BSE:523850

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Axtel Industries Limited manufactures and supplies process engineering equipment and turnkey systems for the food and pharmaceutical industries in India and internationally.


Snowflake Analysis

Flawless balance sheet with questionable track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 523850's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.2%

523850

0.8%

IN Machinery

1.8%

IN Market


1 Year Return

-22.5%

523850

-34.3%

IN Machinery

-23.7%

IN Market

Return vs Industry: 523850 exceeded the Indian Machinery industry which returned -34.3% over the past year.

Return vs Market: 523850 exceeded the Indian Market which returned -23.7% over the past year.


Shareholder returns

523850IndustryMarket
7 Day-0.2%0.8%1.8%
30 Day0.5%-0.4%-0.5%
90 Day-24.7%-27.4%-22.2%
1 Year-19.4%-22.5%-33.0%-34.3%-22.2%-23.7%
3 Year32.6%25.0%-31.9%-34.8%-12.1%-16.8%
5 Year821.3%768.6%-13.0%-18.3%4.5%-5.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

18.5x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 523850 (₹98.15) is trading above our estimate of fair value (₹51.07)

Significantly Below Fair Value: 523850 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 523850 is poor value based on its PE Ratio (18.5x) compared to the Machinery industry average (10.2x).

PE vs Market: 523850 is poor value based on its PE Ratio (18.5x) compared to the Indian market (9.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 523850's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 523850 is overvalued based on its PB Ratio (3x) compared to the IN Machinery industry average (0.9x).


Next Steps

Future Growth

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

11.7%

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 Axtel 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 Axtel Industries performed over the past 5 years?

40.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 523850 has high quality earnings.

Growing Profit Margin: 523850's current net profit margins (8%) are lower than last year (14.1%).


Past Earnings Growth Analysis

Earnings Trend: 523850 has become profitable over the past 5 years, growing earnings by 40.8% per year.

Accelerating Growth: 523850's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 523850 had negative earnings growth (-44.4%) over the past year, making it difficult to compare to the Machinery industry average (-7.1%).


Return on Equity

High ROE: 523850's Return on Equity (16.1%) is considered low.


Next Steps

Financial Health

How is Axtel Industries's financial position?


Financial Position Analysis

Short Term Liabilities: 523850's short term assets (₹482.1M) exceed its short term liabilities (₹335.4M).

Long Term Liabilities: 523850's short term assets (₹482.1M) exceed its long term liabilities (₹49.5M).


Debt to Equity History and Analysis

Debt Level: 523850's debt to equity ratio (2.8%) is considered satisfactory.

Reducing Debt: 523850's debt to equity ratio has reduced from 78.5% to 2.8% over the past 5 years.

Debt Coverage: 523850's debt is well covered by operating cash flow (608.3%).

Interest Coverage: 523850 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

2.55%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 523850's dividend (2.55%) is higher than the bottom 25% of dividend payers in the Indian market (0.86%).

High Dividend: 523850's dividend (2.55%) is low compared to the top 25% of dividend payers in the Indian market (3.7%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 523850 has been paying a dividend for less than 10 years.

Growing Dividend: 523850's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.3%), 523850'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

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

10.4yrs

Average board tenure


CEO

Ajay Desai (61yo)

no data

Tenure

₹15,000,000

Compensation

Shri Ajay Naishad Desai served as Compliance Officer of Axtel Industries Ltd until April 2016. Shri. Desai has been Whole Time Director of Axtel Industries Ltd since March 1, 2007. Shri Desai's duties incl ...


CEO Compensation Analysis

Compensation vs Market: Ajay's total compensation ($USD197.77K) is above average for companies of similar size in the Indian market ($USD50.17K).

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


Board Members

NamePositionTenureCompensationOwnership
Ajay Desai
Whole Time Directorno data₹15.00m5.71% 91.6m
Ajay Parikh
Whole Time Director11.75yrs₹15.17m2.88% 46.3m
Kirit Pathak
Non-Executive Directorno datano data4.74% 76.1m
Ameet Parikh
Non Executive Director10.42yrs₹40.00kno data
Ajit Singh Bubber
Non-Executive Director25.08yrsno datano data
Sandeep Lalwani
Independent Chairman4.33yrs₹40.00kno data
Deepti Sharma
Independent Director1.5yrs₹40.00kno data
Nimish Patel
Independent Director1.5yrs₹30.00kno data

10.4yrs

Average Tenure

60yo

Average Age

Experienced Board: 523850's board of directors are seasoned and experienced ( 10.4 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

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


Key Information

  • Name: Axtel Industries Limited
  • Ticker: 523850
  • Exchange: BSE
  • Founded: 1991
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: ₹1.606b
  • Shares outstanding: 16.15m
  • Website: https://www.axtelindia.com

Number of Employees


Location

  • Axtel Industries Limited
  • Plot No. 43/1
  • Village Nurpura
  • Halol
  • Gujarat
  • 389350
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
523850BSE (Mumbai Stock Exchange)YesEquity SharesININRFeb 2005

Biography

Axtel Industries Limited manufactures and supplies process engineering equipment and turnkey systems for the food and pharmaceutical industries in India and internationally. It also offers various categories of process plants/equipment. The company was incorporated in 1991 and is based in Halol, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/26 12:34
End of Day Share Price2020/05/26 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.