NSEI:ARCOTECH

Stock Analysis Report

Executive Summary

Arcotech Limited manufactures and supplies non-ferrous engineering products primarily in India.


Snowflake Analysis

Overvalued with worrying balance sheet.

Share Price & News

How has Arcotech's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ARCOTECH's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

13.3%

ARCOTECH

5.1%

IN Metals and Mining

8.9%

IN Market


1 Year Return

-85.1%

ARCOTECH

-52.0%

IN Metals and Mining

-30.6%

IN Market

Return vs Industry: ARCOTECH underperformed the Indian Metals and Mining industry which returned -52% over the past year.

Return vs Market: ARCOTECH underperformed the Indian Market which returned -30.6% over the past year.


Shareholder returns

ARCOTECHIndustryMarket
7 Day13.3%5.1%8.9%
30 Day-32.0%-32.4%-24.8%
90 Day-61.4%-44.3%-29.4%
1 Year-85.1%-85.1%-51.1%-52.0%-29.2%-30.6%
3 Year-99.2%-99.2%-47.8%-53.1%-17.0%-21.5%
5 Year-98.7%-98.8%-20.8%-34.3%-5.4%-10.4%

Price Volatility Vs. Market

How volatile is Arcotech's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Arcotech undervalued compared to its fair value and its price relative to the market?

0.078x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate ARCOTECH's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate ARCOTECH's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: ARCOTECH is unprofitable, so we can't compare its PE Ratio to the Metals and Mining industry average.

PE vs Market: ARCOTECH is unprofitable, so we can't compare its PE Ratio to the Indian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ARCOTECH's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ARCOTECH is good value based on its PB Ratio (0.1x) compared to the IN Metals and Mining industry average (0.5x).


Next Steps

Future Growth

How is Arcotech forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

21.6%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Arcotech has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Arcotech performed over the past 5 years?

-70.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ARCOTECH is currently unprofitable.

Growing Profit Margin: ARCOTECH is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ARCOTECH is unprofitable, and losses have increased over the past 5 years at a rate of -70.2% per year.

Accelerating Growth: Unable to compare ARCOTECH's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ARCOTECH is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-7.1%).


Return on Equity

High ROE: ARCOTECH has a negative Return on Equity (-75.4%), as it is currently unprofitable.


Next Steps

Financial Health

How is Arcotech's financial position?


Financial Position Analysis

Short Term Liabilities: ARCOTECH's short term assets (₹4.2B) do not cover its short term liabilities (₹5.2B).

Long Term Liabilities: ARCOTECH's short term assets (₹4.2B) exceed its long term liabilities (₹195.6M).


Debt to Equity History and Analysis

Debt Level: ARCOTECH's debt to equity ratio (323.1%) is considered high.

Reducing Debt: ARCOTECH's debt to equity ratio has increased from 144% to 323.1% over the past 5 years.


Balance Sheet

Inventory Level: ARCOTECH has a high level of physical assets or inventory.

Debt Coverage by Assets: ARCOTECH's debt is covered by short term assets (assets are 1.1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: ARCOTECH has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: ARCOTECH has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is Arcotech's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ARCOTECH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate ARCOTECH's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ARCOTECH's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ARCOTECH's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: ARCOTECH is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ARCOTECH's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

13.3yrs

Average board tenure


CEO

Radha Pattanayak (59yo)

13.25s

Tenure

₹4,200,000

Compensation

Mr. Radha Nath Pattanayak, B. Com., MBA, has been its Whole Time Director since December 18, 2006 and served as its Director of Commercial. Mr. Pattanayak is experienced in the marketing of non-ferrous pro ...


CEO Compensation Analysis

Compensation vs Market: Radha's total compensation ($USD55.74K) is about average for companies of similar size in the Indian market ($USD48.16K).

Compensation vs Earnings: Radha's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Radha Pattanayak
Whole Time Director13.25yrs₹4.20m0.00048% 463.7
Arvind Saraf
Chairmanno datano data3.36% 3.2m
Rameshwar Tayal
Independent Director14.25yrs₹252.00kno data
Sham Mohan
Non-Executive Independent Director5.42yrs₹216.00kno data

13.3yrs

Average Tenure

63.5yo

Average Age

Experienced Board: ARCOTECH's board of directors are seasoned and experienced ( 13.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Arcotech Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Arcotech Limited
  • Ticker: ARCOTECH
  • Exchange: NSEI
  • Founded: 1981
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: ₹96.600m
  • Shares outstanding: 105.00m
  • Website: https://www.arcotech.in

Number of Employees


Location

  • Arcotech Limited
  • F-701 A, Lado Sarai
  • Mehrauli
  • New Delhi
  • Delhi
  • 110030
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532914BSE (Mumbai Stock Exchange)YesEquity SharesININRApr 2008
ARCOTECHNSEI (National Stock Exchange of India)YesEquity SharesININRApr 2008

Biography

Arcotech Limited manufactures and supplies non-ferrous engineering products primarily in India. The company offers non-ferrous alloy products, including copper, brass, phosphor bronze, nickel silver, nickel brass, cupro nickel, aluminum bronze, tin bearing copper, silver bearing copper, etc. in the form of semis, such as ingots, strips, sheets, plates, foils, bus bars, and rods, as well as coin blanks, lugs, key blanks, terminals, connectors, etc. It also offers sheet metal stamping services and metal components; HSS, carbide, and graphite tools; and value added services, including welding, riveting, tapping, and mechanical assembly services. The company serves automobile, electronic, electrical/power transmission, cable, housing, and air-conditioning industries; manufacturers of torches and flash lights, zippers/buttons, locks and keys, watches and clocks, handicrafts and decorative items, and gas stoves; coin mints; and valves, riveting, and other general engineering users, as well as ordinance factories and defense sector. Arcotech Limited also exports its products to approximately 21 countries in Asia, Africa, North America, South America, Australia, and Europe. The company was incorporated in 1981 and is based in New Delhi, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 13:18
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.