Electrosteel Castings Ltd - Stock Valuation and Financial Performance

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

Electrost Castings Share Price

153.80 -1.15 -0.74%
as on 18-Mar'24 16:59

DeciZen - make an informed investing decision on Electrost Castings

Overall Rating
Bole Toh

1. Quality

2. Valuation

Overvalued

3. Price Trend

Semi Strong

Electrosteel Castings stock performance -

mw4me loader
P/E Ratio (SA):
15.37
Market Cap:
9,507.7 Cr.
52-wk low:
31.4
52-wk high:
204.1

Is Electrosteel Castings Ltd an attractive stock to invest in?

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 Overvalued 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'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 4.4%3.3%3.2%3.7%4%-1.4%5.6%5.6%7.4%7.7%-
Value Creation
Index
-0.7-0.8-0.8-0.7-0.7-1.1-0.6-0.6-0.5-0.5-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 2,1872,1542,0161,7942,0212,3912,4803,0765,0156,9166,924
Sales YoY Gr.--1.5%-6.4%-11%12.7%18.3%3.7%24%63.1%37.9%-
Adj EPS 3.31.71.111.2-5.32.135.55.510
YoY Gr.--49.4%-34.3%-4.6%15.4%-545%NA43.3%82.9%0.6%-
BVPS (₹) 54.75578.680.38158.758.983.667.171.478.1
Adj Net
Profit
11359.338.837.242.8-21790129324326619
Cash Flow from Ops. 57.3395510445424-43.5238472-325398-
Debt/CF from Ops. 41.76.24.14.33.7-37.26.43.9-8.36.1-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 13.7%27.9%40.8%37.9%
Adj EPS 5.9%35.5%38.1%0.6%
BVPS3%-2.5%6.7%6.5%
Share Price 27% 50.1% 85.6% 359.7%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
4.72.41.51.31.5-8.23.74.28.57.913.4
Op. Profit
Mgn %
15.112.913.215.412.215.814.412.612.710.315.4
Net Profit
Mgn %
5.22.81.92.12.1-9.13.64.26.54.78.9
Debt to
Equity
1.31.30.70.70.50.70.60.50.70.6-
Working Cap
Days
26327928830226022422622119918199
Cash Conv.
Cycle
15615114314012812914013413112832

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 13.40%

Sales growth is growing at healthy rate in last 3 years 40.76%

Net Profit is growing at healthy rate in last 3 years 38.11%

Debt to equity has declined versus last 3 years average to 0.57

Sales growth is not so good in last 4 quarters at 3.48%

Latest Financials - Electrosteel Castings Ltd.

Standalone Consolidated
TTM EPS (₹) 10 9.7
TTM Sales (₹ Cr.) 6,924 7,346
BVPS (₹.) 78.1 79.9
Reserves (₹ Cr.) 4,767 4,874
P/BV 1.97 1.93
PE 15.37 15.79
From the Market
52 Week Low / High (₹) 31.40 / 204.10
All Time Low / High (₹) 3.05 / 204.10
Market Cap (₹ Cr.) 9,508
Equity (₹ Cr.) 61.8
Face Value (₹) 1
Industry PE 32.1

Management X-Ray of Electrost Castings:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *13.6513.6512.4712.4712.4712.4712.4712.4712.4712.47
* 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 (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales2,1872,1542,0161,7942,0212,3912,4803,0765,0156,916
Operating Expenses 1,8821,8761,7511,5171,7972,0442,1262,6934,3866,220
Manufacturing Costs314330301289294323399527822978
Material Costs1,1021,1289758019381,1001,1451,4592,5083,964
Employee Cost 149160176184182152172235326358
Other Costs 317257300243383469410471729920
Operating Profit 305278265276224347354383629696
Operating Profit Margin (%) 13.9%12.9%13.1%15.4%11.1%14.5%14.3%12.4%12.5%10.1%
Other Income 203141978164176987123
Interest 136145169201202225195202185272
Depreciation 5367656459555379113114
Exceptional Items 00000-7900000
Profit Before Tax 136967210844-659124172419433
Tax 35241631-3-2325419398
Profit After Tax 10173567747-63699131326335
PAT Margin (%) 4.6%3.4%2.8%4.3%2.3%-26.6%4.0%4.3%6.5%4.8%
Adjusted EPS (₹)2.92.01.62.21.3-15.72.33.05.55.6
Dividend Payout Ratio (%)22%32%32%23%23%0%13%8%15%16%

