Permanent Magnets Ltd - Stock Valuation and Financial Performance

BSE: 504132 | NSE: PERMAGNET | Electric Equipment | Small Cap

Permanent Magnets Share Price

961.30 19.55 2.08%
as on 11-Oct'24 16:01

DeciZen - make an informed investing decision on Permanent Magnets

Overall Rating
Bole Toh

1. Quality

2. Valuation

Overvalued

3. Price Trend

Permanent Magnets stock performance -

mw4me loader
P/E Ratio (SA):
38.07
Market Cap:
826.6 Cr.
52-wk low:
900
52-wk high:
1,615

Is Permanent Magnets Ltd an attractive stock to invest in?

1. Is Permanent Magnets Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Permanent Magnets Ltd is a good quality company.

2. Is Permanent Magnets Ltd undervalued or overvalued?

The key valuation ratios of Permanent Magnets Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is Permanent Magnets Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Permanent Magnets 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 Permanent Magnets:

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.
Permanent Magnets Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 7.9%12.6%8.3%11.6%29.9%60.3%44.4%39.5%35.1%40.9%-
Value Creation
Index
-0.4-0.1-0.4-0.21.13.32.21.81.51.9-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 54.558.767.571.992.8121107117130183212
Sales YoY Gr.-7.6%14.9%6.6%29%30.3%-11.8%9.5%11%41.1%-
Adj EPS 1.3-1.21.60.55.516.614.918.720.131.625.3
YoY Gr.--193.1%NA-66.5%932.1%203.5%-10.5%25.6%7.5%57.3%-
BVPS (₹) 12.312.613.715.121.438.755.774.595.6129160.7
Adj Net
Profit
1.1-1.11.40.54.714.312.816.117.327.122
Cash Flow from Ops. 4.54.15.19.41.39.911.56.43.711.5-
Debt/CF from Ops. 4.54.63.51.311.10.90.20.30.80.5-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 14.4%14.5%19.7%41.1%
Adj EPS 42.4%42%28.5%57.3%
BVPS29.9%43.3%32.3%34.9%
Share Price 60.6% 59% 34.2% -37.1%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
10.3-9.8123.73055.331.528.723.628.117.4
Op. Profit
Mgn %
10.34.16.24.59.11919.421.720.722.616.2
Net Profit
Mgn %
2.1-1.820.65.111.81213.813.314.810.2
Debt to
Equity
1.91.71.50.90.80.30000.1-
Working Cap
Days
297271231209177164192181212212116
Cash Conv.
Cycle
1321229378535490839610790

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 19.70%

Net Profit is growing at healthy rate in last 3 years 28.53%

Sales growth is good in last 4 quarters at 11.66%

Return on Equity has declined versus last 3 years average to 17.40%

Latest Financials - Permanent Magnets Ltd.

Standalone Consolidated
TTM EPS (₹) 25.3 21.5
TTM Sales (₹ Cr.) 212 212
BVPS (₹.) 160.7 156.6
Reserves (₹ Cr.) 130 126
P/BV 5.98 6.14
PE 38.07 44.78
From the Market
52 Week Low / High (₹) 900.00 / 1615.00
All Time Low / High (₹) 1.00 / 1721.00
Market Cap (₹ Cr.) 827
Equity (₹ Cr.) 8.6
Face Value (₹) 10
Industry PE 108.2

Management X-Ray of Permanent Magnets:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.630.630.630.630.630.630.630.630.630.63
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Permanent Magnets

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Sales59677293121107117130183201
Operating Expenses 56646984988691103141166
Manufacturing Costs8101112161617212729
Material Costs384145566451565992111
Employee Cost 45567878911
Other Costs 78810111211151414
Operating Profit 2438232125274135
Operating Profit Margin (%) 4.1%5.3%4.5%9.1%19.0%19.3%21.7%20.7%22.6%17.6%
Other Income 2010131454
Interest 3222211112
Depreciation 1111233457
Exceptional Items 0001000000
Profit Before Tax 1117211922264031
Tax 00016567108
Profit After Tax 0115151416193023
PAT Margin (%) 0.7%1.4%1.6%5.8%12.3%13.4%13.8%14.7%16.3%11.3%
Adjusted EPS (₹)0.51.11.46.317.216.718.822.234.626.4
Dividend Payout Ratio (%)0%0%0%0%0%0%5%5%4%7%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24

