BSE:503169

Stock Analysis Report

Executive Summary

The Ruby Mills Limited manufactures and markets textile products in India.

Risk Analysis

Earnings have declined by -19.43% per year over past 5 years

Debt is not well covered by operating cash flow

Unstable dividend track record

Profit margins (10.4%) are lower than last year (15.5%)

+ 1 more risk


Snowflake Analysis

Second-rate dividend payer with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 503169 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.8%

503169

-0.5%

IN Luxury

-1.5%

IN Market


1 Year Return

-24.1%

503169

18.2%

IN Luxury

10.7%

IN Market

Return vs Industry: 503169 underperformed the Indian Luxury industry which returned 18.4% over the past year.

Return vs Market: 503169 underperformed the Indian Market which returned 11.1% over the past year.


Shareholder returns

503169IndustryMarket
7 Day-2.8%-0.5%-1.5%
30 Day-8.3%3.0%-2.7%
90 Day-7.8%9.2%1.3%
1 Year-23.5%-24.1%19.0%18.2%12.7%10.7%
3 Year-39.2%-40.4%52.2%48.8%22.0%15.1%
5 Year38.6%34.6%106.9%100.1%34.5%22.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Ruby Mills undervalued compared to its fair value and its price relative to the market?

17.37x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 503169 (₹204.3) is trading above our estimate of fair value (₹24.36)

Significantly Below Fair Value: 503169 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 503169 is poor value based on its PE Ratio (17.4x) compared to the Luxury industry average (11.1x).

PE vs Market: 503169 is poor value based on its PE Ratio (17.4x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 503169's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 503169 is overvalued based on its PB Ratio (0.7x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

How is Ruby 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 Ruby 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 Ruby Mills performed over the past 5 years?

-19.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 503169 has high quality earnings.

Growing Profit Margin: 503169's current net profit margins (10.4%) are lower than last year (15.5%).


Past Earnings Growth Analysis

Earnings Trend: 503169's earnings have declined by -19.4% per year over the past 5 years.

Accelerating Growth: 503169's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 503169 had negative earnings growth (-35.8%) over the past year, making it difficult to compare to the Luxury industry average (2.7%).


Return on Equity

High ROE: 503169's Return on Equity (4.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ruby Mills's financial position?


Financial Position Analysis

Short Term Liabilities: 503169's short term assets (₹2.0B) exceed its short term liabilities (₹1.8B).

Long Term Liabilities: 503169's short term assets (₹2.0B) do not cover its long term liabilities (₹3.7B).


Debt to Equity History and Analysis

Debt Level: 503169's debt to equity ratio (81.4%) is considered high.

Reducing Debt: 503169's debt to equity ratio has reduced from 107.5% to 81.4% over the past 5 years.

Debt Coverage: 503169's debt is not well covered by operating cash flow (1.7%).

Interest Coverage: 503169 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 503169 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 503169's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

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

0.86%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%0.6%markettop25%2.6%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 503169's dividend (0.86%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: 503169's dividend (0.86%) is low compared to the top 25% of dividend payers in the Indian market (2.55%).


Stability and Growth of Payments

Stable Dividend: 503169's dividend payments have been volatile in the past 10 years.

Growing Dividend: 503169's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (14.9%), 503169'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?

3.3yrs

Average management tenure


CEO

Purav Shah (39yo)

3.3yrs

Tenure

₹6,897,600

Compensation

Mr. Purav Hiren Shah has been Chief Executive Officer of The Ruby Mills Limited since November 10, 2016 and its an Executive Director since September 28, 2018. Mr. Shah served as President of The Ruby Mill ...


CEO Compensation Analysis

Compensation vs Market: Purav's total compensation ($USD96.67K) is above average for companies of similar size in the Indian market ($USD50.25K).

Compensation vs Earnings: Purav's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Hiren Shah
Executive Chairman3.3yrs₹12.99m5.46% 184.3m
Purav Shah
CEO & Whole time Director Director3.3yrs₹6.90m2.3% 77.7m
Jayaraman Seshadrinathan
Chief Financial Officer8yrsno datano data
Viraj Shah
MD & Executive Director25.3yrs₹12.99m4.7% 159.0m
Bharat Shah
MD & Executive Director25.3yrs₹12.99m5.28% 178.5m
Rishabh Shah
Vice President0yrsno data1.87% 63.3m

3.3yrs

Average Tenure

59yo

Average Age

Experienced Management: 503169's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hiren Shah
Executive Chairman3.3yrs₹12.99m5.46% 184.3m
Purav Shah
CEO & Whole time Director Director3.3yrs₹6.90m2.3% 77.7m
Viraj Shah
MD & Executive Director25.3yrs₹12.99m4.7% 159.0m
Bharat Shah
MD & Executive Director25.3yrs₹12.99m5.28% 178.5m
Shardul Thacker
Non-Executive Independent Director35.2yrs₹250.00kno data
Aruna Shah
Non-Executive Non-Independent Director32.4yrs₹100.00k7.94% 268.3m
Deepak Shah
Non-Executive Independent Director5.3yrs₹242.50kno data
Yogen Lathia
Independent Director4.2yrs₹202.50k0.012% 408.2k
Mehernosh Currawalla
Non-Executive Independent Director2.3yrs₹127.50k0.030% 1.0m
Pradip Kapasi
Non-Executive Independent Director2.2yrs₹107.50kno data

4.7yrs

Average Tenure

64yo

Average Age

Experienced Board: 503169's board of directors are considered experienced (4.7 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

The Ruby Mills Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Ruby Mills Limited
  • Ticker: 503169
  • Exchange: BSE
  • Founded: 1917
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹3.379b
  • Shares outstanding: 16.72m
  • Website: https://www.rubymills.com

Number of Employees


Location

  • The Ruby Mills Limited
  • Ruby House
  • J. K. Sawant Marg
  • Mumbai
  • 400028
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
503169BSE (Mumbai Stock Exchange)YesEquity SharesININRMar 1998
RUBYMILLSNSEI (National Stock Exchange of India)YesEquity SharesININRMar 1998

Biography

The Ruby Mills Limited manufactures and markets textile products in India. The company operates through two segments, Textiles and Real Estate. It offers cotton, synthetics yarn, and fabrics; and engages in real estate development activities. The company also exports its products internationally, including China. The Ruby Mills Limited was founded in 1917 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 12:44
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.