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Last Updated on: 14 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Technocraft Industries (India) Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 9, 2024, 11:41 pm

Market Cap 6,867 Cr.
Current Price 2,991
High / Low3,939/1,502
Stock P/E25.8
Book Value 729
Dividend Yield0.00 %
ROCE18.7 %
ROE17.4 %
Face Value 10.0
PEG Ratio1.43

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

View Share Price Target for Technocraft Industries (India) Ltd

Competitors of Technocraft Industries (India) Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Eastcoast Steel Ltd 10.7 Cr. 19.835.1/17.721.0 35.90.00 %3.78 %4.64 % 10.0
Bonlon Industries Ltd 51.3 Cr. 36.156.0/29.520.0 55.70.00 %4.56 %2.99 % 10.0
Beekay Steel Industries Ltd 1,227 Cr. 643845/5499.87 4940.16 %10.7 %11.2 % 10.0
Ecofinity Atomix Ltd 20.9 Cr. 54.469.7/32.128.7 9.840.00 %8.85 %8.56 % 10.0
Aerpace Industries Ltd 741 Cr. 49.560.0/3.16 0.940.00 %12.7 %15.8 % 1.00
Industry Average42,574.58 Cr363.8268.77149.730.37%8.72%9.46%7.35

All Competitor Stocks of Technocraft Industries (India) Ltd

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales385405442510554539476489480557520513593
Expenses321307353410449430380378393426418431508
Operating Profit64988910010510897111881301028284
OPM %17%24%20%20%19%20%20%23%18%23%20%16%14%
Other Income12161661581228614172524
Interest665646687111099
Depreciation18151516171516151816171718
Profit before tax5392848499958711568118928181
Tax %27%22%22%23%27%21%24%24%26%23%24%24%29%
Net Profit39726665727566875091706157
EPS in Rs14.8928.6126.2925.6628.7629.1125.7534.2121.4337.0528.7325.3923.90

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
Sales8051,0401,0299219361,1841,3131,3521,2951,9111,9852,182
Expenses6839058947707901,0101,1161,1481,0921,5191,5811,783
Operating Profit121135135151146175198204203392403398
OPM %15%13%13%16%16%15%15%15%16%21%20%18%
Other Income232715324147374568525481
Interest859101923323729212840
Depreciation302732262429385268636468
Profit before tax107130109147144170164159175360366372
Tax %31%31%31%32%30%29%27%21%23%24%24%25%
Net Profit749075100101120119126134274278279
EPS in Rs23.5528.4323.8538.1739.1448.8447.7350.1853.19109.31116.32115.06
Dividend Payout %13%18%21%8%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 (%)21.62%-16.67%33.33%1.00%18.81%-0.83%5.88%6.35%104.48%1.46%0.36%
Change in YoY Net Profit Growth (%)0.00%-38.29%50.00%-32.33%17.81%-19.65%6.72%0.47%98.13%-103.02%-1.10%

Technocraft Industries (India) 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:8%
5 Years:11%
3 Years:19%
TTM:15%
Compounded Profit Growth
10 Years:12%
5 Years:18%
3 Years:30%
TTM:-5%
Stock Price CAGR
10 Years:30%
5 Years:51%
3 Years:39%
1 Year:25%
Return on Equity
10 Years:17%
5 Years:17%
3 Years:19%
Last Year:17%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital323232262624242424242323
Reserves4685375895556636848039201,0481,3121,3931,652
Borrowings129159222334345514642658467506656675
Other Liabilities11214914791120164157214237268292342
Total Liabilities7428769911,0061,1541,3871,6261,8161,7762,1112,3642,692
Fixed Assets150150158163203245319480424420438738
CWIP004121753542012174014
Investments122146196268279237263271334420331410
Other Assets4695806335636558519891,0441,0051,2531,5551,531
Total Assets7428769911,0061,1541,3871,6261,8161,7762,1112,3642,692

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 52356414554-2726201258108136308
Cash from Investing Activity -76-50-91-42-49-41-117-165-30-13222-338
Cash from Financing Activity 121939-67-75398-25-21520-61-21
Net Cash Flow-1231335-2-1481213-497-52

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-8.00-24.00-87.00-183.00-199.00-339.00-444.00-454.00-264.00-114.00-253.00-277.00

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 Days999886727485919297877776
Inventory Days138108148187298259291357316249371264
Days Payable424245143936274577646834
Cash Conversion Cycle195164190244334308354404337272380306
Working Capital Days143131143155181197214204200176200194
ROCE %19%18%15%18%17%17%15%13%12%22%20%19%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters74.68%74.68%74.68%74.68%74.68%74.61%74.61%74.61%74.61%74.61%74.61%74.74%
FIIs0.62%0.68%0.69%0.70%0.77%0.77%0.60%0.69%0.65%0.63%0.69%0.62%
DIIs3.46%3.61%3.75%3.80%4.02%4.53%4.10%4.17%4.05%3.97%6.31%6.85%
Public21.25%21.04%20.89%20.82%20.54%20.08%20.68%20.52%20.68%20.77%18.37%17.78%
No. of Shareholders11,32211,67012,60912,73320,63811,46012,69312,91913,18513,78314,41674,905