Equity and Liabilities

Shareholders Fund 1112131833486482111132
Share Capital 9999999999
Reserves 2341025395574102124
Minority Interest0000000000
Debt181812148223612
Long Term Debt34432222410
Short Term Debt1514811600122
Trade Payables19182124201522252927
Others Liabilities 2212574539
Total Liabilities 50494658667292114149181

Fixed Assets

Gross Block14176791619222853
Accumulated Depreciation1113134711121421
Net Fixed Assets3445598101432
CWIP 0000000000
Investments 0000000000
Inventories23201513181921375355
Trade Receivables17182029322733355140
Cash Equivalents 22233823151240
Others Assets5548988161914
Total Assets 50494658667292114149181

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Cash Flow From Operating Activity 45911011641119
PBT 1117211922264031
Adjustment 4332334579
Changes in Working Capital -015-6-8-6-14-21-27-12
Tax Paid 000-1-6-5-5-6-9-9
Cash Flow From Investing Activity -1-3-2-2-2-2-2-4-10-18
Capex -1-3-2-2-2-2-2-4-10-18
Net Investments 0000000000
Others 0000000000
Cash Flow From Financing Activity -3-2-71-7-9-3-3-12
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing 010-1000026
Interest Paid -3-2-2-2-2-100-1-1
Dividend Paid 0000000-1-1-1
Others 1-2-63-5-7-2-1-2-2
Net Cash Flow 0000111-313
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Ratios
ROE (%)3.888.239.5834.557.3335.328.8426.0430.818.69
ROCE (%)12.588.2511.629.9360.2744.3539.4935.0940.8925.19
Asset Turnover Ratio1.221.411.511.771.941.551.421.251.391.22
PAT to CFO Conversion(x)N/A590.20.670.790.380.210.370.83
Working Capital Days
Receivable Days949196969210194968682
Inventory Days1491138856476363829198
Payable Days17316415614512512512114510793

Permanent Magnets Ltd Stock News

Permanent Magnets Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Permanent Magnets on 11-Oct-2024 16:01 is ₹961.3.
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 11-Oct-2024 16:01 the market cap of Permanent Magnets stood at ₹826.6.
The latest P/E ratio of Permanent Magnets as of 11-Oct-2024 16:01 is 38.07.
The latest P/B ratio of Permanent Magnets as of 11-Oct-2024 16:01 is 5.98.
The 52-week high of Permanent Magnets is ₹1,615 and the 52-week low is ₹900.0.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Permanent Magnets is ₹212.2 ( Cr.) .

About Permanent Magnets Ltd

Permanent Magnets Ltd, is one of the flagship companies of Taparia Group, Mumbai and also one of the five leading manufacturers of Alnico Cast Magnets and Yoke Assemblies in the world. It is a front-runner among young, dynamic and growing companies in India. It was established in 1961 at Mumbai. It has Sales Offices at Delhi, Mumbai, and Bangalore. PML magnets are used extensively in key sectors of Indian industry such as electronics, electricity meters, automobile industries, telecommunication, defense, space research, aeronautics, railways and electricity generation.

Permanent Magnets is the largest producer of Alnico magnets in India. PML’s customer base is large and wide spread. It has 70% market share in India and a very respectable presence in Europe, USA, Australia, South America, South East Asia, Egypt and Malaysia. The customers are largely OEM's. PML sells to the trade also. PML started operations with the Alnico facility in 1963. This capability was augmented and upgraded with the technical support of Sumitomo Special Metals Co. of Japan. The current manufacturing capacity is 400 T per annum of cast alloy permanent magnets.

PML began manufacturing magnets in 1963 in collaboration with Centro Magneti Permanenti of Italy. Production began with a 400-tonne capacity plant for Cast Alnico magnets at PML’s Borivali Plant, in Mumbai. New grades of Alnicos were introduced with a technology tie-up in 1983 with Sumitomo Special Metal Co. (a leading Japanese manufacturer.

Success led to diversification and growth. Magnetic Systems were added to production lines and  special applications cell handles industrial problems of separation, conveying, lifting, etc. 

Product range of the company includes:

  • Mu Metal Components
  • Standard Magnetic Assemblies
  • Custom Magnetic Assemblies
  • Alnico Magnets
  • Ferrite Magnets
  • NdFeB Magnets
  • Assembly For Energy Meters
  • Cow Magnets

Achievements/ recognition:

  • An ISO:9001:2000 certified company.
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