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Last Updated on: 23 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 507880 | NSE: VIPIND

VIP Industries Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 22, 2024, 9:19 pm

Market Cap 7,131 Cr.
Current Price 501
High / Low668/428
Stock P/E
Book Value 45.6
Dividend Yield0.40 %
ROCE8.48 %
ROE5.25 %
Face Value 2.00
PEG Ratio0.00

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

View Share Price Target for VIP Industries Ltd

Competitors of VIP Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Hindustan Tin Works Ltd 189 Cr. 181249/13213.4 2010.66 %11.1 %8.65 % 10.0
HCP Plastene Bulkpack Ltd 174 Cr. 163294/14746.0 49.40.00 %5.83 %0.30 % 10.0
Gujarat Containers Ltd 91.7 Cr. 162200/14210.7 83.60.92 %22.7 %22.9 % 10.0
Goblin India Ltd 47.0 Cr. 34.082.4/29.212.1 31.80.00 %8.18 %6.90 % 10.0
G K P Printing & Packaging Ltd 18.2 Cr. 8.2716.6/7.53 9.980.00 %5.50 %7.89 % 10.0
Industry Average2,789.50 Cr428.7435.51182.540.26%12.94%38.23%7.42

All Competitor Stocks of VIP Industries Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales206.21330.06397.34355.90590.61514.74526.40450.57636.13546.09546.42516.32638.89
Expenses193.29288.27340.19323.32488.00443.16453.44386.29555.53493.21494.17508.49589.58
Operating Profit12.9241.7957.1532.58102.6171.5872.9664.2880.6052.8852.257.8349.31
OPM %6.27%12.66%14.38%9.15%17.37%13.91%13.86%14.27%12.67%9.68%9.56%1.52%7.72%
Other Income14.346.759.405.8322.055.282.58-42.6728.422.572.663.882.06
Interest7.356.505.425.376.546.926.618.4110.7712.3615.1616.7318.47
Depreciation18.0617.4817.4217.0018.0217.9718.0519.6220.8823.8226.5628.2329.19
Profit before tax1.8524.5643.7116.04100.1051.9750.88-6.4277.3719.2713.19-33.253.71
Tax %-36.76%24.51%23.43%22.76%30.97%16.49%13.33%-33.64%25.36%31.08%45.79%-28.18%-8.89%
Net Profit2.5318.5433.4712.3969.1043.4044.10-4.2657.7513.287.15-23.884.04
EPS in Rs0.181.312.370.884.883.073.11-0.304.080.940.50-1.680.28

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales8019421,0171,1921,2521,4101,7851,7146191,2902,0822,2452,248
Expenses7308609381,0821,1171,2141,5581,4186831,1431,7652,0472,085
Operating Profit718279110134196227296-64147317198162
OPM %9%9%8%9%11%14%13%17%-10%11%15%9%7%
Other Income11873798-364836-163711
Interest7433324253126315963
Depreciation201718141413178778707499108
Profit before tax45806595126190215148-12586197773
Tax %31%28%29%30%32%33%32%25%-22%22%22%29%
Net Profit3258476685127145112-9767152541
EPS in Rs2.234.083.304.706.038.9710.287.91-6.904.7310.753.830.04
Dividend Payout %45%42%45%43%40%33%31%40%0%53%42%52%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)81.25%-18.97%40.43%28.79%49.41%14.17%-22.76%-186.61%169.07%126.87%-64.47%
Change in YoY Net Profit Growth (%)0.00%-100.22%59.39%-11.64%20.62%-35.24%-36.93%-163.85%355.68%-42.21%-191.34%

VIP 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:9%
5 Years:5%
3 Years:54%
TTM:4%
Compounded Profit Growth
10 Years:-3%
5 Years:-25%
3 Years:32%
TTM:-136%
Stock Price CAGR
10 Years:17%
5 Years:3%
3 Years:-5%
1 Year:-18%
Return on Equity
10 Years:16%
5 Years:11%
3 Years:15%
Last Year:5%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 6:35 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital28282828282828282828282828
Reserves229259277311380461553582489531613650620
Borrowings401631140086269353298352871832
Other Liabilities112146163231201284404364223371421517485
Total Liabilities4094494995856097731,0711,2431,0941,2291,4152,0671,966
Fixed Assets788571676177117371288265309532516
CWIP4111136327151416
Investments00006872141141422337
Other Assets3283634275174796219488296629151,0671,5181,427
Total Assets4094494995856097731,0711,2431,0941,2291,4152,0671,966

