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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

Texmaco Rail & Engineering Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 14, 2024, 9:10 pm

Market Cap 7,951 Cr.
Current Price 199
High / Low297/135
Stock P/E48.2
Book Value 64.8
Dividend Yield0.25 %
ROCE11.4 %
ROE5.83 %
Face Value 1.00
PEG Ratio1.15

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

View Share Price Target for Texmaco Rail & Engineering Ltd

Competitors of Texmaco Rail & Engineering Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
HLE Glascoat Ltd 2,486 Cr. 364582/35087.6 61.00.29 %13.1 %8.62 % 2.00
Harish Textile Engineers Ltd 32.4 Cr. 97.1102/42.7 27.80.00 %10.8 %2.98 % 10.0
Disa India Ltd 2,557 Cr. 17,58020,900/12,65254.9 1,7801.14 %25.9 %19.2 % 10.0
Cranex Ltd 90.3 Cr. 150190/47.057.5 18.00.00 %10.1 %14.9 % 10.0
Concord Control Systems Ltd 994 Cr. 1,6612,062/53877.6 77.20.00 %72.8 %60.3 % 10.0
Industry Average11,837.99N/A54.70N/AN/A20.3215.63N/A

All Competitor Stocks of Texmaco Rail & Engineering Ltd

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales6063313744704472994846258356578058961,145
Expenses5542953364354193094425707816367308141,061
Operating Profit5336383627-1042555421758384
OPM %9%11%10%8%6%-3%9%9%7%3%9%9%7%
Other Income13669106137113981225
Interest24262625232230323135373428
Depreciation10999999999999
Profit before tax3279116-3516222617385272
Tax %39%29%36%85%-4%-35%16%48%31%13%42%44%35%
Net Profit205626-2314111815222947
EPS in Rs0.610.150.180.050.19-0.700.420.350.540.450.680.771.18

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
Sales8294464391,0771,1541,1351,8581,8321,6891,8142,6003,503
Expenses7044294191,0261,0961,0751,6911,6751,5691,6772,4583,241
Operating Profit1251820515861167157120137142262
OPM %15%4%4%5%5%5%9%9%7%8%5%7%
Other Income31232445475121-12332313884
Interest1210124748617197103100116133
Depreciation91215151625293637363535
Profit before tax135191634422688-99123229179
Tax %30%10%15%20%20%48%15%-33%-2%44%31%37%
Net Profit94171427341375-66121820113
EPS in Rs3.380.610.430.851.000.402.24-1.910.370.570.622.82
Dividend Payout %19%27%38%19%16%41%10%-3%21%18%24%18%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-81.91%-17.65%92.86%25.93%-61.76%476.92%-188.00%118.18%50.00%11.11%465.00%
Change in YoY Net Profit Growth (%)0.00%64.27%110.50%-66.93%-87.69%538.69%-664.92%306.18%-68.18%-38.89%453.89%

Texmaco Rail & Engineering 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:23%
5 Years:14%
3 Years:28%
TTM:39%
Compounded Profit Growth
10 Years:28%
5 Years:9%
3 Years:111%
TTM:153%
Stock Price CAGR
10 Years:7%
5 Years:38%
3 Years:87%
1 Year:45%
Return on Equity
10 Years:3%
5 Years:4%
3 Years:3%
Last Year:6%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 7:31 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital18182121222222222532324040
Reserves5635748729871,0231,0501,1181,0051,1151,2941,3132,4462,548
Borrowings102102107335324522587760779710984631872
Other Liabilities3853243485214546579791,0987236261,0111,023969
Total Liabilities1,0671,0181,3481,8651,8232,2512,7062,8872,6422,6623,3404,1404,429
Fixed Assets113160206228246344365409378361367399412
CWIP554854251044292149
Investments3193176105445022531431001287192408799
Other Assets5804925271,0881,0731,6472,1892,3752,1322,2272,8723,3123,169
Total Assets1,0671,0181,3481,8651,8232,2512,7062,8872,6422,6623,3404,1404,429

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +575441-65-23-208-45424024-10693
Cash from Investing Activity +-29-38-332666316345-96-2322-73-630
Cash from Financing Activity +-2-312828-5251-660-11-12154533
Net Cash Flow26-15-910-116-66633-25-4

