X

Arcotech Ltd. Stock Analysis

Small Cap
Evaluated by 462 users | BSE: 532914 | NSE: ARCOTECH |
Metal - Non Ferrous
Arcotech has been promoted by Arvind K Saraf in 1981 for manufacturing internationally acceptable quality of copper and brass strips and foils. The organization is managed by a team of highly qualified and experienced professionals from the non ferrous industry and has moreover, established...

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.
Arcotech Ltd. has not performed well majority of the past ten years indicating its past ten year financial track record is not good
Value Creation
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Capital Employed 15.79%19.86%19.65%18.25%20%17%14.55%13.54%9.83%-8.37%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 93.1202253369625656728734764452
Y-o-Y Gr. Rt.-117.2%25%46%69.3%4.9%11%0.8%4.1%-40.8%
Adjusted EPS (Rs.) 0.771.411.772.33.153.213.472.60.36-8.81
Y-o-Y Gr. Rt.-83.1%25.5%29.9%37%1.9%8.1%-25.1%-86.2%-2547.2%
Book Value per Share (Rs.) 4.55.927.699.9812.9115.881921.6121.6212.85
Adjusted Net Profit 7.714.117.72333.133.736.427.33.8-92.5
Net Op. Cash Flow (Rs. Cr.) -1810.422.32126.241.2-2.647.856.1-94.5
Debt to Cash Flow from Ops -2.526.723.596.728.174.95-122.816.286.18-4.77
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.
Arcotech Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 19.2%-6.3%-14.7%-40.8%
Adjusted EPS -231.1%-222.8%-236.4%-2547.2%
Book Value per Share 12.4-0.1-12.2-40.6
Share Price -8.5% -51.1% -65.8% 18.6%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Equity (%) 18.652726.0225.2627.5122.3119.8912.81.65-47.69
Operating Profit Margin (%) 18.1516.7815.6813.9214.5414.1513.4914.2710.44-14.91
Net Profit Margin (%) 8.246.9576.225.295.1453.720.49-20.46
Debt to Equity 1.011.181.041.411.581.221.571.321.532.8
Working Capital Days 133137176180159186203240264431
Cash Conversion Cycle 7893107109100118121138159316
Entity Percentage Holding
Promoters 39.96%
Institutions 0.18%
Non-Institutions 59.86%
Pledged *69.3071.0969.9167.6267.6267.6267.6245.6545.6545.65
* Pledged shares as % of Promoter's holding (%)

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

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

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

Arcotech Ltd. earnings have declined by -222.8%, whereas share price has depreciated -51.1% 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 Arcotech Ltd. share prices over the last 10 years. Here is what we found out:

Arcotech Ltd. share price has depreciated -12.3% annually over the past ten years.

Arcotech has been promoted by Arvind K Saraf in 1981 for manufacturing internationally acceptable quality of copper and brass strips and foils. The organization is managed by a team of highly qualified and experienced professionals from the non ferrous industry and has moreover, established itself as one of the leading manufacturers of copper/brass strips and foils in the country by creating a niche for itself by producing micro thin foils up to 0.04 mm with close tolerance. The company has

Arcotech has been promoted by Arvind K Saraf in 1981 for manufacturing internationally acceptable quality of copper and brass strips and foils. The organization is managed by a team of highly qualified and experienced professionals from the non ferrous industry and has moreover, established itself as one of the leading manufacturers of copper/brass strips and foils in the country by creating a niche for itself by producing micro thin foils up to 0.04 mm with close tolerance. The company has now expanded and increased its product range to include other non ferrous alloys like phosphor bronze, nickel silver, cupro nickel, aluminium bronze, tin bearing copper and silver bearing copper, etc. These are produced in the form of semis like ingots, strips, sheets, plates, foils, bus bars, etc. Moreover, the company plans to broaden the already wide range of products to include products like tubes, coin blanks, rods and wires.

In order to develop its existing facilities and to make best use of the technological advances of recent years, the company has relocated itself to its modern factory premises at Bawal, Haryana. Arcotech also continually invests in human resources and machinery to further facilitate the company’s vision.

The company has a rigorous quality control system with a state of art laboratory to achieve precise dimensions with close tolerances.

Industrial Growth Centre, Bawal is conveniently located on the National Highway No. 8 and is only 60 km from the Indira Gandhi International Airport at New Delhi. Industrial Growth Centre, Bawal is earmarked for large and strategic industries and is a showcase for the Haryana government. Leading automobile companies like Maruti Suzuki, Honda Motors, and Hero Honda, together with their ancillary units, are in close proximity.

Arcotech Ltd is the lead company of the Arcotech Group, which aims at creating a benchmarked, professional venture fostering learning and continuous growth in every aspect of its presence. Arcotech Info Pvt Ltd, a group company, is an information technology and services company. It offers effective evaluation, implementation, integration and support of Automatic Identification & Data Capture (AIDC) technologies and biometrics. It is focused on delivery of solutions to the government, healthcare industry and banking sector. Medsave Healthcare (TPA) Ltd, a joint venture with Medsave USA, is a third party administrator for medical insurance and provides healthcare services. The company has a nationwide presence with more than 30 branches across India.

Products

  • ETP Grade Copper
  • DHP Grade Copper
  • Tin Bearing Copper
  • Silver Bearing Copper
  • Brass 90/10 - Cu Zn 10
  • Brass 70/30 - Cu Zn 30
  • Brass 63/37 - Cu Zn 37
  • Brass 60/40 -Cu Zn 40
  • Leaded Brass
  • Nickel silver
  • Phosphor bronze
  • Cupro-nickel
  • Aluminium bronze

Certification/ Recognition

  • ISO 9001:2000 certifications
  • ISO 14001: 2004 certifications
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

Callback