BSE:502933

Stock Analysis Report

Executive Summary

Katare Spinning Mills Limited manufactures and sells cotton yarn in India.


Snowflake Analysis

Acceptable track record and slightly overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 502933's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.6%

502933

-4.4%

IN Luxury

-3.5%

IN Market


1 Year Return

130.9%

502933

12.8%

IN Luxury

5.2%

IN Market

Return vs Industry: 502933 exceeded the Indian Luxury industry which returned 12.8% over the past year.

Return vs Market: 502933 exceeded the Indian Market which returned 5.2% over the past year.


Shareholder returns

502933IndustryMarket
7 Day-4.6%-4.4%-3.5%
30 Day-6.7%-1.4%-3.9%
90 Day10.2%6.0%-2.1%
1 Year130.9%130.9%13.5%12.8%7.2%5.2%
3 Year14.5%14.5%45.8%44.0%18.9%12.4%
5 Year-17.1%-17.1%97.3%93.7%29.4%17.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Katare Spinning 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: 502933 (₹20.9) is trading below our estimate of fair value (₹59.4)

Significantly Below Fair Value: 502933 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 502933 is poor value based on its PE Ratio (60.4x) compared to the Luxury industry average (10.6x).

PE vs Market: 502933 is poor value based on its PE Ratio (60.4x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 502933's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 502933 is overvalued based on its PB Ratio (1.2x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

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

19.7%

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 Katare Spinning 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 Katare Spinning Mills performed over the past 5 years?

1.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 502933 has high quality earnings.

Growing Profit Margin: 502933 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 502933 has become profitable over the past 5 years, growing earnings by 1.4% per year.

Accelerating Growth: 502933 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 502933 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Luxury industry (6.4%).


Return on Equity

High ROE: 502933's Return on Equity (19%) is considered low.


Next Steps

Financial Health

How is Katare Spinning Mills's financial position?


Financial Position Analysis

Short Term Liabilities: 502933's short term assets (₹142.7M) do not cover its short term liabilities (₹353.9M).

Long Term Liabilities: 502933's short term assets (₹142.7M) exceed its long term liabilities (₹34.1M).


Debt to Equity History and Analysis

Debt Level: 502933's debt to equity ratio (723.5%) is considered high.

Reducing Debt: 502933's debt to equity ratio has increased from 227% to 723.5% over the past 5 years.


Balance Sheet

Inventory Level: 502933 has a high level of physical assets or inventory.

Debt Coverage by Assets: 502933's debt is not covered by short term assets (assets are 0.4x 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: 502933 is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: Insufficient data to determine if 502933 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Katare Spinning Mills's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 502933's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 502933'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 502933's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 502933's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 502933 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 502933'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?

2.9yrs

Average board tenure


CEO

Kishore Katare (63yo)

₹600,000

Compensation

Mr. Kishore Tippanna Katare serves as the Managing Director and Executive Director of Katare Spinning Mills Ltd. 


CEO Compensation Analysis

Compensation vs Market: Kishore's total compensation ($USD8.38K) is below average for companies of similar size in the Indian market ($USD50.10K).

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


Board Members

NamePositionTenureCompensationOwnership
Kishore Katare
MD & Chairman0yrs₹600.00k23.22% 13.2m
Umakantrao Mahindrakar
Director13.5yrs₹8.00k0.26% 149.2k
Subhash Katare
Director0yrs₹8.00k12.07% 6.9m
Vidyavati Katare
Director5yrs₹8.00k0.36% 206.5k
Prakash Joti
Non-Executive & Independent Director0.8yrsno datano data
Vilas Shendge
Non-Executive & Independent Director0.8yrsno datano data

2.9yrs

Average Tenure

68yo

Average Age

Experienced Board: 502933's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


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

Katare Spinning Mills Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Katare Spinning Mills Limited
  • Ticker: 502933
  • Exchange: BSE
  • Founded: 1980
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹56.858m
  • Shares outstanding: 2.85m
  • Website: https://www.katarespinningmillslimited.com

Location

  • Katare Spinning Mills Limited
  • Kamala
  • 1st Floor
  • Solapur
  • Maharashtra
  • 413005
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
502933BSE (Mumbai Stock Exchange)YesEquity SharesININRMar 2008

Biography

Katare Spinning Mills Limited manufactures and sells cotton yarn in India. The company operates through Spinning Mill, Hotel, and Solar Power segments. It also operates a hotel under the Hotel Tripursundari name. In addition, the company engages in the solar power generation business. The company was incorporated in 1980 and is based in Solapur, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 13:09
End of Day Share Price2020/02/27 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.