Pennar Industries Ltd Stock Analysis

BSE: 513228 | NSE: PENIND | Steel & Iron Products | Small Cap

BSE Share Price 23-Sep-2022 18:01
45.20 -2.85 (-5.93%)

DeciZen - Make an Informed Decision on Pennar Industries

Overall Rating

1. Quality

2. Valuation

Fair

3. Price Trend

Semi Strong

Pennar Industries Price Chart

P/E Ratio (SA) :
17.09
Market Cap :
610.6 Cr.
52-wk low :
25.7
52-wk high :
50.1
Bole Toh?

1. Is Pennar Industries Ltd a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that Pennar Industries Ltd is a below average quality company.

2. Is Pennar Industries Ltd undervalued or overvalued?

The key valuation ratios of Pennar Industries Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Pennar Industries Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Pennar Industries Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Pennar Industries:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

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.
Pennar 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

Value Creation Index Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 10.6%5.9%8.6%9%10.3%16.8%11.6%9.9%3.8%6.8%-
Value Creation Index -0.2-0.6-0.4-0.4-0.30.2-0.2-0.3-0.7-0.5-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 8818128599039881,7502,1162,0981,5171,9952,094
YoY Gr. Rt. %--7.8%5.8%5.1%9.4%77.2%20.9%-0.9%-27.7%31.5%-
Adj EPS 2.61.11.82.32.45.14.43.6-0.72.52.6
YoY Gr. Rt. %--58.8%69.5%26.4%5.3%116.9%-15.2%-17.2%-120.2%NA-
BVPS (₹) 232425.727.929.239.743.74848.650.954
Adj Net Profit 31.112.621.427.128.578.366.452.4-10.335.436
Cash Flow from Ops. 53.968.321.710187.21.1171198-55.5209-
Debt/CF from Ops. 21.771.91.6328.12.62.3-10.52.8-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 9.5%15.1%-2%31.5%
Adj EPS -0.3%1%-17%NA
BVPS 9.311.75.34.7
Share Price 5.8% -4.8% 15.6% 59.4%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 1046.67.88.116.410.57.7-1.555
Op. Profit Mgn % 9.26.58.18.78.810.68.286.37.77.2
Net Profit Mgn % 3.51.62.532.94.53.12.5-0.71.81.7
Debt to Equity 0.40.40.50.60.40.60.70.60.80.8-
Working Cap Days 1151551821771641561811872692250
Cash Conv. Cycle 808281734470103991441240

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 5.00%

Debt to equity has declined versus last 3 years average to 0.81

Sales growth is good in last 4 quarters at 16.19%

Sales growth has been subdued in last 3 years -1.95%

Net Profit has been subdued in last 3 years -17.03%

Latest Financials - Pennar Industries Ltd.

Standalone Consolidated
TTM EPS (₹) 2.6 3.7
TTM Sales (₹ Cr.) 2,094 2,477
BVPS (₹.) 54 55.2
Reserves (₹ Cr.) 661 678
P/BV 0.84 0.82
PE 17.09 12.34
From the Market
52 Week Low / High (₹) 25.70 / 50.10
All Time Low / High (₹) 0.32 / 80.00
Market Cap (₹ Cr.) 611
Equity (₹ Cr.) 67.5
Face Value (₹) 5
Industry PE 7

Management X-Ray of Pennar Industries :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *1.402.792.802.802.802.802.802.802.802.80
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Pennar Industries

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

About Pennar Industries 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.

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