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Last Updated on: 05 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo
Stock Ticker - BSE: 534742 | NSE: ZUARI

Zuari Agro Chemicals Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: December 4, 2024, 9:09 pm

Market Cap 1,084 Cr.
Current Price 258
High / Low268/151
Stock P/E6.06
Book Value 422
Dividend Yield0.00 %
ROCE8.50 %
ROE3.44 %
Face Value 10.0
PEG Ratio0.05

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

View Share Price Target for Zuari Agro Chemicals Ltd

Competitors of Zuari Agro Chemicals Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Gujarat State Fertilizers & Chemicals Ltd 8,902 Cr. 223322/18816.9 3371.79 %5.77 %4.55 % 2.00
Bharat Agri Fert & Realty Ltd 370 Cr. 70.0132/68.7 9.970.07 %6.14 %14.8 % 1.00
Basant Agro Tech (India) Ltd 175 Cr. 19.328.9/17.521.1 19.50.26 %5.65 %1.30 % 1.00
Zuari Agro Chemicals Ltd 1,084 Cr. 258268/1516.06 4220.00 %8.50 %3.44 % 10.0
Southern Petrochemicals Industries Corporation Ltd (SPIC) 1,584 Cr. 77.7108/64.410.2 56.41.93 %17.8 %14.4 % 10.0
Industry Average10,745.67 Cr373.4452.62166.020.61%21.98%10.61%7.35

All Competitor Stocks of Zuari Agro Chemicals Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales8129359508931,2965021,4161,3391,2051,6498438981,097
Expenses7558558768711,2105221,2821,2081,1161,510768879978
Operating Profit5780742286-20134131901397519118
OPM %7%9%8%2%7%-4%9%10%7%8%9%2%11%
Other Income2610644481,1681963-62915454313112
Interest43444045455156545755495148
Depreciation17161816181722212323242525
Profit before tax241266081,191-70119-57325106457456
Tax %56%13%27%14%23%-27%13%-25%106%37%37%-4%48%
Net Profit10109447913-51104-427-267297729
EPS in Rs-0.1922.817.051.35214.51-8.6516.46-108.99-5.778.443.1917.872.18

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: September 23, 2024, 3:13 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales7,8657,3027,6137,6116,3777,2658,1033,0422,4043,5904,5534,5954,487
Expenses7,5247,0927,3137,3345,9056,7227,7833,3822,3693,3514,2154,2334,136
Operating Profit342210300277472542320-34035239338362351
OPM %4%3%4%4%7%7%4%-11%1%7%7%8%8%
Other Income95138715023113-11124146220616195231
Interest303380318419440404488278200173207211203
Depreciation38343066778387686867799597
Profit before tax95-6623-157-22169-266-562-88218668251281
Tax %22%-14%29%-22%-40%14%3%37%44%22%19%32%
Net Profit74-5714-123-13146-273-773-126171539171202
EPS in Rs15.29-10.522.13-27.40-5.2227.91-68.57-190.74-37.3531.01113.3323.7431.68
Dividend Payout %20%-29%94%-7%-19%0%0%0%0%0%1%6%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-177.03%124.56%-978.57%89.43%1223.08%-286.99%-183.15%83.70%235.71%215.20%-68.27%
Change in YoY Net Profit Growth (%)0.00%301.59%-1103.13%1068.00%1133.65%-1510.06%103.84%266.85%152.01%-20.51%-283.48%

Zuari Agro Chemicals 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:-5%
5 Years:-11%
3 Years:24%
TTM:-29%
Compounded Profit Growth
10 Years:10%
5 Years:18%
3 Years:35%
TTM:-51%
Stock Price CAGR
10 Years:-1%
5 Years:23%
3 Years:34%
1 Year:41%
Return on Equity
10 Years:-7%
5 Years:-15%
3 Years:11%
Last Year:3%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 6:32 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital42424242424242424242424242
Reserves1,0279759651,3051,3251,4231,1102991543251,5391,6521,734
Borrowings4,4263,7473,4345,0474,2994,5065,2353,3681,8512,6432,1081,7831,565
Other Liabilities1,0011,2841,6781,6171,9142,2792,8862,8453,2973,2011,3611,3341,454
Total Liabilities6,4966,0486,1188,0117,5808,2509,2736,5545,3446,2115,0504,8114,795
Fixed Assets3744504881,8291,7931,7981,8351,8621,4311,4241,9401,9571,931
CWIP13428242410214314715416878320192316
Investments12062097748789118158559521,1261,2421,2701,336
Other Assets5,9875,1114,9985,3064,7675,3956,4693,6682,8833,3411,8481,5611,512
Total Assets6,4966,0486,1188,0117,5808,2509,2736,5545,3446,2115,0504,8114,795

