Fundamental analysis, in accounting and finance, is the analysis of a business's financial statements (usually to analyze the business's assets, liabilities, and earnings); health of the business in order to take investment decisions.
What you see below is NOT a full fundamentals analysis. A full fundamentals analysis should include the following;
- Economic analysis
- Industry analysis
- Company analysis
What you see here is an analysis of some important company data. I have not attempted to reach any conclusions or recommendation. I will leave it to my readers to make their own conclusions.
| 31 March 2020 | |
| Earnings per share | 1.06 | |
| Current Market Price | 16.30 | |
P/E Ratio | 15.4 | Recent market price gains has made the stock marginally overvalued. The firm may not be able deliver a high enough EPS next financial year |
|
| Annual EPS Growth | 265% | |
| Projected Earnings Growth (PEG) | 0.033 | Less than 1: The company is undervalued |
| Revenue @ 31 March 2020 | 652,843,434 | |
| Market Cap @ 04 Dec 2020 | 635,700,000 | |
Price–sales ratio, P/S ratio | 0.97 | Less than 1: More value for investor as each Rs. 1 sales has come from less than Rs.1 in market price |
|
| Book Value (Total Equity) | 194,492,099 | |
| Price-to-book ratio (P/B) | 3.3 | Less than 3 is the ideal for value investors - However, 3.3 is not that far |
| Net income | 41,481,387 | |
| Dividends Paid | 9,750,000 | |
| Dividend Payout Ratio (DPR) | 0.24 | Low DPR: The firm is retaining 75% of its earnings for future investments. Good for long-term investors |
| Dividend Per Share | 0.25 | |
| Dividend Yield @ Current Price | 1.53% | Dividend Yield must be compared with industry standards. Manufacturing is between 1.5% and 2% |
| Return on equity | 21.33% | Current SL Treasury bill rate is 11.200 % pa. Comparatively this is a good investment for value investors |
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