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IFB Industries Ltd. Stock Analysis

Small Cap
Evaluated by 1019 users | BSE: 505726 | NSE: IFBIND |
Consumer Durables - Domestic Appliances
IFB Industries, originally known as Indian Fine Blanks, started its operations in India during 1974 in collaboration with Switzerland’s Hienrich Schmid AG. The product range includes fine blanked components, tools and related machine tools like straighteners, decoilers, strip loaders...

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.
IFB Industries Ltd. has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
 Mar'98Mar'99Mar'00Mar'01Mar'02Mar'03Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 0000-9.94%-15.15%14.35%15.04%10.18%5.99%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 00001931811,7582,2202,6572,637
Y-o-Y Gr. Rt.-NANANANA-5.9%869.9%26.3%19.7%-0.8%
Adjusted EPS (Rs.) 0000-55.22-60.0112.3319.2314.058.66
Y-o-Y Gr. Rt.-NANANANANANA56%-26.9%-38.4%
Book Value per Share (Rs.) 0000-157.14-207.36115.71135.04152.43159.3
Adjusted Net Profit 0000-70.2-80.15077.956.935.1
Net Op. Cash Flow (Rs. Cr.) 00009.813.684.812444.6188
Debt to Cash Flow from Ops 000048.7137.940.470.250.691.59
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.
IFB Industries Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales NA68.8%14.5%-0.8%
Adjusted EPS NANA-11.1%-38.4%
Book Value per Share 0011.34.5
Share Price 23.9% 7.6% -7.4% 8.3%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'98Mar'99Mar'00Mar'01Mar'02Mar'03Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 000036.2234.2251.1315.329.765.55
Operating Profit Margin (%) 00000.92-2.655.787.214.734.66
Net Profit Margin (%) 0000-36.23-44.562.843.512.141.33
Debt to Equity 0000-2.39-1.870.090.060.050.46
Working Capital Days 0000010840707683
Cash Conversion Cycle 000002-3-11-4
Entity Percentage Holding
Promoters 74.96%
Institutions 9.86%
Non-Institutions 15.18%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of IFB Industries Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that IFB Industries Ltd. is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of IFB Industries Ltd.'s performance infers:

IFB Industries Ltd. earnings have grown by 0%, whereas share price has appreciated 7.6% 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 IFB Industries Ltd. share prices over the last 10 years. Here is what we found out:

IFB Industries Ltd. share price has appreciated 16.3% annually over the past ten years.

IFB Industries, originally known as Indian Fine Blanks, started its operations in India during 1974 in collaboration with Switzerland’s Hienrich Schmid AG. The product range includes fine blanked components, tools and related machine tools like straighteners, decoilers, strip loaders and others.

The engineering divisions of the company are

IFB Industries, originally known as Indian Fine Blanks, started its operations in India during 1974 in collaboration with Switzerland’s Hienrich Schmid AG. The product range includes fine blanked components, tools and related machine tools like straighteners, decoilers, strip loaders and others.

The engineering divisions of the company are located at Kolkata and Bangalore. The Bangalore unit, apart from fine blanked components, manufactures motors for white goods as well as automotive applications. It also has an ultra modern plant under subsidiary European Fine Blanking at Wrexham, Wales, UK.

It had recently acquired a microwave oven plant at Bhopal, which is being upgraded for increased production of better microwave ovens and plans to start a new line in dish-washers.

The Bangalore and Kolkata works are ISO 9001 and QS 9000 certified by TUV SDI. The Bangalore unit has been certified for TS 16949 by TUV SDI.

The launch of fully automatic washing machines in 1990, jointly with Bosch, Germany, marked IFB's entry into the white goods sector.

IFB is the premier Fine Blanker in India having Fine Blanking Presses, with capacities ranging from 90T to 800T.

The company has excellent facilities for tool design and tool making enabling it to meet up the expectations of all the automobile manufacturers in the country as well as some overseas customers, by supplying high quality fine blanking components on schedule.

Its philosophy is to deliver the parts in fully finished conditions at the customers' delivery point. Its mission is to be an enabler to the customer in design of the components during initial stage of product development

IFB has a research and development centre equipped with high-end software’s like Solid modelling, CATIA, FEA and Mold Flow for the design and analysis of various products. Besides it also has highly skilled and experienced tool designers designing fine blanking parts and tools to international standards.

The company’s international business division has become a recognized Export House dealing in not only IFB's own products but also third-party exports.

The company’s customers include Maruti Udyog, Ford India, Fiat India, Toyota Kirloskar Motors, Lucas TVS, Brakes India, Autoliv India, Rane TRW, IFB Automotive,  

Germany’s Takata Petri, BorgWarner, Avtec and Bosch chasis.

Subsidiaries:

IFB, in collaboration with Germany’s RHW and Sweden’s Electrolux, has two joint venture subsidiaries -- RHW India and RHW Autoliv India -- to manufacture automotive seat recliners or seating systems and safety equipments.

Latest Development:

The Committee of Directors of IFB Industries had recently allotted 68,00,000 equity shares of Rs 10 (at par) to IFB Automotive, a promoter group company. The promoters brought in above fund in line with the direction of Board for Industrial and Financial Reconstruction (BIFR) in the sanctioned scheme.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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