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow23.00-84.00-87.00-284.00-266.00-461.00-420.00-603.00-659.00-573.00-842.00-369.00

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 Days9915712514013821916012813211512892
Inventory Days176284329158981401271619612015399
Days Payable17127525315310515915716613310412892
Cash Conversion Cycle1041652011451312001301239513115299
Working Capital Days72125115159166311259251287293276195
ROCE %22%3%2%5%5%6%9%8%6%7%7%11%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters58.33%58.35%58.35%58.35%58.38%58.70%58.70%58.70%50.16%48.14%48.14%48.14%
FIIs2.66%1.82%1.56%1.72%1.79%1.89%2.15%2.30%9.57%11.04%9.09%7.87%
DIIs8.34%8.18%7.77%7.69%7.07%7.00%6.71%6.14%8.80%8.27%8.93%8.70%
Public30.67%31.65%32.32%32.24%32.76%32.42%32.44%32.86%31.46%32.53%33.84%35.28%
No. of Shareholders95,69793,24399,30097,6921,16,3681,14,5201,18,0741,55,1031,91,8702,79,1883,01,6233,56,289

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Nippon India Small Cap Fund11,408,7830.45195.2611,408,7832024-11-130%
HDFC Balanced Advantage Fund - Regular Plan10,709,0250.25183.2911,408,7832024-11-13-6.13%
LIC MF Large & Mid Cap Fund1,493,3761.0325.5611,408,7832024-11-13-86.91%
LIC MF Multi Cap Fund821,3101.7314.0611,408,7832024-11-13-92.8%
LIC MF Infrastructure Fund335,6863.655.7511,408,7832024-11-13-97.06%
LIC MF Small Cap Fund328,0552.95.6111,408,7832024-11-13-97.12%
LIC MF Balanced Advantage Fund168,9090.32.8911,408,7832024-11-13-98.52%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)3.290.810.750.62-2.88
Diluted EPS (Rs.)3.290.810.750.62-2.88
Cash EPS (Rs.)3.361.451.501.64-1.47
Book Value[Excl.RevalReserv]/Share (Rs.)63.3442.0441.2745.5045.68
Book Value[Incl.RevalReserv]/Share (Rs.)63.3443.1841.2745.5045.68
Revenue From Operations / Share (Rs.)87.6969.7050.3867.4681.46
PBDIT / Share (Rs.)8.345.345.055.748.03
PBIT / Share (Rs.)7.384.243.934.256.43
PBT / Share (Rs.)4.060.630.820.13-4.54
Net Profit / Share (Rs.)2.410.350.370.14-3.07
NP After MI And SOA / Share (Rs.)2.830.800.630.56-2.88
PBDIT Margin (%)9.507.6510.028.519.85
PBIT Margin (%)8.416.087.806.297.88
PBT Margin (%)4.630.901.620.19-5.56
Net Profit Margin (%)2.740.510.750.21-3.77
NP After MI And SOA Margin (%)3.231.161.260.83-3.53
Return on Networth / Equity (%)4.461.921.541.24-6.31
Return on Capital Employeed (%)10.338.258.358.1511.41
Return On Assets (%)2.700.760.760.53-2.24
Long Term Debt / Equity (X)0.090.120.040.030.05
Total Debt / Equity (X)0.240.720.530.660.72
Asset Turnover Ratio (%)0.920.740.610.610.65
Current Ratio (X)2.611.591.841.521.40
Quick Ratio (X)2.061.201.531.291.07
Inventory Turnover Ratio (X)4.113.353.332.392.65
Dividend Payout Ratio (NP) (%)0.0012.3612.2115.87-12.13
Dividend Payout Ratio (CP) (%)0.005.254.434.35-27.38
Earning Retention Ratio (%)0.0087.6487.7984.13112.13
Cash Earning Retention Ratio (%)0.0094.7595.5795.65127.38
Interest Coverage Ratio (X)2.511.481.621.401.87
Interest Coverage Ratio (Post Tax) (X)1.721.101.121.031.84
Enterprise Value (Cr.)6810.792161.221863.031324.781103.46
EV / Net Operating Revenue (X)1.940.961.150.780.60
EV / EBITDA (X)20.4512.5811.459.226.11
MarketCap / Net Operating Revenue (X)1.880.600.820.390.23
Retention Ratios (%)0.0087.6387.7884.12112.13
Price / BV (X)2.601.011.010.580.42
Price / Net Operating Revenue (X)1.880.600.820.390.23
EarningsYield0.010.010.010.02-0.14

