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Last Updated on: 25 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Surya Roshni Ltd

Basic Stock Data

Last Updated: June 25, 2024, 10:18 pm

Market Cap 6,670 Cr.
Current Price 614
High / Low842/364
Stock P/E20.3
Book Value 199
Dividend Yield0.98 %
ROCE21.0 %
ROE16.3 %
Face Value 5.00
PEG Ratio0.77

Competitors of Surya Roshni Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Surani Steel Tubes Ltd 347 Cr. 326735/158694 51.70.00 %2.08 %2.19 % 10.0
Crimson Metal Engineering Company Ltd 3.96 Cr. 8.948.95/8.94 12.30.00 %7.27 %21.7 % 10.0
Hi-Tech Pipes Ltd 1,880 Cr. 131170/71.055.4 34.40.02 %12.3 %8.52 % 1.00
Prakash Steelage Ltd 159 Cr. 9.1116.6/4.256.82 0.440.00 %%% 1.00
Man Industries (India) Ltd 2,491 Cr. 384459/12923.7 2170.52 %15.3 %8.73 % 5.00
Industry Average7,159.00 Cr627.21100.55144.120.28%13.38%12.49%4.11

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales1,7221,4531,9462,0302,3011,8391,9842,0212,1511,8751,9161,9382,080
Expenses1,6021,3611,8451,9322,1491,7701,8551,8581,8991,7611,7781,7831,915
Operating Profit120921019815270129163252114137155166
OPM %7%6%5%5%7%4%7%8%12%6%7%8%8%
Other Income1111212122147
Interest1617151715131111106674
Depreciation28252728282829302929293029
Profit before tax77516054111309112321581103121139
Tax %25%27%26%26%26%26%25%27%28%27%27%26%25%
Net Profit5837444082226890156597690104
EPS in Rs5.363.434.073.727.582.036.258.2414.305.436.978.279.55

Last Updated: June 9, 2024, 7:16 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: June 25, 2024, 9:09 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales2,9222,9622,7782,9643,8874,9385,9805,4695,5547,7307,9967,809
Expenses2,6852,7282,5552,7223,5744,5925,6085,1155,1777,2887,3827,236
Operating Profit237235224243313346372354377442614572
OPM %8%8%8%8%8%7%6%6%7%6%8%7%
Other Income1332134356514
Interest1101141099611310511511470644524
Depreciation57565661848789103103108115117
Profit before tax72676287118156173139209276459445
Tax %4%20%12%27%27%31%30%27%25%26%27%26%
Net Profit6953546386108121102156205335329
EPS in Rs7.906.086.177.199.849.9311.119.3914.3818.8030.8230.22
Dividend Payout %25%8%8%7%9%10%9%11%10%10%11%8%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-23.19%1.89%16.67%36.51%25.58%12.04%-15.70%52.94%31.41%63.41%-1.79%
Change in YoY Net Profit Growth (%)0.00%25.08%14.78%19.84%-10.93%-13.54%-27.74%68.64%-21.53%32.00%-65.21%

Growth

Compounded Sales Growth
10 Years:11%
5 Years:10%
3 Years:14%
TTM:-3%
Compounded Profit Growth
10 Years:17%
5 Years:25%
3 Years:49%
TTM:45%
Stock Price CAGR
10 Years:31%
5 Years:34%
3 Years:45%
1 Year:49%
Return on Equity
10 Years:12%
5 Years:14%
3 Years:16%
Last Year:20%

Last Updated: April 13, 2024, 9:20 am

Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital44444444445454545454535454
Reserves6246887307676488979931,0981,1851,3121,4921,8071,926
Borrowings8338571,0389488951,0711,0971,1921,090732593418229
Other Liabilities198226259310390594711685641842974776669
Total Liabilities1,6991,8152,0712,0681,9772,6162,8553,0292,9702,9393,1123,0542,878
Fixed Assets8218539129367531,1011,0721,0891,0611,029943912879
CWIP382654261816222515105389
Investments505050505000044444
Other Assets7908861,0551,0561,1551,5001,7621,9161,8901,8962,1122,1301,986
Total Assets1,6991,8152,0712,0681,9772,6162,8553,0292,9702,9393,1123,0542,878

