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Sanghvi Forging & Engineering Ltd. Stock Analysis

Small Cap
Evaluated by 139 users | BSE: 533411 | NSE: SANGHVIFOR |
Forgings
Sanghvi Forging and Engineering incorporated in 1989, is a manufacturer and exporter of forging products for the non-automotive sector. The company has an installed capacity of 3600 MTPA for manufacturing of forged flanges and precision machined components (with single piece forging up to...

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'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Capital Employed 17.3%17.92%8.6%3.25%-1.01%2.08%0.66%-6.84%-8.96%-9.55%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 29.140.250.745.253.887.168.455.454.761.2
Y-o-Y Gr. Rt.-38.4%26.1%-10.8%19%61.9%-21.6%-18.9%-1.3%11.8%
Adjusted EPS (Rs.) 3.674.923.70.88-5.91-5.66-6.83-15.14-15.73-13.35
Y-o-Y Gr. Rt.-34.1%-24.8%-76.2%-771.6%NANANANANA
Book Value per Share (Rs.) 15.722.5846.8447.9141.5935.6229.5414.43-1.18-14.57
Adjusted Net Profit 2.83.94.71.1-7.9-7.9-10.2-22.6-23.4-19.9
Net Op. Cash Flow (Rs. Cr.) 2.57.313.94611.4-38.820.515.434.926.4
Debt to Cash Flow from Ops 4.192.152.821.346.44-3.366.28.243.223.67
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.
Sanghvi Forging & Engineering Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 8.6%2.6%-3.6%11.8%
Adjusted EPS -215.4%NANANA
Book Value per Share -199.2-181.1-1790
Share Price -3.7% -16.3% -18.9% -39.6%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Equity (%) 27.0126.1812.111.86-13.47-14.78-21.51-68.87-237.53169.53
Operating Profit Margin (%) 20.819.8816.6514.5111.5318.5120.075.292.946.71
Net Profit Margin (%) 9.659.789.252.48-14.59-9.03-14.89-40.69-42.81-32.5
Debt to Equity 0.860.870.661.011.332.632.895.9-63.67-4.47
Working Capital Days 177203262304212165235271306282
Cash Conversion Cycle 14022451451046193116131108
Entity Percentage Holding
Promoters 67.70%
Non-Institutions 32.30%
Pledged *53.3953.3953.3953.3953.3853.3863.2963.2963.2763.27
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Sanghvi Forging&Engg's performance infers:

Sanghvi Forging&Engg earnings have grown by 0%, whereas share price has depreciated -16.3% 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.

Data is not available for this company

Sanghvi Forging and Engineering incorporated in 1989, is a manufacturer and exporter of forging products for the non-automotive sector. The company has an installed capacity of 3600 MTPA for manufacturing of forged flanges and precision machined components (with single piece forging up to 4 MT) in the area of open and closed die forgings. The company manufactures forged flanges, forgings and machined components for various industries like oil & gas, fertilizers, power,

Sanghvi Forging and Engineering incorporated in 1989, is a manufacturer and exporter of forging products for the non-automotive sector. The company has an installed capacity of 3600 MTPA for manufacturing of forged flanges and precision machined components (with single piece forging up to 4 MT) in the area of open and closed die forgings. The company manufactures forged flanges, forgings and machined components for various industries like oil & gas, fertilizers, power, desalination & water treatment, ship building, defence, fabrication of process equipments, instrumentation etc. It is also capable of manufacturing both standardized as well as customized products.

The company’s existing manufacturing plant consists of forging shop, die shop, heat treatment shop, conventional and CNC machining shop backed by related quality assurance equipments. Presently, it is using steam hammer technology for the open die forging and can produce single forged piece upto 4 MT. The key factor in its forging business is the vendor/consultant approval, given the critical end use of the product. It has, in the last few years, been successful in obtaining various such approvals in both the domestic and international markets. It shares a good client relationship worldwide where it receive majority of the business from repeat clients.

The company’s products have been inspected and accepted by third party inspection agencies like Lloyds (LRIS), BVIS, SGS, TOYO, PDIL, DNV, ABS, TICB, UHDE India, DAE, NPCIL, etc. The quality of its products has been certified to be satisfactory in third party inspections. The company has also established market for its products overseas. It regularly exports various countries mainly to Europe, Middle East and Canada.

Product of the company

  • Open Die Forgings
  • Forged Flanges
  • Closed Die Forgings
  • Machined Components
  • Heavy Forging

Milestones

  • 1992: Set-up the existing factory at 244/6-7 GIDC Industrial Estate, Waghodia District, Vadodara with an installed capacity of 300 MTPA for close die forgings
  • 1996: Obtained its first major approval from the Technical Development Committee of India
  • 2002: Obtained Canadian Registration Number (CRN) for 13 provinces of Canada enabling us to market the products in Canada
  • 2003: Selected by Center for Promotion of Imports from Developing Countries, Netherlands, to promote the products in European Union
  • 2005: Approved by SHELL to supply materials for various projects in India
  • 2005: Enhancement of closed die forging installed capacity upto 1200 MTPA
  • 2006: Establishment of new open die forging plant with an installed capacity of an installed capacity of 2400 MTPA
  • 2006: Allotted land at Waghodia Industrial Estate, near existing factory land for New Project
  • 2008: Implementation of SAP-Enterprise resource planning
  • 2009: Obtained approval from GE, PDIL and EIL
  • 2009: Obtained approval from Kuwait National Petroleum Corporation (KNPC), Mazgaon Dock and IBR
  • 2010: Placed firm order for import of forging press and manipulator for New Project
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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