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Last Updated on: 08 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Sumeet Industries Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 19, 2024, 10:54 pm

Market Cap 50.7 Cr.
Current Price 4.89
High / Low5.36/1.90
Stock P/E
Book Value 17.0
Dividend Yield0.00 %
ROCE18.5 %
ROE%
Face Value 10.0
PEG Ratio0.00

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

View Share Price Target for Sumeet Industries Ltd

Competitors of Sumeet Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Gujarat Craft Industries Ltd 56.0 Cr. 114181/88.119.6 1230.87 %7.74 %5.05 % 10.0
Sumeet Industries Ltd 50.7 Cr. 4.895.36/1.90 17.00.00 %18.5 %% 10.0
Industry Average0 Cr59.4519.6070.000.44%13.12%5.05%10.00

All Competitor Stocks of Sumeet Industries Ltd

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales231.59183.49222.94204.45282.62295.58235.50264.84237.20244.75241.98227.07271.06
Expenses214.14169.64206.64196.93286.00288.11261.43286.62236.40254.83254.93237.68277.80
Operating Profit17.4513.8516.307.52-3.387.47-25.93-21.780.80-10.08-12.95-10.61-6.74
OPM %7.53%7.55%7.31%3.68%-1.20%2.53%-11.01%-8.22%0.34%-4.12%-5.35%-4.67%-2.49%
Other Income1.600.350.5516.803.160.090.210.069.850.290.020.060.47
Interest2.396.287.077.485.716.020.740.280.010.01-0.000.01-0.00
Depreciation9.447.817.917.927.776.836.926.956.795.956.045.985.94
Profit before tax7.220.111.878.92-13.70-5.29-33.38-28.953.85-15.75-18.97-16.54-12.21
Tax %-68.98%-0.00%-0.00%-0.00%41.68%-0.00%-0.00%13.16%-32.21%-0.00%-0.00%-0.00%36.53%
Net Profit12.190.111.878.92-8.00-5.30-33.38-25.135.09-15.75-18.97-16.54-7.75
EPS in Rs1.180.010.180.86-0.77-0.51-3.22-2.420.49-1.52-1.83-1.60-0.75

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales1,1581,2281,1651,2351,4061,2058677075748941,033985
Expenses1,0761,1281,0811,1461,2871,1178277695478591,0731,025
Operating Profit8210085901198840-622734-39-40
OPM %7%8%7%7%8%7%5%-9%5%4%-4%-4%
Other Income-11-161599-55-2021101
Interest223137445051634132770
Depreciation202520202053474036312724
Profit before tax2928293157-6-124-146-12-3-64-63
Tax %34%32%24%38%32%-58%-6%-4%-41%-204%-8%-7%
Net Profit1919221939-3-117-139-73-59-59
EPS in Rs1.841.862.091.833.75-0.25-11.28-13.46-0.690.28-5.67-5.69
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)0.00%15.79%-13.64%105.26%-107.69%-3800.00%-18.80%94.96%142.86%-2066.67%0.00%
Change in YoY Net Profit Growth (%)0.00%15.79%-29.43%118.90%-212.96%-3692.31%3781.20%113.77%47.89%-2209.52%2066.67%

Sumeet Industries Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:-2%
5 Years:3%
3 Years:20%
TTM:3%
Compounded Profit Growth
10 Years:%
5 Years:0%
3 Years:%
TTM:25%
Stock Price CAGR
10 Years:-8%
5 Years:15%
3 Years:-17%
1 Year:40%
Return on Equity
10 Years:%
5 Years:%
3 Years:%
Last Year:%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital585858585883104104104104104104
Reserves134144166190233267-19-157-158-156-220-280
Borrowings414502467492474481575598590551489490
Other Liabilities175195282272238201150201899882114
Total Liabilities7829009731,0131,0031,032810745625597455428
Fixed Assets384401426410402359310276242212185161
CWIP10310401000000
Investments166611131340000
Other Assets387463542593590659487465383385270267
Total Assets7829009731,0131,0031,032810745625597455428

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 45-656158-52-778524617315
Cash from Investing Activity -47-65-21-1-2-75-011-11
Cash from Financing Activity 2179-261-525551-95-24-62-681
Net Cash Flow188914-4-21-110-1416

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-332.00-402.00-382.00-402.00-355.00-393.00-535.00-660.00-563.00-517.00-528.00-530.00

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 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days374771775986698166483730
Inventory Days70707374688792116145864345
Days Payable474578674134369332271623
Cash Conversion Cycle59726584871391251041801066452
Working Capital Days6879839879127131811991247255
ROCE %9%10%10%14%6%-0%-16%-1%5%-13%-18%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters21.67%21.67%21.67%21.67%21.67%21.67%21.67%21.67%21.07%0.00%0.00%0.00%
FIIs0.00%0.03%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Public78.33%78.30%78.33%78.34%78.33%78.33%78.33%78.33%78.92%99.99%100.00%99.99%
No. of Shareholders39,58642,07942,74043,40743,40943,32743,39742,56141,85341,76842,23042,804