Reserves and Borrowings Chart

Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 11717590267208256155120280540285279
Cash from Investing Activity -98-77-146-62-51-100-63-105-52-66-54-33
Cash from Financing Activity -23-10062-203-156-163-88-37-229-475-231-246
Net Cash Flow-4-2621-64-22-1-1-0-0

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-620.00234.00-724.00-652.00312.00345.00371.00353.00-355.00-151.00196.00556.00

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

Surya Roshni Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days495161696559535147504234
Inventory Days716370707984806679745968
Days Payable141219313644392726413524
Cash Conversion Cycle105102112108108999390100826578
Working Capital Days827793959489837785745864
ROCE %10%12%11%9%11%13%13%13%11%13%16%23%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters62.96%62.96%62.96%62.96%62.96%62.96%62.96%62.96%62.96%62.96%62.96%62.96%
FIIs1.59%2.68%2.63%1.04%0.71%1.18%0.86%2.54%4.87%5.15%5.26%5.02%
DIIs1.64%1.43%1.47%1.24%1.24%0.04%0.24%0.24%0.45%0.45%0.52%0.56%
Public32.08%30.66%30.92%32.76%33.10%33.93%34.33%33.15%30.63%30.54%30.63%31.11%
Others1.73%2.27%2.01%1.99%1.99%1.89%1.61%1.11%1.09%0.91%0.62%0.36%
No. of Shareholders26,80529,55237,99245,07745,64646,64545,72238,13341,37443,08347,63253,438

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Motilal Oswal Nifty Microcap 250 Index Fund44,1400.553.4344,1402024-06-200%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue5.0010.0010.0010.0010.00
Basic EPS (Rs.)30.5162.7838.4029.3518.85
Diluted EPS (Rs.)30.2561.6737.6629.1018.85
Cash EPS (Rs.)41.1583.8058.7548.6937.86
Book Value[Excl.RevalReserv]/Share (Rs.)199.70346.33290.19255.04227.76
Book Value[Incl.RevalReserv]/Share (Rs.)199.70346.33290.19255.04227.76
Revenue From Operations / Share (Rs.)719.881486.101449.621037.381005.52
PBDIT / Share (Rs.)54.05115.1384.1371.6365.71
PBIT / Share (Rs.)43.2493.6863.8152.4846.70
PBT / Share (Rs.)41.0285.3551.8839.4525.72
Net Profit / Share (Rs.)30.3462.3538.4229.5318.85
NP After MI And SOA / Share (Rs.)30.3462.3538.4229.5318.85
PBDIT Margin (%)7.507.745.806.906.53
PBIT Margin (%)6.006.304.405.054.64
PBT Margin (%)5.695.743.573.802.55
Net Profit Margin (%)4.214.192.652.841.87
NP After MI And SOA Margin (%)4.214.192.652.841.87
Return on Networth / Equity (%)15.1918.0013.2411.578.27
Return on Capital Employeed (%)20.6625.6019.4716.7915.49
Return On Assets (%)11.2610.976.575.383.45
Long Term Debt / Equity (X)0.000.000.030.120.21
Total Debt / Equity (X)0.000.210.370.480.83
Asset Turnover Ratio (%)2.612.592.551.881.82
Current Ratio (X)3.061.921.511.451.38
Quick Ratio (X)1.390.850.790.760.69
Inventory Turnover Ratio (X)5.015.476.354.544.63
Dividend Payout Ratio (NP) (%)0.0011.353.9812.0210.60
Dividend Payout Ratio (CP) (%)0.008.442.607.295.28
Earning Retention Ratio (%)0.0088.6596.0287.9889.40
Cash Earning Retention Ratio (%)0.0091.5697.4092.7194.72
Interest Coverage Ratio (X)24.3813.817.055.503.13
Interest Coverage Ratio (Post Tax) (X)14.698.484.223.271.90
Enterprise Value (Cr.)5496.063940.862785.692525.951372.70
EV / Net Operating Revenue (X)0.700.490.360.450.25
EV / EBITDA (X)9.376.366.216.583.84
MarketCap / Net Operating Revenue (X)0.700.440.280.330.06
Retention Ratios (%)0.0088.6496.0187.9789.39
Price / BV (X)2.561.901.431.360.27
Price / Net Operating Revenue (X)0.700.440.280.330.06
EarningsYield0.050.090.090.080.29

