IP Rings Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 23, 2024, 9:06 pm

Market Cap	250 Cr.
Current Price	197
High / Low	262/142
Stock P/E
Book Value	82.8
Dividend Yield	0.00 %
ROCE	4.05 %
ROE	2.95 %
Face Value	10.0
PEG Ratio	0.00

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

Stock P/E Current Price Intrinsic Value

View Share Price Target for IP Rings Ltd

Competitors of IP Rings Ltd

Stock Name	Market Cap	Current Price	High / Low	Stock P/E	Book Value	Dividend Yield	ROCE	ROE	Face Value
IP Rings Ltd	250 Cr.	197	262/142		82.8	0.00 %	4.05 %	2.95 %	10.0
Talbros Automotive Components Ltd	1,941 Cr.	314	396/220	22.4	96.4	0.22 %	21.4 %	17.2 %	2.00
Sundram Fasteners Ltd	22,221 Cr.	1,058	1,506/1,002	40.6	173	0.65 %	18.5 %	16.2 %	1.00
Sintercom India Ltd	443 Cr.	161	186/121	414	36.7	0.00 %	4.82 %	1.15 %	10.0
Shriram Pistons & Rings Ltd	9,002 Cr.	2,044	2,399/1,296	19.4	487	0.49 %	27.9 %	25.2 %	10.0
Industry Average	12,324.92 Cr	3,388.87		59.21	506.76	0.67%	16.26%	14.26%	7.25

All Competitor Stocks of IP Rings Ltd

Quarterly Result

Month	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024
Sales	71.95	71.84	79.10	85.35	82.54	76.32	76.24	77.74	73.92	88.82	82.09
Expenses	65.58	62.87	70.68	78.81	76.89	71.22	72.23	72.56	68.92	80.59	75.21
Operating Profit	6.37	8.97	8.42	6.54	5.65	5.10	4.01	5.18	5.00	8.23	6.88
OPM %	8.85%	12.49%	10.64%	7.66%	6.85%	6.68%	5.26%	6.66%	6.76%	9.27%	8.38%
Other Income	0.53	1.49	0.94	0.90	1.28	0.32	1.36	0.29	0.76	0.23	0.22
Interest	2.74	2.46	2.42	2.57	2.81	3.08	3.06	2.77	2.85	2.80	2.75
Depreciation	3.61	3.71	3.79	3.93	4.00	4.23	4.16	4.32	4.24	4.15	4.08
Profit before tax	0.55	4.29	3.15	0.94	0.12	-1.89	-1.85	-1.62	-1.33	1.51	0.27
Tax %	36.36%	18.18%	31.11%	14.89%	83.33%	-29.63%	-37.84%	28.40%	-32.33%	39.74%	51.85%
Net Profit	0.35	3.52	2.17	0.80	0.02	-1.33	-1.15	-2.08	-0.90	0.91	0.13
EPS in Rs	0.28	2.78	1.71	0.63	0.02	-1.05	-0.91	-1.64	-0.71	0.72	0.10

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: November 22, 2024, 2:20 pm

Month	Mar 2022	Mar 2023	Mar 2024	TTM
Sales	273	323	317	324
Expenses	240	297	294	298
Operating Profit	33	26	23	26
OPM %	12%	8%	7%	8%
Other Income	2	3	3	2
Interest	10	11	11	11
Depreciation	14	16	17	17
Profit before tax	11	2	-3	-1
Tax %	26%	28%	-2%
Net Profit	8	2	-3	-1
EPS in Rs	6.47	1.32	-2.55	-0.66
Dividend Payout %	31%	76%	0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year	2022-2023	2023-2024
YoY Net Profit Growth (%)	-75.00%	-250.00%
Change in YoY Net Profit Growth (%)	0.00%	-175.00%

IP Rings Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 2 years from 2022-2023 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:	%
5 Years:	%
3 Years:	%
TTM:	4%

Compounded Profit Growth
10 Years:	%
5 Years:	%
3 Years:	%
TTM:	82%

Stock Price CAGR
10 Years:	11%
5 Years:	23%
3 Years:	15%
1 Year:	17%

Return on Equity
10 Years:	%
5 Years:	%
3 Years:	%
Last Year:	-3%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 2:31 pm

