Rural Electrification Corporation's intrinsic value using Intellectual Capital analysis

Rural Electrification Corporation

BSE : 532955

|

NSE : RECLTD

Industry : Finance Term Lending

|

ISIN : INE020B01018

|

FreeFloat : 47.36%

|

FnO : Yes

|

LotSize : 8000

BSE 200 | BSE 250 LargeMidcap | BSE LargeMidcap | Nifty 200 | Nifty LargeMidcap 250 | BSE 150 Midcap | BSE Midcap | Nifty Midcap 100 | Nifty Midcap 150 | Nifty Midcap 50 | Nifty Alpha Quality Value Low Voltlty 30 | Nifty Financial Services | Nifty Financial Services 25/50 | Nifty Financial Services ExBank | Nifty MidSmall Financial Services | BSE Enhanced Value | Nifty Dividend Opp 50 | Nifty500 Value 50 | Nifty100 Enhanced ESG | Nifty100 ESG | BSE Bharat 22 | BSE India Infra | BSE PSU | Nifty PSE

Intellectual Capital (IC)	211,675.20
Net Worth (NW)	55,216.21
Intrinsic Worth (IW)	266,891.40
Market Cap (MC)	30,677.06
Economic Value Added	786.70

Discount Rate	%
Liquidity Premium	%

Knowledge Basis (IC/IW)	79.31%
IC Gross Margin (EBITDA/IC)	18.18%
IC Net Margin (NPT/IC)	5.11%
Knowledge Turnover (Sales/IC)	0.19
Market to Intrinsic Value (MC/IW)	0.11

As Of	Intrinsic Value	Market Price
31 Dec 2022	Rs. 1,013.55	Rs. 116.50
27 Mar 2023	----	Rs. 115.05
27 Mar 2023	----	-0.10 -0.09%

Fundamental - medium term		Technical - near term		Combined outlook
EVA > 0 : Yes	Buy	10 DMA : Rs. 117.03	Sell	Avoid
KB > 50% : Yes		50 DMA : Rs. 118.25
0 < M2IV < 1 : Yes		Vol-Price trend : Falling
Disclaimer: Stock outlook is based on data calculations only and does NOT constitute investment advice.

Question 3 - Is this stock undervalued?

Question 2 - Does this business have significant knowledge assets?

Question 1 - Is this business generating enough profits to cover its cost of capital?

* EVA is a registered trademark of Stern Stewart and Co.

Quarterly Results (Rs. Cr)

Quarter

Type*

Sales

Income

EBITDA

EBIT

PBT

PAT

NPT

Mar-20
C
7841.48
7903.56
5608.01
5604.45
664.23
473.99
-55.06

Jun-20
C
8446.65
8448.08
7679.27
7676.47
2483.89
1845.30
1943.67

Sep-20
C
8810.00
8822.10
8197.84
8195.20
2784.33
2197.14
2289.61

Dec-20
C
9084.57
9089.46
8254.42
8251.87
2806.99
2257.96
2392.45

Mar-21
C
9211.46
9215.76
8147.97
8145.10
2704.38
2077.84
2060.47

Jun-21
C
9631.61
9639.98
8377.73
8374.84
2786.88
2268.66
2291.65

Sep-21
C
10048.02
10056.53
8901.51
8896.79
3334.74
2692.27
2661.33

Dec-21
C
10037.05
10070.42
9004.61
8999.47
3451.60
2773.44
2947.61

Mar-22
C
9633.37
9653.27
8215.88
8210.39
2857.31
2301.33
2058.72

Jun-22
C
9497.45
9506.06
8331.51
8325.56
2949.97
2454.16
1815.61

Sep-22
C
9955.99
9964.00
9169.73
9163.82
3436.24
2732.12
1923.45

Dec-22
C
9781.76
9795.47
9750.29
9744.17
3610.23
2915.33
2794.09

* C - Consolidated, S - Standalone