BSE:506146

Stock Analysis Report

Executive Summary

Visagar Polytex Limited engages in the design, manufacture, wholesale, retail, and trade of textiles in India.

Risk Analysis

Earnings have declined by -51.11% per year over past 5 years

Interest payments are not well covered by earnings

Does not have a meaningful market cap (₹91M)

Highly volatile share price over past 3 months

+ 2 more risks


Snowflake Analysis

Imperfect balance sheet and overvalued.

Share Price & News

How has Visagar Polytex's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 506146's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-8.8%

506146

0.2%

IN Luxury

-0.4%

IN Market


1 Year Return

-53.0%

506146

16.6%

IN Luxury

11.1%

IN Market

Return vs Industry: 506146 underperformed the Indian Luxury industry which returned 16.6% over the past year.

Return vs Market: 506146 underperformed the Indian Market which returned 11.1% over the past year.


Shareholder returns

506146IndustryMarket
7 Day-8.8%0.2%-0.4%
30 Day-13.9%3.3%-1.2%
90 Day63.2%8.5%3.3%
1 Year-53.0%-53.0%17.3%16.6%13.0%11.1%
3 Year-86.3%-86.3%53.8%52.0%25.3%18.6%
5 Year-99.2%-99.2%103.0%96.4%35.4%23.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Visagar Polytex undervalued compared to its fair value and its price relative to the market?

0.46x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 506146's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 506146's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 506146 is unprofitable, so we can't compare its PE Ratio to the Luxury industry average.

PE vs Market: 506146 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 506146's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 506146 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 Visagar Polytex forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

19.8%

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 Visagar Polytex 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 Visagar Polytex performed over the past 5 years?

-51.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 506146 is currently unprofitable.

Growing Profit Margin: 506146 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 506146 is unprofitable, and losses have increased over the past 5 years at a rate of -51.1% per year.

Accelerating Growth: Unable to compare 506146's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 506146 is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (2.7%).


Return on Equity

High ROE: 506146 has a negative Return on Equity (-80.4%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Visagar Polytex's financial position?


Financial Position Analysis

Short Term Liabilities: 506146's short term assets (₹330.2M) exceed its short term liabilities (₹105.4M).

Long Term Liabilities: 506146's short term assets (₹330.2M) exceed its long term liabilities (₹93.7M).


Debt to Equity History and Analysis

Debt Level: 506146's debt to equity ratio (47.9%) is considered high.

Reducing Debt: 506146's debt to equity ratio has increased from 36% to 47.9% over the past 5 years.


Balance Sheet

Inventory Level: 506146 has a high level of physical assets or inventory.

Debt Coverage by Assets: 506146's debt is covered by short term assets (assets are 3.5x 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: 506146 has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: Insufficient data to determine if 506146 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Visagar Polytex's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%0.6%markettop25%2.5%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 506146's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 506146'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 506146's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 506146's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 506146 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 506146'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?

11.9yrs

Average management tenure


CEO

Tilokchand Kothari (54yo)

12.6yrs

Tenure

0

Mr. Tilokchand Manaklal Kothari has been Executive Chairman and Managing Director of Visagar Polytex Ltd. since July 30, 2007. Mr. Kothari has over 25 years experience in business of Finance and Textiles.  ...


CEO Compensation Analysis

Compensation vs Market: Tilokchand's total compensation ($USD0.00) is below average for companies of similar size in the Indian market ($USD50.14K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Tilokchand Kothari
Executive Chairman & MD12.6yrsno data22.57% 20.5m
Pravin Mishra
Company Secretary & Compliance Officer2.8yrs₹195.00kno data
Sachin Mehta
Chief Financial Officer0.9yrsno datano data
Murlidhar Sharma
General Manager of Operations11.9yrsno datano data
Promod Swami
General Manager of Marketing14.1yrsno datano data
Kanwarlal Rathi
Executive Director7.3yrs₹360.00kno data

11.9yrs

Average Tenure

Experienced Management: 506146's management team is seasoned and experienced (11.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Tilokchand Kothari
Executive Chairman & MD12.6yrsno data22.57% 20.5m
Kanwarlal Rathi
Executive Director7.3yrs₹360.00kno data
Madhubala Vaishnav
Additional Independent Director0.2yrsno datano data
Kaushal Yadav
Non-Executive Independent Director0.7yrsno datano data
Subhankar Adhikary
Non-Executive Independent Director0.5yrsno datano data
Babita Joshi
Non-Executive Independent Director1.2yrsno datano data

0.9yrs

Average Tenure

36yo

Average Age

Experienced Board: 506146's board of directors are not considered experienced ( 0.9 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 been diluted in the past year, with total shares outstanding growing by 23.9%.


Top Shareholders

Company Information

Visagar Polytex Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Visagar Polytex Limited
  • Ticker: 506146
  • Exchange: BSE
  • Founded: 1983
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹90.737m
  • Shares outstanding: 292.70m
  • Website: https://vpl.visagar.com

Location

  • Visagar Polytex Limited
  • 907/908, Dev Plaza
  • Opposite Andheri Fire Station
  • Mumbai
  • Maharashtra
  • 400058
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
506146BSE (Mumbai Stock Exchange)YesEquity SharesININRDec 2007
VIVIDHANSEI (National Stock Exchange of India)YesEquity SharesININRDec 2007

Biography

Visagar Polytex Limited engages in the design, manufacture, wholesale, retail, and trade of textiles in India. It offers ethnic wear, including sarees, lehangas, and suits; interlining goods; and various fabrics. The company also operates a retail chain that offer designer sarees under the Vividha brand. In addition, it is involved in the contract based manufacturing activity. The company serves stockists, wholesalers, semi-wholesalers, exporters, retailers, and end-users of textile products. Visagar Polytex Limited was incorporated in 1983 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 Analysis2020/02/16 12:34
End of Day Share Price2020/02/13 00:00
Earnings2019/09/30
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.