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Kanani Industries

BSE:506184
Snowflake Description

Moderate growth potential with questionable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
506184
BSE
₹417M
Market Cap
  1. Home
  2. IN
  3. Consumer Durables
Company description

Kanani Industries Limited engages in the manufacture and retail of diamond studded jewelry in India. The last earnings update was 186 days ago. More info.


Add to Portfolio Compare Print
  • Kanani Industries has significant price volatility in the past 3 months.
506184 Share Price and Events
7 Day Returns
-15.8%
BSE:506184
-1.3%
IN Luxury
-3.1%
IN Market
1 Year Returns
-58.1%
BSE:506184
-8.5%
IN Luxury
-9.2%
IN Market
506184 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Kanani Industries (506184) -15.8% -19% -28.6% -58.1% -71.3% -60.3%
IN Luxury -1.3% -0.8% -1.2% -8.5% 51.9% 196.8%
IN Market -3.1% -3.8% -2.9% -9.2% 43.1% 83.1%
1 Year Return vs Industry and Market
  • 506184 underperformed the Luxury industry which returned -8.5% over the past year.
  • 506184 underperformed the Market in India which returned -9.2% over the past year.
Price Volatility
506184
Industry
5yr Volatility vs Market
Related Companies

506184 Value

 Is Kanani Industries undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
  • It is not possible to calculate the future cash flow value for Kanani Industries. This is due to cash flow or dividend data being unavailable. The share price is ₹4.21.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Kanani Industries's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Kanani Industries's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
BSE:506184 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-03-31) in INR ₹0.08
BSE:506184 Share Price ** BSE (2019-02-11) in INR ₹4.21
India Luxury Industry PE Ratio Median Figure of 237 Publicly-Listed Luxury Companies 11.67x
India Market PE Ratio Median Figure of 2,734 Publicly-Listed Companies 15.39x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Kanani Industries.

BSE:506184 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BSE:506184 Share Price ÷ EPS (both in INR)

= 4.21 ÷ 0.08

51.61x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Kanani Industries is overvalued based on earnings compared to the IN Luxury industry average.
  • Kanani Industries is overvalued based on earnings compared to the India market.
Price based on expected Growth
Does Kanani Industries's expected growth come at a high price?
Raw Data
BSE:506184 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 51.61x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
27.4%per year
India Luxury Industry PEG Ratio Median Figure of 28 Publicly-Listed Luxury Companies 1.11x
India Market PEG Ratio Median Figure of 608 Publicly-Listed Companies 1.1x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Kanani Industries, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Kanani Industries's assets?
Raw Data
BSE:506184 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-03-31) in INR ₹5.03
BSE:506184 Share Price * BSE (2019-02-11) in INR ₹4.21
India Luxury Industry PB Ratio Median Figure of 307 Publicly-Listed Luxury Companies 0.71x
India Market PB Ratio Median Figure of 3,588 Publicly-Listed Companies 1.06x
BSE:506184 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BSE:506184 Share Price ÷ Book Value per Share (both in INR)

= 4.21 ÷ 5.03

0.84x

* Primary Listing of Kanani Industries.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Kanani Industries is overvalued based on assets compared to the IN Luxury industry average.
X
Value checks
We assess Kanani Industries's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Luxury industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Luxury industry average (and greater than 0)? (1 check)
  5. Kanani Industries has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

506184 Future Performance

 How is Kanani Industries expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • No analysts cover Kanani Industries, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
27.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Kanani Industries expected to grow at an attractive rate?
  • Kanani Industries's earnings growth is expected to exceed the low risk savings rate of 7.6%.
Growth vs Market Checks
  • Kanani Industries's earnings growth is expected to exceed the India market average.
  • Unable to compare Kanani Industries's revenue growth to the India market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
BSE:506184 Future Growth Rates Data Sources
Data Point Source Value (per year)
BSE:506184 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 27.4%
India Luxury Industry Earnings Growth Rate Market Cap Weighted Average 18.3%
India Luxury Industry Revenue Growth Rate Market Cap Weighted Average 15%
India Market Earnings Growth Rate Market Cap Weighted Average 18.4%
India Market Revenue Growth Rate Market Cap Weighted Average 11.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
BSE:506184 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (10 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
BSE:506184 Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2018-03-31 3,856 -66 8
2017-03-31 4,426 -36 5
2016-03-31 4,960 60 19

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Kanani Industries's earnings are expected to grow significantly at over 20% yearly.
  • Unable to determine if Kanani Industries is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
BSE:506184 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (10 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Kanani Industries Company Filings, last reported 10 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BSE:506184 Past Financials Data
Date (Data in INR Millions) EPS *
2018-03-31 0.08
2017-03-31 0.05
2016-03-31 0.19

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Kanani Industries will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Kanani Industries's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Kanani Industries has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

506184 Past Performance

  How has Kanani Industries performed over the past 5 years?

