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Last Updated on: 21 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Thejo Engineering Ltd

Basic Stock Data

Last Updated: June 20, 2024, 10:21 pm

Market Cap 3,286 Cr.
Current Price 3,047
High / Low3,250/1,450
Stock P/E59.1
Book Value 233
Dividend Yield0.07 %
ROCE28.6 %
ROE24.9 %
Face Value 10.0
PEG Ratio4.53

Competitors of Thejo Engineering Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Artson Engineering Ltd 702 Cr. 190218/74.6116 0.250.00 %23.2 %% 1.00
Supreme Engineering Ltd 29.7 Cr. 1.191.40/0.50 2.700.00 %120 %% 1.00
BMW Industries Ltd 1,365 Cr. 60.686.0/27.721.4 29.40.36 %13.2 %10.1 % 1.00
Cenlub Industries Ltd 181 Cr. 387609/18520.1 1200.00 %22.5 %17.4 % 10.0
Birla Precision Technologies Ltd 400 Cr. 60.676.7/38.037.5 23.20.08 %11.9 %7.46 % 2.00
Industry Average4,835.63 Cr669.0632.42123.940.23%20.14%18.17%5.93

Quarterly Result

MonthJun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales111119122122135134150141
Expenses92104107112112111121115
Operating Profit1915151023232926
OPM %17%13%12%8%17%17%19%18%
Other Income0111102-0
Interest11112221
Depreciation33335556
Profit before tax161212617172418
Tax %25%23%23%24%23%20%22%25%
Net Profit1299514141913
EPS in Rs9.827.758.384.3911.8412.2516.1511.59

Last Updated: June 10, 2024, 2:33 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 26, 2024, 2:05 pm

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales108126147186175178220229303327424474540
Expenses95110133175162158192197254276355414455
Operating Profit13161411132027314950696085
OPM %12%13%9%6%7%11%12%14%16%15%16%13%16%
Other Income5211001103134
Interest4456666554356
Depreciation2346655669111218
Profit before tax1312601917223841564665
Tax %30%34%79%1,240%149%34%23%31%21%27%24%24%
Net Profit981-2-1613153029433551
EPS in Rs7.493.04-0.220.205.5910.7312.9724.1725.1935.3130.3044.63
Dividend Payout %5%11%38%-522%572%21%12%13%7%8%6%7%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-11.11%-87.50%-300.00%50.00%700.00%116.67%15.38%100.00%-3.33%48.28%-18.60%
Change in YoY Net Profit Growth (%)0.00%-76.39%-212.50%350.00%650.00%-583.33%-101.28%84.62%-103.33%51.61%-66.88%

Growth

Compounded Sales Growth
10 Years:14%
5 Years:20%
3 Years:20%
TTM:18%
Compounded Profit Growth
10 Years:45%
5 Years:33%
3 Years:28%
TTM:70%
Stock Price CAGR
10 Years:%
5 Years:75%
3 Years:52%
1 Year:81%
Return on Equity
10 Years:20%
5 Years:24%
3 Years:23%
Last Year:25%

Last Updated: June 16, 2024, 4:51 pm

Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital1233333334111111
Reserves254950484652627498125154186209
Borrowings22263137394134313618384549
Other Liabilities3641506054415460799498121125
Total Liabilities84118135148143138153169216240301362393
Fixed Assets1623333130293234324666112111
CWIP1010011001122
Investments0000000000000
Other Assets6795101116112108119135184193234249280
Total Assets84118135148143138153169216240301362393

Reserves and Borrowings Chart

Thejo Engineering Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 2051412242019522759
Cash from Investing Activity -2-10-13-4-4-5-8-6-5-13-15-51
Cash from Financing Activity -11944-4-4-15-9-2-31-0-8
Net Cash Flow-110-41-4315138130

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow13.00-10.00-17.00-26.00-26.00-21.00-7.000.0013.0032.0031.0015.00

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 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days1131171151081121201091021221049283
Inventory Days105133117110281221196315229214198201
Days Payable126131107131193185155207178223131161
Cash Conversion Cycle921191248720015715021017394159123
Working Capital Days7799918294105829695828876
ROCE %30%25%13%7%8%16%22%24%33%28%31%21%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2018Sep 2018Mar 2019Sep 2019Mar 2020Sep 2020Mar 2021Sep 2021Oct 2021Mar 2022Sep 2022Mar 2023
Promoters56.70%56.69%56.63%56.50%56.25%55.90%55.32%54.84%54.84%54.71%54.44%54.34%
FIIs0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.14%
DIIs12.06%11.51%11.24%11.00%8.37%0.30%0.00%0.00%0.00%0.00%0.00%0.45%
Public31.23%31.81%32.13%32.50%35.39%43.80%44.67%45.16%45.16%45.30%45.56%45.07%
No. of Shareholders2582522522663595736087758791,0381,2201,156

