Pennar Industries Ltd - Stock Valuation and Financial Performance

BSE: 513228 | NSE: PENIND | Steel & Iron Products | Small Cap

Pennar Industries Share Price

132.85 3.00 2.31%
as on 28-Mar'24 16:01

DeciZen - make an informed investing decision on Pennar Industries

Overall Rating
Bole Toh

1. Quality

2. Valuation

Somewhat overvalued

3. Price Trend

Semi Strong

Pennar Industries stock performance -

mw4me loader
P/E Ratio (SA):
33.08
Market Cap:
1,796.8 Cr.
52-wk low:
66.6
52-wk high:
162.3

Is Pennar Industries Ltd an attractive stock to invest in?

1. Is Pennar Industries Ltd a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that Pennar Industries Ltd is a below average quality company.

2. Is Pennar Industries Ltd undervalued or overvalued?

The key valuation ratios of Pennar Industries Ltd's currently when compared to its past seem to suggest it is in the Somewhat overvalued zone.

3. Is Pennar Industries Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Pennar Industries Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Pennar Industries:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Pennar Industries Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 5.9%8.6%9%10.3%16.8%11.6%9.9%3.8%6.7%7.1%-
Value Creation
Index
-0.6-0.4-0.4-0.30.2-0.2-0.3-0.7-0.5-0.5-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 8128599039881,7502,1162,0981,5171,9952,2882,354
Sales YoY Gr.-5.8%5.1%9.4%77.2%20.9%-0.9%-27.7%31.5%14.7%-
Adj EPS 1.11.82.32.45.14.43.6-0.72.42.44
YoY Gr.-69.5%26.4%5.3%116.9%-15.2%-17.2%-120.2%NA0%-
BVPS (₹) 2425.727.929.239.743.74848.650.954.257.2
Adj Net
Profit
12.621.427.128.578.366.452.4-10.333.531.954
Cash Flow from Ops. 68.321.710187.21.1171198-55.5209117-
Debt/CF from Ops. 1.771.91.6328.12.62.3-10.52.85.3-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 12.2%5.5%2.9%14.7%
Adj EPS 9.4%-14.4%-13.2%0%
BVPS9.5%6.4%4.2%6.5%
Share Price 18.8% 29.4% 100.2% 85.4%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
46.67.88.116.410.57.7-1.54.74.47.2
Op. Profit
Mgn %
6.58.18.78.810.68.286.37.77.39.2
Net Profit
Mgn %
1.62.532.94.53.12.5-0.71.71.42.3
Debt to
Equity
0.40.50.60.40.60.70.60.80.80.9-
Working Cap
Days
155182177164156181187269225216105
Cash Conv.
Cycle
8281734470103991441241175

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 7.20%

Debt to equity has declined versus last 3 years average to 0.85

Sales growth has been subdued in last 3 years 2.94%

Net Profit has been subdued in last 3 years -13.21%

Sales growth is not so good in last 4 quarters at 1.65%

Latest Financials - Pennar Industries Ltd.

Standalone Consolidated
TTM EPS (₹) 4 6.9
TTM Sales (₹ Cr.) 2,354 2,976
BVPS (₹.) 57.2 62.9
Reserves (₹ Cr.) 705 781
P/BV 2.33 2.12
PE 33.08 19.31
From the Market
52 Week Low / High (₹) 66.59 / 162.30
All Time Low / High (₹) 0.32 / 162.30
Market Cap (₹ Cr.) 1,797
Equity (₹ Cr.) 67.5
Face Value (₹) 5
Industry PE 25.1

Management X-Ray of Pennar Industries:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *2.802.802.802.802.802.800.000.002.802.80
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Pennar Industries

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales8128599039881,7502,1162,0981,5171,9952,288
Operating Expenses 7607908249001,5641,9461,9301,4261,8422,121
Manufacturing Costs837695116249351336265293331
Material Costs5676026096791,0841,2881,2569181,2321,476
Employee Cost 42415162122149157131150154
Other Costs 68707044110157181112167160
Operating Profit 5269798718517016890152168
Operating Profit Margin (%) 6.4%8.1%8.7%8.8%10.6%8.1%8.0%6.0%7.6%7.3%
Other Income 1125172620181937
Interest 18262835627583797589
Depreciation 15111112232843485056
Exceptional Items 000021002000
Profit Before Tax 19334245139946214660
Tax 71215174629901115
Profit After Tax 1321272993645313444
PAT Margin (%) 1.5%2.5%3.0%2.9%5.3%3.0%2.5%0.1%1.7%1.9%
Adjusted EPS (₹)1.01.82.32.46.14.23.60.12.43.3
Dividend Payout Ratio (%)0%0%0%0%0%0%0%0%0%0%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 320334356352604665697691723731
Share Capital 66636060767673717167
Reserves 254271296292528589624620652664
Minority Interest0000000000
Debt113139182134336413398531541558
Long Term Debt434586691011001021139998
Short Term Debt70949765235313296418442460
Trade Payables103101199272372448477446515558
Others Liabilities 1581716560200212272218276302
Total Liabilities 6947468028181,5131,7381,8441,8862,0552,149

