Friday, September 7, 2018

TRANSFORMERS & RECTIFIERS INDIA LTD: Reasonably Valued


Premium /Discounted  to Intrinsic Value ( Earning Power Value Method )
CMP  ₹ 19.85 Prem/ Disc RoIC 7.6
3X  EPV ₹ 18.40 7.88% Cost of Capital 12.5
2X  EPV ₹ 12.27 61.81% Growth Rate -2%
1.5X  EPV ₹ 9.20 115.75% RoE 4%
1.0 X  EPV ₹ 6.13 223.63% RoCE 8%
CMP/ EPV 3.2 Net Cash / Share   ₹ 21.9
Intrinsic Value Based on Earning Expectaion
   FY 19E FY 20E FY 21E FY 22E FY 23E
EPV (E) ₹ 8.24 ₹ 8.07 ₹ 7.90 ₹ 7.74 ₹ 7.58
CMP/ EPV(E) 2.41 2.46 2.51 2.57 2.62
Market Cap / Sales   0.33
Market Cap / Networth 0.8
CMP / EPV (10Y Avg.) 0.1 Price at 10Y EPV Avg, ₹ 0.57
Discount ( Premium ) in EV/EBITDA to 10 Yrs Avg     -22%
Discount / Premium in EPV to Past 3409%
Best Price at X1 EPV to Past Reference ₹ 13.1
Equity Value Per Share ( Enterprise Value Method )   ₹ 18.1
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