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +7450145312685-5629285-24175-132
Cash from Investing Activity +-15-2-3-8-73-2916-85-145146-84-76
Cash from Financing Activity +-63-49-14-45-51-4431-21174-126-75218
Net Cash Flow-4-1-30213-9-414-31610

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow31.0066.0048.0096.00134.00196.00141.0027.00-417.00-151.00-35.00-673.00

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 Days473740463546615788624553
Inventory Days119120145158153168219208311305217325
Days Payable5968768978113132135159166112145
Cash Conversion Cycle10889109115109101148130240201150234
Working Capital Days8170827973761039117613796144
ROCE %17%23%20%28%34%43%38%29%-12%13%28%8%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters50.28%50.27%50.39%50.79%51.33%51.32%51.31%51.30%51.23%51.77%51.76%51.75%
FIIs4.39%5.84%8.63%8.84%8.95%9.33%9.03%8.95%7.76%7.49%8.07%7.32%
DIIs23.16%23.60%21.36%20.80%20.59%19.88%20.89%20.82%14.70%12.84%12.68%13.76%
Public22.17%20.29%19.62%19.57%19.14%19.47%18.77%18.94%26.32%27.91%27.50%27.18%
No. of Shareholders1,18,0921,10,7961,08,0191,10,9711,08,9851,14,4181,10,8161,11,0201,15,2461,28,7291,40,8751,42,146

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Kotak Small Cap Fund - Regular Plan2,530,3931.07151.23277,2342024-11-22812.73%
Canara Robeco Small Cap Fund1,432,5290.877.16277,2342024-11-22416.72%
HDFC Capital Builder Value Fund - Regular Plan906,6110.8354.18277,2342024-11-22227.02%
Kotak Business Cycle Fund277,2340.6716.57277,2342024-11-220%
Mahindra Manulife Flexi Cap Fund256,0001.1413.79277,2342024-11-22-7.66%
Canara Robeco Consumer Trends Fund230,0000.9212.39277,2342024-11-22-17.04%
Mahindra Manulife ELSS Tax Saver Fund155,0001.078.35277,2342024-11-22-44.09%
HSBC Small Cap Equity Fund - OLD100,0002.497.47277,2342024-11-22-63.93%
Canara Robeco Value Fund130,0000.647277,2342024-11-22-53.11%
Aditya Birla Sun Life Bal Bhavishya Yojna - Savings Plan100,0000.766277,2342024-11-22-63.93%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)3.8410.764.73-6.907.91
Diluted EPS (Rs.)3.8210.724.73-6.907.91
Cash EPS (Rs.)10.8315.959.68-1.3813.84
Book Value[Excl.RevalReserv]/Share (Rs.)47.7645.3039.5736.6043.18
Book Value[Incl.RevalReserv]/Share (Rs.)47.7645.3039.5736.6043.18
Revenue From Operations / Share (Rs.)158.15147.0091.1643.78121.61
PBDIT / Share (Rs.)14.4623.3612.78-1.2021.50
PBIT / Share (Rs.)7.4518.167.83-6.7115.56
PBT / Share (Rs.)5.3913.876.09-8.8210.50
Net Profit / Share (Rs.)3.8310.754.73-6.907.91
NP After MI And SOA / Share (Rs.)3.8310.754.73-6.907.91
PBDIT Margin (%)9.1415.8814.01-2.7317.67
PBIT Margin (%)4.7112.358.59-15.3312.79
PBT Margin (%)3.419.436.68-20.148.63
Net Profit Margin (%)2.417.315.19-15.766.50
NP After MI And SOA Margin (%)2.417.315.19-15.766.50
Return on Networth / Equity (%)8.0023.7411.95-18.8518.31
Return on Capital Employeed (%)10.8332.5915.53-13.6827.27
Return On Assets (%)2.6210.765.44-8.908.97
Total Debt / Equity (X)0.780.280.210.290.05
Asset Turnover Ratio (%)1.291.571.110.541.54
Current Ratio (X)1.311.621.741.841.89
Quick Ratio (X)0.470.670.731.090.86
Inventory Turnover Ratio (X)1.111.371.380.290.48
Dividend Payout Ratio (NP) (%)52.2641.8252.840.0065.79
Dividend Payout Ratio (CP) (%)18.4528.1925.830.0037.58
Earning Retention Ratio (%)47.7458.1847.160.0034.21
Cash Earning Retention Ratio (%)81.5571.8174.170.0062.42
Interest Coverage Ratio (X)3.7311.627.34-0.5613.21
Interest Coverage Ratio (Post Tax) (X)1.527.483.72-2.287.97
Enterprise Value (Cr.)7950.888261.7610630.805068.053413.34
EV / Net Operating Revenue (X)3.543.978.248.191.99
EV / EBITDA (X)38.7324.9758.81-299.5311.24
MarketCap / Net Operating Revenue (X)3.323.908.168.091.97
Retention Ratios (%)47.7358.1747.150.0034.20
Price / BV (X)11.0112.6518.819.685.56
Price / Net Operating Revenue (X)3.323.908.168.091.97
EarningsYield0.010.010.01-0.010.03