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 Fund6,4680.261.646,4682024-11-080%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)115.06110.98109.3153.1950.19
Diluted EPS (Rs.)115.06110.98109.3153.1950.19
Cash EPS (Rs.)151.09149.07137.9182.4373.01
Book Value[Excl.RevalReserv]/Share (Rs.)746.36628.16553.77443.31389.25
Book Value[Incl.RevalReserv]/Share (Rs.)746.36628.16553.77443.31389.25
Revenue From Operations / Share (Rs.)950.12864.28781.26529.21552.63
PBDIT / Share (Rs.)212.64197.60179.68111.65100.53
PBIT / Share (Rs.)183.16169.72153.9684.0579.12
PBT / Share (Rs.)162.07157.56147.2076.6263.81
Net Profit / Share (Rs.)121.61121.19112.2054.8351.59
NP After MI And SOA / Share (Rs.)115.06116.32109.3153.1950.19
PBDIT Margin (%)22.3822.8622.9921.0918.19
PBIT Margin (%)19.2719.6319.7015.8814.31
PBT Margin (%)17.0518.2218.8414.4711.54
Net Profit Margin (%)12.7914.0214.3610.369.33
NP After MI And SOA Margin (%)12.1113.4513.9910.059.08
Return on Networth / Equity (%)15.7718.8620.0012.1313.00
Return on Capital Employeed (%)21.9125.8926.1316.7117.14
Return On Assets (%)9.8111.2912.667.326.75
Long Term Debt / Equity (X)0.070.020.030.090.14
Total Debt / Equity (X)0.400.460.370.400.67
Asset Turnover Ratio (%)0.860.880.930.600.74
Current Ratio (X)2.001.792.112.121.73
Quick Ratio (X)1.080.871.291.280.96
Inventory Turnover Ratio (X)1.181.432.071.121.48
Interest Coverage Ratio (X)12.3116.2420.669.486.57
Interest Coverage Ratio (Post Tax) (X)8.2710.8313.695.734.29
Enterprise Value (Cr.)5088.963287.672848.491335.72969.77
EV / Net Operating Revenue (X)2.331.661.491.030.71
EV / EBITDA (X)10.427.256.484.893.94
MarketCap / Net Operating Revenue (X)2.081.401.270.740.30
Price / BV (X)2.711.971.810.890.44
Price / Net Operating Revenue (X)2.081.401.270.740.30
EarningsYield0.050.090.110.130.29

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Technocraft Industries (India) Ltd as of November 14, 2024 is: 3,338.08

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 14, 2024, Technocraft Industries (India) Ltd is Undervalued by 11.60% compared to the current share price 2,991.00

Intrinsic Value of Technocraft Industries (India) Ltd as of November 14, 2024 is: 3,940.72

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 14, 2024, Technocraft Industries (India) Ltd is Undervalued by 31.75% compared to the current share price 2,991.00

Last 5 Year EPS CAGR: 18.05%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 17.08%, which is a positive sign.
  2. The company has higher reserves (885.33 cr) compared to borrowings (442.25 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (222.67 cr) and profit (200.25 cr) over the years.
  1. The stock has a high average Working Capital Days of 178.17, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 290.67, 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 Technocraft Industries (India) Ltd:
    1. Net Profit Margin: 12.79%
      • 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: 21.91% (Industry Average ROCE: 8.72%)
      • 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%: 15.77% (Industry Average ROE: 9.46%)
      • 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): 8.27
      • 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: 1.08
      • 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: 25.8 (Industry average Stock P/E: 68.77)
      • 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: 0.4
      • 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

Technocraft Industries (India) Ltd. is a Public Limited Listed company incorporated on 28/10/1992 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L28120MH1992PLC069252 and registration number is 069252. 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. 1666.90 Cr. and Equity Capital is Rs. 24.46 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
SteelTechnocraft House, A-25, Road No. 3, MIDC Industrial Estate, Mumbai Maharashtra 400093investor@technocraftgroup.com
http://www.technocraftgroup.com
Management
NamePosition Held
Dr. Sharad Kumar SarafChairman & Managing Director
Mr. Sudarshan Kumar SarafCo-Chairman & Manag. Director
Mr. Navneet Kumar SarafWholeTime Director & CEO
Mr. Ashish Kuamr SarafWholeTime Director & CFO
Mr. Atanu ChoudharyWhole Time Director
Mr. Aubrey I RebelloIndependent Director
Mr. Rohit Rajgopal DhootIndependent Director
Mr. Shankar Shivram JadhavIndependent Director
Mrs. Swati Vikas KhemaniIndependent Director
Mr. Murarailal JhunjhunwalaIndependent Director

FAQ

What is the latest intrinsic value of Technocraft Industries (India) Ltd?

The latest intrinsic value of Technocraft Industries (India) Ltd as on 13 November 2024 is ₹3338.08, which is 11.60% higher than the current market price of ₹2,991.00.

What is the Market Cap of Technocraft Industries (India) Ltd?

The Market Cap of Technocraft Industries (India) Ltd is 6,867 Cr..

What is the current Stock Price of Technocraft Industries (India) Ltd as on 13 November 2024?

The current stock price of Technocraft Industries (India) Ltd as on 13 November 2024 is ₹2,991.

What is the High / Low of Technocraft Industries (India) Ltd stocks in FY 2024?

In FY 2024, the High / Low of Technocraft Industries (India) Ltd stocks is 3,939/1,502.

What is the Stock P/E of Technocraft Industries (India) Ltd?

The Stock P/E of Technocraft Industries (India) Ltd is 25.8.

What is the Book Value of Technocraft Industries (India) Ltd?

The Book Value of Technocraft Industries (India) Ltd is 729.

What is the Dividend Yield of Technocraft Industries (India) Ltd?

The Dividend Yield of Technocraft Industries (India) Ltd is 0.00 %.

What is the ROCE of Technocraft Industries (India) Ltd?

The ROCE of Technocraft Industries (India) Ltd is 18.7 %.

What is the ROE of Technocraft Industries (India) Ltd?

The ROE of Technocraft Industries (India) Ltd is 17.4 %.

What is the Face Value of Technocraft Industries (India) Ltd?

The Face Value of Technocraft Industries (India) 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 Technocraft Industries (India) 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