Balance Sheet

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

Equity and Liabilities

Shareholders Fund 2,4472,5052,8072,8652,8922,3792,5493,6213,9874,245
Share Capital 34363636364143435959
Reserves 2,4132,4692,7712,8292,8562,3392,5053,5773,9284,186
Minority Interest0000000000
Debt2,2022,0951,8991,7181,2861,4681,3051,6972,5122,275
Long Term Debt1,5151,2841,1411,127846835701791838706
Short Term Debt6868107585914406346049061,6741,569
Trade Payables305221261205279276332401562512
Others Liabilities 4546418619881,1438497991,0171,1441,060
Total Liabilities 5,4085,4625,8285,7755,6004,9734,9856,7358,2058,092

Fixed Assets

Gross Block1,6471,7431,7781,7631,7801,8031,9063,1123,3043,363
Accumulated Depreciation55263464123177224273555616718
Net Fixed Assets1,0951,1091,7141,6401,6031,5791,6332,5572,6882,645
CWIP 4071,2781,2781,2101,2021,2371,1651,3281,2081,302
Investments 1,1001,2661,1491,1471,147542540266520225
Inventories5574963514394085636149651,8411,694
Trade Receivables6175807014845596016387291,0421,310
Cash Equivalents 22921010033320313263451457382
Others Assets1,404522535523478321332438449535
Total Assets 5,4085,4625,8285,7755,6004,9734,9856,7358,2058,092

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 57395510445424-43238472-325398
PBT 136967210844-659124172419433
Adjustment 1581992241911671,013273233232324
Changes in Working Capital -206108224174224-383-154107-867-243
Tax Paid -31-9-10-28-11-15-5-40-109-116
Cash Flow From Investing Activity -145-2489177-5937-16159-306207
Capex -124-132-21113-19-53-54-115-182-177
Net Investments -217396-60-66621560-191269
Others 0-189162426282321466115
Cash Flow From Financing Activity -80-152-595-343-561-5-256-537631-556
Net Proceeds from Shares 242500014050000
Net Proceeds from Borrowing 00-31060-169-51-56-13661-182
Interest Paid -120-192-220-212-2010-208-208-169-242
Dividend Paid -16-22-22-17-20-2920-13-27-48
Others 3238-43-174-170198-42-180767-84
Net Cash Flow -167-56179-195-12-3494-148
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)5.493.782.342.731.63-24.1244.258.568.13
ROCE (%)6.545.565.186.415.32-10.267.897.799.9110.52
Asset Turnover Ratio0.430.410.360.320.360.450.50.520.670.85
PAT to CFO Conversion(x)0.565.419.115.789.02N/A2.43.6-11.19
Working Capital Days
Receivable Days10499116118948991816462
Inventory Days828777797674879410293
Payable Days505883101766067736443

Electrosteel Castings Ltd Stock News

Electrosteel Castings Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Electrost Castings on 18-Mar-2024 16:59 is ₹153.8.
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 18-Mar-2024 16:59 the market cap of Electrost Castings stood at ₹9,507.7.
The latest P/E ratio of Electrost Castings as of 18-Mar-2024 16:59 is 15.37.
The latest P/B ratio of Electrost Castings as of 18-Mar-2024 16:59 is 1.97.
The 52-week high of Electrost Castings is ₹204.1 and the 52-week low is ₹31.40.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Electrost Castings is ₹6,924 ( 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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