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Last Updated on: 15 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 524080 | NSE: HARLETH

Haryana Leather Chemicals Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 11, 2024, 2:05 pm

Market Cap 41.8 Cr.
Current Price 85.1
High / Low124/46.8
Stock P/E9.25
Book Value 87.2
Dividend Yield1.15 %
ROCE8.96 %
ROE7.25 %
Face Value 10.0
PEG Ratio0.42

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

View Share Price Target for Haryana Leather Chemicals Ltd

Competitors of Haryana Leather Chemicals Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
HP Adhesives Ltd 752 Cr. 81.8131/79.735.0 18.40.36 %17.7 %12.6 % 2.00
Haryana Leather Chemicals Ltd 41.8 Cr. 85.1124/46.89.25 87.21.15 %8.96 %7.25 % 10.0
Hardcastle & Waud Mfg Co Ltd 74.7 Cr. 1,0981,355/44223.7 6550.00 %7.00 %5.98 % 10.0
Grauer & Weil (India) Ltd 4,945 Cr. 109120/57.830.8 19.20.45 %26.1 %19.6 % 1.00
DMCC Speciality Chemicals Ltd 719 Cr. 289380/24554.2 85.40.35 %10.8 %5.68 % 10.0
Industry Average12,649.12 Cr913.5682.62180.240.32%13.12%10.00%6.77

All Competitor Stocks of Haryana Leather Chemicals Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales8.178.8710.5011.3411.649.8710.0910.8811.0211.4110.6313.5312.20
Expenses7.858.5910.3110.9111.209.469.5610.0710.4610.609.5510.8011.45
Operating Profit0.320.280.190.430.440.410.530.810.560.811.082.730.75
OPM %3.92%3.16%1.81%3.79%3.78%4.15%5.25%7.44%5.08%7.10%10.16%20.18%6.15%
Other Income0.340.030.420.630.300.320.260.290.24-0.180.350.490.36
Interest0.010.000.000.030.020.000.000.020.010.010.030.010.01
Depreciation0.180.200.190.200.180.180.190.230.190.180.180.320.20
Profit before tax0.470.110.420.830.540.550.600.850.600.441.222.890.90
Tax %27.66%136.36%14.29%22.89%24.07%23.64%25.00%31.76%28.33%38.64%18.03%18.34%28.89%
Net Profit0.35-0.030.370.630.410.420.450.580.430.271.012.370.65
EPS in Rs0.71-0.060.751.280.840.860.921.180.880.552.064.831.32

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
Sales39.6744.7942.3839.7339.0635.5736.8735.0327.8438.8842.4844.4247.77
Expenses36.1441.2239.0736.1735.9933.4535.2332.8426.0737.6440.2941.4042.40
Operating Profit3.533.573.313.563.072.121.642.191.771.242.193.025.37
OPM %8.90%7.97%7.81%8.96%7.86%5.96%4.45%6.25%6.36%3.19%5.16%6.80%11.24%
Other Income0.541.230.310.731.041.081.321.441.201.421.173.551.02
Interest0.290.250.260.200.080.120.110.090.040.050.050.060.06
Depreciation0.750.781.341.131.050.870.710.710.760.770.780.870.88
Profit before tax3.033.772.022.962.982.212.142.832.171.842.535.645.45
Tax %40.92%27.85%32.18%31.42%34.23%21.72%28.04%25.80%26.27%28.26%26.48%18.26%
Net Profit1.782.721.362.031.961.731.542.091.601.311.864.624.30
EPS in Rs3.635.542.774.143.993.523.144.263.262.673.799.418.76
Dividend Payout %16.55%12.64%25.27%0.00%20.04%22.71%25.51%0.00%0.00%0.00%0.00%10.63%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)52.81%-50.00%49.26%-3.45%-11.73%-10.98%35.71%-23.44%-18.12%41.98%148.39%
Change in YoY Net Profit Growth (%)0.00%-102.81%99.26%-52.71%-8.29%0.75%46.70%-59.16%5.32%60.11%106.40%

