Electrosteel Castings Ltd Stock Analysis

BSE: 500128 | NSE: ELECTCAST | Castings/Forgings | Small Cap

BSE Share Price 25-Nov-2022 18:01
41.10 0.45 (1.11%)

DeciZen - Make an Informed Decision on Electrost Castings

Overall Rating

1. Quality

2. Valuation

Somewhat Undervalued

3. Price Trend

Semi Strong

Electrost Castings Price Chart

P/E Ratio (SA) :
6.33
Market Cap :
2,443.8 Cr.
52-wk low :
26.4
52-wk high :
48
Bole Toh?

1. Is Electrosteel Castings Ltd a good quality company?

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

2. Is Electrosteel Castings Ltd undervalued or overvalued?

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

3. Is Electrosteel Castings Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Electrosteel Castings 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 Electrost Castings:

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.
Electrosteel Castings 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 % 3.8%4.4%3.3%3.2%3.7%4%-1.4%5.6%5.6%7.4%-
Value Creation Index -0.7-0.7-0.8-0.8-0.7-0.7-1.1-0.6-0.6-0.5-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 1,9352,1872,1542,0161,7942,0212,3912,4803,0765,0156,371
YoY Gr. Rt. %-13%-1.5%-6.4%-11%12.7%18.3%3.7%24%63.1%-
Adj EPS 2.33.31.71.111.2-5.32.135.46.5
YoY Gr. Rt. %-42.6%-49.4%-34.3%-4.6%15.4%-545%NA43.3%80.2%-
BVPS (₹) 54.554.75578.680.38158.758.983.667.169.1
Adj Net Profit 75.211359.338.837.242.8-21790129319386
Cash Flow from Ops. 15257.3395510445424-43.5238472-325-
Debt/CF from Ops. 14.941.76.24.14.33.7-37.26.43.9-8.3-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 11.2%22.8%28%63.1%
Adj EPS 9.9%38.9%NA80.2%
BVPS 2.3-3.54.6-19.8
Share Price 4.6% 4.6% 54% 23.8%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 3.74.72.41.51.31.5-8.23.74.28.49.5
Op. Profit Mgn % 1015.112.913.215.412.215.814.412.612.711.5
Net Profit Mgn % 3.95.22.81.92.12.1-9.13.64.26.46.1
Debt to Equity 1.31.31.30.70.70.50.70.60.50.70.2
Working Cap Days 279263279288302260224226221199221
Cash Conv. Cycle 16915615114314012812914013413171

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 9.50%

Sales growth is growing at healthy rate in last 3 years 28.01%

Debt to equity has declined versus last 3 years average to 0.68

Sales growth is good in last 4 quarters at 48.06%

Net Profit has been subdued in last 3 years 0.00%

Latest Financials - Electrosteel Castings Ltd.

Standalone Consolidated
TTM EPS (₹) 6.5 6
TTM Sales (₹ Cr.) 6,371 6,561
BVPS (₹.) 69.1 70.9
Reserves (₹ Cr.) 4,048 4,158
P/BV 0.59 0.58
PE 6.33 6.84
From the Market
52 Week Low / High (₹) 26.40 / 48.00
All Time Low / High (₹) 3.05 / 101.50
Market Cap (₹ Cr.) 2,444
Equity (₹ Cr.) 59.5
Face Value (₹) 1
Industry PE 15.8

Management X-Ray of Electrost Castings :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *84.3480.0913.6613.6513.6513.6513.6512.4712.4712.47
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Electrost Castings

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

News

Electrosteel Castings Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Electrost Castings on 25-Nov-2022 18:01 is : 41.10.
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 25-Nov-2022 18:01 the market cap of Electrost Castings stood at ₹ 2,443.8.
The latest PE ratio of Electrost Castings as of 25-Nov-2022 18:01 is 6.33.
The latest PB ratio of Electrost Castings as of 25-Nov-2022 18:01 is 0.59
The 52-week high of Electrost Castings is ₹ 48.00 and the 52-week low is ₹ 26.40.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue / sales of Electrost Castings is ₹ 6,371 ( Cr.) .

About Electrosteel Castings Ltd

Electrosteel Castings (ECL), incorporated in 1955, is engaged manufacturing solutions for water supply and sewerage systems.

Growing from strength to strength over half a century, Electrosteel Castings Limited is inspired by a strong legacy and motivated by the vision to remain world-class through a focus on quality products and quality services. Today the Company is India's leading pipeline solution provider. It has a strong brand presence around the globe and has one prevailing aim - to remain the first choice in the market segment by becoming an international benchmark. An industry pioneer in India, Electrosteel has always remained the distinct choice for water engineers and domain experts in Ductile Iron Pipes and Fittings.

