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Investment & Precision Castings Ltd. Stock Analysis

Small Cap
Evaluated by 118 users | BSE: 504786 | NSE: |
Castings/Forgings
Investment & Precision Castings Ltd.(IPCL) was the first investment casting foundry in Gujarat formed way back in 1975. There was then only one other small investment casting foundry in the entire country. As a pioneer, IPCL had to struggle a lot to impart customer awareness and create a...

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 8.07%7.5%4.72%5.9%6.05%7.04%8.04%10.92%11.28%2.91%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 67.579.266.169.476.784.99210811995.2
Y-o-Y Gr. Rt.-17.2%-16.6%5%10.6%10.7%8.4%16.9%10.3%-19.8%
Adjusted EPS (Rs.) 6.575.970.783.173.625.718.4615.6419.69-1.46
Y-o-Y Gr. Rt.--9.1%-86.9%306.4%14.2%57.7%48.2%84.9%25.9%-107.4%
Book Value per Share (Rs.) 85.0189.8190.0793.8197.47102.36118.62133.11150.01146.12
Adjusted Net Profit 3.330.41.61.82.94.27.89.9-0.7
Net Op. Cash Flow (Rs. Cr.) 112.616.813.38.79.49.915.211.910.4
Debt to Cash Flow from Ops 2.6214.582.22.323.533.43.132.634.85.63
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.
Investment & Precision Castings Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 3.9%4.4%1.1%-19.8%
Adjusted EPS -184.6%-183.4%-155.7%-107.4%
Book Value per Share 6.28.47.2-2.6
Share Price 12% 4.2% -25.7% 1.7%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 7.976.770.853.433.785.727.6612.4313.91-0.99
Operating Profit Margin (%) 17.6616.415.616.2314.3415.3616.2219.416.8712.05
Net Profit Margin (%) 4.823.740.582.282.363.364.67.278.3-0.77
Debt to Equity 0.680.860.830.660.630.620.520.60.760.8
Working Capital Days 227221266225196184205205226297
Cash Conversion Cycle 1261271601179486958492117
Entity Percentage Holding
Promoters 50.34%
Institutions 0.20%
Non-Institutions 49.47%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Investment & Precision Castings Ltd.'s performance infers:

Investment & Precision Castings Ltd. earnings have declined by -183.4%, whereas share price has appreciated 4.2% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

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

Investment & Precision Castings Ltd. share price has appreciated 2.1% annually over the past ten years.

Investment & Precision Castings Ltd.(IPCL) was the first investment casting foundry in Gujarat formed way back in 1975. There was then only one other small investment casting foundry in the entire country. As a pioneer, IPCL had to struggle a lot to impart customer awareness and create a market for investment castings in India. This process was then unknown to the Indian market. A lot of application engineering efforts were involved in educating industries in India to switch over to

Investment & Precision Castings Ltd.(IPCL) was the first investment casting foundry in Gujarat formed way back in 1975. There was then only one other small investment casting foundry in the entire country. As a pioneer, IPCL had to struggle a lot to impart customer awareness and create a market for investment castings in India. This process was then unknown to the Indian market. A lot of application engineering efforts were involved in educating industries in India to switch over to investment castings from the traditional forging, sand castings and shell moulded castings.

IPCL is a fully equipped investment casting foundry with conventional machining facilities and state-of-the-art CNC Machine Shop. It supplies fully machined ready to use parts to automotive and other customers.

The company entered into a technical collaboration with Arwood International, USA in June 1975. After its expiry in April 1983, It signed a technical collaboration agreement with Furstlich Hohenzollernsche Huttenverwaltung, (Zollern Group), Germany, who was well known in Europe for Investment Castings. It then signed a technical licence agreement with Associated Foundries Engineering Co Ltd, Japan in December 1987, relating to producing large piece weight investment castings.

With the knowledge and experience gained through the above collaborations, and reinforced by in-house research & development, IPCL is today a technology leader in the industry, handling the widest range of material specifications and piece weights.

Product range of the company includes:

  • Automobile- IPCL caters to top automotive manufacturers in India and abroad. It is the pioneers in manufacturing investment castings in India.
  • Industrial Pumps- IPCL supplies complex and difficult parts to the pumps industry. 
  • Electrical & Instrumentation - IPCL supplies ferrous & non-ferrous investment castings to the electrical and instrumentation industry segment.
  • General Engineering- IPCL also supplies fully finished, machined and treated parts for different segments.

Milestones

  • 2009: Acquired additional 13,038 sq. metres lands for plant expansion
  • 2008: certification under ISO-14001: 2004 & OHSAS - 18001: 2007 from TUV NORD
  • 2007: Re-Certification under ISO/TS 16949 and ISO-9000 from TUV NORD
  • 2006: Acquired additional 20,000 Sq. Mt. lands for plant expansion
  • 2005: Established wind power plant, at Lamba, Dist. Jamnagar
  •  Established state of the art CNC machine shop
  •  Participation in Automotive Engineering Exposition Japan
  • 2004: Re-Certification under ISO/TS 16949 and ISO-9000 from RWTUV
  •   Established Tamboli Castings Ltd. A fully owned subsidiary as a 100% Export Oriented Unit
  •   Strategic alliance with an european foundry
  • 2003: Strategic alliance with a US foundry
  • 2002: Produced first component for BEHR India  100 Kg Piece Weight Castings developed for the first time
  • 2001: 1st time participation in Midest Fair, Paris  
  • • Certification under ISO/TS 16949 
  • • Developed Injected Ceramic Core Technology  
  • • Developed Ceramic Block Mould Process  
  • • 50 Kg Piece Weight Castings developed for the first time  
  • • Export of over Rs  60 million
  • 2000: Strategic alliance with an European foundry
  • 1999: Export of over Rs 30 million
  • 1998: Recertificationfrom under ISO- 9000 RWTUV
  • 1995: Certification under ISO-9002 from RWTUV 
  • • 1st time participation in Hannover Fair, Germany

Achievements/ recognition:

  • The company has the following Quality Systems Certification from RWTUV, Germany: ISO/TS 16949 : 2002 & ISO 9001 : 2000
  • IPCL is a ‘Self-Certified Vendor’ to Maruti Udyog Ltd., a joint venture Company of Suzuki  Motors Co., Japan
  • The company is a recognised Export House by Foreign Trade department.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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