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Check Before You Invest : Ankit Metal & Power Ltd

BSE: 532870 NSE: ANKITMETAL ISIN: INE106I01010
  |   Sector:  Metals & Mining   |   Industry:  Steel & Iron Products

Snapshot

Q.1 Which industry/sub-sector does Ankit Metal & Power Ltd belong to?
Ankit Metal & Power Ltd belongs to the Metals & Mining sector, operating specifically within the Steel & Iron Products segment.
Q.2 Is Ankit Metal & Power Ltd a good quality company?
Ankit Metal & Power Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Ankit Metal & Power Ltd undervalued or overvalued?
Ankit Metal & Power Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Ankit Metal & Power Ltd a good buy now?
Ankit Metal & Power Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Ankit Metal & Power Ltd?
Ankit Metal & Power Ltd revenue growth is 12.9% for FY-2023 , which is below its 5 year CAGR of 35.6% , indicating slower growth.
Q.2 Gross Profit margin of Ankit Metal & Power Ltd?
Ankit Metal & Power Ltd Gross profit margin which is the profit after deduction of direct costs, is -7.4% for FY-2023 , which is in line with its 5 year median of -7.4% , indicating stable margins.
Q.3 Operating Profit Margin of Ankit Metal & Power Ltd?
Ankit Metal & Power Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -7.34% for FY-2023 , which is below its 5 year median of -3.77% indicating decreasing margins.
Q.4 Net Profit Margin of Ankit Metal & Power Ltd?
Ankit Metal & Power Ltd Net Profit Margin is -11.56% for FY-2023 , is above with its 5 year median of -13.69%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin -7.4 -7.4
Operating Profit Margin -7.34 -3.77
Net Profit Margin -11.56 -13.69
Q.5 Return on Asset of Ankit Metal & Power Ltd?
Ankit Metal & Power Ltd Return on Asset is -8.18%, which is below its 5 year historical median of -6.08%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Ankit Metal & Power Ltd?
Ankit Metal & Power Ltd Return on equity is 0% for FY-2023 , which is in line with its historical median of 0%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Ankit Metal & Power Ltd?
Ankit Metal & Power Ltd Return on capital employed is -34.2% for FY-2023 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Ankit Metal & Power Ltd?
Ankit Metal & Power Ltd Cash conversion cycle is 23 days, below its historical median of 70 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.71 0.41
ROE - -
ROCE -34.2 -11.85
Cash Conversion Cycle 23 days 70 days
Q.9 Debt to Equity ratio of Ankit Metal & Power Ltd?
Ankit Metal & Power Ltd Debt-to-Equity ratio is -1.25 , which is lower with the industry average of 0.32 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Ankit Metal & Power Ltd?
Ankit Metal & Power Ltd Debt to cash flow from operations is 20.47 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Ankit Metal & Power Ltd?
Promoters hold 71.02% of the Ankit Metal & Power Ltd, with 100.00% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Ankit Metal & Power Ltd vs industry peers?
Ankit Metal & Power Ltd revenue CAGR is 35.59% , compared to the industry median CAGR of 7.41% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 854 364.5
Gross Profit -63.2 11.6
Operating Profit -63.4 15
Net Profit -98.8 6
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.71 1.27
ROE - 8.12
ROCE -34.2 11.38
Cash Conversion Cycle (days) 22.57 72

Valuation & price assessment

Q.1 Stock return of Ankit Metal & Power Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of -0.3% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price -0.3% 11.1% -28.7% -19.3%
Q.3 Valuation ratios of Ankit Metal & Power Ltd vs historical?
The current P/E is similar that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings - 0.00 23.93
Price to Book - 0.00 1.46
Price to Sales 0.03 0.11 0.74
EV to EBITDA -5.09 0.00 9.89

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