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Electrosteel Castings Ltd Stock Analysis

Small Cap
Evaluated by 1024 users | BSE: 500128 | NSE: ELECTCAST |
Castings/Forgings
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...

Analysis of Financial Track Record

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.
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 5.52%5.98%3.77%4.4%3.28%3.19%3.69%3.99%2.11%6.04%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 1,7101,9171,9352,1872,1542,0161,7942,0212,3912,480
Y-o-Y Gr. Rt.-12.1%0.9%13%-1.5%-6.4%-11%12.7%18.3%3.7%
Adjusted EPS (Rs.) 3.363.932.33.281.661.091.051.2-1.72.08
Y-o-Y Gr. Rt.-17%-41.5%42.6%-49.4%-34.3%-3.7%14.3%-241.7%NA
Book Value per Share (Rs.) 51.5652.1254.5154.6655.0278.6380.2581.0258.6858.86
Adjusted Net Profit 11012875.211359.338.837.442.8-68.890
Net Op. Cash Flow (Rs. Cr.) 221-21915257.3395510445424-43.5238
Debt to Cash Flow from Ops 6.66-8.2114.8741.686.244.054.313.69-37.226.44
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Electrosteel Castings Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 4.2%2.9%11.4%3.7%
Adjusted EPS -5.2%4.6%25.6%NA
Book Value per Share 1.51.4-9.80.3
Share Price 2.5% 2.2% -10.8% 104.3%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 6.737.583.714.72.391.461.321.49-2.613.65
Operating Profit Margin (%) 14.513.541015.1312.9413.215.412.2315.8114.39
Net Profit Margin (%) 6.436.73.895.152.751.922.092.12-2.883.63
Debt to Equity 0.871.051.271.271.250.740.670.540.680.6
Working Capital Days 228263279263279288302260224226
Cash Conversion Cycle 147163169156151143140128129138
Entity Percentage Holding
Promoters 55.19%
Institutions 15.80%
Non-Institutions 29.01%
Pledged *17.2716.0615.9435.6793.2493.2484.6484.3484.3480.09
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Electrosteel Castings Ltd's performance infers:

Electrosteel Castings Ltd earnings have grown by 4.6%, whereas share price has appreciated 2.2% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Electrosteel Castings Ltd share prices over the last 10 years. Here is what we found out:

Electrosteel Castings Ltd share price has appreciated -4.8% annually over the past ten years.

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

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

 


 

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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