URJA Global Share Price Analysis: Current Scenario and Predictions

URJA Global Limited is an Indian conglomerate with presence in various sectors including Renewable Energy, IT & ITES, Tours & Travels, and Education & Training. It was founded in 1992 and is headquartered in Pitampura, Delhi.

URJA Global Share Price Analysis: Current Scenario and Predictions

Renewable Energy is the company’s core business, and it is one of the leading renewable energy developers and operators in India. URJA Global is engaged in the design, consultancy, integration, supply, installation,

commissioning, and maintenance of off-grid and grid-connected solar power plants. They are also approved Channel Partners of the Ministry of New and Renewable Energy (MNRE), Govt. of India. 

Other businesses of URJA Global include:

  • IT & ITES: The company provides IT consulting, software development, and BPO services.
  • Tours & Travels: URJA Global operates a travel agency that offers a wide range of travel services, including tours, ticketing, and visa assistance.
  • Education & Training: The company provides vocational training and skill development programs.

Financials:

  • As of March 31, 2023, URJA Global had a total revenue of ₹40.4 Crore and a net profit of ₹1.5 Crore.
  • The company’s share price is currently ₹27.85 (BSE).
  • URJA Global is listed on the Bombay Stock Exchange (BSE).

Here’s a breakdown of URJA Global’s share price analysis based on current information (as of February 7, 2024, 19:17 IST):

Current Scenario:

  • Share Price: ₹27.8 (BSE)
  • Market Cap: ₹1,462.00 Crore
  • 52-Week Range: ₹6.00 – ₹41.8
  • Stock P/E Ratio: 592 
  • Sales Growth: 1 Year-37.19%, 3 Year-35.28%, 5 Year-20.87%
  • Profit Growth: 1 Year-102.55%, 3 Year-5.92%, 5 Year-3.36%
  • ROE: 1 Year-0.94%, 3 Year-0.91%, 5 Year-1.02% (low)
  • ROCE: 1 Year-1.32%, 3 Year-1.22%, 5 Year-1.39% (low)

Strengths:

  • Strong momentum with price above short, medium, and long-term moving averages.
  • High TTM EPS growth.
  • Growth in net profit with increasing profit margin

Weaknesses:

  • Poor profit growth over the past 3 years.
  • Poor revenue growth over the past 3 years.
  • High P/E ratio, indicating the stock may be overvalued.
  • Low ROE and ROCE.
  • High debtor days and negative cash flow from operations.

Predictions:

  • Analyst opinions vary from “Strong Buy” to “Neutral”.
  • Technical analysis suggests a mixed picture, with both bullish and bearish signals.

The future share price will depend on various factors, including the company’s performance, industry trends, and overall market conditions.

URJA Global Performance, Industry Trends, and Market Conditions

URJA Global Performance:
Financials:
  • Revenue has decreased over the past 5 years at a CAGR of -26.1%.
  • Profitability has been mixed:
  • Net profit increased significantly in FY23 (98.6%) compared to FY22.
  • However, profit growth over the past 3 years is still negative (5.92%).
Share Price:
  • The share price has seen significant growth in the past year, up 10.9%.
  • However, it remains volatile and currently trades at a high P/E ratio (782.15), indicating it might be overvalued.
Other Concerns:
  • Low ROE and ROCE, high debtor days, and negative cash flow from operations raise concerns about financial health.
Industry Trends:
  • Renewable Energy: This is URJA Global’s core business and a growing sector in India, driven by government initiatives and increasing climate awareness.
  • IT & ITES: This sector faces competition and requires continuous innovation to stay relevant.
  • Tours & Travels: This sector is recovering from the pandemic but faces uncertainty due to global economic conditions.
  • Education & Training: This sector has potential for growth, but the competition is high.
Overall Market Conditions:
  • The Indian stock market has been volatile in recent months due to various factors, including global economic uncertainty and rising interest rates.
  • The renewable energy sector is still relatively young and evolving, which can lead to higher risk factors.
Overall:

URJA Global’s share price has seen significant growth in the past year but faces challenges, including poor profitability and low return on equity. Predicting future price movements is difficult, and investors should carefully consider the risks and potential rewards before investing.

Note:

The intrinsic value of one URJA stock under the base case scenario is 2.38 INR. Compared to the current market price of 27.85 INR, Urja Global Ltd is overvalued by 91%.

The intrinsic value of one URJA stock under the best case scenario is 2.79 INR. Compared to the current market price of 27.85 INR, Urja Global Ltd is overvalued by 90%.

Additional Resources:

Remember, conducting your own research and consulting with a financial advisor before making any investment decisions is crucial.

Disclaimer: I am not a financial advisor and this is not financial advice. Please do your own research before making any investment decisions.

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