Haryana Leather 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:0%
5 Years:4%
3 Years:17%
TTM:9%
Compounded Profit Growth
10 Years:2%
5 Years:14%
3 Years:21%
TTM:119%
Stock Price CAGR
10 Years:12%
5 Years:32%
3 Years:35%
1 Year:80%
Return on Equity
10 Years:6%
5 Years:6%
3 Years:5%
Last Year:7%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 2:34 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital4.914.914.914.914.914.914.914.914.914.914.914.914.91
Reserves16.3918.7019.0621.0923.3124.5625.6327.2528.8530.1632.0836.2137.88
Borrowings0.901.541.500.230.160.050.700.060.010.000.610.280.10
Other Liabilities10.2711.0010.007.768.859.247.488.905.208.105.276.817.61
Total Liabilities32.4736.1535.4733.9937.2338.7638.7241.1238.9743.1742.8748.2150.50
Fixed Assets13.0017.0815.7014.8714.4814.5314.5214.5115.3414.8715.0114.2814.32
CWIP3.280.050.030.090.220.010.000.000.000.000.120.190.22
Investments0.000.000.000.000.000.000.000.000.000.000.000.000.00
Other Assets16.1919.0219.7419.0322.5324.2224.2026.6123.6328.3027.7433.7435.96
Total Assets32.4736.1535.4733.9937.2338.7638.7241.1238.9743.1742.8748.2150.50

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +3.812.041.144.863.761.271.263.89-6.822.46-1.937.92
Cash from Investing Activity +1.97-1.12-0.53-0.36-0.78-0.73-0.63-0.68-1.57-0.31-0.98-0.70
Cash from Financing Activity +-1.62-0.16-0.89-0.33-0.10-0.630.60-0.70-0.07-0.040.58-0.35
Net Cash Flow4.160.76-0.284.162.88-0.081.232.52-8.462.12-2.336.87

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow2.632.031.813.332.912.070.942.131.761.241.582.74

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 Days84.7488.0184.1472.6781.9597.7990.1996.17104.6294.5484.8976.83
Inventory Days55.6644.7267.3951.7551.1363.6240.3750.7037.7545.4738.0340.07
Days Payable94.5990.3686.6363.7592.44108.5772.05103.4956.1265.9938.2651.45
Cash Conversion Cycle45.8142.3764.9160.6640.6452.8458.5143.3986.2574.0184.6565.45
Working Capital Days60.2765.2775.6257.2447.9466.7070.1958.1483.9175.1081.8068.04
ROCE %15.16%14.74%9.09%12.22%11.21%8.01%7.21%9.14%6.64%5.49%7.10%8.96%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters41.57%41.57%41.57%41.57%41.58%41.58%41.58%41.58%41.58%41.58%41.28%41.28%
DIIs0.15%0.15%0.15%0.15%0.15%0.15%0.15%0.15%0.15%0.15%0.15%0.15%
Government0.06%0.06%0.06%0.06%0.06%0.06%0.06%0.06%0.06%0.06%0.06%0.06%
Public58.22%58.22%58.22%58.22%58.22%58.21%58.22%58.22%58.21%58.21%58.52%58.51%
No. of Shareholders2,7242,8382,9092,9203,0033,0533,1463,1273,3993,3793,4943,736

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE / ROE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)9.413.792.683.264.27
Diluted EPS (Rs.)9.413.792.683.264.27
Cash EPS (Rs.)11.175.374.244.815.72
Book Value[Excl.RevalReserv]/Share (Rs.)83.7675.3571.4568.7865.52
Book Value[Incl.RevalReserv]/Share (Rs.)83.7675.3571.4568.7865.52
Dividend / Share (Rs.)1.000.000.000.000.00
Revenue From Operations / Share (Rs.)94.8986.5479.2056.7271.36
PBDIT / Share (Rs.)13.386.845.406.057.40
PBIT / Share (Rs.)11.615.263.834.505.94
PBT / Share (Rs.)11.505.163.744.415.76
Net Profit / Share (Rs.)9.413.792.673.264.26
PBDIT Margin (%)14.097.906.8110.6710.37
PBIT Margin (%)12.236.074.837.938.33
PBT Margin (%)12.115.964.727.778.06
Net Profit Margin (%)9.914.383.375.745.97
Return on Networth / Equity (%)11.235.033.744.736.51
Return on Capital Employeed (%)13.396.745.186.328.76
Return On Assets (%)9.574.343.044.105.09
Total Debt / Equity (X)0.010.010.000.000.00
Asset Turnover Ratio (%)1.020.980.940.690.87
Current Ratio (X)3.963.363.945.813.22
Quick Ratio (X)3.382.673.405.352.82
Inventory Turnover Ratio (X)9.248.9610.886.977.62
Dividend Payout Ratio (NP) (%)0.000.000.000.0018.75
Dividend Payout Ratio (CP) (%)0.000.000.000.0013.98
Earning Retention Ratio (%)0.000.000.000.0081.25
Cash Earning Retention Ratio (%)0.000.000.000.0086.02
Interest Coverage Ratio (X)118.7569.1257.8467.4039.42
Interest Coverage Ratio (Post Tax) (X)84.5139.2929.6537.2723.73
Enterprise Value (Cr.)23.5916.855.921.20-2.14
EV / Net Operating Revenue (X)0.500.390.150.04-0.06
EV / EBITDA (X)3.595.022.230.40-0.58
MarketCap / Net Operating Revenue (X)0.680.420.460.510.27
Retention Ratios (%)0.000.000.000.0081.24
Price / BV (X)0.780.490.510.420.30
Price / Net Operating Revenue (X)0.680.420.460.510.27
EarningsYield0.140.100.070.110.21

