IP Rings Ltd - Stock Valuation and Financial Performance

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

IP Rings Share Price

148.15 -2.30 -1.53%
as on 28-Mar'24 16:01

DeciZen - make an informed investing decision on IP Rings

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

1. Quality

2. Valuation

Somewhat Undervalued

3. Price Trend

IP Rings stock performance -

mw4me loader
P/E Ratio (SA):
0.00
Market Cap:
190.7 Cr.
52-wk low:
80
52-wk high:
221

Is IP Rings Ltd an attractive stock to invest in?

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'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 2.1%4.8%5.6%4.4%8.3%8%4.7%5.4%7.3%3.8%-
Value Creation
Index
-0.9-0.7-0.6-0.7-0.4-0.4-0.7-0.6-0.5-0.7-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 84.7101118174203212198198273323304
Sales YoY Gr.-19.5%16.7%46.9%16.9%4.5%-6.7%0.3%37.4%18.6%-
Adj EPS -2.5-0.50.5-0.86.36.71.546.50.5-4.4
YoY Gr.-NANA-256%NA7.5%-77.1%156.5%63.3%-92.9%-
BVPS (₹) 41.240.440.168.37480.279.783.188.287.683.2
Adj Net
Profit
-2.6-0.50.5-17.98.5258.20.6-6
Cash Flow from Ops. 1-2.47.410.321.820.732.21722.842.1-
Debt/CF from Ops. 60-27.411.65.83.342.55.54.82.3-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 16%9.8%17.8%18.6%
Adj EPS NA-40.7%-33.2%-92.9%
BVPS8.7%3.4%3.2%-0.8%
Share Price 18.8% 7.9% 26.8% 72.4%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
-6-1.31.2-1.68.88.71.94.97.50.5-5.2
Op. Profit
Mgn %
11.812.613.2812.213.411.512.512.186.4
Net Profit
Mgn %
-3-0.50.4-0.63.9412.530.2-1.8
Debt to
Equity
1.41.62.10.70.80.80.80.910.9-
Working Cap
Days
17417218116417717617519017216487
Cash Conv.
Cycle
95929881839496947764-4

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 17.77%

Debt to equity has declined versus last 3 years average to 0.86

Return on Equity is Poor

Sales growth is not so good in last 4 quarters at -4.19%

Latest Financials - IP Rings Ltd.

Standalone Consolidated
TTM EPS (₹) -4.4 -4.3
TTM Sales (₹ Cr.) 304 304
BVPS (₹.) 83.2 83.1
Reserves (₹ Cr.) 93 93
P/BV 1.81 1.81
PE 0.00 0.00
From the Market
52 Week Low / High (₹) 80.00 / 221.00
All Time Low / High (₹) 15.19 / 278.80
Market Cap (₹ Cr.) 191
Equity (₹ Cr.) 12.7
Face Value (₹) 10
Industry PE 46

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 (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales85101118174203212198198273323
Operating Expenses 7589103160179184176174240297
Manufacturing Costs2329335764696470107129
Material Costs323340586766636082112
Employee Cost 13161824272929252930
Other Costs 891220212021202226
Operating Profit 10131513242822243326
Operating Profit Margin (%) 11.5%12.6%12.9%7.7%11.8%13.0%10.9%12.3%12.1%8.0%
Other Income 0112111123
Interest 6891078971011
Depreciation 777881011121416
Exceptional Items 0000000000
Profit Before Tax -4-10-3101127112
Tax -1-10-1331231
Profit After Tax -300-1781582
PAT Margin (%) -3.3%-0.5%0.2%-0.8%3.6%3.7%0.6%2.5%3.0%0.5%
Adjusted EPS (₹)-2.8-0.50.2-1.15.86.30.93.96.51.4
Dividend Payout Ratio (%)0%0%0%0%0%16%0%38%31%73%

Balance Sheet

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

Equity and Liabilities

Shareholders Fund 4141408794102101105112111
Share Capital 77713131313131313
Reserves 34333374818988939998
Minority Interest0000000000
Debt49557647607268798771
Long Term Debt20211418243428395041
Short Term Debt29346229363840403630
Trade Payables14151733283530536392
Others Liabilities 15192222241939353942
Total Liabilities 119129156189207228237273301316

Fixed Assets

Gross Block139146165177117150162199223238
Accumulated Depreciation71788593233243546984
Net Fixed Assets6868808595118119145154154
CWIP 30144219252
Investments 0000000011
Inventories20252734354038475360
Trade Receivables19243449474938566776
Cash Equivalents 11225612736
Others Assets991116201311161818
Total Assets 119129156189207228237273301316

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 1-2710222132172342
PBT -4-10-3101127112
Adjustment 13141518151823182526
Changes in Working Capital -2-7-8-5-2-67-6-1115
Tax Paid 0-100-2-30-1-2-1
Cash Flow From Investing Activity -12-6-2030-24-22-15-26-27-13
Capex -12-6-20-18-18-30-30-14-26-12
Net Investments 00000000-10
Others 00048-6815-1300
Cash Flow From Financing Activity 11811-3662-1141-27
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing 000068-31119-6
Interest Paid 00-8-10-7-7-8-7-10-10
Dividend Paid 000000-20-2-3
Others 11819-267110-7-8
Net Cash Flow 00-24406-5-32
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)-6.46-1.190.53-2.288.148.131.094.817.561.56
ROCE (%)3.016.397.535.4411.0610.766.097.3310.086.21
Asset Turnover Ratio0.830.910.931.11.050.980.850.780.951.05
PAT to CFO Conversion(x)N/AINFINFN/A3.142.63323.42.8821
Working Capital Days
Receivable Days72708180848381878381
Inventory Days73737158616572786764
Payable Days118137136150159149149214223214

IP Rings Ltd Stock News

IP Rings Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of IP Rings on 28-Mar-2024 16:01 is ₹148.2.
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 28-Mar-2024 16:01 the market cap of IP Rings stood at ₹190.7.
The latest P/E ratio of IP Rings as of 28-Mar-2024 16:01 is 0.00.
The latest P/B ratio of IP Rings as of 28-Mar-2024 16:01 is 1.81.
The 52-week high of IP Rings is ₹221.0 and the 52-week low is ₹80.00.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of IP Rings is ₹304.2 ( 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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