BSE:502873

Stock Analysis Report

H P Cotton Textile Mills

Executive Summary

H P Cotton Textile Mills Limited manufactures and sells cotton specialty yarns and sewing threads in India.


Snowflake Analysis

Overvalued with worrying balance sheet.

Share Price & News

How has H P Cotton Textile Mills's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 502873's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-8.6%

502873

-0.5%

IN Luxury

-1.5%

IN Market


1 Year Return

-49.1%

502873

18.2%

IN Luxury

10.7%

IN Market

Return vs Industry: 502873 underperformed the Indian Luxury industry which returned 18.4% over the past year.

Return vs Market: 502873 underperformed the Indian Market which returned 11.1% over the past year.


Shareholder returns

502873IndustryMarket
7 Day-8.6%-0.5%-1.5%
30 Day-28.1%3.0%-2.7%
90 Day-28.2%9.2%1.3%
1 Year-49.1%-49.1%19.0%18.2%12.7%10.7%
3 Year-50.9%-51.8%52.2%48.8%22.0%15.1%
5 Year-27.7%-30.7%106.9%100.1%34.5%22.0%

Price Volatility Vs. Market

How volatile is H P Cotton Textile Mills's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is H P Cotton Textile Mills undervalued compared to its fair value and its price relative to the market?

0.42x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 502873's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 502873's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 502873 is unprofitable, so we can't compare its PE Ratio to the Luxury industry average.

PE vs Market: 502873 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 502873's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 502873 is good value based on its PB Ratio (0.4x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

How is H P Cotton Textile Mills forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

19.9%

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 H P Cotton Textile 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 H P Cotton Textile Mills performed over the past 5 years?

-21.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 502873 is currently unprofitable.

Growing Profit Margin: 502873 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 502873 is unprofitable, and losses have increased over the past 5 years at a rate of -21.9% per year.

Accelerating Growth: Unable to compare 502873's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 502873 is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (2.7%).


Return on Equity

High ROE: 502873 has a negative Return on Equity (-0.76%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is H P Cotton Textile Mills's financial position?


Financial Position Analysis

Short Term Liabilities: 502873's short term assets (₹476.2M) do not cover its short term liabilities (₹503.6M).

Long Term Liabilities: 502873's short term assets (₹476.2M) exceed its long term liabilities (₹54.7M).


Debt to Equity History and Analysis

Debt Level: 502873's debt to equity ratio (97.7%) is considered high.

Reducing Debt: 502873's debt to equity ratio has increased from 82.2% to 97.7% over the past 5 years.


Balance Sheet

Inventory Level: 502873 has a high level of physical assets or inventory.

Debt Coverage by Assets: 502873's debt is covered by short term assets (assets are 2.8x 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: 502873 has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: 502873 has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is H P Cotton Textile Mills's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%0.6%markettop25%2.6%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 502873's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 502873'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 502873's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 502873's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 502873 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 502873'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?

4.8yrs

Average board tenure


CEO

Raghav Agarwal (33yo)

2.5yrs

Tenure

₹1,578,000

Compensation

Mr. Raghav Kumar Agarwal has been Chief Executive Officer of HP Cotton Textile Mills Ltd. since August 14, 2017 and is its Executive Director since May 30, 2019. Mr. Agarwal served as Chief Financial Offi ...


CEO Compensation Analysis

Compensation vs Market: Raghav's total compensation ($USD22.12K) is below average for companies of similar size in the Indian market ($USD50.25K).

Compensation vs Earnings: Raghav's compensation has increased whilst the company is unprofitable.


Board Members

NamePositionTenureCompensationOwnership
Kailash Agarwal
Chairman & MD0.3yrs₹2.23m3.16% 2.2m
Raghav Agarwal
CEO, CFO & Executive Director2.5yrs₹1.58m0.26% 181.0k
Mohan Jain
Non-Executive Independent Director10.1yrs₹85.00kno data
Parshotam Agarwal
Non-Executive Independent Director15.5yrs₹100.00kno data
Ritu Bansal
Non-Executive Independent Director4.8yrs₹75.00kno data

4.8yrs

Average Tenure

58yo

Average Age

Experienced Board: 502873's board of directors are considered experienced (4.8 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

H P Cotton Textile Mills Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: H P Cotton Textile Mills Limited
  • Ticker: 502873
  • Exchange: BSE
  • Founded: 1981
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹68.580m
  • Shares outstanding: 3.81m
  • Website: https://www.hpthread.com

Number of Employees


Location

  • H P Cotton Textile Mills Limited
  • F-0, The Mira Corporate Suites
  • 1 & 2, Old Ishwar Nagar
  • New Delhi
  • Delhi
  • 110065
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
502873BSE (Mumbai Stock Exchange)YesEquity SharesININRDec 2001

Biography

H P Cotton Textile Mills Limited manufactures and sells cotton specialty yarns and sewing threads in India. It offers crocheta crochet, embroidery, lace, patchwork and quiliting, kite flying, and cotton sewing, and mercerized cotton threads; and peecock hand knitting yarns for a range of domestic and industrial applications. The company also exports its products to approximately 63 countries worldwide. H P Cotton Textile Mills Limited was incorporated in 1981 and is based in New Delhi, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 12:37
End of Day Share Price2020/02/18 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.