.45%8.45%8.84%9.38%
DIIs2.44%3.00%3.01%3.00%3.00%2.98%2.37%2.37%2.37%2.37%1.99%1.99%
Government0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%
Public35.36%32.12%30.43%30.69%30.45%30.17%30.68%30.31%30.21%30.21%30.20%29.65%
Others0.00%0.13%0.13%0.13%0.13%0.13%0.13%0.13%0.13%0.13%0.13%0.13%
No. of Shareholders69,12862,90562,33663,86363,08562,52161,31860,22658,66057,35851,01849,190

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
FaceValue5.005.005.005.005.00
Basic EPS (Rs.)-29.53-23.34-13.48-18.97-16.44
Diluted EPS (Rs.)-29.57-23.37-13.49-18.97-16.44
Cash EPS (Rs.)-14.83-8.730.47-3.290.92
Book Value[Excl.RevalReserv]/Share (Rs.)-46.14-16.696.8620.6734.44
Book Value[Incl.RevalReserv]/Share (Rs.)-46.14-16.696.8620.6734.44
Revenue From Operations / Share (Rs.)260.18272.11255.15269.39331.94
PBDIT / Share (Rs.)1.554.0111.186.8111.21
PBIT / Share (Rs.)-13.15-10.60-2.77-8.08-6.16
PBT / Share (Rs.)-29.57-23.39-13.53-18.22-16.47
Net Profit / Share (Rs.)-29.53-23.34-13.48-18.18-16.44
NP After MI And SOA / Share (Rs.)-29.53-23.34-13.48-18.18-16.44
PBDIT Margin (%)0.591.474.382.523.37
PBIT Margin (%)-5.05-3.89-1.08-3.00-1.85
PBT Margin (%)-11.36-8.59-5.30-6.76-4.96
Net Profit Margin (%)-11.34-8.57-5.28-6.74-4.95
NP After MI And SOA Margin (%)-11.34-8.57-5.28-6.74-4.95
Return on Networth / Equity (%)0.000.00-196.35-87.93-47.74
Return on Capital Employeed (%)-16.44-12.39-2.95-8.11-5.12
Return On Assets (%)-15.69-12.91-7.75-10.50-8.20
Long Term Debt / Equity (X)-0.67-1.202.050.400.31
Total Debt / Equity (X)-1.76-3.605.831.250.62
Asset Turnover Ratio (%)1.411.401.311.362.04
Current Ratio (X)0.380.420.500.580.67
Quick Ratio (X)0.110.110.130.180.28
Inventory Turnover Ratio (X)0.020.020.020.020.02
Interest Coverage Ratio (X)0.090.311.040.671.09
Interest Coverage Ratio (Post Tax) (X)-0.79-0.82-0.25-0.79-0.59
Enterprise Value (Cr.)1519.19990.131068.38811.97679.97
EV / Net Operating Revenue (X)0.640.400.460.330.25
EV / EBITDA (X)108.8627.3910.6013.247.63
MarketCap / Net Operating Revenue (X)0.350.190.310.260.22
Price / BV (X)-1.98-3.1011.733.422.15
Price / Net Operating Revenue (X)0.350.190.310.260.22
EarningsYield-0.32-0.45-0.16-0.25-0.22

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 105.80

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: 15.12% compared to the current price 91.9

Default values used*: Deafault value of 15 for Stock P/E is used, Deafault value of 15% for ROE is used

Intrinsic Value: 60.75

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.

Overvalued: 33.89% compared to the current price ₹91.9

Default values used*: Deafault value of 15 for Stock P/E is used, Deafault value of 15% for ROE is used

Last 5 Year EPS CAGR: -42.58%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -9.86, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -9.29, which is a positive sign.
  3. The company has higher reserves (107.14 cr) compared to borrowings (0.14 cr), indicating strong financial stability.
  1. The stock has a low average ROCE of -3.00%, which may not be favorable.
  2. The company has not shown consistent growth in sales (1.86) and profit (-129.29).

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 Spencers Retail Ltd:
    1. Net Profit Margin: -11.34%
      • 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: -16.44% (Industry Average ROCE: 18.59%)
      • 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%: 0.00% (Industry Average ROE: 14.03%)
      • 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): -0.79
      • 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: 0.11
      • 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: (Industry average Stock P/E: 28.88)
      • 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: -1.76
      • 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

Spencer's Retail Ltd. is a Public Limited Listed company incorporated on 08/02/2017 and has its registered office in the State of West Bengal, India. Company’s Corporate Identification Number(CIN) is L74999WB2017PLC219355 and registration number is 219355. Currently Company is involved in the business activities of Retail trade, except of motor vehicles and motorcycles. Company’s Total Operating Revenue is Rs. 1999.62 Cr. and Equity Capital is Rs. 45.07 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Retail - Departmental StoresDuncan House, 31, Netaji Subhas Road, Kolkata West Bengal 700001spencers.secretarial@rpsg.in
http://www.spencersretail.com
Management
NamePosition Held
Dr. Sanjiv GoenkaChairman, Non Ind & Non Exe Director
Mr. Anuj SinghManaging Director & CEO
Mr. Rahul NayakWhole Time Director
Mrs. Shashwat GoenkaNon Exe.Non Ind.Director
Mr. Utsav ParekhInd. Non-Executive Director
Mr. Debanjan MandalInd. Non-Executive Director
Mr. Pratip ChaudhuriInd. Non-Executive Director
Ms. Rekha SethiInd. Non-Executive Director

FAQ

What is the latest fair value of Spencers Retail Ltd?

The latest fair value of Spencers Retail Ltd is ₹105.80.

What is the Market Cap of Spencers Retail Ltd?

The Market Cap of Spencers Retail Ltd is 828 Cr..

What is the current Stock Price of Spencers Retail Ltd as on 23 June 2024?

The current stock price of Spencers Retail Ltd as on 23 June 2024 is ₹91.9.

What is the High / Low of Spencers Retail Ltd stocks in FY 2024?

In FY 2024, the High / Low of Spencers Retail Ltd stocks is 139/57.9.

What is the Stock P/E of Spencers Retail Ltd?

The Stock P/E of Spencers Retail Ltd is .

What is the Book Value of Spencers Retail Ltd?

The Book Value of Spencers Retail Ltd is 46.1.

What is the Dividend Yield of Spencers Retail Ltd?

The Dividend Yield of Spencers Retail Ltd is 0.00 %.

What is the ROCE of Spencers Retail Ltd?

The ROCE of Spencers Retail Ltd is 9.89 %.

What is the ROE of Spencers Retail Ltd?

The ROE of Spencers Retail Ltd is %.

What is the Face Value of Spencers Retail Ltd?

The Face Value of Spencers Retail Ltd is 5.00.

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 Spencers Retail 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