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Videocon Industries Ltd. Stock Analysis

Small Cap
Evaluated by 1439 users | BSE: 511389 | NSE: VIDEOIND |
Consumer Durables - Electronics
Videocon Industries, established two decades ago, is a global conglomerate with market capitalization of $2.5 billion. Videocon's businesses consists of manufacturing, marketing & distribution of consumer electronics products and oil & gas extraction.Videocon’s R & D centres...

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.
Videocon 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
 Sep'08Sep'09Dec'10Dec'11Jun'13Dec'14Dec'15Mar'17Mar'18Mar'19
Return on Capital Employed 10.1%5.94%8.16%5.49%6.16%7.41%4.25%1.01%-10.03%-10.98%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 9,7549,16311,52812,65012,10512,64512,4189,8642,766907
Y-o-Y Gr. Rt.--6.1%25.8%9.7%-4.3%4.5%-1.8%-20.6%-72%-67.2%
Adjusted EPS (Rs.) 43.2819.9623.0221.01-0.560.6-6.21-46-147.24-172.67
Y-o-Y Gr. Rt.--53.9%15.3%-8.7%-102.7%NA-1135%NANANA
Book Value per Share (Rs.) 293.7310.53248.73327.45211.29206.55308.35200.84124.89-78.81
Adjusted Net Profit 998460695637-17.819.9-208-1,538-4,925-5,775
Net Op. Cash Flow (Rs. Cr.) -1,193647-388-5,325-4533,6546,3603,925-829-581
Debt to Cash Flow from Ops -6.7114.03-24.26-3.5-33.844.433.744.26-29.57-49.2
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.
Videocon Industries Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales -23.2%-40.5%-58.2%-67.2%
Adjusted EPS -216.6%NANANA
Book Value per Share -186.4-182.1-163.5-163.1
Share Price -36.1% -52.8% -41.5% 125.7%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Sep'08Sep'09Dec'10Dec'11Jun'13Dec'14Dec'15Mar'17Mar'18Mar'19
Return on Equity (%) 15.986.5210.396.57-0.270.29-2.01-20.56-78.33-749.37
Operating Profit Margin (%) 24.5320.4519.7919.6417.5218.17189.69-76.15-124.78
Net Profit Margin (%) 10.235.026.035.03-0.150.16-1.67-15.6-178.04-637
Debt to Equity 1.171.261.251.872.272.342.312.495.87-10.84
Working Capital Days 2013012444474404526135542,3596,490
Cash Conversion Cycle 9512397106657010899364494
Entity Percentage Holding
Promoters 40.59%
Institutions 6.38%
Non-Institutions 53.03%
Pledged *98.7398.7298.6498.620.0098.6298.6298.6298.1698.16
* Pledged shares as % of Promoter's holding (%)

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

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

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

Videocon Industries Ltd. earnings have grown by 0%, whereas share price has depreciated -52.8% 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.

We analysed the performance of Videocon Industries Ltd. share prices over the last 10 years. Here is what we found out:

Videocon Industries Ltd. share price has depreciated -35.8% annually over the past ten years.

Videocon Industries, established two decades ago, is a global conglomerate with market capitalization of $2.5 billion. Videocon's businesses consists of manufacturing, marketing & distribution of consumer electronics products and oil & gas extraction.

Videocon’s R & D centres are developing technologies that include True Flat, Slim, Extra Slim, Plasma & LCDs. It want to market these products at the earliest.

In the Oil & Gas business, company

Videocon Industries, established two decades ago, is a global conglomerate with market capitalization of $2.5 billion. Videocon's businesses consists of manufacturing, marketing & distribution of consumer electronics products and oil & gas extraction.

Videocon’s R & D centres are developing technologies that include True Flat, Slim, Extra Slim, Plasma & LCDs. It want to market these products at the earliest.

In the Oil & Gas business, company has all the basic operator capabilities of a prospecting entity, it is looking to add more explorations and production depth as also oil bearing assets. The group will also get into gas distribution in India significantly.

The company operates in four key sectors:-

Consumer Electronics, Home Appliances & Compressor manufacturing: It produces consumer products like colour televisions, washing machines, air conditioners, refrigerators, microwave ovens and many other home appliances, selling them through  their sales and service network in India.It has in house compressor manufacturing technology for refrigerators .

Display industry and its components: By acquiring Thomson SA’s colour picture-tube manufacturing business which  is spread across China, Poland, and Mexico, Videocon is able to improve the technology in existing products in slim tube, plasma, LCD, and other flat-panel display lines as well as create new innovative products.

Colour Picture Tube Glass : Videocon is one of the largest Colour Picture Tube (CPT) glass manufacturers in the world with a high level of experience and technical expertise operating through Poland and India. Videocon produces a superior range of panels and funnels to meet the demand for large-size, flat, and slim CRT display products.

Oil and Gas: An important asset for the group is its Ravva oil field with one of the lowest operating costs in the world producing 50,000 barrels of oil per day. The group has ambitious plans for expansion in this sector globally.

With strategically located manufacturing bases and an enviable distribution network of around 90 branch offices, 10,000 distributors & 400 after-sales service centres across lndia, company enjoys a unique 80% plus penetration in the market place.

Videocon is doing cost cutting in various stages, which includes factories in Europe, increasing automation and improvement of efficiency in China, and a lot more - are in various stages of implementation.

Videocon Group of Companies has been awarded SAP ACE 2007 – Awards for Customer Excellence.

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

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