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +919839-8691,097293-3552,6351,52157195473
Cash from Investing Activity +-149-286-489-40-63-103-16-171-1374263
Cash from Financing Activity +-952-5471,363-1,003-148360-2,404-1,188-296-697-527
Net Cash Flow-182655482-98215162138-176-51

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow338.00207.00297.00272.00468.00538.00315.00-343.0034.00237.00336.00361.00

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 Days20118815919719817017626669646348
Inventory Days5555614556741079452784738
Days Payable324570548610211833996915741
Cash Conversion Cycle2241981491881681421642225525345
Working Capital Days22319415317715814815222-113-144937
ROCE %8%5%7%5%8%10%5%-5%3%13%10%8%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters65.04%65.04%65.04%65.28%65.28%65.28%65.28%65.28%65.28%65.28%65.28%65.28%
FIIs0.95%1.05%1.01%0.84%1.43%1.10%1.13%1.09%1.02%1.58%1.27%1.08%
DIIs2.11%1.77%1.42%1.43%1.08%1.00%1.00%1.00%1.00%1.00%1.00%0.09%
Government0.23%0.28%0.28%0.28%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Public31.66%31.86%32.24%32.17%32.22%32.62%32.58%32.62%32.70%32.13%32.46%33.55%
No. of Shareholders29,59628,69828,10230,01732,22530,90830,99631,69732,12733,84537,65539,757

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HSBC Value Fund381,8180.089.35381,8182024-11-280%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)23.74113.3331.01-37.35-190.73
Diluted EPS (Rs.)23.74113.3331.01-37.35-190.73
Cash EPS (Rs.)57.71123.5518.55-34.48-187.11
Book Value[Excl.RevalReserv]/Share (Rs.)544.43502.71200.78151.88179.61
Book Value[Incl.RevalReserv]/Share (Rs.)544.43502.71200.78151.88179.61
Revenue From Operations / Share (Rs.)1092.651082.46853.53571.53723.30
PBDIT / Share (Rs.)126.87101.2869.8363.7741.30
PBIT / Share (Rs.)104.3382.6253.7847.6125.18
PBT / Share (Rs.)54.10139.2012.73-0.04-40.95
Net Profit / Share (Rs.)35.17104.882.51-50.64-203.22
NP After MI And SOA / Share (Rs.)23.74113.3331.01-37.35-190.74
PBDIT Margin (%)11.619.358.1811.155.71
PBIT Margin (%)9.547.636.308.333.48
PBT Margin (%)4.9512.851.490.00-5.66
Net Profit Margin (%)3.219.680.29-8.86-28.09
NP After MI And SOA Margin (%)2.1710.463.63-6.53-26.37
Return on Networth / Equity (%)5.8930.1435.53-80.07-235.12
Return on Capital Employeed (%)14.8812.2115.2115.647.84
Return On Assets (%)2.079.432.08-2.92-12.22
Long Term Debt / Equity (X)0.250.351.383.031.66
Total Debt / Equity (X)0.981.277.007.388.31
Asset Turnover Ratio (%)0.930.800.010.000.01
Current Ratio (X)0.790.810.680.650.66
Quick Ratio (X)0.620.630.580.600.55
Inventory Turnover Ratio (X)5.604.850.240.000.02
Interest Coverage Ratio (X)2.532.071.701.340.62
Interest Coverage Ratio (Post Tax) (X)1.701.061.040.80-0.37
Enterprise Value (Cr.)2593.672628.932905.771663.703185.28
EV / Net Operating Revenue (X)0.560.570.800.691.05
EV / EBITDA (X)4.866.179.896.2018.34
MarketCap / Net Operating Revenue (X)0.150.110.150.150.08
Price / BV (X)0.420.321.531.950.76
Price / Net Operating Revenue (X)0.150.110.150.150.08
EarningsYield0.140.930.23-0.41-3.07

