BSE:530621

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Akar Auto Industries

Executive Summary

Akar Auto Industries Limited manufactures and sells automotive components in India and internationally.


Snowflake Analysis

Fair value with mediocre balance sheet.

Share Price & News

How has Akar Auto Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 530621 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-7.9%

530621

0.6%

IN Auto Components

0.1%

IN Market


1 Year Return

-43.7%

530621

-11.8%

IN Auto Components

-6.1%

IN Market

Return vs Industry: 530621 underperformed the Indian Auto Components industry which returned -11.8% over the past year.

Return vs Market: 530621 underperformed the Indian Market which returned -6.1% over the past year.


Shareholder returns

530621IndustryMarket
7 Day-7.9%0.6%0.1%
30 Day-9.2%8.7%7.6%
90 Day0.7%33.3%19.4%
1 Year-42.3%-43.7%-10.4%-11.8%-4.3%-6.1%
3 Year-71.5%-72.8%-32.9%-34.9%-2.9%-7.5%
5 Year16.6%5.9%-7.0%-10.9%21.9%12.7%

Price Volatility Vs. Market

How volatile is Akar Auto Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Akar Auto Industries undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 530621 (₹15.2) is trading below our estimate of fair value (₹166.79)

Significantly Below Fair Value: 530621 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 530621 is unprofitable, so we can't compare its PE Ratio to the IN Auto Components industry average.

PE vs Market: 530621 is unprofitable, so we can't compare its PE Ratio to the Indian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 530621's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 530621 is good value based on its PB Ratio (0.6x) compared to the IN Auto Components industry average (1.1x).


Next Steps

Future Growth

How is Akar Auto Industries forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

21.3%

Forecasted Automobiles industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Akar Auto Industries has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Akar Auto Industries performed over the past 5 years?

12.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 530621 is currently unprofitable.

Growing Profit Margin: 530621 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 530621 is unprofitable, but has reduced losses over the past 5 years at a rate of 12.3% per year.

Accelerating Growth: Unable to compare 530621's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 530621 is unprofitable, making it difficult to compare its past year earnings growth to the Auto Components industry (-29.8%).


Return on Equity

High ROE: 530621 has a negative Return on Equity (-10.72%), as it is currently unprofitable.


Next Steps

Financial Health

How is Akar Auto Industries's financial position?


Financial Position Analysis

Short Term Liabilities: 530621's short term assets (₹968.7M) exceed its short term liabilities (₹859.5M).

Long Term Liabilities: 530621's short term assets (₹968.7M) exceed its long term liabilities (₹283.0M).


Debt to Equity History and Analysis

Debt Level: 530621's debt to equity ratio (229.6%) is considered high.

Reducing Debt: 530621's debt to equity ratio has increased from 147.8% to 229.6% over the past 5 years.

Debt Coverage: 530621's debt is well covered by operating cash flow (23.1%).

Interest Coverage: 530621 is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is Akar Auto Industries's current dividend yield, its reliability and sustainability?

3.62%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 530621's dividend (3.62%) is higher than the bottom 25% of dividend payers in the Indian market (0.68%).

High Dividend: 530621's dividend (3.62%) is in the top 25% of dividend payers in the Indian market (2.75%)


Stability and Growth of Payments

Stable Dividend: 530621's dividend payments have been volatile in the past 10 years.

Growing Dividend: 530621's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: 530621 is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.7yrs

Average management tenure


CEO

Sunil Todi (57yo)

9.75yrs

Tenure

₹5,663,000

Compensation

Mr. Sunil K. Todi has been the Managing Director and Executive Director of Akar Auto Industries Limited (formerly known as Akar Tools Limited). since October 16, 2010. Mr. Todi served as Compliance Officer ...


CEO Compensation Analysis

Compensation vs Market: Sunil's total compensation ($USD75.36K) is above average for companies of similar size in the Indian market ($USD49.95K).

Compensation vs Earnings: Sunil's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Sunil Todi
MD & Executive Director9.75yrs₹5.66m0.00037% 626.7
Vinay Joshi
Chief Financial Officer1.67yrs₹2.94mno data
Nasim Ahmad
Vice President of Operationsno datano datano data
Mitesh Gadhiya
Head of Legal3.67yrs₹1.31mno data
Pradeep Nijampurkar
Whole-Time Director3.83yrs₹1.32mno data
Suhrid Roy
General Manager of Marketingno datano datano data

3.7yrs

Average Tenure

50yo

Average Age

Experienced Management: 530621's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sunil Todi
MD & Executive Director9.75yrs₹5.66m0.00037% 626.7
Pradeep Nijampurkar
Whole-Time Director3.83yrs₹1.32mno data
Raghunandanlal Gupta
Chairman of the Boardno datano data19.71% 33.4m
Narendra Gupta
Non-Executive Director31.08yrs₹600.00k26.94% 45.6m
Anil Gupta
Additional Independent Director0.92yrno datano data
Vijay Chopra
Independent Director6.17yrs₹315.00kno data
Surendra Nath Shukla
Independent Director5.92yrs₹255.00kno data
Bhimsen Galgali
Additional Independent Director2.33yrs₹240.00kno data
Bhavana Saboo
Independent Director1.92yrs₹120.00kno data
Ulhas Gaoli
Additional Independent Director0.92yrno datano data

3.8yrs

Average Tenure

66.5yo

Average Age

Experienced Board: 530621's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Akar Auto Industries Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Akar Auto Industries Limited
  • Ticker: 530621
  • Exchange: BSE
  • Founded: 1989
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: ₹169.372m
  • Shares outstanding: 10.79m
  • Website: https://www.akartoolsltd.com

Number of Employees


Location

  • Akar Auto Industries Limited
  • E-5, MIDC, Waluj Area
  • Aurangabad
  • Maharashtra
  • 431136
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
530621BSE (Mumbai Stock Exchange)YesEquity SharesININRJul 1995

Biography

Akar Auto Industries Limited manufactures and sells automotive components in India and internationally. It offers various hand tools, including spanners/wrenches, automotive/working tools, plumbing tools, electrical and electronics tools, striking tools, lubricating tools, tool aprons, and hand trucks; automotive and non-automotive tool kits and forging products; and multi and parabolic leaf springs, as well as air links. The company serves automotive and non-automotive suppliers, as well as OEMs. It also exports its products. The company was formerly known as Akar Tools Limited and changed its name to Akar Auto Industries Limited in November 2017. Akar Auto Industries Limited was founded in 1989 and is based in Aurangabad, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/14 12:52
End of Day Share Price2020/07/14 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.