BSE:500207

Stock Analysis Report

Indo Rama Synthetics (India)

Executive Summary

Indo Rama Synthetics (India) Limited manufactures and supplies polyester in India, Indonesia, Thailand, the United States, Nepal, and Sri Lanka.

Risk Analysis

Earnings have declined by -51.6% per year over past 5 years

Has less than 1 year of cash runway

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

Highly volatile share price over past 3 months

+ 2 more risks


Snowflake Analysis

Imperfect balance sheet with weak fundamentals.


Similar Companies

Share Price & News

How has Indo Rama Synthetics (India)'s share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 500207's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-7.5%

500207

1.1%

IN Luxury

-0.8%

IN Market


1 Year Return

-35.5%

500207

18.4%

IN Luxury

11.1%

IN Market

Return vs Industry: 500207 underperformed the Indian Luxury industry which returned 16.6% over the past year.

Return vs Market: 500207 underperformed the Indian Market which returned 11.1% over the past year.


Shareholder returns

500207IndustryMarket
7 Day-7.5%1.1%-0.8%
30 Day-12.2%3.3%-2.3%
90 Day-13.4%9.6%2.1%
1 Year-35.5%-35.5%19.2%18.4%13.1%11.1%
3 Year-30.0%-30.0%54.9%51.5%22.9%16.2%
5 Year18.3%12.2%106.1%99.4%34.9%22.6%

Price Volatility Vs. Market

How volatile is Indo Rama Synthetics (India)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Indo Rama Synthetics (India) undervalued compared to its fair value and its price relative to the market?

1.24x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 500207's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 500207's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 500207 is unprofitable, so we can't compare its PE Ratio to the Luxury industry average.

PE vs Market: 500207 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 500207's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 500207 is overvalued based on its PB Ratio (1.2x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

How is Indo Rama Synthetics (India) forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

19.8%

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 Indo Rama Synthetics (India) 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 Indo Rama Synthetics (India) performed over the past 5 years?

-51.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500207 is currently unprofitable.

Growing Profit Margin: 500207 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 500207 is unprofitable, and losses have increased over the past 5 years at a rate of -51.6% per year.

Accelerating Growth: Unable to compare 500207's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 500207 is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (2.5%).


Return on Equity

High ROE: 500207 has a negative Return on Equity (-60.85%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Indo Rama Synthetics (India)'s financial position?


Financial Position Analysis

Short Term Liabilities: 500207's short term assets (₹6.3B) do not cover its short term liabilities (₹8.3B).

Long Term Liabilities: 500207's short term assets (₹6.3B) exceed its long term liabilities (₹3.8B).


Debt to Equity History and Analysis

Debt Level: 500207's debt to equity ratio (84.5%) is considered high.

Reducing Debt: 500207's debt to equity ratio has reduced from 103.4% to 84.5% over the past 5 years.


Balance Sheet

Inventory Level: 500207 has a high level of physical assets or inventory.

Debt Coverage by Assets: 500207's debt is covered by short term assets (assets are 1.6x debt).


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: 500207 has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: 500207 has less than a year of cash runway if free cash flow continues to reduce at historical rates of -37.9% each year


Next Steps

Dividend

What is Indo Rama Synthetics (India)'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 500207's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 500207'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 500207's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 500207's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 500207 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 500207's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

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

1.1yrs

Average management tenure


CEO

Maganti Rao (62yo)

0.8yrs

Tenure

0

Mr. Maganti Narayana Sudhindra Rao has been Chief Executive Officer and Executive Director of Indo Rama Synthetics (India) Limited since April 8, 2019 and April 3, 2019 respectively. Mr. Rao is responsible ...


Leadership Team

NamePositionTenureCompensationOwnership
Om Lohia
Chairman & MD15.6yrs₹33.40m21.7% 1.3b
Susheel Mehrotra
Chief Financial Officer1.3yrs₹2.47mno data
Vishal Lohia
Whole-Time Director17.7yrs₹24.80m0.53% 31.6m
Maganti Rao
CEO & Executive Director0.8yrsno datano data
Anupam Singhania
Senior Vice President of Operations0yrs₹6.66mno data
Pawan Thakur
Company Secretary & Compliance Officer0.5yrsno datano data
Chandra Kataria
Marketing Head4yrs₹966.08kno data
M. Birajdar
Plant Head7.3yrsno datano data
Sanjeev Parsarampuria
Senior Vice President of Raw Materials0yrs₹6.41mno data
Umesh Agrawal
Chief Commercial & Financial Officer0.8yrsno datano data

1.1yrs

Average Tenure

53.5yo

Average Age

Experienced Management: 500207's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Om Lohia
Chairman & MD15.6yrs₹33.40m21.7% 1.3b
Vishal Lohia
Whole-Time Director17.7yrs₹24.80m0.53% 31.6m
Maganti Rao
CEO & Executive Director0.8yrsno datano data
Suman Khaitan
Non-Executive Independent Director5.5yrs₹300.00kno data
Arvind Pandalai
Non-Executive Independent Director5.5yrs₹300.00kno data
Udey Paul Gill
Non-Executive Non-Independent Director0.8yrsno datano data
Ranjana Agarwal
Non-Executive Independent Director4.6yrs₹200.00kno data

5.5yrs

Average Tenure

63yo

Average Age

Experienced Board: 500207's board of directors are considered experienced (5.5 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 38.7%.


Top Shareholders

Company Information

Indo Rama Synthetics (India) Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Indo Rama Synthetics (India) Limited
  • Ticker: 500207
  • Exchange: BSE
  • Founded: 1986
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹5.979b
  • Shares outstanding: 261.11m
  • Website: https://www.indoramaindia.com

Number of Employees


Location

  • Indo Rama Synthetics (India) Limited
  • DLF Square
  • 20th Floor
  • Gurugram
  • Haryana
  • 122002
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500207BSE (Mumbai Stock Exchange)YesEquity SharesININRMar 2000
INDORAMANSEI (National Stock Exchange of India)YesEquity SharesININRMar 2000

Biography

Indo Rama Synthetics (India) Limited manufactures and supplies polyester in India, Indonesia, Thailand, the United States, Nepal, and Sri Lanka. The company offers various polyester products, including polyester staple fiber, polyester filament yarn, draw texturized yarn, fully drawn yarn and textile grade chips. Its products are used in various applications, such as apparel and sportswear, home furnishings and textiles, non-woven, and automotive. The company was incorporated in 1986 and is based in Gurugram, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 12:44
End of Day Share Price2020/02/17 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.