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Last Updated on: 28 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Vaswani Industries Ltd

About the Company - Vaswani Industries Ltd

Vaswani Industries Ltd. is a Public Limited Listed company incorporated on 22/07/2003 and has its registered office in the State of Chattisgarh, India. Company’s Corporate Identification Number(CIN) is L28939CT2003PLC015964 and registration number is 015964. Currently Company is involved in the business activities of Manufacture of rubber products. Company’s Total Operating Revenue is Rs. 374.42 Cr. and Equity Capital is Rs. 30.00 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Steel - Sponge IronBahesar Road, Near Cycle Park, Raipur Chattisgarh 493221jhaji@vaswaniindustries.com
http://www.vaswaniindustries.com
Management
NamePosition Held
Mr. Ritu Raj PeswaniNon Executive Chairman
Mr. Babu Lal BaghwarExecutive Director
Mr. Yashwant VaswaniExecutive Director
Mr. Satya Narayan GuptaNon Executive Director
Mr. Ashok Kumar SuriIndependent Director
Ms. Supriya GoyalIndependent Director

Vaswani Industries Ltd. Share Price Update

Share PriceValue
Today₹40.87
Previous Day₹39.01

Basic Stock Data of Vaswani Industries Ltd

Market Cap 131 Cr.
Current Price 43.5
High / Low44.9/18.0
Stock P/E18.4
Book Value 38.8
Dividend Yield0.00 %
ROCE12.5 %
ROE5.49 %
Face Value 10.0

Data Source: screener.in

Competitors of Vaswani Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Jindal Steel & Power Ltd 80,235 Cr. 787805/50314.4 4070.25 %14.2 %10.6 % 1.00
Tata Steel Long Products Ltd 3,743 Cr. 830861/556 61.10.00 %%% 10.0
Ankit Metal & Power Ltd 64.2 Cr. 4.556.11/2.30 73.20.00 %34.2 %% 10.0
MSP Steel & Power Ltd 1,235 Cr. 32.033.4/7.4559.1 14.70.00 %1.40 %9.04 % 10.0
Sarda Energy & Minerals Ltd 7,455 Cr. 212265/96.713.8 1040.35 %19.3 %18.7 % 1.00
Industry Average18,546.44 Cr373.1117.46132.000.12%13.82%7.67%6.40

Vaswani Industries Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales68.8596.56104.1188.2279.8786.51119.82103.9486.6389.84111.4493.5587.11
Expenses64.7990.4799.1683.2876.3982.69113.0998.3782.1983.54106.4387.4983.49
Operating Profit4.066.094.954.943.483.826.735.574.446.305.016.063.62
OPM %5.90%6.31%4.75%5.60%4.36%4.42%5.62%5.36%5.13%7.01%4.50%6.48%4.16%
Other Income0.050.060.300.060.180.070.470.600.510.040.490.200.40
Interest2.362.562.311.862.082.282.662.052.152.332.032.051.90
Depreciation1.041.081.071.091.111.090.361.480.350.930.900.930.94
Profit before tax0.712.511.872.050.470.524.182.642.453.082.573.281.18
Tax %18.31%26.29%9.63%29.27%27.66%242.31%19.62%25.00%26.94%64.61%55.25%16.16%28.81%
Net Profit0.571.851.681.450.35-0.743.361.981.791.091.152.760.85
EPS in Rs0.190.620.560.480.12-0.251.120.660.600.360.380.920.28

Vaswani Industries Ltd Quarterly Chart

Vaswani Industries Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales220214226255238255237319352314374390410
Expenses204219206237221239221301339296355369390
Operating Profit16-52118161616181418192121
OPM %7%-2%9%7%7%6%7%5%4%6%5%5%5%
Other Income22-31100120122
Interest119111199910109998
Depreciation5556665554444
Profit before tax2-181112330571110
Tax %42%36%97%-5%15%-7%-78%65%1,681%21%39%44%
Net Profit1-11011251-34467
EPS in Rs0.42-4.170.010.400.400.591.500.39-0.841.351.472.002.35
Dividend Payout %-0%-0%-0%-0%-0%-0%-0%-0%-0%-0%-0%-0%

Vaswani Industries Ltd Profit & Loss Yearly Chart

YoY Net Profit Growth
Year2012-20132013-20142015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-1200.00%100.00%0.00%100.00%150.00%-80.00%-400.00%233.33%0.00%50.00%
Change in YoY Net Profit Growth (%)0.00%1300.00%-100.00%100.00%50.00%-230.00%-320.00%633.33%-233.33%50.00%

Vaswani Industries Ltd Growth

Compounded Sales Growth
10 Years:6%
5 Years:10%
3 Years:3%
TTM:3%
Compounded Profit Growth
10 Years:10%
5 Years:6%
3 Years:63%
TTM:-14%
Stock Price CAGR
10 Years:37%
5 Years:35%
3 Years:53%
1 Year:77%
Return on Equity
10 Years:2%
5 Years:3%
3 Years:5%
Last Year:5%

