NSEI:HARITASEAT

Stock Analysis Report

Harita Seating Systems

Executive Summary

Harita Seating Systems Limited designs, develops, manufactures, and sells seats and seating systems for automotive and non-automotive applications in India.

Rewards

Trading at 65.7% below its fair value

Risk Analysis

Unstable dividend track record

Does not have a meaningful market cap (₹3B)



Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

How has Harita Seating Systems's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.2%

HARITASEAT

-0.9%

IN Auto Components

-1.1%

IN Market


1 Year Return

-17.9%

HARITASEAT

-19.1%

IN Auto Components

2.9%

IN Market

Return vs Industry: HARITASEAT matched the Indian Auto Components industry which returned -19.1% over the past year.

Return vs Market: HARITASEAT underperformed the Indian Market which returned 2.9% over the past year.


Shareholder returns

HARITASEATIndustryMarket
7 Day-2.2%-0.9%-1.1%
30 Day1.4%-0.6%-0.8%
90 Day3.1%6.3%6.0%
1 Year-16.7%-17.9%-18.3%-19.1%4.9%2.9%
3 Year-36.0%-37.6%0.5%-1.9%32.7%25.7%
5 Year178.4%163.1%19.3%14.8%41.2%28.5%

Price Volatility Vs. Market

How volatile is Harita Seating Systems's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Harita Seating Systems 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: HARITASEAT (₹441.3) is trading below our estimate of fair value (₹1286.1)

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


Price To Earnings Ratio

PE vs Industry: HARITASEAT is good value based on its PE Ratio (14.8x) compared to the Auto Components industry average (15.3x).

PE vs Market: HARITASEAT is poor value based on its PE Ratio (14.8x) compared to the Indian market (12.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: HARITASEAT is overvalued based on its PB Ratio (1.9x) compared to the IN Auto Components industry average (1.4x).


Next Steps

Future Growth

How is Harita Seating Systems forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

18.3%

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 Harita Seating Systems 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 Harita Seating Systems performed over the past 5 years?

9.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HARITASEAT has high quality earnings.

Growing Profit Margin: HARITASEAT's current net profit margins (2.7%) are lower than last year (3.5%).


Past Earnings Growth Analysis

Earnings Trend: HARITASEAT's earnings have grown by 9.4% per year over the past 5 years.

Accelerating Growth: HARITASEAT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HARITASEAT had negative earnings growth (-29.5%) over the past year, making it difficult to compare to the Auto Components industry average (-14.7%).


Return on Equity

High ROE: HARITASEAT's Return on Equity (14.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Harita Seating Systems's financial position?


Financial Position Analysis

Short Term Liabilities: HARITASEAT's short term assets (₹2.8B) exceed its short term liabilities (₹2.5B).

Long Term Liabilities: HARITASEAT's short term assets (₹2.8B) exceed its long term liabilities (₹159.2M).


Debt to Equity History and Analysis

Debt Level: HARITASEAT's debt to equity ratio (15.5%) is considered satisfactory.

Reducing Debt: HARITASEAT's debt to equity ratio has reduced from 32% to 15.5% over the past 5 years.

Debt Coverage: HARITASEAT's debt is well covered by operating cash flow (216.8%).

Interest Coverage: HARITASEAT's interest payments on its debt are well covered by EBIT (14.4x coverage).


Balance Sheet

Inventory Level: HARITASEAT has a high level of physical assets or inventory.

Debt Coverage by Assets: HARITASEAT's debt is covered by short term assets (assets are 6.9x debt).


Next Steps

Dividend

What is Harita Seating Systems's current dividend yield, its reliability and sustainability?

1.35%

Current Dividend Yield


Dividend Yield vs Market

company1.4%marketbottom25%0.6%markettop25%2.5%industryaverage0.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: HARITASEAT's dividend (1.35%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: HARITASEAT's dividend (1.35%) is low compared to the top 25% of dividend payers in the Indian market (2.55%).


Stability and Growth of Payments

Stable Dividend: HARITASEAT has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: HARITASEAT's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (19.9%), HARITASEAT's dividend payments are well covered by earnings.


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

What is the CEO of Harita Seating Systems's salary, the management and board of directors tenure and is there insider trading?

7.6yrs

Average management tenure


CEO

A. Giridharan 0

5.1yrs

Tenure

₹7,213,000

Compensation

Mr. A. G. Giridharan serves as President and Chief Executive Officer of Harita Fehrer Ltd. Mr. Giridharan has been the President of Harita Seating Systems Limited since November 10, 2009 and has been its C ...


CEO Compensation Analysis

Compensation vs Market: A.'s total compensation ($USD0.00) is below average for companies of similar size in the Indian market ($USD50.88K).

Compensation vs Earnings: A.'s compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

7.6yrs

Average Tenure

Experienced Management: HARITASEAT's management team is seasoned and experienced (7.6 years average tenure).


Board Age and Tenure

12.7yrs

Average Tenure

68.5yo

Average Age

Experienced Board: HARITASEAT's board of directors are seasoned and experienced ( 12.7 years average tenure).


Insider Trading

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.


Management Team

  • Y. Kale (61yo)

    Vice President of Research & Development

    • Tenure: 31.8yrs
    • Compensation: ₹3.50m
  • A. Giridharan

    CEO & President

    • Tenure: 5.1yrs
    • Compensation: ₹7.21m
  • N. Lakshmi

    Compliance Officer & Company Secretary

    • Tenure: 10.2yrs
  • S. Jagannathan

    Chief Financial Officer

    • Tenure: 3.1yrs

Board Members

  • Harihara Lakshmanan (86yo)

    Independent Chairman

    • Tenure: 13.7yrs
    • Compensation: ₹90.00k
  • C. Prasad (72yo)

    Non-Executive Independent Director

    • Tenure: 11.7yrs
    • Compensation: ₹85.00k
  • S. Jaffar Ali (81yo)

    Non-Executive Independent Director

    • Tenure: 22.9yrs
    • Compensation: ₹1.09m
  • Martin Grammer (59yo)

    Non-Executive Non-Independent Director

    • Tenure: 15.9yrs
    • Compensation: ₹20.00k
  • L. Bhadri (55yo)

    Non-Executive Independent Director

    • Tenure: 4.2yrs
    • Compensation: ₹30.00k
  • Sasikala Varadachari (65yo)

    Non-Executive Independent Director

    • Tenure: 3.8yrs
    • Compensation: ₹725.00k

Company Information

Harita Seating Systems Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Harita Seating Systems Limited
  • Ticker: HARITASEAT
  • Exchange: NSEI
  • Founded: 1988
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: ₹3.423b
  • Shares outstanding: 7.77m
  • Website: https://www.haritaseating.com

Location

  • Harita Seating Systems Limited
  • Jayalakshmi Estates
  • Vth Floor
  • Chennai
  • Tamil Nadu
  • 600006
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
590043BSE (Mumbai Stock Exchange)YesEquity SharesININRJan 2005
HARITASEATNSEI (National Stock Exchange of India)YesEquity SharesININRJan 2005

Biography

Harita Seating Systems Limited designs, develops, manufactures, and sells seats and seating systems for automotive and non-automotive applications in India. It offers driver and cabin seating solutions for ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/13 12:58
End of Day Share Price2019/12/12 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.