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Last Updated on: 10 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Vadilal Industries Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 9, 2024, 10:44 pm

Market Cap 2,748 Cr.
Current Price 3,822
High / Low5,143/2,133
Stock P/E18.0
Book Value 754
Dividend Yield0.04 %
ROCE27.1 %
ROE31.0 %
Face Value 10.0
PEG Ratio0.18

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

View Share Price Target for Vadilal Industries Ltd

Competitors of Vadilal Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Healthy Life Agritec Ltd 132 Cr. 53.173.7/3.4752.5 12.20.00 %12.6 %9.78 % 10.0
Dodla Dairy Ltd 7,274 Cr. 1,2061,346/74133.6 2140.25 %22.1 %15.5 % 10.0
Vadilal Industries Ltd 2,748 Cr. 3,8225,143/2,13318.0 7540.04 %27.1 %31.0 % 10.0
Umang Dairies Ltd 205 Cr. 93.0165/66.634.3 20.00.00 %7.17 %2.90 % 5.00
Hatsun Agro Product Ltd 24,883 Cr. 1,1171,400/95678.4 70.60.55 %13.2 %17.0 % 1.00
Industry Average7,048.40 Cr1,258.2243.36214.160.17%16.43%15.24%7.20

All Competitor Stocks of Vadilal Industries Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales166188130213391267143256411289174251464
Expenses138163124173316223149208307230163206351
Operating Profit28256407544-649104591146113
OPM %17%13%4%19%19%17%-4%19%25%20%6%18%24%
Other Income1322444224434
Interest5555534564444
Depreciation66667868998911
Profit before tax1818-2306737-12389250335103
Tax %29%30%6%28%26%27%-22%24%23%24%-210%21%25%
Net Profit1313-2224927-929713892877
EPS in Rs17.6717.67-3.3430.1868.8138.02-12.9240.0498.8152.9412.8638.45107.71

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: September 23, 2024, 3:17 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales3243674064504825475675994636981,0581,1251,179
Expenses287327367391425499494521428599892904949
Operating Profit37403958574873793699166221229
OPM %11%11%10%13%12%9%13%13%8%14%16%20%19%
Other Income7231361010168101215
Interest25252621161514172119161816
Depreciation11131314151617242324303537
Profit before tax8442429235248864131180191
Tax %39%36%36%40%35%32%36%14%40%30%26%19%
Net Profit522151916334154596146152
EPS in Rs7.003.203.3920.5326.5221.7946.4157.576.4462.19133.96203.05211.96
Dividend Payout %21%31%29%6%5%6%3%0%0%2%1%1%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-60.00%0.00%650.00%26.67%-15.79%106.25%24.24%-87.80%800.00%113.33%52.08%
Change in YoY Net Profit Growth (%)0.00%60.00%650.00%-623.33%-42.46%122.04%-82.01%-112.05%887.80%-686.67%-61.25%

Vadilal 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:12%
5 Years:15%
3 Years:34%
TTM:9%
Compounded Profit Growth
10 Years:52%
5 Years:34%
3 Years:218%
TTM:29%
Stock Price CAGR
10 Years:33%
5 Years:38%
3 Years:57%
1 Year:53%
Return on Equity
10 Years:18%
5 Years:21%
3 Years:26%
Last Year:31%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital777777777777
Reserves106106106120154168200240244290390535
Borrowings172166152122119141148174158186291223
Other Liabilities6897104117134123122153159140150151
Total Liabilities353376370366414439477574567623838917
Fixed Assets207228226225251257267318312307403444
CWIP1641157139532012
Investments0000111111516
Other Assets129144143141158175196247250313410445
Total Assets353376370366414439477574567623838917

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 3555506446174467823239192
Cash from Investing Activity -24-21-8-11-23-24-31-67-11-20-62-66
Cash from Financing Activity -10-33-41-53-206-104-5689-114
Net Cash Flow111-13-1441620-1312

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-135.00-126.00-113.00-64.00-62.00-93.00-75.00-95.00-122.00-87.00-125.00-2.00

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 Days14151418828202736342731
Inventory Days176178144138135119157179211170167146
Days Payable791049610492918698165855862
Cash Conversion Cycle11189625151569110781119135115
Working Capital Days3821931231385051698280
ROCE %12%10%10%18%17%13%20%17%7%19%26%27%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters64.72%64.72%64.72%64.73%64.72%64.72%64.72%64.72%64.72%64.72%64.72%64.72%
FIIs0.00%0.00%0.10%0.06%0.11%0.17%0.09%0.03%0.09%0.09%0.45%0.38%
DIIs0.01%0.01%0.01%0.01%0.01%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Public35.27%35.27%35.17%35.20%35.15%35.11%35.19%35.25%35.18%35.20%34.83%34.90%
No. of Shareholders10,76611,07312,62712,82313,85812,48713,12812,38113,70014,28614,13815,948