Fixed Assets

Gross Block3964204353815466778879049221,040
Accumulated Depreciation192206219184204224266305354409
Net Fixed Assets203215217197342453621599568631
CWIP 41082711833537610
Investments 23237263725557305436
Inventories121132165189431436438468577737
Trade Receivables189227231227403461392447424363
Cash Equivalents 12105648493656426553
Others Assets1421396086188178246247291319
Total Assets 6947468028181,5131,7381,8441,8862,0552,149

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 6822101871171198-55209117
PBT 19334245139946214660
Adjustment 3437394450109162133140148
Changes in Working Capital 19-492810-1614-8-18834-77
Tax Paid -40-8-12-28-36-18-2-10-13
Cash Flow From Investing Activity -38-28-63-18-112-204-79-4-134-4
Capex -38-28-14-30-118-225-90-45-21-36
Net Investments 0009621026-5538
Others 00-502011114-59-7
Cash Flow From Financing Activity -29311-788614-9644-79-106
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing 11839-1535122311-2113
Interest Paid -18-26-28-31-59-75-78-75-70-85
Dividend Paid -14000000000
Others -7200-3210977-4010911-34
Net Cash Flow 2-348-9-25-1922-16-47
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)4.427.148.388.319.4710.097.710.134.836.08
ROCE (%)9.3613.5714.0315.8627.8716.3712.936.669.3411.2
Asset Turnover Ratio1.471.321.271.321.531.31.170.811.011.09
PAT to CFO Conversion(x)5.231.053.7430.012.673.74-556.152.66
Working Capital Days
Receivable Days738085786575741018063
Inventory Days4948556064757610996105
Payable Days5362901278166751017670

Pennar Industries Ltd Stock News

Pennar Industries Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Pennar Industries on 28-Mar-2024 16:01 is ₹132.8.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 28-Mar-2024 16:01 the market cap of Pennar Industries stood at ₹1,796.8.
The latest P/E ratio of Pennar Industries as of 28-Mar-2024 16:01 is 33.08.
The latest P/B ratio of Pennar Industries as of 28-Mar-2024 16:01 is 2.33.
The 52-week high of Pennar Industries is ₹162.3 and the 52-week low is ₹66.59.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Pennar Industries is ₹2,354 ( Cr.) .

About Pennar Industries Ltd

Pennar Industries, commenced manufacture of cold rolled Steel Strips in 1988 at Isnapur (45 km from Hyderabad) with an installed capacity of 30,000 MTPA. The company achieved profits right from the first year of its operation followed by declaration of dividend from the second year. The company increased its manufacturing capacity to 50,000 MTPA in the year 1997.  

Propelled by liberalization and globalization of the Indian economy, Pennar acquired Nagarjuna Steel Ltd., Patancheru (32 KM from Hyderabad) and Press Metal, a unit of Tube Investment(TI), at Tarapur near Mumbai.

Pennar’s fourth manufacturing facility is located at Chennai and manufactures profiles and components for the auto sector. The facility also services a steel service center.

Pennar is now a multi-location, multi-product company manufacturing cold rolled steel strips & tubes, cold rolled formed sections, electrostatic precipitators, pre-engineered building systems, sheet metal components, and road safety systems.

Products manufactured by the company include:

  • Cold Rolled Formed Profiles -Products are used in Commercial & Passenger Vehicles, Railway Coaches & Wagons, Industrial Buildings, Pollution Control Equipments and Door & Window Frames for Housing.
  • Pre-Engineered Building Systems-The system consists of elegant lattice-type portals made of cold formed profiles or portals of plate girder construction. Roofing and -cladding are made of galvanized/galvalume colour-coated steel sheet profiles as per customer’s specifications.
  • Engineered Components Division(Ecd)-Engineered Components Division Supplies various pressed steel components for the following sectors:             -Refrigeration / White Goods (Compressor Shells)              -Automobiles (Seating Systems, Rotor Cups)
  • Electro Static Precipitators (Esp)-The components include Collecting Electrodes & Discharge Electrodes.
  • Metal Crash Barrier-Pennar Industries Limited is the pioneer in the field of Road safety systems(Metal crash barriers) in India which were initially manufactured under licence from Voest Alpine Industrial Services (VAIS) Austria.
  • Cold Rolled Steel Strips(Crss)-The Cold Rolled Steel Strips Division, with facilities at Patancheru & Isnapur, has a combined annual capacity of 120,000 Metric Tons. Pennar manufactures steel strips up to 720 mm width and thickness range of 0.25 - 4.5 mm both in coil and sheet form.
  • ERW TUBES

Clientele

Major customers of the company include: TVS Motors, Electrolux, Honda Siel, Tata Motors, Eicher Motors, Alstom Power, LLOYDS, N.R Steels, L&T -ECC Division and many more.

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