20 Microns Share Price Target 2024, 2025, 2030

20 Microns Share Price Target 2024, 2025, 2030: 20 Microns is a company formed in 1987. It is the largest producer of microminerals in the country. It caters to more than 65 countries.

There are more than nine integrated manufacturing units, and its customers currently include big names like Asian Paints, Indigo Paints, and Pidilite. Industrial Minerals is a very niche segment in the market. This company mines non-metallic minerals.

Today, we will look into the company’s products, sales, revenue, net profit, and other financial and technical aspects to help us determine the future share price target of 20 Microns.

20 Microns share price target

About 20 Microns

20 Microns deals in non-metallic minerals. The company’s product portfolio includes Industrial minerals like Ball Clay, Bentonite, Bleaching Earth, Dolomite, and Feldspar, and specialty chemicals like Magnesium oxide, Zinc oxide, Fumed Silica, etc.

The company leases mines from the government and then mines and refines the mined products in various micron sizes.

20 Micron’s name was adapted because that was the particle size company manufactured in the initial days, but now they even manufacture 0.5-micron minerals. 99% of the company’s revenue comes from the sale of these minerals.

20 Microns Share Price Target 2024

Over the last five years, 20 Microns has seen some impressive growth, but there are also some points we need to observe. Good news first: Their sales are up, climbing from 480 crores in 2019 to 702 crores in 2023. That’s a steady growth rate of 10% each year, which is pretty solid.

The value of 20 Microns stock has increased by a substantial 34% each year over five years. This suggests investors are seeing the stock more positively, and that should make shareholders happy.

Since 2019, income for the company has steadily been growing, resulting in its share price increasing accordingly, and this can be seen year on year, as well as its income increasing accordingly. Furthermore, new projects being worked on could result in further gains in income in 2024 if completed successfully.

We expect a 20 Microns share price target in 2024 to reach Rs 245 and a second target of Rs 268

20 Microns Share Price Target 2024, 2025, 2030

20 Microns Share Price Target 2025

Since its inception, 20 Microns has been considered the pioneer in the Indian mining industry. The company has always remained in the top 5 mining companies. There are a few strategies the company is adopting for rapid growth in the future, and the results to date already show that it is one of the rapidly growing companies in India.

The biggest profit earner of 20 Microns is Calcium Carbonate, but they spend a lot of money on research and development as well. One vision of Rajesh C Parikh (Chairman & Managing Director) is “make in India” products to reduce imports and product costs. If they succeed in this plan, the rise could be even more rapid in the upcoming years.

20 Microns is working in a costly field. There are many government policies that could change anytime, causing considerable losses to the company. The duration for which the company has leased the mines is not public either. Hence, we suggest caution and recommend you do your research if you wish to invest for the long term.

According to our research and recent annual returns, investing in 20 Microns stock for the short term is a very safe bet. We predict 20 Micron share price target for 2025 to touch Rs 342 as the first and second targets should be around Rs 357.

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20 Microns Share Price Target 2030

20 Microns has mines with a mineral reserve of approximately 25 years. The company sells about 4,00,000 tonnes of goods annually, and the company has mineral reserves of about 100 lakh tonnes. The company is in a niche segment with no major competition.

The debt-to-equity ratio of only 0.35 shows that the company’s financial position is good because most of the financing is coming from Equity. Additionally, the company boasts no promoter pledges.

The company’s revenue net profit is also rising, jumping from 25 crores to 42 crores with an even better yearly growth rate of 16% for the past five years. This trend means they’re probably handling their costs well or making intelligent changes in running things.

Recently, the company launched a new product named Lithoma, a substitute for TiO2.

TiO2 is an essential raw material for paint companies. But its prices keep fluctuating, and the supply is also quite unpredictable. Hence, the company has an advantage over the competition with the new product Lithoma.

If the performance remains the same for the next 6 years, we expect 20 Microns share price target in 2030 of Rs 1130 and a second target price of Rs 1255.

SWOT analysis

STRENGTHS

• Consistently strong stock performance with prices above short-term, medium-term, and long-term averages.
• The company is making clever use of its investors’ funds, showing a rise in return on Equity (ROE) for the past two years.
• It’s also getting better at using its assets to create earnings, with return on assets (ROA) on the upswing for two years.
• A decreasing ROCE may suggest a less efficient use of capital, but given the increase in cash flows, the overall growth trajectory of “20 Microns” appears positive. As an investor, prudent monitoring of these parameters would be beneficial.
• Net profit is on the rise alongside higher profit margins each quarter, and there’s a yearly pattern of growth in quarterly net profits with margins that keep getting better.  
• Debt levels within the company are relatively low, and its revenue has seen consistent gains for three quarters, as has its net profit.
• Over the last year, the net profit of 20 Microns has steadily been on an upward trend while book value per share also steadily increased.

WEAKNESSES

• Business needs to yield positive cash flow.

OPPORTUNITIES

• Highest Recovery from 52-Week Low

THREATS

• None

20 Microns share price performance!

20 Micron share prices have been increasing constantly in the past few years. The rise in the share price of 20 Microns from Rs 93.50 in January 2023 to Rs 178.20 in January 2024 shows a positive future for the company from an investor’s point of view.

Fantastic growth in the share price of more than 90% suggests that the business is operating profitably.