Month	Mar 2022	Mar 2023	Mar 2024	Sep 2024
Equity Capital	13	13	13	13
Reserves	99	98	93	92
Borrowings	113	101	87	87
Other Liabilities	75	104	114	105
Total Liabilities	301	316	307	297
Fixed Assets	154	154	146	147
CWIP	5	2	2	1
Investments	0	1	1	4
Other Assets	142	159	158	144
Total Assets	301	316	307	297

Reserves and Borrowings Chart

Cash Flow

Month	Mar 2022	Mar 2023	Mar 2024
Cash from Operating Activity +	23	42	35
Cash from Investing Activity +	-27	-13	-7
Cash from Financing Activity +	1	-27	-27
Net Cash Flow	-3	2	1

Free Cash Flow

Month	Mar 2022	Mar 2023	Mar 2024
Free Cash Flow	-80.00	-75.00	-64.00

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

Month	Mar 2022	Mar 2023	Mar 2024
Debtor Days	90	85	89
Inventory Days	236	194	195
Days Payable	282	293	324
Cash Conversion Cycle	44	-14	-40
Working Capital Days	81	55	41
ROCE %		6%	4%

Financial Efficiency Indicators Chart

Share Holding Pattern

Month	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024	Sep 2024
Promoters	56.58%	56.58%	56.58%	56.58%	56.58%	56.58%	56.58%	56.58%	56.58%	56.58%	56.58%	56.58%
Public	43.42%	43.42%	43.42%	43.41%	43.42%	43.42%	43.42%	43.43%	43.43%	43.44%	43.43%	43.43%
No. of Shareholders	6,586	6,558	6,537	6,505	6,446	6,457	6,476	6,348	6,611	6,622	6,608	6,353

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE / ROE Trend

EPS Trend

Key Financial Ratios

Month	Mar 24	Mar 23	Mar 22
FaceValue	10.00	10.00	10.00
Basic EPS (Rs.)	-2.55	1.32	6.47
Diluted EPS (Rs.)	-2.55	1.32	6.47
Cash EPS (Rs.)	11.15	13.95	17.79
Book Value[Excl.RevalReserv]/Share (Rs.)	83.63	87.49	88.23
Book Value[Incl.RevalReserv]/Share (Rs.)	83.63	87.49	88.23
Revenue From Operations / Share (Rs.)	249.86	255.05	215.14
PBDIT / Share (Rs.)	20.16	23.04	27.94
PBIT / Share (Rs.)	6.85	10.46	16.62
PBT / Share (Rs.)	-2.20	1.88	8.72
Net Profit / Share (Rs.)	-2.15	1.37	6.48
NP After MI And SOA / Share (Rs.)	-2.55	1.31	6.46
PBDIT Margin (%)	8.06	9.03	12.98
PBIT Margin (%)	2.74	4.10	7.72
PBT Margin (%)	-0.88	0.73	4.05
Net Profit Margin (%)	-0.86	0.53	3.01
NP After MI And SOA Margin (%)	-1.01	0.51	3.00
Return on Networth / Equity (%)	-3.04	1.50	7.32
Return on Capital Employeed (%)	5.92	8.26	12.34
Return On Assets (%)	-1.05	0.52	2.72
Long Term Debt / Equity (X)	0.31	0.37	0.45
Total Debt / Equity (X)	0.78	0.86	0.96
Asset Turnover Ratio (%)	1.02	1.05	0.00
Current Ratio (X)	0.94	0.99	1.05
Quick Ratio (X)	0.57	0.60	0.63
Inventory Turnover Ratio (X)	1.87	2.10	0.00
Dividend Payout Ratio (NP) (%)	-39.25	152.00	23.19
Dividend Payout Ratio (CP) (%)	9.29	14.39	8.43
Earning Retention Ratio (%)	139.25	-52.00	76.81
Cash Earning Retention Ratio (%)	90.71	85.61	91.57
Interest Coverage Ratio (X)	2.23	2.69	3.53
Interest Coverage Ratio (Post Tax) (X)	0.76	1.16	1.82
Enterprise Value (Cr.)	265.67	201.85	253.58
EV / Net Operating Revenue (X)	0.83	0.62	0.92
EV / EBITDA (X)	10.40	6.91	7.16
MarketCap / Net Operating Revenue (X)	0.59	0.34	0.54
Retention Ratios (%)	139.25	-52.00	76.80
Price / BV (X)	1.78	1.01	1.33
Price / Net Operating Revenue (X)	0.59	0.34	0.54
EarningsYield	-0.01	0.01	0.05

