Today, we will discuss a stock “Prithvi Exchange Ltd” that could enhance your portfolio and potentially provide you with significant returns.
This company operates in the foreign exchange business and has been demonstrating consistent growth. Established in 1995 in Chennai, it is listed on the BSE.
Prithvi Exchange Ltd primarily earns revenue through the sale of foreign currency. Over the years, its shares have delivered substantial profits to investors.
Let’s delve into the fundamentals and target projections for Prithvi Exchange Ltd:
Fundamentals of Prithvi Exchange Ltd
The company has a market cap of ₹255 crore, and the face value of its shares is ₹10. The stock has delivered impressive returns over recent years, with a 369% return over the past year and a remarkable 1125% return over the past three years. As of August 20, 2024, the stock is trading at ₹450.
Return on Equity (ROE)
This ratio indicates how much profit the company generates with each rupee of shareholder equity. Prithvi Exchange Ltd’s ROE over the past three years has been 30.68%, which is very strong.
Return on Capital Employed (ROCE)
This ratio measures the profit a company earns on its capital. The company’s ROCE is 41%, which is considered excellent, as a ROCE above 10% is favorable for Indian companies.
Return on Assets (ROA)
This ratio reflects the efficiency of the company in generating profit from its assets. Prithvi Exchange Ltd has an ROA of 22%, which is outstanding, given that a ROA above 5% is considered good.
Debt to Equity Ratio
This ratio shows the amount of debt relative to equity. Prithvi Exchange Ltd has a Debt to Equity Ratio of 0.1, indicating that the company is managing its debt well and can easily service its obligations.
Compound Annual Growth Rate (CAGR)
This metric shows the annual growth rate over time. The company’s sales CAGR over the past three years is 3195%, and its profit CAGR for the same period is 162%, reflecting excellent performance.
Promoter Holdings
The promoters hold 71.95% of the company’s shares, indicating strong management commitment and control.
Earnings Per Share (EPS)
The EPS of Prithvi Exchange Ltd is ₹15.82, suggesting that the company is profitable and generates a good return per share.
Dividends
The company has paid a dividend of ₹2 per share in 2024, which reflects its commitment to returning value to shareholders.
Debtor Days
The company has a debtor days figure of just 1 day, which is excellent, as a lower number indicates quicker collection of receivables.
EV to EBITDA
This ratio indicates company valuation relative to its earnings before interest, taxes, depreciation, and amortization. An EV to EBITDA ratio of 10.72 is considered good, with ratios around or below 10 being preferable.
Shareholding Pattern
As of June 2024, the shareholding pattern is:
Promoters: 71.95%
Public: 28.07%
Target Price
As of August 20, 2024, with the stock trading around ₹450, it is anticipated that the stock could cross ₹600 within the next year. Considering its fundamentals and business expansion, it could even reach ₹800 within two years.
Personal View
In my opinion, Prithvi Exchange Ltd is a fundamentally strong company and has the potential to provide returns exceeding 50% over the next year. It might be a good option for long-term investment.
Disclaimer: The information provided is based on detailed analysis but may contain inaccuracies. It is essential to consult a financial advisor before making any investment decisions. Most of the data mentioned is from March 2024.
This is not an investment recommendation. The stock market involves risks. Always seek expert advice before investing.
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