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.)51.8630.3535.4125.3172.91
Diluted EPS (Rs.)51.4330.0034.9224.9272.20
Cash EPS (Rs.)74.1643.9149.77108.66106.04
Book Value[Excl.RevalReserv]/Share (Rs.)253.21205.11174.24409.46326.69
Book Value[Incl.RevalReserv]/Share (Rs.)253.21205.11174.24409.46326.69
Revenue From Operations / Share (Rs.)519.68443.38398.29930.13878.22
PBDIT / Share (Rs.)96.1558.4765.64150.67142.60
PBIT / Share (Rs.)77.1647.0855.76125.75124.30
PBT / Share (Rs.)71.1942.7752.81115.25111.03
Net Profit / Share (Rs.)55.1732.5239.8983.7487.74
NP After MI And SOA / Share (Rs.)51.6930.2935.3175.2372.64
PBDIT Margin (%)18.5013.1816.4816.1916.23
PBIT Margin (%)14.8410.6114.0013.5114.15
PBT Margin (%)13.699.6413.2512.3912.64
Net Profit Margin (%)10.617.3310.019.009.99
NP After MI And SOA Margin (%)9.946.838.868.088.27
Return on Networth / Equity (%)22.2316.5122.8020.5724.82
Return on Capital Employeed (%)26.7119.2626.6228.0534.32
Return On Assets (%)13.448.8912.4210.9611.70
Long Term Debt / Equity (X)0.030.050.070.030.11
Total Debt / Equity (X)0.050.080.100.070.29
Asset Turnover Ratio (%)1.441.421.161.051.19
Current Ratio (X)2.892.392.862.251.98
Quick Ratio (X)2.281.822.201.791.60
Inventory Turnover Ratio (X)1.951.991.921.331.36
Dividend Payout Ratio (NP) (%)0.006.585.646.556.85
Dividend Payout Ratio (CP) (%)0.004.784.414.925.47
Earning Retention Ratio (%)0.0093.4294.3693.4593.15
Cash Earning Retention Ratio (%)0.0095.2295.5995.0894.53
Interest Coverage Ratio (X)16.1013.5822.2114.3510.74
Interest Coverage Ratio (Post Tax) (X)10.248.5514.508.977.61
Enterprise Value (Cr.)2600.661406.591268.64399.08169.15
EV / Net Operating Revenue (X)4.652.962.991.220.55
EV / EBITDA (X)25.1322.4818.137.533.43
MarketCap / Net Operating Revenue (X)4.712.993.021.260.51
Retention Ratios (%)0.0093.4194.3593.4493.14
Price / BV (X)10.527.237.773.201.54
Price / Net Operating Revenue (X)4.712.993.021.260.51
EarningsYield0.020.020.020.060.16

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 3,431.20

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: 12.61% compared to the current price 3047

Intrinsic Value: 3,878.97

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: 27.30% compared to the current price ₹3047

Last 5 Year EPS CAGR: 13.05%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 21.50%, which is a positive sign.
  2. The company has higher reserves (98.67 cr) compared to borrowings (34.92 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (264.38 cr) and profit (25.08 cr) over the years.
  1. The stock has a high average Working Capital Days of 88.92, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 140.67, 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 Thejo Engineering Ltd:
    1. Net Profit Margin: 10.61%
      • 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: 26.71% (Industry Average ROCE: %)
      • 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%: 22.23% (Industry Average ROE: %)
      • 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): 10.24
      • 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: 2.28
      • 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: 59.1 (Industry average Stock P/E: )
      • 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: 0.05
      • 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

Thejo Engineering Ltd. is a Public Limited Listed company incorporated on 26/03/1986 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L27209TN1986PLC012833 and registration number is 012833. Currently Company is involved in the business activities of Repair of machinery. Company’s Total Operating Revenue is Rs. 277.54 Cr. and Equity Capital is Rs. 10.66 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Engineering - General3rd Floor, VDS House, Chennai (Madras) Tamil Nadu 600086investor@thejo-engg.com
http://www.thejo-engg.com
Management
NamePosition Held
Mr. K J JosephChairman Emeritus
Mr. V A GeorgeExecutive Chairman
Mr. Thomas JohnVice Chairman
Mr. Manoj JosephManaging Director
Mr. Manesh JosephWhole Time Director
Mr. Rajesh JohnWhole Time Director
Mrs. Sujatha JayarajanIndependent Director
Mr. Srinivas AcharyaIndependent Director
Mr. A SatyaseelanIndependent Director
Mr. Sridhar GaneshIndependent Director
Mr. Nilesh S VikamseyIndependent Director
Mr. V K SrivastavaIndependent Director

FAQ

What is the latest fair value of Thejo Engineering Ltd?

The latest fair value of Thejo Engineering Ltd is ₹3431.20.

What is the Market Cap of Thejo Engineering Ltd?

The Market Cap of Thejo Engineering Ltd is 3,286 Cr..

What is the current Stock Price of Thejo Engineering Ltd as on 20 June 2024?

The current stock price of Thejo Engineering Ltd as on 20 June 2024 is ₹3,047.

What is the High / Low of Thejo Engineering Ltd stocks in FY 2024?

In FY 2024, the High / Low of Thejo Engineering Ltd stocks is 3,250/1,450.

What is the Stock P/E of Thejo Engineering Ltd?

The Stock P/E of Thejo Engineering Ltd is 59.1.

What is the Book Value of Thejo Engineering Ltd?

The Book Value of Thejo Engineering Ltd is 233.

What is the Dividend Yield of Thejo Engineering Ltd?

The Dividend Yield of Thejo Engineering Ltd is 0.07 %.

What is the ROCE of Thejo Engineering Ltd?

The ROCE of Thejo Engineering Ltd is 28.6 %.

What is the ROE of Thejo Engineering Ltd?

The ROE of Thejo Engineering Ltd is 24.9 %.

What is the Face Value of Thejo Engineering Ltd?

The Face Value of Thejo Engineering 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 Thejo 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