BSE:503162

Stock Analysis Report

Reliance Chemotex Industries

Executive Summary

Reliance Chemotex Industries Limited manufactures and sells synthetic blended yarns in India and internationally.

Rewards

Trading at 77.5% below its fair value

Earnings grew by 222.9% over the past year

Risk Analysis

Interest payments are not well covered by earnings

Does not have a meaningful market cap (₹509M)

Unstable dividend track record

Shareholders have been diluted in the past year



Snowflake Analysis

Undervalued with solid track record.

Share Price & News

How has Reliance Chemotex Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 503162 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.9%

503162

-0.5%

IN Luxury

-1.5%

IN Market


1 Year Return

9.5%

503162

18.2%

IN Luxury

10.7%

IN Market

Return vs Industry: 503162 underperformed the Indian Luxury industry which returned 18.4% over the past year.

Return vs Market: 503162 underperformed the Indian Market which returned 11.1% over the past year.


Shareholder returns

503162IndustryMarket
7 Day-4.9%-0.5%-1.5%
30 Day-5.3%3.0%-2.7%
90 Day10.7%9.2%1.3%
1 Year25.1%9.5%19.0%18.2%12.7%10.7%
3 Year17.4%0.4%52.2%48.8%22.0%15.1%
5 Year77.3%45.8%106.9%100.1%34.5%22.0%

Price Volatility Vs. Market

How volatile is Reliance Chemotex Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Reliance Chemotex Industries 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: 503162 (₹67.15) is trading below our estimate of fair value (₹298.97)

Significantly Below Fair Value: 503162 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 503162 is good value based on its PE Ratio (3.6x) compared to the Luxury industry average (11.1x).

PE vs Market: 503162 is good value based on its PE Ratio (3.6x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 503162's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 503162 is good value based on its PB Ratio (0.5x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

How is Reliance Chemotex Industries 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 Reliance Chemotex Industries 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 Reliance Chemotex Industries performed over the past 5 years?

22.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 503162 has high quality earnings.

Growing Profit Margin: 503162's current net profit margins (3.3%) are higher than last year (1%).


Past Earnings Growth Analysis

Earnings Trend: 503162's earnings have grown significantly by 22.7% per year over the past 5 years.

Accelerating Growth: 503162's earnings growth over the past year (222.9%) exceeds its 5-year average (22.7% per year).

Earnings vs Industry: 503162 earnings growth over the past year (222.9%) exceeded the Luxury industry 2.7%.


Return on Equity

High ROE: 503162's Return on Equity (10.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Reliance Chemotex Industries's financial position?


Financial Position Analysis

Short Term Liabilities: 503162's short term assets (₹845.9M) do not cover its short term liabilities (₹871.0M).

Long Term Liabilities: 503162's short term assets (₹845.9M) exceed its long term liabilities (₹466.3M).


Debt to Equity History and Analysis

Debt Level: 503162's debt to equity ratio (56.3%) is considered high.

Reducing Debt: 503162's debt to equity ratio has reduced from 130.8% to 56.3% over the past 5 years.

Debt Coverage: 503162's debt is well covered by operating cash flow (37.4%).

Interest Coverage: 503162's interest payments on its debt are not well covered by EBIT (3x coverage).


Balance Sheet

Inventory Level: 503162 has a high level of physical assets or inventory.

Debt Coverage by Assets: 503162's debt is covered by short term assets (assets are 1.6x debt).


Next Steps

Dividend

What is Reliance Chemotex Industries's current dividend yield, its reliability and sustainability?

1.49%

Current Dividend Yield


Dividend Yield vs Market

company1.5%marketbottom25%0.6%markettop25%2.6%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 503162's dividend (1.49%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: 503162's dividend (1.49%) is low compared to the top 25% of dividend payers in the Indian market (2.55%).


Stability and Growth of Payments

Stable Dividend: 503162's dividend payments have been volatile in the past 10 years.

Growing Dividend: 503162's dividend payments have not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (5.3%), 503162's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

5.5yrs

Average management tenure


CEO

Sanjiv Shroff (58yo)

31.4yrs

Tenure

₹8,463,155

Compensation

Mr. Sanjiv Shroff has been Managing Director of Modern Fibotex India Limited since March 25, 2013. Mr. Shroff has been Managing Director of Reliance Chemotex Industries Limited since September 01, 1988 and ...


CEO Compensation Analysis

Compensation vs Market: Sanjiv's total compensation ($USD118.61K) is above average for companies of similar size in the Indian market ($USD50.25K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Sanjiv Shroff
Vice Chairman31.4yrs₹8.46m4.33% 22.0m
Vimal Tank
Compliance Officer & Company Secretary5.5yrs₹998.60kno data
Ashok Srivastav
Vice President of Marketing0yrsno datano data
S. Saxsena
Vice President of Personal0yrsno datano data
Rahul Shroff
Executive Director9.5yrs₹7.25mno data
Ameya Shroff
Executive Director6.5yrs₹6.47m1.64% 8.4m
Anil Mujumdar
Vice President of Enginerring0yrsno datano data
V. Joshi
Vice President of Research & Development0yrsno datano data
Azad Arya
President0yrsno datano data
Chandrasekaran Rajagoplan
Chief Financial Officer0.3yrsno datano data

5.5yrs

Average Tenure

57.5yo

Average Age

Experienced Management: 503162's management team is seasoned and experienced (5.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sanjiv Shroff
Vice Chairman31.4yrs₹8.46m4.33% 22.0m
Rahul Shroff
Executive Director9.5yrs₹7.25mno data
Ameya Shroff
Executive Director6.5yrs₹6.47m1.64% 8.4m
Nand Khaitan
Non-Independent Non-Executive Director0yrs₹60.00k0.0013% 6.8k
Kishori Sonthalia
Independent Non-Executive Director0yrs₹79.00k0.0027% 13.5k
Ram Sharma
Non Executive Director11.6yrs₹13.00k0.00066% 3.4k
Shanker Shroff
Chairman Emeritus4.5yrsno data2.8% 14.2m
Narayan Shroff
Independent Non-Executive Director8yrs₹15.00k0.00066% 3.4k
Ramadoss Srinivasan
Independent Chairman3.3yrs₹58.00kno data
Dipika Shroff
Non-Executive Director5yrs₹50.00k3.06% 15.6m

7.3yrs

Average Tenure

70yo

Average Age

Experienced Board: 503162's board of directors are considered experienced (7.3 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 37.5%.


Top Shareholders

Company Information

Reliance Chemotex Industries Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Reliance Chemotex Industries Limited
  • Ticker: 503162
  • Exchange: BSE
  • Founded: 1977
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹509.191m
  • Shares outstanding: 7.54m
  • Website: https://www.reliancechemotex.com

Number of Employees


Location

  • Reliance Chemotex Industries Limited
  • 27 Jolly Maker Chambers
  • No.2, Nariman Point
  • Mumbai
  • Maharashtra
  • 400021
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
503162BSE (Mumbai Stock Exchange)YesEquity SharesININRMar 2002

Biography

Reliance Chemotex Industries Limited manufactures and sells synthetic blended yarns in India and internationally. It offers home furnishing, industrial, and apparel yarns. The company was founded in 1977 and is based in Mumbai, 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 12:41
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.