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Texmaco Rail & Engineering Ltd as of November 14, 2024 is: 182.55

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, Texmaco Rail & Engineering Ltd is Overvalued by 8.27% compared to the current share price 199.00

Intrinsic Value of Texmaco Rail & Engineering Ltd as of November 14, 2024 is: 258.83

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, Texmaco Rail & Engineering Ltd is Undervalued by 30.07% compared to the current share price 199.00

Last 5 Year EPS CAGR: 41.79%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (1,223.69 cr) compared to borrowings (524.23 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (143.83 cr) and profit (42.75 cr) over the years.
  1. The stock has a low average ROCE of 7.58%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 209.08, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 139.67, 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 Texmaco Rail & Engineering Ltd:
    1. Net Profit Margin: 2.74%
      • 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: 10.33% (Industry Average ROCE: 20.32%)
      • 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%: 4.46% (Industry Average ROE: 15.63%)
      • 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): 1.72
      • 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: 2.06
      • 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: 48.2 (Industry average Stock P/E: 54.7)
      • 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: 0.24
      • 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

Texmaco Rail & Engineering Ltd. is a Public Limited Listed company incorporated on 25/06/1998 and has its registered office in the State of West Bengal, India. Company’s Corporate Identification Number(CIN) is L29261WB1998PLC087404 and registration number is 087404. Currently Company is involved in the business activities of Casting of metals. Company’s Total Operating Revenue is Rs. 1621.74 Cr. and Equity Capital is Rs. 32.19 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Railway Wagons and WansBelgharia, Kolkata West Bengal 700056texrail_cs@texmaco.in
http://www.texmaco.in
Management
NamePosition Held
Mr. S K PoddarExecutive Chairman
Mr. Indrajit MookerjeeVice Chairman & Exe.Director
Mr. A K VijayExecutive Director
Mr. D R KaarthikeyanDirector
Mr. Utsav ParekhDirector
Mr. Akshay PoddarDirector
Mr. Virendra SinhaDirector
Ms. Rusha MitraDirector
Mr. Sudipta MukherjeeManaging Director
Mr. P S BhattacharyyaDirector
Mr. Amitabha GuhaDirector
Mr. Hemant BangurDirector
Mr. U V KamathExecutive Director

FAQ

What is the latest intrinsic value of Texmaco Rail & Engineering Ltd?

The latest intrinsic value of Texmaco Rail & Engineering Ltd as on 14 November 2024 is ₹182.55, which is 8.27% lower than the current market price of ₹199.00.

What is the Market Cap of Texmaco Rail & Engineering Ltd?

The Market Cap of Texmaco Rail & Engineering Ltd is 7,951 Cr..

What is the current Stock Price of Texmaco Rail & Engineering Ltd as on 14 November 2024?

The current stock price of Texmaco Rail & Engineering Ltd as on 14 November 2024 is ₹199.

What is the High / Low of Texmaco Rail & Engineering Ltd stocks in FY 2024?

In FY 2024, the High / Low of Texmaco Rail & Engineering Ltd stocks is 297/135.

What is the Stock P/E of Texmaco Rail & Engineering Ltd?

The Stock P/E of Texmaco Rail & Engineering Ltd is 48.2.

What is the Book Value of Texmaco Rail & Engineering Ltd?

The Book Value of Texmaco Rail & Engineering Ltd is 64.8.

What is the Dividend Yield of Texmaco Rail & Engineering Ltd?

The Dividend Yield of Texmaco Rail & Engineering Ltd is 0.25 %.

What is the ROCE of Texmaco Rail & Engineering Ltd?

The ROCE of Texmaco Rail & Engineering Ltd is 11.4 %.

What is the ROE of Texmaco Rail & Engineering Ltd?

The ROE of Texmaco Rail & Engineering Ltd is 5.83 %.

What is the Face Value of Texmaco Rail & Engineering Ltd?

The Face Value of Texmaco Rail & Engineering Ltd is 1.00.

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 Texmaco Rail & Engineering 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