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.)203.05133.9762.196.4457.57
Diluted EPS (Rs.)203.05133.9762.196.4457.57
Cash EPS (Rs.)251.54175.5495.5438.2390.53
Book Value[Excl.RevalReserv]/Share (Rs.)754.70448.45309.43245.06239.47
Book Value[Incl.RevalReserv]/Share (Rs.)754.70553.13414.11349.74344.15
Revenue From Operations / Share (Rs.)1565.131471.74970.70645.25833.73
PBDIT / Share (Rs.)323.74245.27149.1372.31122.91
PBIT / Share (Rs.)275.19203.70115.7740.5289.95
PBT / Share (Rs.)250.29181.6488.8010.6966.69
Net Profit / Share (Rs.)202.99133.9762.196.4457.57
NP After MI And SOA / Share (Rs.)202.99133.9762.196.4457.57
PBDIT Margin (%)20.6816.6615.3611.2014.74
PBIT Margin (%)17.5813.8411.926.2710.78
PBT Margin (%)15.9912.349.141.657.99
Net Profit Margin (%)12.969.106.400.996.90
NP After MI And SOA Margin (%)12.969.106.400.996.90
Return on Networth / Equity (%)26.9129.9020.122.6324.08
Return on Capital Employeed (%)28.1526.0220.528.6919.27
Return On Assets (%)15.9111.497.170.817.21
Long Term Debt / Equity (X)0.060.180.340.320.28
Total Debt / Equity (X)0.210.630.770.720.90
Asset Turnover Ratio (%)1.281.451.010.661.02
Current Ratio (X)2.021.441.391.040.98
Quick Ratio (X)0.950.510.630.430.33
Inventory Turnover Ratio (X)2.052.512.331.522.13
Dividend Payout Ratio (NP) (%)0.000.930.000.002.61
Dividend Payout Ratio (CP) (%)0.000.710.000.001.66
Earning Retention Ratio (%)0.0099.070.000.0097.39
Cash Earning Retention Ratio (%)0.0099.290.000.0098.34
Interest Coverage Ratio (X)13.0011.125.532.425.29
Interest Coverage Ratio (Post Tax) (X)9.157.073.311.223.48
Enterprise Value (Cr.)3189.081750.951137.24737.41460.85
EV / Net Operating Revenue (X)2.831.661.631.590.76
EV / EBITDA (X)13.709.9310.6114.195.22
MarketCap / Net Operating Revenue (X)2.781.501.461.390.54
Retention Ratios (%)0.0099.060.000.0097.38
Price / BV (X)5.764.924.583.671.89
Price / Net Operating Revenue (X)2.781.501.461.390.54
EarningsYield0.040.060.040.010.12

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Vadilal Industries Ltd as of November 10, 2024 is: 4,209.00

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 10, 2024, Vadilal Industries Ltd is Undervalued by 10.13% compared to the current share price ₹3,822.00

Intrinsic Value of Vadilal Industries Ltd as of November 10, 2024 is: 8,465.50

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 10, 2024, Vadilal Industries Ltd is Undervalued by 121.49% compared to the current share price 3,822.00

Last 5 Year EPS CAGR: 101.13%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 16.33%, which is a positive sign.
  2. The company has higher reserves (221.58 cr) compared to borrowings (171.00 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (377.38 cr) and profit (58.92 cr) over the years.
  1. The stock has a high average Working Capital Days of 40.33, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 89.00, 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 Vadilal Industries Ltd:
    1. Net Profit Margin: 12.96%
      • 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: 28.15% (Industry Average ROCE: 16.43%)
      • 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%: 26.91% (Industry Average ROE: 15.24%)
      • 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): 9.15
      • 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: 0.95
      • 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: 18 (Industry average Stock P/E: 43.36)
      • 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: 0.21
      • 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

Vadilal Industries Ltd. is a Public Limited Listed company incorporated on 28/04/1982 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L91110GJ1982PLC005169 and registration number is 005169. Currently Company is involved in the business activities of Processing and preserving of fruit and vegetables. Company’s Total Operating Revenue is Rs. 544.12 Cr. and Equity Capital is Rs. 7.19 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Milk & Milk ProductsVadilal House, Shrimali Society, Nr. Navrangpura Rly. Crossing, Ahmedabad Gujarat 380009shareslogs@vadilalgroup.com
http://www.vadilalgroup.com
Management
NamePosition Held
Mr. Preet ShahChairman & Ind.Director
Mr. Devanshu L GandhiManaging Director
Mr. Rajesh R GandhiManaging Director
Mr. Kalpit R GandhiNon Exe.Non Ind.Director
Mrs. Deval D GandhiNon Exe.Non Ind.Director
Ms. Shaily DedhiaIndependent Director

FAQ

What is the latest fair value of Vadilal Industries Ltd?

The latest fair value of Vadilal Industries Ltd is ₹4209.00.

What is the Market Cap of Vadilal Industries Ltd?

The Market Cap of Vadilal Industries Ltd is 2,748 Cr..

What is the current Stock Price of Vadilal Industries Ltd as on 10 November 2024?

The current stock price of Vadilal Industries Ltd as on 10 November 2024 is 3,822.

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

In FY 2024, the High / Low of Vadilal Industries Ltd stocks is 5,143/2,133.

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

The Stock P/E of Vadilal Industries Ltd is 18.0.

What is the Book Value of Vadilal Industries Ltd?

The Book Value of Vadilal Industries Ltd is 754.

What is the Dividend Yield of Vadilal Industries Ltd?

The Dividend Yield of Vadilal Industries Ltd is 0.04 %.

What is the ROCE of Vadilal Industries Ltd?

The ROCE of Vadilal Industries Ltd is 27.1 %.

What is the ROE of Vadilal Industries Ltd?

The ROE of Vadilal Industries Ltd is 31.0 %.

What is the Face Value of Vadilal Industries Ltd?

The Face Value of Vadilal 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 Vadilal 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