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Last Updated on: 25 July, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 530961 | NSE: VIKASECO

Fundamental Analysis of Vikas Ecotech Ltd

Basic Stock Data

Last Updated: July 24, 2024, 10:27 pm

Market Cap 658 Cr.
Current Price 3.73
High / Low5.65/2.80
Stock P/E99.5
Book Value 2.71
Dividend Yield0.00 %
ROCE4.51 %
ROE2.15 %
Face Value 1.00
PEG Ratio2.62

Data Source: screener.in

Competitors of Vikas Ecotech Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Eastern Treads Ltd 21.6 Cr. 41.448.0/31.0 18.50.00 %0.62 %% 10.0
Dolfin Rubbers Ltd 201 Cr. 200242/10642.2 28.20.60 %19.1 %17.9 % 10.0
Vikas Ecotech Ltd 658 Cr. 3.735.65/2.8099.5 2.710.00 %4.51 %2.15 % 1.00
Modi Rubber Ltd 252 Cr. 99.6120/66.516.2 2620.00 %4.43 %2.40 % 10.0
GRP Ltd 1,988 Cr. 15,15516,746/3,41781.1 1,2510.25 %15.5 %15.6 % 10.0
Industry Average813.67 Cr3,874.0046.50389.930.21%9.91%11.97%10.00

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales36.7418.1073.9775.2683.0988.69134.33111.3268.3357.7060.7468.4659.70
Expenses40.9817.0068.1866.5375.6784.07127.67105.6963.3153.6355.2564.7356.67
Operating Profit-4.241.105.798.737.424.626.665.635.024.075.493.733.03
OPM %-11.54%6.08%7.83%11.60%8.93%5.21%4.96%5.06%7.35%7.05%9.04%5.45%5.08%
Other Income0.820.361.260.43-0.310.440.600.821.311.20-0.250.301.87
Interest5.594.485.284.454.872.662.722.642.622.321.991.450.82
Depreciation1.080.900.900.890.910.810.860.961.340.870.900.931.05
Profit before tax-10.09-3.920.873.821.331.593.682.852.372.082.351.653.03
Tax %-8.33%-0.26%25.29%10.21%7.52%8.18%3.53%3.86%24.47%25.48%25.11%24.85%31.68%
Net Profit-10.92-3.930.653.431.231.463.542.741.791.551.771.232.06
EPS in Rs-0.11-0.040.010.040.010.020.040.030.020.010.010.010.01

Last Updated: July 11, 2024, 9:41 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: July 25, 2024, 11:29 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales157170211307371233245192116250397247
Expenses149159194258303181216180112227375230
Operating Profit8101749685230124232216
OPM %5%6%8%16%18%22%12%6%4%9%6%7%
Other Income2235-14414155233
Interest561111131114191819117
Depreciation223344554444
Profit before tax446393741253-132109
Tax %3%18%39%35%34%35%40%65%10%34%9%27%
Net Profit334262427151-141107
EPS in Rs0.040.040.040.290.250.280.160.01-0.150.010.100.05
Dividend Payout %15%15%34%5%6%5%9%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 (%)0.00%33.33%550.00%-7.69%12.50%-44.44%-93.33%-1500.00%107.14%900.00%-30.00%
Change in YoY Net Profit Growth (%)0.00%33.33%516.67%-557.69%20.19%-56.94%-48.89%-1406.67%1607.14%792.86%-930.00%

Growth

Compounded Sales Growth
10 Years:4%
5 Years:0%
3 Years:29%
TTM:-38%
Compounded Profit Growth
10 Years:7%
5 Years:-15%
3 Years:35%
TTM:-29%
Stock Price CAGR
10 Years:-6%
5 Years:3%
3 Years:26%
1 Year:21%
Return on Equity
10 Years:7%
5 Years:0%
3 Years:2%
Last Year:2%

Last Updated: July 25, 2024, 11:29 am

Balance Sheet

Last Updated: July 10, 2024, 10:47 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital1010252528282828289495139
Reserves27311841105100114115101134143237
Borrowings37436894118141158145151916319
Other Liabilities283936685948925746264235
Total Liabilities102123147228310318391346326344343430
Fixed Assets182121282727403130282929
CWIP000000000000
Investments850005000055258
Other Assets7796126200283286352314295316259143
Total Assets102123147228310318391346326344343430

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity -53-12-4-23-792612-1897119
Cash from Investing Activity -1-24-10-9-22-126-00-58-203
Cash from Financing Activity 6-1131253111-32-1220-4182
Net Cash Flow006-221-18-3-002-3-1

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-29.00-33.00-51.00-45.00-50.00-89.00-128.00-133.00-147.00-68.00-41.00-3.00

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 Days85116129167149218245205255190130102
Inventory Days73605858721731952463531383562
Days Payable60606569546511057128262745
Cash Conversion Cycle97116122156167327330394480302138119
Working Capital Days108119141148186331334432627350168117
ROCE %11%13%16%37%32%20%14%5%2%7%7%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters15.60%15.60%9.47%9.29%9.29%9.29%9.32%7.85%6.87%6.87%13.57%10.66%
FIIs3.32%0.08%1.11%1.08%1.08%1.08%0.03%15.18%9.42%0.01%0.01%0.00%
Public81.09%84.33%89.42%89.63%89.64%89.63%90.64%76.98%83.70%93.12%86.42%89.34%
No. of Shareholders85,5611,31,3962,44,8762,68,3992,57,5762,66,5382,65,4122,75,7693,44,4793,83,1025,01,0255,35,602

