IVP Ltd relative valuation is now NEUTRAL. It was previously rated OVERVALUED, and has a fundamental analysis score of 56.
Our analysis is based on comparing IVP Ltd with the following peers – Navin Fluorine International Limited, Styrolution ABS (India) Limited, Southern Online Bio Technologies Limited, Paushak Limited, Laffans Petrochemicals Limited, Balaji Amines Limited, Amines & Plasticizers Ltd. and Diamines & Chemicals Ltd. (532504-IN, 506222-IN, 532669-IN, 532742-IN, 524522-IN, 530999-IN, 506248-IN and 500120-IN).
IVP Ltd is currently neutrally valued, as its previous close of INR 47.25 lies within the CapitalCube estimate range of INR 36.52 to INR 47.61. Over the last 52 week period, IVP Ltd has fluctuated between INR 34.80 and INR 73.25.
- Relative underperformance over the last year and the last month suggest a lagging position.
- IVP Ltd trades at a lower Price/Book multiple (0.94) than its peer median (1.34).
- The market expects 507580-IN to grow at about the same rate as the peers and to maintain the median returns it currently generates.
- 507580-IN has a successful operating model with relatively high net profit margins and asset turns.
- Changes in annual earnings are in line with its chosen peers but lags in terms of revenue, implying the company is cost conscious and selective about spending for growth.
- Over the last five years, 507580-IN‘s return on assets has improved from below median to better than the median among its peers, suggesting that the company has improved its relative operations markedly.
- The company’s relatively high pre-tax margin suggests tight control on operating costs versus peers.
- While 507580-IN‘s revenues growth has been below the peer median in the last few years, the market still gives the stock a PE ratio that is around peer median and seems to see the company as a long-term strategic bet.
- The company’s capital investment program suggests it is under-investing in a business that is producing peer median returns.
- 507580-IN has the financial and operating capacity to borrow quickly.
IVP Ltd has a fundamental score of 56 and has a relative valuation of NEUTRAL.
IVP Ltd’s Fundamental Analysis Score is about average at 56, thus not allowing for a specific classification into the Value – Price Matrix.
Drivers of Valuation
The market expects 507580-IN to maintain the median rates of return it generates currently.
The market expects 507580-IN to grow at about the same rate as its chosen peers (PE of 10.72 compared to peer median of 10.72) and to maintain the peer median return (ROE of 8.84%) it currently generates.
The company trades at a lower Price/Book multiple of 0.94 compared to its peer median of 1.34.
507580-IN has moved towards a median ROE and PE from a relatively high PE profile at the recent year-end.
A complete list of valuation metrics is available on the company page.
IVP Ltd. manufactures and exports foundry chemicals, castings and allied products. It manufactures water based coatings and alcohol based coatings. The company’s products are used by automobile, machine tools, wind mills, railways sectors. Its products include binders, coatings and innoculants & fluxes. It was founded on July 5, 1929 and is headquartered in Mumbai, India.
The information presented in this report has been obtained from sources deemed to be reliable, but AnalytixInsight does not make any representation about the accuracy, completeness, or timeliness of this information. This report was produced by AnalytixInsight for informational purposes only and nothing contained herein should be construed as an offer to buy or sell or as a solicitation of an offer to buy or sell any security or derivative instrument. This report is current only as of the date that it was published and the opinions, estimates, ratings and other information may change without notice or publication. Past performance is no guarantee of future results. Prior to making an investment or other financial decision, please consult with your financial, legal and tax advisors. AnalytixInsight shall not be liable for any party’s use of this report. AnalytixInsight is not a broker-dealer and does not buy, sell, maintain a position, or make a market in any security referred to herein. One of the principal tenets for us at AnalytixInsight is that the best person to handle your finances is you. By your use of our services or by reading any our reports, you’re agreeing that you bear responsibility for your own investment research and investment decisions. You also agree that AnalytixInsight, its directors, its employees, and its agents will not be liable for any investment decision made or action taken by you and others based on news, information, opinion, or any other material generated by us and/or published through our services. For a complete copy of our disclaimer, please visit our website www.analytixinsight.com.