Zuari Industries Ltd Stock Analysis

BSE: 500780 | NSE: ZUARIIND | Trading | Small Cap

BSE Share Price 02-Dec-2022 18:01
146.95 1.35 (0.93%)

DeciZen - Make an Informed Decision on Zuari Industries

Overall Rating
M-Cap below 500cr. High Risk from low Liquidity

1. Quality

2. Valuation

Fair

3. Price Trend

Zuari Industries Price Chart

P/E Ratio (SA) :
14.96
Market Cap :
437.6 Cr.
52-wk low :
123.6
52-wk high :
216.9
Bole Toh?

1. Is Zuari Industries Ltd a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that Zuari Industries Ltd is a below average quality company.

2. Is Zuari Industries Ltd undervalued or overvalued?

The key valuation ratios of Zuari Industries Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Zuari Industries Ltd a good buy now?

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

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.
Zuari Industries 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'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 5.1%2.4%5%3.1%1.6%1%2.3%3.7%6.5%3.2%-
Value Creation Index -0.6-0.8-0.6-0.8-0.9-0.9-0.8-0.7-0.5-0.8-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 99.517039.50016.62.557.2776610565
YoY Gr. Rt. %-70.6%-76.7%-100%NANA-85%2,204.8%1,258.1%-21.4%-
Adj EPS 9.24.89.89.86.9613.613.120.1-39.8
YoY Gr. Rt. %--48.4%105.5%0.1%-29.5%-12.6%125.8%-3.4%52.9%-114.9%-
BVPS (₹) 203210.7218.6345.1492701.2625.1445.3741.41,056.9859.6
Adj Net Profit 27.11428.728.820.317.74038.759.1-8.829
Cash Flow from Ops. 14.4-127-83.5-1313-7.326.614.414841.5-
Debt/CF from Ops. 0-0.9-1-6.10-3.44.431.79.431-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 22.3%NA526.7%-21.4%
Adj EPS -188.3%-184.6%-160.4%-114.9%
BVPS 20.116.519.142.6
Share Price 2.1% -12.6% 43.1% 10.5%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 4.62.34.63.51.712.12.53.4-0.31
Op. Profit Mgn % -11.90.221.400-20.5-291.616.312.13.16.2
Net Profit Mgn % 27.28.272.7001071615.167.67.6-1.45.2
Debt to Equity 00.20.10.1000.10.40.60.40.3
Working Cap Days 7666783,897008,09064,4454,178564890256
Cash Conv. Cycle 1462401,556005,05936,7311,5561242090

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 526.70%

Sales growth is good in last 4 quarters at 12.89%

Return on Equity has declined versus last 3 years average to 1.00%

Net Profit has been subdued in last 3 years -160.37%

Latest Financials - Zuari Industries Ltd.

Standalone Consolidated
TTM EPS (₹) 9.8 67.7
TTM Sales (₹ Cr.) 565 803
BVPS (₹.) 859.6 976
Reserves (₹ Cr.) 2,530 2,877
P/BV 0.17 0.15
PE 14.96 2.19
From the Market
52 Week Low / High (₹) 123.60 / 216.85
All Time Low / High (₹) 15.50 / 895.00
Market Cap (₹ Cr.) 438
Equity (₹ Cr.) 29.8
Face Value (₹) 10
Industry PE 102.3

Management X-Ray of Zuari Industries :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *7.417.417.367.317.147.147.147.147.077.07
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Zuari Industries

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

Zuari Industries Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Zuari Industries on 02-Dec-2022 18:01 is : 146.9.
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 02-Dec-2022 18:01 the market cap of Zuari Industries stood at ₹ 437.6.
The latest PE ratio of Zuari Industries as of 02-Dec-2022 18:01 is 14.96.
The latest PB ratio of Zuari Industries as of 02-Dec-2022 18:01 is 0.17
The 52-week high of Zuari Industries is ₹ 216.8 and the 52-week low is ₹ 123.6.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue / sales of Zuari Industries is ₹ 565.0 ( Cr.) .

About Zuari Industries Ltd

Zuari Global, earlier known as Zuari Agro Chemicals, formerly Zuari Industries was incorporated in 1967 as Zuari Agro Chemicals to manufacture urea and complex fertilisers. Being part of the K.K. Birla Group, the company set up a plant in Goa in partnership with US Steel Corporation. In 2012 the name of the company has changed from "Zuari Industries Limited" to "Zuari Global Limited".

In 1973 company set up a urea plant followed by its NPK plant in 1975 and DAP plant in 1984. Much later in 1998, the company was rechristened as Zuari Industries.

The company forayed into various business areas such as cement, furniture, hybrid seeds, engineering consultancy, financial services, and oil tanking through a route of subsidiaries and joint ventures.

The company’s manufacturing plant is designed, engineered and constructed by Toyo Engineering of Japan. The complete manufacturing facility encompasses four separate units for manufacturing ammonia, urea, NPK A and NPK B. The plant has an annual installed capacity of 946,000 metric tonnes of fertilisers.

Zuari Industries' marketing offices are spread over a wide marketing area covering the states of Goa, Maharashtra, Karnataka, Andhra Pradesh and Tamil Nadu.

Zuari Agro Chemicals Limited announced on 19th December, 2011 that it has formed a Joint Venture Company, MCA Phosphates Pte Ltd, with Mitsubishi Corporation, Japan for the for the purpose of investments in rock phosphate assets. Since then MCA Phosphates Pte Ltd has acquired 30% equity stake in Fosfatos del Pacifico (Fospac), of Peru for a consideration of USD 46.12 million.

