IP Rings Ltd Stock Analysis

BSE: 523638 | NSE: IPRINGLTD | Auto Ancillary | Small Cap

BSE Share Price 27-Jan-2023 18:01
108.25 -4.60 (-4.08%)

DeciZen - Make an Informed Decision on IP Rings

Overall Rating
M-Cap below 500cr. High Risk from low Liquidity

1. Quality

2. Valuation

Somewhat Undervalued

3. Price Trend

IP Rings Price Chart

P/E Ratio ( SA) :
19.76
Market Cap :
137.2 Cr.
52-wk low :
91.5
52-wk high :
150
Bole Toh?

1. Is IP Rings Ltd a good quality company?

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

2. Is IP Rings Ltd undervalued or overvalued?

The key valuation ratios of IP Rings Ltd's currently when compared to its past seem to suggest it is in the Somewhat Undervalued zone.

3. Is IP Rings Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of IP Rings Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of IP Rings:

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.
IP Rings 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'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % -0.5%2.1%4.8%5.6%4.4%8.3%8%4.7%5.4%7.3%-
Value Creation Index -1.0-0.9-0.7-0.6-0.7-0.4-0.4-0.7-0.6-0.5-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 84.884.7101118174203212198198273308
YoY Gr. Rt. %--0.1%19.5%16.7%46.9%16.9%4.5%-6.7%0.3%37.4%-
Adj EPS -4.3-2.5-0.50.5-0.86.36.71.546.55.5
YoY Gr. Rt. %-NANANA-256%NA7.5%-77.1%156.5%63.3%-
BVPS (₹) 4441.240.440.168.37480.279.783.188.288.9
Adj Net Profit -4.3-2.6-0.50.5-17.98.5258.27
Cash Flow from Ops. -0.31-2.47.410.321.820.732.21722.8-
Debt/CF from Ops. -154.160-27.411.65.83.342.55.54.8-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 13.9%9.5%8.7%37.4%
Adj EPS NANA-1.4%63.3%
BVPS 85.33.36.1
Share Price 13.6% -11.3% 10.2% -23.3%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % -9.3-6-1.31.2-1.68.88.71.94.97.56.2
Op. Profit Mgn % 6.111.812.613.2812.213.411.512.512.19.9
Net Profit Mgn % -5.1-3-0.50.4-0.63.9412.532.3
Debt to Equity 1.11.41.62.10.70.80.80.80.910.4
Working Cap Days 160174172181164177176175190172166
Cash Conv. Cycle 919592988183949694774

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 6.20%

Debt to equity has declined versus last 3 years average to 0.97

Sales growth is good in last 4 quarters at 14.39%

Sales growth has been subdued in last 3 years 8.74%

Net Profit has been subdued in last 3 years -1.41%

Latest Financials - IP Rings Ltd.

Standalone Consolidated
TTM EPS (₹) 5.5 5.4
TTM Sales (₹ Cr.) 308 308
BVPS (₹.) 88.9 88.9
Reserves (₹ Cr.) 100 100
P/BV 1.22 1.23
PE 19.76 20.22
From the Market
52 Week Low / High (₹) 91.50 / 149.95
All Time Low / High (₹) 15.19 / 278.80
Market Cap (₹ Cr.) 137
Equity (₹ Cr.) 12.7
Face Value (₹) 10
Industry PE 34.6

Management X-Ray of IP Rings :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of IP Rings

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

IP Rings Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of IP Rings on 27-Jan-2023 18:01 is : 108.2.
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 27-Jan-2023 18:01 the market cap of IP Rings stood at ₹ 137.2.
The latest PE ratio of IP Rings as of 27-Jan-2023 18:01 is 19.76.
The latest PB ratio of IP Rings as of 27-Jan-2023 18:01 is 1.22
The 52-week high of IP Rings is ₹ 149.9 and the 52-week low is ₹ 91.50.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue / sales of IP Rings is ₹ 308.2 ( Cr.) .

About IP Rings Ltd

IP Rings was born out of the technical collaboration between India Pistons Limited and Nippon Piston Ring Company Ltd., Japan - a world class leader in Ring Technology in 1991. IP Rings was promoted by India Pistons Ltd., Simpson & Company Ltd., Tractors and Farm Equipment Ltd., and Amalgamations Pvt Ltd., Chennai. State-of-the-Art manufacturing facility at Maraimalai Nagar, 50 Kms. from Chennai. 

IP Rings manufactures a wide range of sophisticated piston rings. A model manufacturing unit, the Company’s production plant is fully integrated and has a wide spectrum of Surface Engineering Technologies.

IP Rings is the only Company in India, which has got under one roof, facilities for all the surface treatments, which are currently used in contemporary engines. Its plant at Maraimalainagar has the following surface treatment facilities.

Plasma Spray: IP Rings has one of the best plasma spray facilities, which is capable of spraying alloy powders and also multi-layer coatings. Plasma sprayed coatings improve the scuff and wear resistance and are recommended for high operating temperatures.

Gas Nitriding : IP Rings has a fully automatic Gas Nitriding frunace, capable of giving extremely close tolerances on mechanical properties and case depth. This results in excellent wear-resistance and prolonged engine life for gasolene engines - both for passenger cars and two-wheelers.  

Nifflex-S & Nifflex-H: IP Rings has the facility to manufacture 3 piece steel oil control ring, consisting of an expander and two side rails, based on the famous Nifflex-S, Nifflex-Hdesign of NPR, Japan. These rings ensure total conformability of the oil ring to the cylinder bore throughout the life of the engine and give better and long life oil control.  

Chrome Plating : IP Rings has a fully automated chrome plating facility, which can carry out besides periphery plating, chrome plating of the side faces of the rings, as well as the bore surface. Thus, it can cater to the entire range of chrome plating requirements.

Entire spectrum of the automobile industry from two-wheelers to Heavy Commercial Vehicles and Tractors are catered by them.

Product range of the company includes:

  • Steel Rings
  • Cast Iron Rings and
  • Nifflex S Rings
  • Nifflex H with surface coatings
  • Plasma Spraying
  • Gas Nitriding
  • Chrome Plating

Clientele:Tata Motors, Maruti, Ashok Leyland, Hyundai. Eicher, HM, TVS, Royal Enfield, Simpson, Nippon Pistons etc.

Achievements/ recognition:

  • ISO 9002 (1996)
  • QS9000 (2000)
  • ISO 14001 (2002)
  • ISO/TS16949:2002 (2002)
  • 100 PPM (2003)
  • Accreditation of In-house R & D (2004)
  • IMEA Gold Award from Frost & Sulivan (2005)
  • IMEA Super Platinum From Frost & Sulivan (2007)
  • CII EXIM - Significant Acheivement Award (2008)
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