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Last Updated on: 18 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 507410 | NSE: WALCHANNAG

Walchandnagar Industries Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 15, 2024, 7:27 pm

Market Cap 1,520 Cr.
Current Price 274
High / Low439/168
Stock P/E
Book Value 56.8
Dividend Yield0.00 %
ROCE0.31 %
ROE16.6 %
Face Value 2.00
PEG Ratio0.00

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

View Share Price Target for Walchandnagar Industries Ltd

Competitors of Walchandnagar Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
HLE Glascoat Ltd 2,548 Cr. 373582/35085.3 63.20.29 %13.1 %8.62 % 2.00
Harish Textile Engineers Ltd 30.4 Cr. 91.3102/42.7 27.80.00 %10.8 %2.98 % 10.0
Disa India Ltd 2,626 Cr. 18,05720,900/12,65256.4 1,7801.11 %25.9 %19.2 % 10.0
Cranex Ltd 86.2 Cr. 144190/47.045.9 19.50.00 %10.1 %14.9 % 10.0
Concord Control Systems Ltd 1,037 Cr. 1,7342,062/53868.8 91.10.00 %72.8 %60.3 % 10.0
Industry Average12,595.17 Cr1,938.6558.75259.200.26%20.32%16.23%5.59

All Competitor Stocks of Walchandnagar Industries Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales50.8371.0081.7095.6664.8272.1972.98112.1067.1987.9255.8691.3879.17
Expenses53.3963.8275.3284.5569.3670.4570.85146.0669.4482.8263.8486.1291.99
Operating Profit-2.567.186.3811.11-4.541.742.13-33.96-2.255.10-7.985.26-12.82
OPM %-5.04%10.11%7.81%11.61%-7.00%2.41%2.92%-30.29%-3.35%5.80%-14.29%5.76%-16.19%
Other Income2.9917.116.635.964.973.2411.14108.307.353.846.744.2324.28
Interest16.6717.8217.6918.4411.9415.4114.0713.3512.2712.7813.2411.0110.58
Depreciation5.705.625.595.344.694.724.714.554.244.304.182.082.61
Profit before tax-21.940.85-10.27-6.71-16.20-15.15-5.5156.44-11.41-8.14-18.66-3.60-1.73
Tax %0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Net Profit-21.940.85-10.27-6.71-16.20-15.15-5.5156.44-11.41-8.14-18.66-3.60-1.73
EPS in Rs-5.760.22-2.70-1.76-4.26-3.98-1.2012.28-2.48-1.77-4.06-0.65-0.31

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthSep 2012Sep 2013Sep 2014Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales881727638802398398364298326299322302314
Expenses823749623741350323282263305276356301325
Operating Profit58-231661487682352023-341-10
OPM %7%-3%2%8%12%19%22%12%6%8%-11%0%-3%
Other Income84732-549251025331282139
Interest32424991707782887971555048
Depreciation18181734363327232322191513
Profit before tax17-36-19-69-54-26-2-65-57-3820-42-32
Tax %28%7%-33%5%47%0%0%0%0%0%0%0%
Net Profit12-38-12-72-80-26-2-65-57-3820-42-32
EPS in Rs3.19-10.06-3.25-18.83-20.89-6.78-0.56-17.19-15.04-10.004.26-7.55-6.79
Dividend Payout %31%-4%-12%0%0%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-11.11%67.50%92.31%-3150.00%12.31%33.33%152.63%-310.00%
Change in YoY Net Profit Growth (%)0.00%78.61%24.81%-3242.31%3162.31%21.03%119.30%-462.63%

