H.P. Cotton Textile Mills Valuation

Is 502873 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 502873 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 502873 (₹127.8) is trading below our estimate of fair value (₹1610.21)

Significantly Below Fair Value: 502873 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 502873?

Key metric: As 502873 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 502873. This is calculated by dividing 502873's market cap by their current revenue.
What is 502873's PS Ratio?
PS Ratio	0.5x
Sales	₹1.04b
Market Cap	₹501.23m

502873 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.9x
Enterprise Value/EBITDA	14.9x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 502873's PS Ratio compare to its peers?

The above table shows the PS ratio for 502873 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	0.4x
LAXMICOT Laxmi Cotspin	0.4x	n/a	₹545.3m
SGL STL Global	0.4x	n/a	₹413.2m
531453 Mohit Industries	0.4x	n/a	₹430.2m
514087 PBM Polytex	0.3x	n/a	₹593.9m
502873 H.P. Cotton Textile Mills	0.5x	n/a	₹501.2m

Price-To-Sales vs Peers: 502873 is expensive based on its Price-To-Sales Ratio (0.5x) compared to the peer average (0.4x).

Price to Sales Ratio vs Industry

How does 502873's PS Ratio compare vs other companies in the IN Luxury Industry?

49 Companies	Price / Sales	Estimated Growth	Market Cap
RAJESHEXPO Rajesh Exports	0.02x	14.2%	US$825.38m
500207 Indo Rama Synthetics (India)	0.3x	n/a	US$128.92m
500296 Nahar Spinning Mills	0.3x	n/a	US$110.68m
500350 RSWM	0.2x	n/a	US$99.83m

49 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: 502873 is good value based on its Price-To-Sales Ratio (0.5x) compared to the Indian Luxury industry average (1.1x).

Price to Sales Ratio vs Fair Ratio

What is 502873's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

502873 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.5x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 502873's Price-To-Sales Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.