PODDAR PIGMENTS LTD - Quantamental Equity Research

Quantamental Equity Research on PODDAR PIGMENTS LTD | Release: 02 Dec 2018 02:52:56 UTC+05:30 | Reporting Currency: INR | Trading Currency: INR | Exchange:NSE/BSE NSE CODE:Not Listed and BSE CODE:524570
Last Close:  INR 190.95
Fair Value:  INR 103.05
Est. Price by Mar 19:  INR 94.1
Market Capitalization (INR Crs):  202.60
Industry:  Specialty Chemicals
Rating:  STRONG SELL
Downside:  -46%
Company Profile
Poddar Pigments has the unique distinction of being the first Company in India to manufacture Masterbatches for dope dyeing of Polypropylene, Nylon & Polyester Multifilament Yarn/ Fibers.
Growth Per Share
Particulars 1-Year 3-Year 5-Year  
Revenue % 2% 81% 95%  
EBIT % 1% 26% 49%  
Earnings % -6% 17% 49%  
Book Value %  23% 108% 177%  
Stock Total Return %  6% 111% 508%  
Share holding pattern
Particulars %age   
(A) Promoter & Promoter Group 62.43  
(B) FII/FPI 1.12  
(C) DII/Insurance Companies 0.50  
(D) Public holding < 2 lakhs of cap. 21.18  
(E) Others 14.77  
Grand Total 100.00  
Fundamentals (Historical and Estimated)
Particulars Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18  Mar-19 E   Mar-20 E   Mar-21 E   Mar-22 E   Mar-23 E   
Price 40 44 39 47 49 134 166 266 283 94 105 117 127 135  
Return on Equity 30% 18% 16% 18% 16% 17% 17% 13% 10% 7% 7% 7% 7% 7%  
Price to Earning  3.0 4.9 4.2 3.9 3.9 8.7 9.6 13.9 15.7 7.3 7.3 7.3 7.3 7.3  
EVTI 0.3 0.3 0.3 0.2 0.2 0.4 0.5 0.7 0.6 0.0 0.0 0.1 0.1 0.0  
EVTIFM 3.0 4.9 4.2 3.9 3.9 8.7 9.6 13.9 15.7 7.3 7.3 7.3 7.3 7.3  
Price to Book Value 0.9 0.9 0.7 0.7 0.6 1.5 1.6 1.8 1.5 0.5 0.5 0.5 0.5 0.5  
Debt to Equity  0.2 0.4 0.4 0.2 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0  
Dividend Yield 0% 5% 5% 4% 5% 2% 2% 1% 1% 3% 3% 3% 3% 3%  
Cash Flow to Firm 32% -8% 15% 26% 25% 16% 8% 10% 8% 66% 77% 69% 75% 100%  
Detailed Estimates
Title Mar-18 Mar-19 E Mar-20 E Mar-21 E Mar-22 E Mar-23 E  
Sales          334.15          370.94          406.20          438.71          467.24          490.60  
EBITDA            32.20            24.09            26.38            28.49            30.34            31.86  
EBIT            29.12            20.67            23.03            25.58            27.82            29.67  
PBT            28.32            20.67            23.03            25.58            27.82            29.67  
NPAT            19.11            13.65            15.21            16.90            18.37            19.59  
Price to Earning             15.71              7.31              7.31              7.31              7.31              7.31  
Price to Book Value              1.52              0.48              0.50              0.53              0.54              0.54  
Debt to Equity                  -                   -                   -                   -                   -                   -    
Return on Equity              0.10              0.07              0.07              0.07              0.07              0.07  
Enterprise Value to Total Income (EVTI)              0.64              0.04              0.05              0.06              0.06              0.05  
Enterprise Value to Total Income to Firm Margin(EVTIFM)            17.91              1.91              2.21              2.44              2.36              1.94  
Price or Est. Share Prices          282.93            94.10          104.90          116.55          126.75          135.20  
DISCOUNTED CASH FLOW
Title Mar-19 E Mar-20 E Mar-21 E Mar-22 E Mar-23 E  
PBT            20.67            23.03            25.58            27.82            29.67  
Interest                 -                   -                   -                   -                   -    
Depreciation              3.42              3.35              2.91              2.52              2.19  
Cash Flow Before Tax            24.09            26.38            28.49            30.34            31.86  
Tax Rate            33.99            33.99            33.99            33.99            33.99  
Cash Flow After Tax            15.90            17.41            18.80            20.03            21.03  
Terminal Cash Flow                                                                                    -            181.21  
Total Cash Flow            15.90            17.41            18.80            20.03          202.24  
Present Value of Cash Flow          109.29  
Debt                 -    
Value of Equity          109.29  
Fair Value Per Share          103.05  
Equity               203
Debt                   0
Beta Take from Reuters 1.91
Risk Free Rate Prevailing Yield in India 8%
Market Risk Premium Assuming 8.82% premium for Equity Investments 9%
Interest Paid                   1
Tax Benefit                   0
Interest Net of Tax                   1
Debt                   0
Cost of Debt 0%
Cost of Equity 25%
Debt Weight 0%
Equity Weight 100%
WACC 25%
Cash Flow of Mar-23 E            21.03
Growth 5.6%
Present Value of Terminal Cashflow          181.21
Peer Comparision
# Name CMP Rs. Mar Cap Rs.Cr.  B.V. Rs. Annualized ROE % ROCE % Latest EVTI Latest EVTIFM CMP / BV P/E Debt / Eq Div Yld % Growth Rate R % SGR % Ann Total Income PQEIOI QoQ Sales % Qtr Sales Var % QoQ Profits % Qtr Profit Var % Graham's Number Rs.
   1  Guj Fluorochem           892.10            9,804          483.80            57.40              7.94              1.82              4.78              1.84            13.17              0.42              0.39            48.69            36.74            6,076            68.34                 23              8.80            69.00          218.28          740.32
   2  Castrol India           151.00          14,936            10.80            67.70          105.28              3.74            26.34            13.98            21.55                 -                4.64            -0.06            -0.06            3,782            51.00               113            -8.88              7.60            -8.40            -5.76
   3  Godrej Inds.           549.45          18,482          124.72            24.77              9.33              1.80          101.58              4.41            29.85              1.76              0.32            21.31            27.28          11,528            74.72             -270          -13.43            14.76            47.00            58.82
   4  Aarti Inds.        1,435.90          11,674          207.10            42.16            16.30              2.62            20.77              6.93            30.16              1.35              0.07            41.07            40.77            5,199            53.00                 95            20.50            46.36            37.68            56.57
   5  Phillips Carbon           213.90            3,686            88.65            41.18            17.38              1.11              8.91              2.41            10.96              0.52              1.12            33.77            37.90            3,534            53.56                 35            12.65            46.63            10.69          112.62
   6  Poddar Pigments           190.95               203          195.24              9.39            15.06              0.30            11.71              0.98            12.48                 -                1.83              7.57            11.14               374            62.43                 91              6.78            16.85            15.12          -24.49

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