BSE:500155

Stock Analysis Report

Executive Summary

Garden Silk Mills Limited operates as a textile company in India and internationally.

Rewards

Trading at 96.1% below its fair value

Risk Analysis

Does not have a meaningful market cap (₹367M)

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months



Snowflake Analysis

Slightly overvalued with imperfect balance sheet.


Similar Companies

Share Price & News

How has Garden Silk Mills's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 500155's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.5%

500155

0.8%

IN Luxury

0.8%

IN Market


1 Year Return

-59.9%

500155

7.4%

IN Luxury

3.6%

IN Market

Return vs Industry: 500155 underperformed the Indian Luxury industry which returned 7.4% over the past year.

Return vs Market: 500155 underperformed the Indian Market which returned 3.6% over the past year.


Shareholder returns

500155IndustryMarket
7 Day-6.5%0.8%0.8%
30 Day-19.4%0.5%0.6%
90 Day-26.1%5.0%7.3%
1 Year-59.9%-59.9%8.2%7.4%5.6%3.6%
3 Year-71.4%-71.4%61.6%59.5%34.1%27.0%
5 Year-71.9%-71.9%102.7%98.9%41.4%28.6%

Price Volatility Vs. Market

How volatile is Garden Silk Mills's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Garden Silk Mills 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: 500155 (₹8.71) is trading below our estimate of fair value (₹225.94)

Significantly Below Fair Value: 500155 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 500155 is unprofitable, so we can't compare its PE Ratio to the Luxury industry average.

PE vs Market: 500155 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 500155's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 500155 has negative assets, so we can't compare its PB Ratio to the IN Luxury industry average.


Next Steps

Future Growth

How is Garden Silk Mills forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

20.7%

Forecasted Consumer Durables 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 Garden Silk Mills 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 Garden Silk Mills performed over the past 5 years?

13.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500155 is currently unprofitable.

Growing Profit Margin: 500155 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 500155 is unprofitable, but has reduced losses over the past 5 years at a rate of 13.7% per year.

Accelerating Growth: Unable to compare 500155's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 500155 is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (1.1%).


Return on Equity

High ROE: 500155's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Garden Silk Mills's financial position?


Financial Position Analysis

Short Term Liabilities: 500155 has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: 500155 has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: 500155 has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: 500155's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: 500155 has a high level of physical assets or inventory.

Debt Coverage by Assets: 500155 has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable 500155 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 500155 is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -12.2% per year.


Next Steps

Dividend

What is Garden Silk Mills's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%0.6%markettop25%2.5%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 500155's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 500155's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 500155's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 500155's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 500155 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 500155's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

What is the CEO of Garden Silk Mills's salary, the management and board of directors tenure and is there insider trading?

9.0yrs

Average board tenure


CEO

Praful Shah (81yo)

0yrs

Tenure

₹23,959,200

Compensation

Mr. Praful Amichand Shah serves as Executive Chairman, Chief Executive Officer and Managing Director of Garden Silks Mills Ltd. Mr. Shah serves as Chairman and Managing Director at Bijlee Textiles Ltd. He  ...


CEO Compensation Analysis

Compensation vs Market: Praful's total compensation ($USD338.34K) is above average for companies of similar size in the Indian market ($USD50.84K).

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


Board Age and Tenure

9.0yrs

Average Tenure

63yo

Average Age

Experienced Board: 500155's board of directors are considered experienced (9 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

  • Alok Shah (49yo)

    CFO, COO & Executive Director

    • Tenure: 18.2yrs
    • Compensation: ₹23.96m
  • Suhail Shah (45yo)

    Executive Director

    • Tenure: 13.2yrs
    • Compensation: ₹21.56m
  • Sanjay Shah (63yo)

    Executive Director

    • Tenure: 29.8yrs
    • Compensation: ₹5.91m
  • Kamlesh Vyas

    Company Secretary & Compliance Officer

    • Tenure: 0yrs
    • Compensation: ₹3.37m
  • Praful Shah (81yo)

    Executive Chairman

    • Tenure: 0yrs
    • Compensation: ₹23.96m

Board Members

  • Alok Shah (49yo)

    CFO, COO & Executive Director

    • Tenure: 18.2yrs
    • Compensation: ₹23.96m
  • Suhail Shah (45yo)

    Executive Director

    • Tenure: 13.2yrs
    • Compensation: ₹21.56m
  • Sanjay Shah (63yo)

    Executive Director

    • Tenure: 29.8yrs
    • Compensation: ₹5.91m
  • Sunil Sheth (67yo)

    Independent Non-Executive Director

    • Tenure: 4.8yrs
    • Compensation: ₹107.50k
  • Praful Shah (81yo)

    Executive Chairman

    • Tenure: 0yrs
    • Compensation: ₹23.96m
  • Deepak Shah (69yo)

    Independent Non-Executive Director

    • Tenure: 4yrs
    • Compensation: ₹100.00k
  • Ketan Jariwala (57yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: ₹100.00k

Company Information

Garden Silk Mills Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Garden Silk Mills Limited
  • Ticker: 500155
  • Exchange: BSE
  • Founded: 1979
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹366.539m
  • Shares outstanding: 42.08m
  • Website: https://www.gardenvareli.com

Number of Employees


Location

  • Garden Silk Mills Limited
  • Tulsi Krupa Arcade
  • Near Aai Mata Chowk
  • Surat
  • Gujarat
  • 395010
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500155BSE (Mumbai Stock Exchange)YesEquity SharesININRNov 2001
GARDENSILKNSEI (National Stock Exchange of India)YesEquity SharesININRNov 2001

Biography

Garden Silk Mills Limited operates as a textile company in India and internationally. The company offers dyed and printed sarees and dress materials; polyester chips for textile grade and film grade; prepa ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/15 12:41
End of Day Share Price2019/12/13 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.