BSE:523838

Stock Analysis Report

Simplex Infrastructures

Executive Summary

Simplex Infrastructures Limited provides construction services for the transport, energy and power, mining, buildings, marine, and real estate sectors in India and internationally.


Snowflake Analysis

Good value with mediocre balance sheet.


Similar Companies

Share Price & News

How has Simplex Infrastructures's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 523838's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.4%

523838

-1.2%

IN Construction

-0.07%

IN Market


1 Year Return

-62.6%

523838

-2.0%

IN Construction

9.5%

IN Market

Return vs Industry: 523838 underperformed the Indian Construction industry which returned -2% over the past year.

Return vs Market: 523838 underperformed the Indian Market which returned 9.5% over the past year.


Shareholder returns

523838IndustryMarket
7 Day5.4%-1.2%-0.07%
30 Day14.2%-5.5%-0.7%
90 Day17.0%-5.7%3.2%
1 Year-62.2%-62.6%-0.6%-2.0%11.5%9.5%
3 Year-82.0%-82.2%11.8%7.7%23.6%16.7%
5 Year-87.0%-87.2%9.9%3.7%35.4%22.9%

Price Volatility Vs. Market

How volatile is Simplex Infrastructures's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Simplex Infrastructures 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: 523838 (₹54) is trading below our estimate of fair value (₹474.36)

Significantly Below Fair Value: 523838 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 523838 is poor value based on its PE Ratio (13x) compared to the Construction industry average (10.8x).

PE vs Market: 523838 is good value based on its PE Ratio (13x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 523838's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 523838 is good value based on its PB Ratio (0.1x) compared to the IN Construction industry average (0.6x).


Next Steps

Future Growth

How is Simplex Infrastructures forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

16.5%

Forecasted Capital Goods 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 Simplex Infrastructures 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 Simplex Infrastructures performed over the past 5 years?

-3.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 523838 has a large one-off gain of ₹367.6M impacting its December 31 2019 financial results.

Growing Profit Margin: 523838's current net profit margins (0.5%) are lower than last year (2%).


Past Earnings Growth Analysis

Earnings Trend: 523838's earnings have declined by -3% per year over the past 5 years.

Accelerating Growth: 523838's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 523838 had negative earnings growth (-80.3%) over the past year, making it difficult to compare to the Construction industry average (4.8%).


Return on Equity

High ROE: 523838's Return on Equity (1.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Simplex Infrastructures's financial position?


Financial Position Analysis

Short Term Liabilities: 523838's short term assets (₹85.4B) exceed its short term liabilities (₹72.0B).

Long Term Liabilities: 523838's short term assets (₹85.4B) exceed its long term liabilities (₹3.9B).


Debt to Equity History and Analysis

Debt Level: 523838's debt to equity ratio (157.4%) is considered high.

Reducing Debt: 523838's debt to equity ratio has reduced from 221.8% to 157.4% over the past 5 years.

Debt Coverage: 523838's debt is not well covered by operating cash flow (14.1%).

Interest Coverage: 523838's interest payments on its debt are not well covered by EBIT (1.1x coverage).


Balance Sheet

Inventory Level: 523838 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 523838's debt is covered by short term assets (assets are 2.6x debt).


Next Steps

Dividend

What is Simplex Infrastructures's current dividend yield, its reliability and sustainability?

0.92%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%0.6%markettop25%2.6%industryaverage1.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 523838's dividend (0.93%) is higher than the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: 523838's dividend (0.93%) is low compared to the top 25% of dividend payers in the Indian market (2.59%).


Stability and Growth of Payments

Stable Dividend: 523838's dividend payments have been volatile in the past 10 years.

Growing Dividend: 523838's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (12%), 523838's dividend payments are thoroughly 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

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

5.8yrs

Average board tenure


CEO

Dipak Basu (76yo)

0.4yrs

Tenure

₹4,132,400

Compensation

Mr. Dipak Narayan Basu has been Whole-Time Director of Simplex Infrastructures Limited since November 21, 2016. 


CEO Compensation Analysis

Compensation vs Market: Dipak's total compensation ($USD57.53K) is about average for companies of similar size in the Indian market ($USD50.06K).

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


Board Members

NamePositionTenureCompensationOwnership
Rajiv Mundhra
Executive Chairman of the Board3.4yrs₹9.70m7.28% 224.8m
Dipak Basu
Whole-Time Director0.4yrs₹4.13mno data
Sukumar Dutta
CFO & Whole-Time Director18.7yrs₹4.75m0.00088% 27.2k
Sheo Damani
Non-Executive Independent Director13.5yrs₹240.00kno data
Nripendra Bhattacharyya
Non-Executive Independent Director0yrs₹340.00kno data
Bithal Mundhra
Chairman Emeritus0yrs₹55.00k5.3% 163.6m
Asutosh Sen
Non-Executive Independent Director6.8yrs₹280.00kno data
Leena Ghosh
Non-Executive Independent Director4.9yrs₹180.00kno data

5.8yrs

Average Tenure

76.5yo

Average Age

Experienced Board: 523838's board of directors are considered experienced (5.8 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 been diluted in the past year, with total shares outstanding growing by 5.4%.


Top Shareholders

Company Information

Simplex Infrastructures Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Simplex Infrastructures Limited
  • Ticker: 523838
  • Exchange: BSE
  • Founded: 1924
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: ₹3.086b
  • Shares outstanding: 57.14m
  • Website: https://www.simplexinfra.com

Number of Employees


Location

  • Simplex Infrastructures Limited
  • 12/1, Nellie Sengupta Sarani
  • Kolkata
  • West Bengal
  • 700087
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
523838BSE (Mumbai Stock Exchange)YesEquity SharesININROct 2004
SIMPLEXINFNSEI (National Stock Exchange of India)YesEquity SharesININROct 2004

Biography

Simplex Infrastructures Limited provides construction services for the transport, energy and power, mining, buildings, marine, and real estate sectors in India and internationally. It operates through two segments, Construction and Others. The company builds rail infrastructure, including rail tracks, station buildings, bridges, and culverts; and designs and constructs high-rise infrastructure, such as multistoried residential towers, institutional or information technology buildings, hotels, hospitals, and mass housing projects. It also builds industrial structures comprising steel and power plants; and undertakes projects for cement, aluminum, copper, engineering, automobiles, petrochemicals, fertilizers, paper textiles, pharmaceuticals, chemicals, and other industrial plants. In addition, the company engages in erecting various types of power infrastructures that include thermal, hydel, and nuclear, as well as ultra-mega power projects; underwater piling, which comprise steel piling; and building bridges across rivers. Further, it undertakes ground engineering projects, including pre-cast piling and jointed piling, cast-in-situ, driven, and bored piling, as well as soil investigation, soil compaction, diaphragm walls, grouting, stone columns, etc. Additionally, the company offers airport renovation and modernization; and oil drilling services, as well as engages in the real estate, and plant and equipment hire business activities. It also operates and develops mines. Simplex Infrastructures Limited was founded in 1924 and is based in Kolkata, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 12:59
End of Day Share Price2020/02/20 00:00
Earnings2019/12/31
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.