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Zuari Agro Chemicals Ltd as of December 5, 2024 is: 89.73

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 December 5, 2024, Zuari Agro Chemicals Ltd is Overvalued by 65.22% compared to the current share price 258.00

Intrinsic Value of Zuari Agro Chemicals Ltd as of December 5, 2024 is: 209.89

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 December 5, 2024, Zuari Agro Chemicals Ltd is Overvalued by 18.65% compared to the current share price 258.00

Last 5 Year EPS CAGR: 133.91%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has shown consistent growth in sales (5.31 cr) and profit (41.85 cr) over the years.
  1. The stock has a low average ROCE of 6.42%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 98.83, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 119.17, which may not be favorable.
  4. The company has higher borrowings (3,385.54) compared to reserves (1,064.08), which may suggest financial risk.

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 Zuari Agro Chemicals Ltd:
    1. Net Profit Margin: 3.21%
      • 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: 14.88% (Industry Average ROCE: 21.98%)
      • 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%: 5.89% (Industry Average ROE: 9.69%)
      • 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): 1.7
      • 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: 0.62
      • 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: 6.06 (Industry average Stock P/E: 45.75)
      • 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: 0.98
      • 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

Zuari Agro Chemicals Ltd. is a Public Limited Listed company incorporated on 10/09/2009 and has its registered office in the State of Goa, India. Company’s Corporate Identification Number(CIN) is L65910GA2009PLC006177 and registration number is 006177. Currently company belongs to the Industry of Fertilisers. Company’s Total Operating Revenue is Rs. 83.01 Cr. and Equity Capital is Rs. 42.06 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
FertilisersJai Kisaan Bhawan, Zuarinagar, Goa Goa 403726shares@adventz.com
http://www.zuari.in
Management
NamePosition Held
Mr. Saroj Kumar PoddarChairman & Non-Exe.Director
Mr. Nitin M KantakExecutive Director
Mr. Athar ShahabNon Executive Director
Mr. Akshay PoddarNon Executive Director
Mr. Dipankar ChatterjiIndependent Director
Mr. AmandeepIndependent Director
Ms. Reena SuraiyaIndependent Director
Mr. Sanjeev LallIndependent Director

FAQ

What is the latest intrinsic value of Zuari Agro Chemicals Ltd?

The latest intrinsic value of Zuari Agro Chemicals Ltd as on 05 December 2024 is ₹89.73, which is 65.22% lower than the current market price of ₹258.00. The stock has a market capitalization of 1,084 Cr. and recorded a high/low of ₹268/151 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹1,734 Cr and total liabilities of ₹4,795 Cr.

What is the Market Cap of Zuari Agro Chemicals Ltd?

The Market Cap of Zuari Agro Chemicals Ltd is 1,084 Cr..

What is the current Stock Price of Zuari Agro Chemicals Ltd as on 05 December 2024?

The current stock price of Zuari Agro Chemicals Ltd as on 05 December 2024 is 258.

What is the High / Low of Zuari Agro Chemicals Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Zuari Agro Chemicals Ltd stocks is 268/151.

What is the Stock P/E of Zuari Agro Chemicals Ltd?

The Stock P/E of Zuari Agro Chemicals Ltd is 6.06.

What is the Book Value of Zuari Agro Chemicals Ltd?

The Book Value of Zuari Agro Chemicals Ltd is 422.

What is the Dividend Yield of Zuari Agro Chemicals Ltd?

The Dividend Yield of Zuari Agro Chemicals Ltd is 0.00 %.

What is the ROCE of Zuari Agro Chemicals Ltd?

The ROCE of Zuari Agro Chemicals Ltd is 8.50 %.

What is the ROE of Zuari Agro Chemicals Ltd?

The ROE of Zuari Agro Chemicals Ltd is 3.44 %.

What is the Face Value of Zuari Agro Chemicals Ltd?

The Face Value of Zuari Agro Chemicals 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 Zuari Agro Chemicals 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