Zuari Industries Ltd - Stock Valuation and Financial Performance

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

Zuari Industries Share Price

325.85 3.65 1.13%
as on 28-Mar'24 16:01

DeciZen - make an informed investing decision on Zuari Industries

Overall Rating
Bole Toh

1. Quality

2. Valuation

Somewhat overvalued

3. Price Trend

Zuari Industries stock performance -

mw4me loader
P/E Ratio (SA):
13.65
Market Cap:
977.4 Cr.
52-wk low:
104.5
52-wk high:
354

Is Zuari Industries Ltd an attractive stock to invest in?

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 Somewhat overvalued zone.

3. Is Zuari Industries Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of Zuari Industries Ltd is likely to Rise 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'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 2.4%5%3.1%1.6%1%2.3%3.7%6.5%3.2%3.2%-
Value Creation
Index
-0.8-0.6-0.8-0.9-0.9-0.8-0.7-0.5-0.8-0.8-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 17039.50016.62.557.2776610812751
Sales YoY Gr.--76.7%-100%NANA-85%2,204.8%1,258.1%-21.4%33%-
Adj EPS 4.89.89.86.9613.613.120.1-35.424.1
YoY Gr.-105.5%0.1%-29.5%-12.6%125.8%-3.4%52.9%-114.9%NA-
BVPS (₹) 210.7218.6345.1492701.2625.1445.3741.41,056.9748804.4
Adj Net
Profit
1428.728.820.317.74038.759.1-8.816.172
Cash Flow from Ops. -127-83.5-1313-7.326.614.414841.552.2-
Debt/CF from Ops. -0.9-1-6.10-3.44.431.79.43123.4-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 19%117.8%142.2%33%
Adj EPS 1.4%-2.2%-25.6%NA
BVPS15.1%1.3%18.9%-29.2%
Share Price 16% 24.3% 59.8% 200.6%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
2.34.63.51.712.12.53.4-0.30.63.1
Op. Profit
Mgn %
0.221.400-20.5-291.616.312.13.18.28.3
Net Profit
Mgn %
8.272.7001071615.167.67.6-1.429.5
Debt to
Equity
0.20.10.1000.10.40.60.40.6-
Working Cap
Days
6783,897008,09064,4454,178564890588153
Cash Conv.
Cycle
2401,556005,05936,7311,55612421113434

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 3.10%

Sales growth is growing at healthy rate in last 3 years 142.19%

Debt to equity has declined versus last 3 years average to 0.55

Net Profit has been subdued in last 3 years -25.63%

Sales growth is not so good in last 4 quarters at 4.32%

Latest Financials - Zuari Industries Ltd.

Standalone Consolidated
TTM EPS (₹) 24.1 251.3
TTM Sales (₹ Cr.) 751 858
BVPS (₹.) 804.4 1,103.4
Reserves (₹ Cr.) 2,366 3,256
P/BV 0.41 0.30
PE 13.65 1.31
From the Market
52 Week Low / High (₹) 104.50 / 353.95
All Time Low / High (₹) 15.50 / 895.00
Market Cap (₹ Cr.) 977
Equity (₹ Cr.) 29.8
Face Value (₹) 10
Industry PE 76.7

Management X-Ray of Zuari Industries:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *7.147.147.147.077.077.077.070.000.000.00
* 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 (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales170400017257776610812
Operating Expenses 17035910201048683595749
Manufacturing Costs101017131220354635
Material Costs15626-10-17-3-1218567462635
Employee Cost 4156555353742
Other Costs 8744446455037
Operating Profit 05-9-10-3-79941663
Operating Profit Margin (%) 0.0%11.8%---20.5%-291.0%16.3%12.1%2.6%7.8%
Other Income 43414134244889165217149
Interest 211-101844161196158
Depreciation 0000000262424
Exceptional Items 1501000-37-21-5-6
Profit Before Tax 5634342420331750725
Tax 307532-84-19-86
Profit After Tax 26272920184013691518
PAT Margin (%) 15.4%67.8%--108.5%1,626.1%22.6%8.9%2.5%2.3%
Adjusted EPS (₹)8.99.110.07.06.113.74.423.65.26.2
Dividend Payout Ratio (%)11%11%10%14%16%7%23%8%58%16%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 6206441,0161,4482,0641,8401,3112,1833,1122,228
Share Capital 29292929292929292930
Reserves 5916149861,4192,0351,8111,2812,1533,0822,198
Minority Interest0000000000
Debt1108000251064231,2081,081920
Long Term Debt8080000713551,017855688
Short Term Debt30000253567191226233
Trade Payables109115446310301208
Others Liabilities 481412047380111126321414447
Total Liabilities 8878661,2211,5272,1732,0621,8654,0224,9083,803

Fixed Assets

Gross Block141523322612617632
Accumulated Depreciation110001194118140
Net Fixed Assets131422212517499492
CWIP 0000000271
Investments 4354358191,1671,7811,5649921,8572,9942,043
Inventories195205215233236259241632646505
Trade Receivables47000002462170
Cash Equivalents 741410357571540
Others Assets190207184121144236571910725652
Total Assets 8878661,2211,5272,1732,0621,8654,0224,9083,803

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity -127-84-1313-727141484252
PBT 5634342420331750725
Adjustment -51-26-30-19-20-23-5472547
Changes in Working Capital -74-80-8-8-6-994527-5
Tax Paid -58-11-1015-126-76-18-15
Cash Flow From Investing Activity 311272384-7-116-307-169270191
Capex -1000000-6-1213
Net Investments -4119-3460-3-41-57-3853-41
Others 3675724-4-76-251-125230219
Cash Flow From Financing Activity 92-46-12-94208229424-305-242
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing 8000-80083292234-202-116
Interest Paid -11-12-9-10-1-8-27-136-186-129
Dividend Paid -6-3-3-3-3-3-3-6-9-3
Others 29-31-1-1241032-69935
Net Cash Flow -4-3-336-81371
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)4.294.243.541.661.022.060.823.980.580.69
ROCE (%)8.786.223.621.881.172.013.297.935.14.65
Asset Turnover Ratio0.210.05000.0100.030.260.140.19
PAT to CFO Conversion(x)-4.88-3.11-0.450.65-0.390.681.082.142.82.89
Working Capital Days
Receivable Days80217007276112021
Inventory Days2251,849005,15801,595205382259
Payable Days144758-41-72-529-138111102241146

Zuari Industries Ltd Stock News

Zuari Industries Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Zuari Industries on 28-Mar-2024 16:01 is ₹325.9.
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 28-Mar-2024 16:01 the market cap of Zuari Industries stood at ₹977.4.
The latest P/E ratio of Zuari Industries as of 28-Mar-2024 16:01 is 13.65.
The latest P/B ratio of Zuari Industries as of 28-Mar-2024 16:01 is 0.41.
The 52-week high of Zuari Industries is ₹353.9 and the 52-week low is ₹104.5.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Zuari Industries is ₹751.0 ( 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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