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Pennar Industries Ltd. Stock Analysis

Small Cap
Evaluated by 908 users | BSE: 513228 | NSE: PENIND |
Steel & Iron Products
Pennar Industries, commenced manufacture of cold rolled Steel Strips in 1988 at Isnapur (45 km from Hyderabad) with an installed capacity of 30,000 MTPA. The company achieved profits right from the first year of its operation followed by declaration of dividend from the second year. The...

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 21.9%17%10.64%5.94%8.59%9.02%10.25%16.84%11.55%9.85%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 1,1091,0618818128599039881,7502,1162,098
Y-o-Y Gr. Rt.--4.3%-17%-7.8%5.8%5.1%9.4%77.2%20.9%-0.9%
Adjusted EPS (Rs.) 5.694.452.551.051.782.252.375.144.363.61
Y-o-Y Gr. Rt.--21.8%-42.7%-58.8%69.5%26.4%5.3%116.9%-15.2%-17.2%
Book Value per Share (Rs.) 18.2821.5722.952425.6627.9129.2339.6543.6547.96
Adjusted Net Profit 69.554.331.112.621.427.128.578.366.452.4
Net Op. Cash Flow (Rs. Cr.) 84.774.653.968.321.710187.21.1171198
Debt to Cash Flow from Ops 1.391.591.961.746.951.911.56328.132.572.26
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.
Pennar Industries Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 7.3%19.5%28.5%-0.9%
Adjusted EPS -4.9%15.2%15.1%-17.2%
Book Value per Share 11.313.3189.9
Share Price -7.8% -19.9% -35.6% -40.2%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 28.9519.1510.043.976.567.848.0716.3910.467.7
Operating Profit Margin (%) 12.6611.149.186.458.088.728.8410.618.218
Net Profit Margin (%) 6.265.113.531.552.4932.894.483.142.5
Debt to Equity 0.510.440.370.40.480.570.390.580.660.64
Working Capital Days 8289115155182177164156181187
Cash Conversion Cycle 606580828173447010399
Entity Percentage Holding
Promoters 37.69%
Institutions 16.23%
Non-Institutions 46.08%
Pledged *7.427.427.427.426.056.056.051.402.792.80
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

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

Pennar Industries Ltd. earnings have grown by 15.2%, whereas share price has depreciated -19.9% 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 Pennar Industries Ltd. share prices over the last 10 years. Here is what we found out:

Pennar Industries Ltd. share price has depreciated -10% annually over the past ten years.

Pennar Industries, commenced manufacture of cold rolled Steel Strips in 1988 at Isnapur (45 km from Hyderabad) with an installed capacity of 30,000 MTPA. The company achieved profits right from the first year of its operation followed by declaration of dividend from the second year. The company increased its manufacturing capacity to 50,000 MTPA in the year 1997.  

Propelled by liberalization and globalization of the Indian economy, Pennar acquired Nagarjuna Steel Ltd.,

Pennar Industries, commenced manufacture of cold rolled Steel Strips in 1988 at Isnapur (45 km from Hyderabad) with an installed capacity of 30,000 MTPA. The company achieved profits right from the first year of its operation followed by declaration of dividend from the second year. The company increased its manufacturing capacity to 50,000 MTPA in the year 1997.  

Propelled by liberalization and globalization of the Indian economy, Pennar acquired Nagarjuna Steel Ltd., Patancheru (32 KM from Hyderabad) and Press Metal, a unit of Tube Investment(TI), at Tarapur near Mumbai.

Pennar’s fourth manufacturing facility is located at Chennai and manufactures profiles and components for the auto sector. The facility also services a steel service center.

Pennar is now a multi-location, multi-product company manufacturing cold rolled steel strips & tubes, cold rolled formed sections, electrostatic precipitators, pre-engineered building systems, sheet metal components, and road safety systems.

Products manufactured by the company include:

  • Cold Rolled Formed Profiles -Products are used in Commercial & Passenger Vehicles, Railway Coaches & Wagons, Industrial Buildings, Pollution Control Equipments and Door & Window Frames for Housing.
  • Pre-Engineered Building Systems-The system consists of elegant lattice-type portals made of cold formed profiles or portals of plate girder construction. Roofing and -cladding are made of galvanized/galvalume colour-coated steel sheet profiles as per customer’s specifications.
  • Engineered Components Division(Ecd)-Engineered Components Division Supplies various pressed steel components for the following sectors:             -Refrigeration / White Goods (Compressor Shells)              -Automobiles (Seating Systems, Rotor Cups)
  • Electro Static Precipitators (Esp)-The components include Collecting Electrodes & Discharge Electrodes.
  • Metal Crash Barrier-Pennar Industries Limited is the pioneer in the field of Road safety systems(Metal crash barriers) in India which were initially manufactured under licence from Voest Alpine Industrial Services (VAIS) Austria.
  • Cold Rolled Steel Strips(Crss)-The Cold Rolled Steel Strips Division, with facilities at Patancheru & Isnapur, has a combined annual capacity of 120,000 Metric Tons. Pennar manufactures steel strips up to 720 mm width and thickness range of 0.25 - 4.5 mm both in coil and sheet form.
  • ERW TUBES

Clientele

Major customers of the company include: TVS Motors, Electrolux, Honda Siel, Tata Motors, Eicher Motors, Alstom Power, LLOYDS, N.R Steels, L&T -ECC Division and many more.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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