Today, we’re diving into Elixir Capital Ltd, a prominent player in share trading, investment, and market research.
Founded in 1994 and originally known as Axis Capital, this company has earned a reputation for delivering impressive returns to its investors.
Given its strong fundamentals and growth potential, it’s anticipated that this stock could significantly increase your investment.
Elixir Capital Ltd Overview
Market Capitalization: ₹68 Crores
Face Value: ₹10
Current Price: ₹120 (as of August 19, 2024)
Last 1-Year Return: 157%
Fundamentals
Let’s talk about the key fundamental aspects that support our claim that it has the potential to double our money within a year.
Return on Equity (ROE)
At 32.22%, Elixir Capital demonstrates a high return on each unit of equity, indicating efficient and profitable use of investor funds.
Return on Capital Employed (ROCE)
With a remarkable ROCE of 39.68%, the company efficiently utilizes its capital to generate substantial profit, far surpassing the typical benchmark of 10%.
Return on Assets (ROA)
Standing at 16.19%, this ratio reveals the company’s ability to convert assets into profit effectively.
Debt-to-Equity Ratio
A low 0.49% suggests minimal reliance on debt, highlighting the company’s solid financial health and its capability to manage debt efficiently.
Interest Coverage Ratio
At an impressive 18, Elixir Capital is well-positioned to cover its interest obligations with ease, reflecting strong financial stability.
Growth Indicators
Now, let’s explore the factors that demonstrate the company’s consistent growth and its ability to deliver strong returns to its investors.
Compound Annual Growth Rate (CAGR)
The company has achieved a robust 30.12% CAGR in sales and 30.91% in profit over the past three years, underscoring its consistent growth trajectory.
Earnings Per Share (EPS)
The current EPS stands at ₹26.89, a strong indicator of profitability and an attractive figure compared to the stock’s price.
Dividend
In 2024, the company has paid a dividend of ₹1.25 per share, reflecting its commitment to returning value to shareholders.
Financial Metrics
Let’s now examine the financial aspects and the financial status of Elixir Capital Ltd.
Promoter Holding
A significant 71.29% stake by promoters indicates their strong commitment and confidence in the company’s future.
Debtor Days
With just 2 days, the company demonstrates exceptional efficiency in collecting payments.
Operating Profit Margin (OPM)
A stellar 80% OPM highlights the company’s ability to maintain high profitability from its operations.
Profit Growth
After experiencing a loss of ₹3 Crores last year, Elixir Capital has achieved a profit of ₹20 Crores this year, marking a remarkable turnaround.
Valuation Ratios
We will now analyze the share valuation of Elixir Capital Ltd to determine whether it is overpriced or under priced.
EV to EBITDA
The ratio of 3.10 indicates the company is valued attractively relative to its earnings before interest, taxes, depreciation, and amortization.
Price-to-Earnings (P/E) Ratio
At 3.29, the stock is undervalued compared to the average market P/E ratio of 12 to 20, suggesting potential for significant appreciation.
Price/Earnings to Growth (PEG) Ratio
A very low PEG ratio of 0.01 further implies the stock is undervalued given its growth prospects.
Price-to-Book (PB) Value
With a PB value of 1.41, the stock is generally considered fairly valued or slightly undervalued.
Shareholding Pattern (as of March 2024)
Promoters: 71.29%
Public: 28.71%
Investment Outlook
Elixir Capital Ltd, trading around ₹120, shows strong fundamentals and promising growth prospects.
With its current performance and strategic expansion, the stock could potentially reach ₹250 within the next year.
Conclusion
Elixir Capital Ltd presents a compelling investment opportunity with its robust financial health, excellent growth metrics, and attractive valuation.
However, it’s essential to consult with a financial advisor before making any investment decisions.
Disclaimer
This analysis is based on information available as of March 2024 and is not a recommendation. Stock market investments carry risks, and it’s advisable to seek expert advice before investing.
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