Apart from meeting the growing demand for DI Pipes in India successfully, Electrosteel has established a strong foothold in the international markets. It caters to a large customer base in 35 countries spread across the Indian subcontinent, South East Asia and the Middle East, Europe, USA, South America and Africa. ECL has been certified for ISO 9001: 2000 standard by different bodies such as IRQS and BSI for the manufacture of DI pipes for water, sewerage, gas and ash transportation. Electrosteel has been accorded the status of a three star export house in accordance with the provisions of the exim policy.

The company has clientele in Europe, the Gulf, Southeast Asia and Africa.

In 2011 Electrosteel entered into Joint Venture Agreement (JV) with Dart Energy Ltd.

Products and services

Ductile Iron Pipes- The company is largest manufacturer in India and one of the few manufacturer in the world of ductile iron (“DI”) spun pipes. These pipes have application in transmission of water, gas and industrial effluent, fire- fighting system and many more.

Ductile Iron Fitting- The company is engaged in manufacturing of socket and spigot push-on joints, mechanical flexible joints and flanged joints.

Turnkey Projects- ECL also undertakes infrastructure projects such as municipal water supply pipeline contracts and integrated water supply contracts on EPC (Engineering, Procurement & Construction) basis. Presently the company is involved in contracts located Rajasthan, Jammu & Kashmir, Delhi, MP, Gujarat, Kerala and Karnataka.

Milestones

  • 1994: Set up 60000 TPA Ductile Iron Pipe Plant at Khardah near Kolkata, the first ever in India
  • 1995: Accredited with ISO 9002 from Indian Register Quality System an Accredited body of Raad Voor de Certificate of Netherlands for our ductile Iron pipes.
  • 1996: The Company obtained Kitemark license from British Standard Institute (BSI) for its Dl pipes as per ISO 2531, BS EN 545, BS EN 598.The Company commissioned its own mini-blast furnace with matching capacity for better quality control.
  • 1999: The Company received the ISO-9002 accreditation from BSI for Dl pipes and fittings.
  • 2000: The Company increased its capacity to 120,000 TPA for Dl pipes.The Company obtained Kitemark license from BSI, UK for Dl fittings made at its facilities in Elavur, Chennai as per ISO 2531, BS EN 545, and BS EN 598.
  • 2001: The Company scaled its Dl pipe capacity from 120,000 TPA to 150,000 TPA. Mini Blast Furnace capacity increased from 1,09,000 TPA to 2,00,000 TPA.
  • 2002: The Company acquired 46% stake in Lanco Industries Limited in March 2002, which is involved in manufacturing of DI Pipes, Pig Iron, Cement and Castings.
  • 2003: The Company increased its Dl pipe manufacturing capacity from 1,50,000 TPA to 200,000 TPA.   The Company also received BSI Kitemark license for Dl Fittings at Khardah works, West Bengal.
  • 2005: The Company raised USD 40 Million through the issue of Global Depository Receipts (GDRs) in October  2005 and become the first Indian Company to be listed on Professional Securities Market (PSM) of the London Stock Exchange (LSE) in addition to being the first Company to issue GDRs on the PSM.  The Company was accorded Three Star Export House by the JDGFT, Ministry of Commerce and Industry of the Government of India.
  • 2006: The Company increased its Dl pipe manufacturing capacity from 2,00,000 TPA to 2,50,000 TPA and commissioned Coke Oven Plant at Haldia. The Company commissioned 12 MW Power Plant & 30,000 TPA second Kiln Sponge Iron Plant at  Haldia. Mini Blast Furnace capacity increased from 2,00,000 TPA to 2,35,000 TPA. The Company successfully commissioned Pulverized Coal Injection System in Blast Furnace and Stamp. Charging System in Coke Oven Plant at Haldia, which enhanced operational efficiency. We have been allotted an Iron ore mine at Kodolibad, Jharkhand and a non coking coal mine in joint venture at North Dhadhu.
  • 2007: Implemented SAP ERP system hosted in state of the art 1000 square feet Data center connecting all manufacturing plants and sales offices across Indian Geography supporting 350 user base to enable supply chain of the Company.
  • 2008: Tied up US$ 77.50 mn through ECB, commissioned 360,000 TPA sinter plant at Khardah and commissioned a 75,000 TPA coke oven battery at Haldia.
  • 2009: Commissioned fourth coke oven battery resulting in additional capacity of 70,000 TPA of coke, taking the total capacity enhanced to 280,000 TPA and 250,000 TPA respectively

 


 

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