There could be many reasons for this price rise, including strong earnings reports, well-timed product releases, and excellent business choices. However, we recommend considering the company’s finances, management Caliber, and market position before investing.

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Performance analysis from Year 2019 to 2023

As you can see from the table above, asset-wise, 20 Microns has risen from 404 crores in 2019 to 523 crores in 2023, beefing up the company’s worth. But even with these encouraging numbers, we’ve got to keep a close eye on their finances to keep the growth steady and spot any red flags early on.

The company’s return on Equity (ROE) is 14%, which tells us investors are getting a good bang for their buck.

20 Microns cash flow

20 Microns has shown significant progress regarding cash from operating activities since March 2019, increasing from 53 crores (in March 2019) to 63 crores by March 2023; this indicates that their core operations generate increased revenue over time.

Concurrently, the net cash flow has also shown an uptick from 2 crores to 8 crores during the same period, indicating an enhanced overall financial health.

However, a slight cause for concern might be the mild decrease in ROCE percentage from 21% to 19%. ROCE (Return on Capital Employed) is a profitability ratio that measures how effectively a company is using its capital to generate profits.

A decreasing ROCE may suggest a less efficient use of capital, but given the increase in cash flows, the overall growth trajectory of “20 Microns” appears positive. As an investor, prudent monitoring of these parameters would be beneficial.

20 Microns quarterly performance

Researching 20 Micron’s financial summaries over the last four quarters reveals sales have steadily increased from 188 crores in Sep 2022 to 200 crores by Sep 2023, but spending has seen significant spikes (from 164 crores in Sep 2022 to 170 crores), suggesting they need to control costs more strictly.

The operating profit margin for this business varies slightly but generally lies between 12-15%, suggesting they’re earning money reliably.

Incredible net profit growth was witnessed, increasing from 12 crores in September 2022 to 16 crores by September 2023. Changes in tax laws or good management are likely the reasons. Now lets have a look at the previous divident payouts by the company.

20 Microns annual performance

Last year, the company’s yearly revenue climbed by 14% to reach a solid 704.62 crores, beating the sector’s average increase of 11.46%. They also saw an impressive jump in their annual net profit of 20.92%, up to 41.82 crores, towering over the sector’s growth of negative 40.72%.  

The stock price surged by 99.27%, outshining the sector’s performance by 34.47%.

Year-on-year, quarterly revenue has gone up by 6.35% to Rs 201.34 crores, whereas the sector’s average quarterly growth was only 3.95%.

Quarterly net profit had an even greater spike of 34.99% YoY, amounting to 16.03 crores, which is well above the sector’s negative 13% average.  

The price-to-earnings (PE) ratio is attractively low at 13, under the sector average of 20.35.

Lastly, they showcase a robust interest coverage ratio of 4.99, significantly higher than the standard 1.5, demonstrating the company’s comfort in covering interest payments with its earnings (EBIT).

Dividend payouts by 20 Microns

Over the last ten years, 20 Microns has shown a generally upward but uneven trend in its dividend payments. As of July 26, 2023, shareholders received a nice boost with a final dividend of 75 paise, a jump from the 35 paise given in September 2018.

This jump signals a strong upturn in the company’s earnings or its profit-sharing approach. Still, the difference from the 60 paise interim dividend in March 2020 hints at some ups and downs in the company’s financials.

Looking back to 2013’s dividend of 50 paise, it’s clear that despite some bumps, the company’s dividend growth has been reliable over the long term.

Shareholding of 20 Microns

Understanding who owns a company’s stock is crucial before investing your money into it. A look at the share ownership reveals who has a significant share.

When the ownership is spread out, it’s usually a stable bet with less chance of shady business. If you spot foreign bigwig investors, that’s a good sign; they do their homework before throwing cash into the mix.

So, digging into the who’s-who of a company’s shares can give you the nitty-gritty you need to make smart investing moves.

Promoters

As you can see from the table, the promoter’s shareholding has been consistent between 44.83% and 44.95%. The steady promoter shareholding indicates their confidence in the company’s performance and potential for growth. This also suggests that the promoters have been actively involved in the company’s decision-making processes.

Foreign Institutional Investors (FIIs)

Foreign Institutional Investors (FIIs) have shown minimal activity over this timeframe, suggesting their disinterest or involvement with company operations, which may be due to economic conditions, industry performance, or company-specific concerns. In March 2022, they only held 1.07 Percent before dropping to 0.72% by March 2023.

Domestic institutional investors (DIIs)

On the other hand, domestic institutional investors (DIIs) appear to have minimal participation and do not contribute any shares after March 2020; this could indicate a lack of trust in company performance or future prospects; at present, they hold no shares whatsoever.

Public shareholding

The public shareholding also experiences a slight reduction, signifying less retail investor enthusiasm for and participation in company stocks. This may be caused by market conditions, competition, or changes in consumer tastes – with an overall decline from 55.67% in March 2017 to 54.33% by December 2023.

Conclusion

Should you buy 20 Micron stock? Well, 20 Microns has excellent fundamentals and superb performance in the last five years, proving solidity.

This stock has all the ingredients to become a multi-bagger and achieve even higher targets than we suggested. We recommend buying the share even after a recent bull run because we expect that it is an excellent long-term buy.

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