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.)-5.82-5.670.28-0.68-13.46
Diluted EPS (Rs.)-5.82-5.670.28-0.68-13.46
Cash EPS (Rs.)-3.39-3.013.312.77-9.57
Book Value[Excl.RevalReserv]/Share (Rs.)-17.05-11.42-5.10-5.25-5.18
Book Value[Incl.RevalReserv]/Share (Rs.)-17.05-11.42-5.10-5.25-5.18
Revenue From Operations / Share (Rs.)95.0299.6886.2155.3768.21
PBDIT / Share (Rs.)-3.81-2.825.332.59-6.21
PBIT / Share (Rs.)-6.12-5.472.29-0.86-10.10
PBT / Share (Rs.)-6.12-6.15-0.26-1.17-14.09
Net Profit / Share (Rs.)-5.69-5.670.28-0.68-13.46
NP After MI And SOA / Share (Rs.)-5.69-5.670.28-0.68-13.46
PBDIT Margin (%)-4.01-2.826.174.68-9.11
PBIT Margin (%)-6.44-5.482.66-1.55-14.80
PBT Margin (%)-6.44-6.17-0.31-2.10-20.65
Net Profit Margin (%)-5.99-5.680.32-1.24-19.72
NP After MI And SOA Margin (%)-5.99-5.680.32-1.24-19.72
Return on Networth / Equity (%)0.000.00-5.510.000.00
Return on Capital Employeed (%)61.75149.7369.87-38.42-282.34
Return On Assets (%)-13.79-12.900.48-1.13-18.71
Long Term Debt / Equity (X)-0.23-0.09-0.31-0.03-0.17
Total Debt / Equity (X)-2.77-3.88-9.87-7.94-8.39
Asset Turnover Ratio (%)2.231.921.430.820.94
Current Ratio (X)0.470.510.640.560.59
Quick Ratio (X)0.280.300.360.280.35
Inventory Turnover Ratio (X)8.176.425.033.063.76
Interest Coverage Ratio (X)-2184.52-4.142.088.48-1.56
Interest Coverage Ratio (Post Tax) (X)-3259.30-7.321.11-1.25-2.37
Enterprise Value (Cr.)494.90507.31628.31512.10493.79
EV / Net Operating Revenue (X)0.500.490.700.890.69
EV / EBITDA (X)-12.52-17.3711.3819.06-7.67
MarketCap / Net Operating Revenue (X)0.020.020.080.080.01
Price / BV (X)-0.14-0.19-1.46-0.94-0.24
Price / Net Operating Revenue (X)0.020.020.080.080.01
EarningsYield-2.28-2.580.03-0.13-10.60

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Sumeet Industries Ltd as of November 8, 2024 is: 39.02

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 8, 2024, Sumeet Industries Ltd is Undervalued by 697.96% compared to the current share price ₹4.89

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

Intrinsic Value of Sumeet Industries Ltd as of November 8, 2024 is: 60.24

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 8, 2024, Sumeet Industries Ltd is Undervalued by 1,131.90% compared to the current share price ₹4.89

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

Last 5 Year EPS CAGR: 54.38%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
    1. The stock has a low average ROCE of 0.50%, which may not be favorable.
    2. The stock has a high average Working Capital Days of 99.67, which may not be favorable.
    3. The stock has a high average Cash Conversion Cycle of 94.75, which may not be favorable.
    4. The company has higher borrowings (510.25) compared to reserves (12.00), which may suggest financial risk.
    5. The company has not shown consistent growth in sales (336.17) and profit (-20.33).

    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 Sumeet Industries Ltd:
      1. Net Profit Margin: -5.99%
        • 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: 61.75% (Industry Average ROCE: 13.12%)
        • 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% (Industry Average ROE: 5.05%)
        • 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): -3259.3
        • 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: 0.28
        • 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: 0 (Industry average Stock P/E: 19.6)
        • 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: -2.77
        • 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

    Sumeet Industries Ltd. is a Public Limited Listed company incorporated on 01/08/1988 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L45200GJ1988PLC011049 and registration number is 011049. Currently Company is involved in the business activities of Manufacture of man-made fibres. Company’s Total Operating Revenue is Rs. 893.50 Cr. and Equity Capital is Rs. 103.64 Cr. for the Year ended 31/03/2022.
    INDUSTRYADDRESSCONTACT
    Textiles - Manmade Fibre - PPFY504, Trividh Chamber, Opp. Fire Station, Surat Gujarat 395002corporate@sumeetindustries.com
    http://www.sumeetindustries.com
    Management
    NamePosition Held
    Mr. Shankarlal SomaniChairman
    Mr. Sumeet Kumar SomaniManaging Director
    Mr. Manoj Kumar JainNon Executive Director
    Mr. Vikashkumar ChandaliyaNon Executive Director
    Ms. Zeel Sureshkumar ModiNon Executive Director
    Mr. Saurav Santosh DugarNon Executive Director

    FAQ

    What is the latest fair value of Sumeet Industries Ltd?

    The latest fair value of Sumeet Industries Ltd is ₹39.02.

    What is the Market Cap of Sumeet Industries Ltd?

    The Market Cap of Sumeet Industries Ltd is 50.7 Cr..

    What is the current Stock Price of Sumeet Industries Ltd as on 08 November 2024?

    The current stock price of Sumeet Industries Ltd as on 08 November 2024 is 4.89.

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

    In FY 2024, the High / Low of Sumeet Industries Ltd stocks is 5.36/1.90.

    What is the Stock P/E of Sumeet Industries Ltd?

    The Stock P/E of Sumeet Industries Ltd is .

    What is the Book Value of Sumeet Industries Ltd?

    The Book Value of Sumeet Industries Ltd is 17.0.

    What is the Dividend Yield of Sumeet Industries Ltd?

    The Dividend Yield of Sumeet Industries Ltd is 0.00 %.

    What is the ROCE of Sumeet Industries Ltd?

    The ROCE of Sumeet Industries Ltd is 18.5 %.

    What is the ROE of Sumeet Industries Ltd?

    The ROE of Sumeet Industries Ltd is %.

    What is the Face Value of Sumeet Industries Ltd?

    The Face Value of Sumeet 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 Sumeet 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