Products

Fertilisers- Under fertiliser the company manufactures a range of fertilisers such as NPK in various ratios such as 0:0:60, 10:26:26,  12:32:16, 19:19:19, 18:46:0 and 0:0:50. It also produces urea. The company markets its product under the brand name Jai Kisaan.

Fungicides- The company manufactures fungicides to fight diseases such as leaf spots, wilts, blights, blasts, rusts, damping off, powdery mildew, and smuts. It has developed products such as Bensaan, Copper 25, Copsaan, Hexaan, Jk Cyclo, Mancomet, and Mancosaan.

Herbicides- Under this, the company manufactures products that are used in the pre-emergence and post emergence stages pf crop cultivation. Zuari Industries has developed products namely Atrasaan, Benzy 700, Butasaan, Glysaan 41, Kleen 58, Kleen 80, Oxyfen 235, Parachlor 24 and Prety 50.

Speciality Fertilisers- The company manufactures products to improve shelf life of crops, vegetables and fruits. Under this segment, it has developed products namely Atom 61, Boon 45, Boost 52, Calnit 19, Poorna 19 and Sulpho 50.

Insecticides- The company is engaged in manufacturing solutions to fight against bollworms, white fly and sucking pests. It has created products such as Aphasaan, Carbosaan, Dozer, Lamda-2.5, Supreme etc.

The company also produces organic manures and micronutrients.

Awards

  • 2011 - Best Video Film Award (Runner UP) Fertiliser Association of India
  • 2010 -  Gold Medal for Best Workplace Practices GTS and IFB, Goa 2010 - Gold Medal for Excellence in Education GTS and IFB, Goa 2010 - Gomant Sarvochcha Suraksha Puraskar (First Prize) Green Trangle Society
  • 2009-10  - Excellence in Fertiliser Extension Services Fertiliser Association of India
  • 2008 - Shriram Award for Third Best Article in Marketing Fertiliser Association of India
  • 2008 - Best Production Performance for Nitrogenous Fertilisers - Runner-up The Fertiliser Association of India
  • 1997-98 - Best Production Performance in Fertiliser Industry National Productivity Council India
  • 1995 - 96 - Best Production Performance for Nitrogenous Fertiliser Plants The Fertiliser Association of India
  • 1995 - 96 - Best Production Performance in Fertilizer Industry National Productivity Council India
  • 1994 - 95 - Fair Trade Practices in the Large Manufacturer’s category Jamnalal Bajaj Vyavahar Puraskar
  • 1992 - 93 - Best Production Performance for Nitrogenous Fertilisers The Fertiliser Association of India
  • 1992 - 93 - Second Best Production Performance in Fertiliser Industry National Productivity Council, India
  • 1991 - 92 - Second Best Overall Performance for Ammonia Fertiliser Association of India
  • 1991 - 92 - Award for Second Best Production Performance in Fertiliser Industry National Productivity Council, India
  • 1991 - 92 - Second Best Production Performance in Fertilizer Industry National Productivity Council, India
  • 1990 - 91 - Best Production Performance for Nitrogenous Fertilisers Fertiliser Association of India
  • 1989 - 90 - Second Best Overall Performance for Ammonia Fertiliser Association of India
  • 1988 - 89 - Best Production Performance for Nitrogenous Fertilisers Fertiliser Association of India
  • 1987 - 88 - Best Production Performance for Nitrogenous Fertilisers Fertiliser Association of India
  • 1986 - 87 - Best Production Performance for Nitrogenous Fertilisers Fertiliser Association of India
  • Zuari Industries received Million Work Hour award from National Safety Council USA.
  • The company has received Shriram Award for Third Best Article in Marketing from Fertiliser Association of India.

Zuari Group of Companies (Parent Company)

The Zuari Group of companies has business interests in agri-inputs manufacturing and delivery, financial services, sugar, cement, hybrid seeds, engineering consultancy, furniture, and oil tanking.

Zuari subsidiary companies include Indian Furniture Products, Zuari Seeds, Simon India, Zuari Infrastructure & Developers, and Zuari Developers. The joint venture companies of Zuari are Zuari Investments, Zuari Indian Oil Tanking, Zuari Maroc Phosphates and Zuari Rotem Speciality Fertilizer, Gobind Sugar Mills and Chambal Fetilizers & Chemical

Subsidiary Companies

Zuari Seeds – Zuari Seeds was incorporated in 1995 to produce and market a range of field and vegetable crop seeds and conduct R&D activities. Later in 2003 Green Tech Seeds International was merged with Zuari Seeds. The company sells products under the brand name Jai Kisaan.

Simon India- Simon India (SIL) was a joint venture between Zuari Industries and Overseas Holdings in order to conduct business in area of engineering and project management expertise for group companies and outside customers. Presently this company is 100% subsidiary of ZIL and provides engineering solutions in area of chemical, metallurgical, refinery, petrochemical, fertiliser and infrastructural sectors and many more.

Indian Furniture Products- Incorporated in 1997 the company is engaged in business of manufacturing ready to assemble furniture. The company became 100% subsidiary in the year 2002 and has capacity to manufacture 200,000 units of particle board and MDF based furniture, annually.

Zuari Infrastructure and Developers- Incorporated in 2006, the company was previously known as Zuari SEZ. The company was established to develop Special Economic Zone (SEZ) for Information Technology (IT) and Information Technology Enabled Services (ITES).

Zuari Developers- Formerly known as Anil Kumar M N Developer, the company became subsidiary on December 2007. The company conducts business activities such as developing the land for commercial/ residential purpose and will be entering into a suitable agreement with its holding Company and other agencies.

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