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 15Mar 14Mar 13Mar 12
FaceValue1.001.001.0010.0010.00
Basic EPS (Rs.)0.060.150.363.638.90
Diluted EPS (Rs.)0.060.150.363.638.90
Cash EPS (Rs.)0.070.000.575.7712.04
Book Value[Excl.RevalReserv]/Share (Rs.)2.710.004.1537.2734.22
Book Value[Incl.RevalReserv]/Share (Rs.)2.710.004.1537.2734.22
Revenue From Operations / Share (Rs.)1.860.0024.58249.55163.05
PBDIT / Share (Rs.)0.140.001.5912.4017.62
PBIT / Share (Rs.)0.110.001.3710.4615.69
PBT / Share (Rs.)0.060.000.474.0910.31
Net Profit / Share (Rs.)0.040.000.363.8210.11
NP After MI And SOA / Share (Rs.)0.040.000.353.638.90
PBDIT Margin (%)7.648.866.444.9710.80
PBIT Margin (%)6.187.325.584.199.62
PBT Margin (%)3.642.401.911.636.32
Net Profit Margin (%)2.641.681.481.536.19
NP After MI And SOA Margin (%)2.641.681.441.455.45
Return on Networth / Equity (%)1.810.008.609.7426.00
Return on Capital Employeed (%)4.220.0027.5524.1439.10
Return On Assets (%)1.540.002.342.719.17
Long Term Debt / Equity (X)0.000.000.190.150.16
Total Debt / Equity (X)0.050.001.591.431.09
Asset Turnover Ratio (%)0.000.001.321.571.33
Current Ratio (X)2.090.001.261.251.33
Quick Ratio (X)1.400.001.000.920.95
Inventory Turnover Ratio (X)0.000.003.173.061.83
Dividend Payout Ratio (NP) (%)0.000.0014.060.005.61
Dividend Payout Ratio (CP) (%)0.000.008.790.004.61
Earning Retention Ratio (%)0.000.0085.940.0094.39
Cash Earning Retention Ratio (%)0.000.0091.210.0095.39
Interest Coverage Ratio (X)3.001.491.761.953.29
Interest Coverage Ratio (Post Tax) (X)2.041.341.411.602.90
Enterprise Value (Cr.)524.570.00339.12147.5663.50
EV / Net Operating Revenue (X)2.030.001.360.580.38
EV / EBITDA (X)26.520.0021.0411.773.57
MarketCap / Net Operating Revenue (X)1.970.001.090.370.39
Retention Ratios (%)0.000.0085.930.0094.38
Price / BV (X)1.350.006.492.501.90
Price / Net Operating Revenue (X)1.970.001.090.370.39
EarningsYield0.010.000.010.030.13

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 5.91

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: 58.53% compared to the current price 3.73

Intrinsic Value: 8.16

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: 118.73% compared to the current price 3.73

Last 5 Year EPS CAGR: 37.97%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (97.17 cr) compared to borrowings (94.00 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (241.33 cr) and profit (13.92 cr) over the years.
  1. The stock has a low average ROCE of 13.67%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 255.08, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 229.00, 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 Vikas Ecotech Ltd:
    1. Net Profit Margin: 2.64%
      • 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: 4.22% (Industry Average ROCE: 9.91%)
      • 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%: 1.81% (Industry Average ROE: 11.97%)
      • 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): 2.04
      • 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: 1.40
      • 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: 99.5 (Industry average Stock P/E: 46.50)
      • 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

Vikas Ecotech Ltd. is a Public Limited Listed company incorporated on 30/11/1984 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L65999DL1984PLC019465 and registration number is 019465. Currently company belongs to the Industry of Rubber Processing/Rubber Products. Company’s Total Operating Revenue is Rs. 250.42 Cr. and Equity Capital is Rs. 93.93 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Rubber Processing/Rubber ProductsVikas Apartment, 34/1, East Punjabi Bagh, New Delhi Delhi 110026cs@vikasecotech.com
http://www.vikasecotech.com
Management
NamePosition Held
Dr. Vikas GargManaging Director
Mr. Balwant Kumar BhushanDirector & CEO
Mr. Rajeev KumarExecutive Director
Dr. Gyan Prakash GovilIndependent Director
Ms. Kratika GodikaIndependent Director
Dr. Ravi Kumar GuptaIndependent Director

FAQ

What is the latest fair value of Vikas Ecotech Ltd?

The latest fair value of Vikas Ecotech Ltd is ₹5.91.

What is the Market Cap of Vikas Ecotech Ltd?

The Market Cap of Vikas Ecotech Ltd is 658 Cr..

What is the current Stock Price of Vikas Ecotech Ltd as on 25 July 2024?

The current stock price of Vikas Ecotech Ltd as on 25 July 2024 is 3.73.

What is the High / Low of Vikas Ecotech Ltd stocks in FY 2024?

In FY 2024, the High / Low of Vikas Ecotech Ltd stocks is 5.65/2.80.

What is the Stock P/E of Vikas Ecotech Ltd?

The Stock P/E of Vikas Ecotech Ltd is 99.5.

What is the Book Value of Vikas Ecotech Ltd?

The Book Value of Vikas Ecotech Ltd is 2.71.

What is the Dividend Yield of Vikas Ecotech Ltd?

The Dividend Yield of Vikas Ecotech Ltd is 0.00 %.

What is the ROCE of Vikas Ecotech Ltd?

The ROCE of Vikas Ecotech Ltd is 4.51 %.

What is the ROE of Vikas Ecotech Ltd?

The ROE of Vikas Ecotech Ltd is 2.15 %.

What is the Face Value of Vikas Ecotech Ltd?

The Face Value of Vikas Ecotech 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 Vikas Ecotech 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