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of IP Rings Ltd as of December 26, 2024 is: 37.37

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 26, 2024, IP Rings Ltd is Overvalued by 81.03% compared to the current share price 197.00

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

Intrinsic Value of IP Rings Ltd as of December 26, 2024 is: 22.13

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 26, 2024, IP Rings Ltd is Overvalued by 88.77% compared to the current share price 197.00

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

Last 5 Year EPS CAGR: -40.78%

*Investments are subject to market risks

Strength and Weakness

Strength	Weakness
The stock has a low average Cash Conversion Cycle of -3.33, which is a positive sign. The company has shown consistent growth in sales (309.25 cr) and profit (2.25 cr) over the years.	The stock has a low average ROCE of 3.33%, which may not be favorable. The stock has a high average Working Capital Days of 59.00, which may not be favorable. The company has higher borrowings (97.00) compared to reserves (95.50), 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 IP Rings Ltd:
1. Net Profit Margin: -0.86%
  - 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: 5.92% (Industry Average ROCE: 16.26%)
  - 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%: -3.04% (Industry Average ROE: 14.26%)
  - 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): 0.76
  - 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: 0.57
  - 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: 59.21)
  - 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

I P Rings Ltd. is a Public Limited Listed company incorporated on 30/01/1991 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L28920TN1991PLC020232 and registration number is 020232. Currently company belongs to the Industry of Auto Ancl - Engine Parts. Company’s Total Operating Revenue is Rs. 272.71 Cr. and Equity Capital is Rs. 12.68 Cr. for the Year ended 31/03/2022.

INDUSTRY	ADDRESS	CONTACT
Auto Ancl - Engine Parts	D11/12, Industrial Estate, Chengalpattu Tamil Nadu 603209	investor@iprings.com http://www.iprings.com

Management
Name	Position Held
Mr. A Venkataramani	Managing Director
Mr. M Govindarajan	Non Executive Director
Mr. Ryosuke Hasumi	Non Executive Director
Dr. Sandhya Shekhar	Independent Director
Mr. Vikram Vijayaraghavan	Independent Director
Mr. Navin Paul	Independent Director

FAQ

What is the latest intrinsic value of IP Rings Ltd?

The latest intrinsic value of IP Rings Ltd as on 26 December 2024 is ₹37.37, which is 81.03% lower than the current market price of ₹197.00. The stock has a market capitalization of 250 Cr. and recorded a high/low of 262/142 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹92 Cr and total liabilities of ₹297 Cr.

What is the Market Cap of IP Rings Ltd?

The Market Cap of IP Rings Ltd is 250 Cr..

What is the current Stock Price of IP Rings Ltd as on 26 December 2024?

The current stock price of IP Rings Ltd as on 26 December 2024 is 197.

What is the High / Low of IP Rings Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of IP Rings Ltd stocks is 262/142.

What is the Stock P/E of IP Rings Ltd?

The Stock P/E of IP Rings Ltd is .

What is the Book Value of IP Rings Ltd?

The Book Value of IP Rings Ltd is 82.8.

What is the Dividend Yield of IP Rings Ltd?

The Dividend Yield of IP Rings Ltd is 0.00 %.

What is the ROCE of IP Rings Ltd?

The ROCE of IP Rings Ltd is 4.05 %.

What is the ROE of IP Rings Ltd?

The ROE of IP Rings Ltd is 2.95 %.

What is the Face Value of IP Rings Ltd?

The Face Value of IP Rings Ltd is 10.0.