Vaswani Industries Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital26272929293030303030303030
Reserves66555554575657636872778386
Borrowings36605947454248515342533649
Other Liabilities23253231323136554553575346
Total Liabilities152166174161163160171198196197217201211
Fixed Assets76717266676257545956545152
CWIP0500000000000
Investments8877772777777
Other Assets678195888891111137129133156143152
Total Assets152166174161163160171198196197217201211

Vaswani Industries Ltd Reserves and Borrowings Chart

Vaswani Industries Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity -26-6724184491029-030
Cash from Investing Activity -8-50-2-8-0-1-2-1-1-2-1
Cash from Financing Activity 3515-10-22-10-9-3-7-8-212-26
Net Cash Flow13-311-5-011714

Vaswani Industries Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days274248413438634956624946
Inventory Days585465507559679489694859
Days Payable244156475049557668524742
Cash Conversion Cycle615557455948766776795062
Working Capital Days656974626466887574826867
ROCE %12%-6%12%9%8%8%9%9%7%10%11%13%

Vaswani Industries Ltd Financial Efficiency Indicators Chart

Vaswani Industries Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters58.33%58.33%58.33%58.33%58.33%58.33%58.33%58.33%58.33%58.33%58.33%58.33%
Government0.41%0.22%0.13%0.13%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Public41.26%41.44%41.53%41.53%41.67%41.67%41.66%41.67%41.66%41.65%41.67%41.68%
No. of Shareholders5,3415,9295,8957,59313,97613,96613,62813,11012,58312,39712,32312,140

Vaswani Industries Ltd Shareholding Pattern Chart

No. of Vaswani Industries Ltd Shareholders

This stock is not held by any mutual fund

Vaswani Industries Ltd ROCE Trend

Vaswani Industries Ltd EPS Trend

Vaswani Industries Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)2.001.471.35-0.840.39
Diluted EPS (Rs.)2.001.471.35-0.840.39
Cash EPS (Rs.)3.222.692.800.942.12
Book Value[Excl.RevalReserv]/Share (Rs.)35.0033.0631.5732.6030.86
Book Value[Incl.RevalReserv]/Share (Rs.)37.5535.6134.1232.6030.86
Revenue From Operations / Share (Rs.)130.62124.81104.78117.48106.37
PBDIT / Share (Rs.)7.656.586.295.266.01
PBIT / Share (Rs.)6.435.374.853.484.27
PBT / Share (Rs.)3.582.411.710.051.10
Net Profit / Share (Rs.)2.001.471.35-0.840.38
PBDIT Margin (%)5.855.276.004.485.64
PBIT Margin (%)4.924.294.622.954.01
PBT Margin (%)2.741.921.630.041.03
Net Profit Margin (%)1.531.181.29-0.710.36
Return on Networth / Equity (%)5.724.454.28-2.571.25
Return on Capital Employeed (%)14.6412.3812.429.2411.95
Return On Assets (%)2.982.032.06-1.280.58
Long Term Debt / Equity (X)0.090.150.070.090.12
Total Debt / Equity (X)0.340.530.430.540.54
Asset Turnover Ratio (%)1.871.811.601.791.73
Current Ratio (X)1.821.461.461.371.30
Quick Ratio (X)1.121.020.890.920.73
Inventory Turnover Ratio (X)6.326.435.123.845.02
Interest Coverage Ratio (X)2.682.232.011.541.89
Interest Coverage Ratio (Post Tax) (X)1.701.501.430.751.12
Enterprise Value (Cr.)83.78103.8670.1860.9758.86
EV / Net Operating Revenue (X)0.210.270.220.170.18
EV / EBITDA (X)3.655.263.723.863.26
MarketCap / Net Operating Revenue (X)0.150.150.090.020.09
Price / BV (X)0.570.590.300.090.32
Price / Net Operating Revenue (X)0.150.150.090.020.09
EarningsYield0.100.070.14-0.280.03

Vaswani Industries Ltd Profitability Ratios (%)

Vaswani Industries Ltd Liquidity Ratios

Vaswani Industries Ltd Liquidity Ratios (%)

Vaswani Industries Ltd Interest Coverage Ratios (X)

Vaswani Industries Ltd Valuation Ratios

Fair Value / Intrinsic Value of Vaswani Industries Ltd

Fair Value: ₹39.98

The stock is overvalued by 8.10% compared to the current price ₹43.5

*Investments are subject to market risks

Strength and Weakness of Vaswani Industries Ltd

StrengthWeakness
  1. The company has higher reserves (65.31 cr) compared to borrowings (47.77 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (292.62 cr) and profit (2.15 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 4.88 and average Dividend Yield of 1.47%.
  2. The stock has a low average ROCE of 8.50%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 71.17, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 61.25, which may not be favorable.

Should I Buy Vaswani Industries Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Vaswani Industries Ltd:
    1. Net Profit Margin: 1.53%
      • 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: 14.64% (Industry Average ROCE: 13.82%)
      • 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. Interest Coverage Ratio (Post Tax): 1.70
      • 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.
    4. Quick Ratio: 1.12
      • 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.
    5. ✗ Stock P/E: 17.6 (Industry average Stock P/E: 16.74)
      • 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.
    6. ✓ Total Debt / Equity: 0.34
      • 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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 Vaswani 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