  • Kanani Industries's last earnings update was 186 days ago.
The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Kanani Industries's growth in the last year to its industry (Luxury).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Kanani Industries's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Kanani Industries's 1-year earnings growth exceeds its 5-year average (60.5% vs -15.5%)
  • Kanani Industries's earnings growth has exceeded the IN Luxury industry average in the past year (60.5% vs 13.8%).
Earnings and Revenue History
Kanani Industries's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Kanani Industries Company Filings, last reported 10 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BSE:506184 Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-03-31 3,855.96 8.07 14.47
2017-03-31 4,425.70 5.03 8.82
2016-03-31 4,959.97 19.14 3.94
2015-03-31 4,441.39 16.63 2.60
2014-03-31 3,378.11 29.92 5.35
2013-03-31 2,920.56 9.59 5.14
2012-03-31 1,655.51 6.81 5.96

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Kanani Industries has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Kanani Industries used its assets less efficiently than the IN Luxury industry average last year based on Return on Assets.
  • Kanani Industries's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Kanani Industries's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Luxury industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Kanani Industries has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

506184 Health

 How is Kanani Industries's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Kanani Industries's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Kanani Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Kanani Industries's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Kanani Industries's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 4.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Kanani Industries Company Filings, last reported 10 months ago.

BSE:506184 Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-03-31 497.52 352.33 95.39
2017-03-31 488.93 287.44 96.71
2016-03-31 486.27 300.08 145.10
2015-03-31 460.00 350.70 135.93
2014-03-31 444.51 256.00 71.75
2013-03-31 415.72 148.82 30.64
2012-03-31 398.09 480.79 71.65
  • Kanani Industries's level of debt (70.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (35.9% vs 70.8% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Interest payments on debt are not well covered by earnings (EBIT is 0.6x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Kanani Industries's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Kanani Industries has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

506184 Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Kanani Industries dividends.
If you bought ₹2,000 of Kanani Industries shares you are expected to receive ₹0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Kanani Industries's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Kanani Industries's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
BSE:506184 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
India Luxury Industry Average Dividend Yield Market Cap Weighted Average of 109 Stocks 0.6%
India Market Average Dividend Yield Market Cap Weighted Average of 1397 Stocks 1.4%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.6%
India Top 25% Dividend Yield 75th Percentile 2.1%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

BSE:506184 Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2012-02-02 0.000 0.000
2011-12-13 0.000 0.000
2011-08-18 0.000 0.000
2011-08-12 0.000 0.000
2011-05-19 0.000 0.000
2010-06-29 0.091 0.164
2010-05-04 0.091 0.163
2010-01-18 0.091 0.214
2009-06-01 0.030 0.112

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Kanani Industries has not reported any payouts.
  • Unable to verify if Kanani Industries's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Kanani Industries's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Kanani Industries has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Kanani Industries's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Kanani Industries afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Kanani Industries has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

506184 Management

 What is the CEO of Kanani Industries's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Harshil Kanani
COMPENSATION ₹501,000
AGE 35
CEO Bio

Mr. Harshil Premjibhai Kanani serves as the Managing Director of Kanani Industries Ltd. and has been its Director since July 28, 2007.

CEO Compensation
  • Harshil's compensation has been consistent with company performance over the past year.
  • Harshil's remuneration is lower than average for companies of similar size in India.
Management Team

Premjibhai Kanani

TITLE
Chairman
COMPENSATION
₹499K
AGE
60

Harshil Kanani

TITLE
MD & Executive Director
COMPENSATION
₹501K
AGE
35

Darshak Pandya

TITLE
Chief Financial Officer
COMPENSATION
₹420K
AGE
33
TENURE
3.5 yrs

Mehul Kundariya

TITLE
Company Secretary & Compliance Officer
COMPENSATION
₹216K
AGE
28

Mahendrabhai Tandel

TITLE
Operation Manager
AGE
46

Atulbhai Gabani

TITLE
Admin Manager
AGE
58

Chirag Shah

TITLE
Executive
COMPENSATION
₹600K
Board of Directors Tenure

Average tenure and age of the Kanani Industries board of directors in years:

2.2
Average Tenure
42.5
Average Age
  • The average tenure for the Kanani Industries board of directors is less than 3 years, this suggests a new board.
Board of Directors

Premjibhai Kanani

TITLE
Chairman
COMPENSATION
₹499K
AGE
60

Harshil Kanani

TITLE
MD & Executive Director
COMPENSATION
₹501K
AGE
35
TENURE
11.6 yrs

Ami Jariwala

TITLE
Independent Director
TENURE
3.9 yrs

Tejas Choksi

TITLE
Independent Director
AGE
40
TENURE
0.5 yrs

Kautilbhai Patel

TITLE
Independent Director
AGE
45
TENURE
0.5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
X
Management checks
We assess Kanani Industries's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Kanani Industries has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

506184 News

Simply Wall St News

506184 Company Info

Map
Description

Kanani Industries Limited engages in the manufacture and retail of diamond studded jewelry in India. It also exports its products. The company was formerly known as IMP Finance Limited and changed its name to Kanani Industries Limited in October 2007. Kanani Industries Limited was incorporated in 1983 and is based in Mumbai, India.

Details
Name: Kanani Industries Limited
506184
Exchange: BSE
Founded: 1983
₹416,512,140
98,934,000
Website: http://www.kananiindustries.com
Address: Kanani Industries Limited
915C, The Capital,
G-Block,
Mumbai,
Maharashtra, 400051,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BSE 506184 Equity Shares Mumbai Stock Exchange IN INR 21. Aug 2006
NSEI KANANIIND Equity Shares National Stock Exchange of India IN INR 21. Aug 2006
Number of employees
Current staff
Staff numbers
0
Kanani Industries employees.
Industry
Apparel, Accessories and Luxury Goods
Consumer Durables
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/02/15 13:02
End of day share price update: 2019/02/11 00:00
Last earnings filing: 2018/08/13
Last earnings reported: 2018/03/31
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.