Walchandnagar Industries Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 8 years from 2016-2017 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:-8%
5 Years:-4%
3 Years:-2%
TTM:-14%
Compounded Profit Growth
10 Years:3%
5 Years:%
3 Years:6%
TTM:47%
Stock Price CAGR
10 Years:7%
5 Years:33%
3 Years:79%
1 Year:49%
Return on Equity
10 Years:-14%
5 Years:-25%
3 Years:-28%
Last Year:-17%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthSep 2012Sep 2013Sep 2014Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital8888888888911
Reserves393699663554357331328261204169251303
Borrowings207261350405431434454405411448293241
Other Liabilities646619594432414381377372335309275321
Total Liabilities1,2541,5861,6151,3981,2091,1551,1661,046958934828876
Fixed Assets301638617560390364357346333312285272
CWIP23204112594421
Investments203125053300000
Other Assets909896969837813786801692622617541602
Total Assets1,2541,5861,6151,3981,2091,1551,1661,046958934828876

Reserves and Borrowings Chart

Cash Flow

MonthSep 2012Sep 2013Sep 2014Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-16-38-38063501465971287611
Cash from Investing Activity +-10273115-103-4939-82684
Cash from Financing Activity +15541-37-66-55-78-121-64-54-8539
Net Cash Flow-11-635-22-14-218-24-00-154

Free Cash Flow

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2012Sep 2013Sep 2014
Free Cash Flow-344.00-383.00-358.00-372.00-370.00-391.00-425.00-327.00-240.00-149.00-284.00-334.00

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

MonthSep 2012Sep 2013Sep 2014Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days182210231180330339231243235269210185
Inventory Days2292413942664103846401,030378475279380
Days Payable18724925594186214311383174234170201
Cash Conversion Cycle224201371353554508560891439509319363
Working Capital Days148142208169350325195319328373273291
ROCE %9%-4%0%3%2%6%10%4%3%2%-5%0%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters30.02%30.02%30.02%30.02%34.94%34.87%34.87%34.87%34.84%31.55%31.55%31.55%
FIIs0.10%0.42%0.35%0.14%0.22%0.22%0.19%0.03%0.33%0.28%0.35%0.31%
DIIs0.23%0.23%0.22%0.22%0.18%0.18%0.18%0.18%0.18%0.23%0.15%0.28%
Government0.03%0.03%0.03%0.03%0.03%0.03%0.03%0.03%0.03%0.02%0.02%0.02%
Public69.62%69.30%69.38%69.59%64.62%64.69%64.73%64.88%64.63%67.91%67.92%67.84%
No. of Shareholders67,04264,04660,93559,66456,41055,55055,34557,97355,72557,59359,81173,686

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
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)-9.044.26-10.00-15.04-17.20
Diluted EPS (Rs.)-9.044.26-10.00-15.04-17.20
Cash EPS (Rs.)-4.888.33-4.16-9.01-11.16
Book Value[Excl.RevalReserv]/Share (Rs.)65.2253.0746.5255.6470.72
Book Value[Incl.RevalReserv]/Share (Rs.)65.2253.0746.5255.6470.72
Revenue From Operations / Share (Rs.)54.5870.1078.6385.5878.33
PBDIT / Share (Rs.)4.02-2.6914.4011.7714.15
PBIT / Share (Rs.)1.35-6.758.565.738.11
PBT / Share (Rs.)-7.554.26-10.01-15.04-17.20
Net Profit / Share (Rs.)-7.554.26-10.01-15.04-17.20
PBDIT Margin (%)7.36-3.8318.3113.7518.06
PBIT Margin (%)2.47-9.6310.886.6910.35
PBT Margin (%)-13.836.07-12.72-17.57-21.96
Net Profit Margin (%)-13.836.07-12.72-17.57-21.96
Return on Networth / Equity (%)-11.578.02-21.50-27.03-24.32
Return on Capital Employeed (%)1.70-7.946.754.615.68
Return On Assets (%)-4.772.36-4.07-5.97-6.25
Long Term Debt / Equity (X)0.000.200.960.490.59
Total Debt / Equity (X)0.661.202.531.571.41
Asset Turnover Ratio (%)0.350.360.310.320.26
Current Ratio (X)1.271.131.161.071.16
Quick Ratio (X)0.950.830.820.750.69
Inventory Turnover Ratio (X)1.111.170.860.490.65
Interest Coverage Ratio (X)0.45-0.220.770.560.62
Interest Coverage Ratio (Post Tax) (X)0.15-0.560.460.270.35
Enterprise Value (Cr.)1251.95482.03593.11524.57434.38
EV / Net Operating Revenue (X)4.141.501.981.611.46
EV / EBITDA (X)56.19-39.0010.8211.718.07
MarketCap / Net Operating Revenue (X)3.710.750.630.730.32
Price / BV (X)3.110.991.081.130.35
Price / Net Operating Revenue (X)3.710.750.630.730.32
EarningsYield-0.030.08-0.19-0.23-0.67