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of VIP Industries Ltd as of November 23, 2024 is: 36.05

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 23, 2024, VIP Industries Ltd is Overvalued by 92.80% compared to the current share price 501.00

Default values used*: Default value of 15 for Stock P/E is used

Intrinsic Value of VIP Industries Ltd as of November 23, 2024 is: 54.56

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 23, 2024, VIP Industries Ltd is Overvalued by 89.11% compared to the current share price 501.00

Default values used*: Default value of 15 for Stock P/E is used

Last 5 Year EPS CAGR: 51.34%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 22.42%, which is a positive sign.
  2. The company has higher reserves (458.08 cr) compared to borrowings (243.23 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (182.69 cr) and profit (92.46 cr) over the years.
  1. The stock has a high average Working Capital Days of 100.67, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 144.50, 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 VIP Industries Ltd:
    1. Net Profit Margin: 2.41%
      • 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: 10.83% (Industry Average ROCE: 12.6%)
      • 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%: 8% (Industry Average ROE: 34.21%)
      • 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): 1.52
      • 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: 0.47
      • 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: 0 (Industry average Stock P/E: 25.23)
      • 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: 0.78
      • 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

VIP Industries Ltd. is a Public Limited Listed company incorporated on 27/01/1968 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L25200MH1968PLC013914 and registration number is 013914. Currently Company is involved in the business activities of Manufacture of travel goods like suitcase, bags, holdalls etc.. Company’s Total Operating Revenue is Rs. 1257.19 Cr. and Equity Capital is Rs. 28.29 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Packaging & ContainersDGP House, 5th Floor, Mumbai Maharashtra 400025investor-help@vipbags.com
http://www.vipindustries.co.in
Management
NamePosition Held
Mr. Dilip G PiramalChairman
Ms. Radhika PiramalExecutive Vice Chairperson
Ms. Neetu KashiramkaManaging Director
Mr. Ashish SahaExecutive Director
Mr. Tushar JaniIndependent Director
Mr. Amit JatiaIndependent Director
Mr. Ramesh DamaniIndependent Director
Ms. Nisaba GodrejIndependent Director
Dr. Suresh SuranaIndependent Director

FAQ

What is the latest intrinsic value of VIP Industries Ltd?

The latest intrinsic value of VIP Industries Ltd as on 23 November 2024 is ₹36.05, which is 92.80% lower than the current market price of ₹501.00.

What is the Market Cap of VIP Industries Ltd?

The Market Cap of VIP Industries Ltd is 7,131 Cr..

What is the current Stock Price of VIP Industries Ltd as on 23 November 2024?

The current stock price of VIP Industries Ltd as on 23 November 2024 is 501.

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

In FY 2024, the High / Low of VIP Industries Ltd stocks is 668/428.

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

The Stock P/E of VIP Industries Ltd is .

What is the Book Value of VIP Industries Ltd?

The Book Value of VIP Industries Ltd is 45.6.

What is the Dividend Yield of VIP Industries Ltd?

The Dividend Yield of VIP Industries Ltd is 0.40 %.

What is the ROCE of VIP Industries Ltd?

The ROCE of VIP Industries Ltd is 8.48 %.

What is the ROE of VIP Industries Ltd?

The ROE of VIP Industries Ltd is 5.25 %.

What is the Face Value of VIP Industries Ltd?

The Face Value of VIP Industries Ltd is 2.00.

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 VIP 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