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 664.92

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: 8.29% compared to the current price 614

Intrinsic Value: 840.04

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: 36.81% compared to the current price ₹614

Last 5 Year EPS CAGR: 26.34%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (1,143.83 cr) compared to borrowings (828.92 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (4.25 cr) and profit (188.58 cr) over the years.
  1. The stock has a low average ROCE of 12.92%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 80.92, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 95.17, 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 Surya Roshni Ltd:
    1. Net Profit Margin: 4.21%
      • 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: 20.66% (Industry Average ROCE: 11.48%)
      • 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%: 15.19% (Industry Average ROE: 9.98%)
      • 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): 14.69
      • 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: 1.39
      • 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: 20.3 (Industry average Stock P/E: 176.94)
      • 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

Surya Roshni Ltd. is a Public Limited Listed company incorporated on 17/10/1973 and has its registered office in the State of Haryana, India. Company’s Corporate Identification Number(CIN) is L31501HR1973PLC007543 and registration number is 007543. Currently Company is involved in the business activities of Manufacture of tube and tube fittings of basic iron and steel. Company’s Total Operating Revenue is Rs. 7730.07 Cr. and Equity Capital is Rs. 53.33 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Steel - Tubes/PipesPrakash Nagar, Rohtak Road, Bahadurgarh Haryana 124507investorgrievances@sroshni.com
http://www.surya.co.in
Management
NamePosition Held
Mr. Jai Prakash AgarwalExecutive Chairman
Mr. Raju BistaManaging Director
Mr. Vinay SuryaManaging Director
Mr. Kaustubh N KarmarkarWhole Time Director
Mr. T S BhattacharyaIndependent Director
Mr. Surendra Singh KhuranaIndependent Director
Mr. Sunil SikkaIndependent Director
Ms. Suruchi AggarwalIndependent Woman Director
Mrs. Urmil AgarwalDirector
Mr. Tekan Ghanshyam KeswaniAddnl.Independent Director
Mr. Naresh AgarwalAddnl.Independent Director

FAQ

What is the latest fair value of Surya Roshni Ltd?

The latest fair value of Surya Roshni Ltd is ₹664.92.

What is the Market Cap of Surya Roshni Ltd?

The Market Cap of Surya Roshni Ltd is 6,670 Cr..

What is the current Stock Price of Surya Roshni Ltd as on 25 June 2024?

The current stock price of Surya Roshni Ltd as on 25 June 2024 is ₹614.

What is the High / Low of Surya Roshni Ltd stocks in FY 2024?

In FY 2024, the High / Low of Surya Roshni Ltd stocks is 842/364.

What is the Stock P/E of Surya Roshni Ltd?

The Stock P/E of Surya Roshni Ltd is 20.3.

What is the Book Value of Surya Roshni Ltd?

The Book Value of Surya Roshni Ltd is 199.

What is the Dividend Yield of Surya Roshni Ltd?

The Dividend Yield of Surya Roshni Ltd is 0.98 %.

What is the ROCE of Surya Roshni Ltd?

The ROCE of Surya Roshni Ltd is 21.0 %.

What is the ROE of Surya Roshni Ltd?

The ROE of Surya Roshni Ltd is 16.3 %.

What is the Face Value of Surya Roshni Ltd?

The Face Value of Surya Roshni 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 Surya Roshni 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