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Haryana Leather Chemicals Ltd as of November 15, 2024 is: 59.15

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 15, 2024, Haryana Leather Chemicals Ltd is Overvalued by 30.49% compared to the current share price 85.10

Intrinsic Value of Haryana Leather Chemicals Ltd as of November 15, 2024 is: 72.08

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 15, 2024, Haryana Leather Chemicals Ltd is Overvalued by 15.30% compared to the current share price 85.10

Last 5 Year EPS CAGR: 21.86%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (26.24 cr) compared to borrowings (0.47 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (39.58 cr) and profit (3.04 cr) over the years.
  1. The stock has a low average ROCE of 9.58%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 67.52, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 59.96, 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 Haryana Leather Chemicals Ltd:
    1. Net Profit Margin: 9.91%
      • 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: 13.39% (Industry Average ROCE: 13.12%)
      • 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%: 11.23% (Industry Average ROE: 10%)
      • 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): 84.51
      • 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: 3.38
      • 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: 9.25 (Industry average Stock P/E: 82.62)
      • 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: 0.01
      • 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

Haryana Leather Chemicals Ltd. is a Public Limited Listed company incorporated on 22/01/1985 and has its registered office in the State of Haryana, India. Company’s Corporate Identification Number(CIN) is L74999HR1985PLC019905 and registration number is 019905. Currently Company is involved in the business activities of Wholesale of solid, liquid and gaseous fuels and related products. Company’s Total Operating Revenue is Rs. 38.88 Cr. and Equity Capital is Rs. 4.91 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Chemicals - Speciality - Others72-77, HSIIDC Industrial Estate, Hansi Road, Jind Haryana 126102info@leatherchem.com
http://www.leatherchem.com
Management
NamePosition Held
Mr. Narendra Kumar JainChairman
Mr. Pankaj JainVice Chairman & Mng.Director
Mr. Vijay Kumar GargDirector
Dr. K S V MenonDirector
Dott. Massimo MediniDirector
Mr. Pradeep BehlDirector
Mr. Sippy JainDirector
Mr. Marco MediniDirector
Mr. Kanishk GuptaDirector

FAQ

What is the latest intrinsic value of Haryana Leather Chemicals Ltd?

The latest intrinsic value of Haryana Leather Chemicals Ltd as on 15 November 2024 is ₹59.15, which is 30.49% lower than the current market price of ₹85.10.

What is the Market Cap of Haryana Leather Chemicals Ltd?

The Market Cap of Haryana Leather Chemicals Ltd is 41.8 Cr..

What is the current Stock Price of Haryana Leather Chemicals Ltd as on 15 November 2024?

The current stock price of Haryana Leather Chemicals Ltd as on 15 November 2024 is ₹85.1.

What is the High / Low of Haryana Leather Chemicals Ltd stocks in FY 2024?

In FY 2024, the High / Low of Haryana Leather Chemicals Ltd stocks is 124/46.8.

What is the Stock P/E of Haryana Leather Chemicals Ltd?

The Stock P/E of Haryana Leather Chemicals Ltd is 9.25.

What is the Book Value of Haryana Leather Chemicals Ltd?

The Book Value of Haryana Leather Chemicals Ltd is 87.2.

What is the Dividend Yield of Haryana Leather Chemicals Ltd?

The Dividend Yield of Haryana Leather Chemicals Ltd is 1.15 %.

What is the ROCE of Haryana Leather Chemicals Ltd?

The ROCE of Haryana Leather Chemicals Ltd is 8.96 %.

What is the ROE of Haryana Leather Chemicals Ltd?

The ROE of Haryana Leather Chemicals Ltd is 7.25 %.

What is the Face Value of Haryana Leather Chemicals Ltd?

The Face Value of Haryana Leather 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 Haryana Leather 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