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Walchandnagar Industries Ltd as of November 18, 2024 is: 144.26

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 18, 2024, Walchandnagar Industries Ltd is Overvalued by 47.35% compared to the current share price 274.00

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

Intrinsic Value of Walchandnagar Industries Ltd as of November 18, 2024 is: 225.10

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 18, 2024, Walchandnagar Industries Ltd is Overvalued by 17.85% compared to the current share price 274.00

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

Last 5 Year EPS CAGR: 56.04%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (376.08 cr) compared to borrowings (361.67 cr), indicating strong financial stability.
  1. The stock has a low average ROCE of 2.50%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 260.08, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 441.00, which may not be favorable.
  4. The company has not shown consistent growth in sales (466.85) and profit (-31.00).

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 Walchandnagar Industries Ltd:
    1. Net Profit Margin: -13.83%
      • 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: 1.7% (Industry Average ROCE: 20.32%)
      • 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%: -11.57% (Industry Average ROE: 16.23%)
      • 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): 0.15
      • 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: 0 (Industry average Stock P/E: 58.75)
      • 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: 0.66
      • 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

Walchandnagar Industries Ltd. is a Public Limited Listed company incorporated on 25/11/1908 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L74999MH1908PLC000291 and registration number is 000291. Currently company belongs to the Industry of Engineering - Heavy. Company’s Total Operating Revenue is Rs. 299.19 Cr. and Equity Capital is Rs. 7.61 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Engineering - Heavy3, Walchand Terraces, Mumbai Maharashtra 400034investors@walchand.com
http://www.walchand.com
Management
NamePosition Held
Mr. Chakor L DoshiChairman
Mr. Chirag C DoshiManaging Director & CEO
Mr. Giriraj Sharan AgrawalWhole Time Director
Mr. Jayesh DadiaDirector
Dr. Anil KakodkarDirector
Mrs. Rupal VoraDirector
Mr. Prabhat KumarDirector

FAQ

What is the latest intrinsic value of Walchandnagar Industries Ltd?

The latest intrinsic value of Walchandnagar Industries Ltd as on 18 November 2024 is ₹144.26, which is 47.35% lower than the current market price of ₹274.00.

What is the Market Cap of Walchandnagar Industries Ltd?

The Market Cap of Walchandnagar Industries Ltd is 1,520 Cr..

What is the current Stock Price of Walchandnagar Industries Ltd as on 18 November 2024?

The current stock price of Walchandnagar Industries Ltd as on 18 November 2024 is ₹274.

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

In FY 2024, the High / Low of Walchandnagar Industries Ltd stocks is 439/168.

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

The Stock P/E of Walchandnagar Industries Ltd is .

What is the Book Value of Walchandnagar Industries Ltd?

The Book Value of Walchandnagar Industries Ltd is 56.8.

What is the Dividend Yield of Walchandnagar Industries Ltd?

The Dividend Yield of Walchandnagar Industries Ltd is 0.00 %.

What is the ROCE of Walchandnagar Industries Ltd?

The ROCE of Walchandnagar Industries Ltd is 0.31 %.

What is the ROE of Walchandnagar Industries Ltd?

The ROE of Walchandnagar Industries Ltd is 16.6 %.

What is the Face Value of Walchandnagar Industries Ltd?

The Face Value of Walchandnagar 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 Walchandnagar 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