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Srikalahasthi Pipes Ltd. Stock Analysis

Small Cap
Evaluated by 1013 users | BSE: 513605 | NSE: SRIPIPES |
Castings/Forgings
Lanco Industries (LIL) was incorporated on November 1, 1991 by Lanco group of companies to manufacture pig iron using Korf (German) technology and cement. The unit is located at Rachagunneri Village on Tirupathi, Srikalahasthi road which is about 30 km from Tirupathi and 10 km from...

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'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 10.55%5.74%4.3%11.55%16.23%19.66%13.33%11.48%9.02%12.7%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 7267878649891,0841,1461,1781,5871,5591,663
Y-o-Y Gr. Rt.-8.4%9.8%14.5%9.5%5.7%2.8%34.7%-1.8%6.7%
Adjusted EPS (Rs.) 10.18-1.08-3.299.7420.8338.634.0429.4725.4841.98
Y-o-Y Gr. Rt.--110.6%NANA113.9%85.3%-11.8%-13.4%-13.5%64.8%
Book Value per Share (Rs.) 53.1752.0248.7356.7173.76175.36204.59252.43270.33303.25
Adjusted Net Profit 40.5-4.3-13.138.782.8154135138119196
Net Op. Cash Flow (Rs. Cr.) 35.9-14185145158200185114239-125
Debt to Cash Flow from Ops 9.86-352.523.12.722.222.633.871.62-4.28
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.
Srikalahasthi Pipes Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 9.7%8.9%12.2%6.7%
Adjusted EPS 17.1%15.1%7.2%64.8%
Book Value per Share 21.332.71412.2
Share Price 16.7% -18.1% -30.2% -30.4%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 20.84-2.06-6.5318.4731.9330.9917.9213.819.7514.64
Operating Profit Margin (%) 12.238.295.311.716.9523.2819.414.8312.7216.84
Net Profit Margin (%) 5.57-0.55-1.513.917.6413.411.498.677.6311.79
Debt to Equity 1.682.372.4121.460.640.60.370.310.38
Working Capital Days 185228202166150125126120191253
Cash Conversion Cycle 951211066455697880116139
Entity Percentage Holding
Promoters 48.15%
Institutions 18.04%
Non-Institutions 33.81%
Pledged *0.000.000.0031.4731.3631.3631.1831.1631.1631.16
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Srikalahasthi Pipes Ltd.'s performance infers:

Srikalahasthi Pipes Ltd. earnings have grown by 15.1%, whereas share price has depreciated -18.1% 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 Srikalahasthi Pipes Ltd. share prices over the last 10 years. Here is what we found out:

Srikalahasthi Pipes Ltd. share price has depreciated 7% annually over the past ten years.

Lanco Industries (LIL) was incorporated on November 1, 1991 by Lanco group of companies to manufacture pig iron using Korf (German) technology and cement. The unit is located at Rachagunneri Village on Tirupathi, Srikalahasthi road which is about 30 km from Tirupathi and 10 km from Srikalahasthi. The installed capacity of pig iron was 90,000 TPA and with similar capacity 90,000 TPA for cement.

Due to poor demand and other reasons, the operations of the cement unit of the company was

Lanco Industries (LIL) was incorporated on November 1, 1991 by Lanco group of companies to manufacture pig iron using Korf (German) technology and cement. The unit is located at Rachagunneri Village on Tirupathi, Srikalahasthi road which is about 30 km from Tirupathi and 10 km from Srikalahasthi. The installed capacity of pig iron was 90,000 TPA and with similar capacity 90,000 TPA for cement.

Due to poor demand and other reasons, the operations of the cement unit of the company was suspended and the unit was reengineered for producing a different product mix having potential in south India.

As a measure of forward integration project for adding value to the pig iron manufactured by the company, LIL floated an another company named Lanco Kalahasthi Castings (LKCL) on March 4,1997 to manufacture iron castings and spun pipes in the same campus of the company with an annual capacity of 40,000 TPA and 35,700 TPA respectively. Accordingly, LIL had an arrangement with LKCL for supply of molten iron and pig iron to LKCL, being a value added product, as such iron pipes manufactured by LKCL offered better returns.

However, due to falling pig iron prices, increased additional capacity in the industry, competition and the technical & financial assistance, the operations of both LIL and LKCL were affected and the company was exploring financial and technical strategic alliance with Indian / Foreign Partner.

History

  • 1991 -Incorporation of Lanco
  • 1994 -Setting up of Mini Blast Furnace with 90,000 TPA capacity 
  • 1995 -Setting up a 250 TPD Mini Cement Plant 
  • 1997 -Setting up of LKCL for manufacture of 40,000 TPA castings and 35,700 TPA DI Pipes
  • 2002 -Strategic Alliance with Electrosteel Casting Limited
  • 2002 -Infusion of Rs.2200 lakhs to the equity and financial restructuring
  • 2003 -Merger of LKCL with LIL for synergy 
  • 2003 -Capacity of Pig Iron was increased to 90,000 TPA to 150000 TPA. 
  • 2004 -Capacity of DI Pipes was increased to 90,000 TPA. 
  • 2005 -Commissioning of 150,000 TPA coke oven plant. 
  • 2005 -Setting up of Captive Power Plant of 12 MW by using the waste heat recovered from the coke oven plant.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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