BSE:506981

Stock Analysis Report

Blue Chip Tex Industries

Executive Summary

Blue Chip Tex Industries Limited manufactures and sells polyester texturizing yarns in India.

Rewards

Trading at 57.4% below its fair value

Earnings grew by 63% over the past year

Pays a reliable dividend of 1.84%

Risk Analysis

Does not have a meaningful market cap (₹184M)

Has a high level of debt



Snowflake Analysis

Outstanding track record with excellent balance sheet and pays a dividend.

Share Price & News

How has Blue Chip Tex Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 506981 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.2%

506981

-0.5%

IN Luxury

-1.5%

IN Market


1 Year Return

12.5%

506981

18.2%

IN Luxury

10.7%

IN Market

Return vs Industry: 506981 underperformed the Indian Luxury industry which returned 18.2% over the past year.

Return vs Market: 506981 exceeded the Indian Market which returned 10.7% over the past year.


Shareholder returns

506981IndustryMarket
7 Day2.2%-0.5%-1.5%
30 Day-2.1%3.0%-2.7%
90 Day1.4%9.2%1.3%
1 Year14.9%12.5%19.0%18.2%12.7%10.7%
3 Year28.6%22.2%52.2%48.8%22.0%15.1%
5 Year312.9%276.9%106.9%100.1%34.5%22.0%

Price Volatility Vs. Market

How volatile is Blue Chip Tex Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Blue Chip Tex 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: 506981 (₹98) is trading below our estimate of fair value (₹230)

Significantly Below Fair Value: 506981 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 506981 is good value based on its PE Ratio (3.1x) compared to the Luxury industry average (11.2x).

PE vs Market: 506981 is good value based on its PE Ratio (3.1x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 506981's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 506981 is overvalued based on its PB Ratio (0.9x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

How is Blue Chip Tex 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 Blue Chip Tex 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 Blue Chip Tex Industries performed over the past 5 years?

22.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 506981 has high quality earnings.

Growing Profit Margin: 506981's current net profit margins (2.6%) are higher than last year (1.5%).


Past Earnings Growth Analysis

Earnings Trend: 506981's earnings have grown significantly by 22.6% per year over the past 5 years.

Accelerating Growth: 506981's earnings growth over the past year (63%) exceeds its 5-year average (22.6% per year).

Earnings vs Industry: 506981 earnings growth over the past year (63%) exceeded the Luxury industry 5.6%.


Return on Equity

High ROE: 506981's Return on Equity (29.1%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Blue Chip Tex Industries's financial position?


Financial Position Analysis

Short Term Liabilities: 506981's short term assets (₹269.5M) exceed its short term liabilities (₹167.9M).

Long Term Liabilities: 506981's short term assets (₹269.5M) exceed its long term liabilities (₹187.6M).


Debt to Equity History and Analysis

Debt Level: 506981's debt to equity ratio (79%) is considered high.

Reducing Debt: 506981's debt to equity ratio has reduced from 80.5% to 79% over the past 5 years.

Debt Coverage: 506981's debt is well covered by operating cash flow (71%).

Interest Coverage: 506981's interest payments on its debt are well covered by EBIT (5.6x coverage).


Balance Sheet

Inventory Level: 506981 has a high level of physical assets or inventory.

Debt Coverage by Assets: 506981's debt is covered by short term assets (assets are 1.6x debt).


Next Steps

Dividend

What is Blue Chip Tex Industries's current dividend yield, its reliability and sustainability?

1.84%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%0.6%markettop25%2.6%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 506981's dividend (1.84%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: 506981's dividend (1.84%) is low compared to the top 25% of dividend payers in the Indian market (2.58%).


Stability and Growth of Payments

Stable Dividend: 506981's dividends per share have been stable in the past 10 years.

Growing Dividend: 506981's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (5.7%), 506981'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?

2.3yrs

Average management tenure


CEO

Ashok Khemani 0

0

Mr. Ashok K. Khemani serves as the Chairman and Managing Director of Blue Chip Tex Industries Ltd. and served as its Chief Financial Officer. 


Leadership Team

NamePositionTenureCompensationOwnership
Ashok Khemani
Chairman & MD0yrsno data3.79% 7.0m
Rahul Khemani
CFO & Executive Director10.1yrs₹3.00m1.28% 2.4m
Bhumit Dharod
Company Secretary & Compliance Officer1yrs₹765.00kno data
Shahin Khemani
Executive Director10.1yrs₹3.00m1.45% 2.7m
N. Shangameshwaran
General Manager of Sales & Marketing2.3yrsno datano data
Dharmil Shah
Head of Dope Dyed4yrsno datano data

2.3yrs

Average Tenure

34yo

Average Age

Experienced Management: 506981's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ashok Khemani
Chairman & MD0yrsno data3.79% 7.0m
Rahul Khemani
CFO & Executive Director10.1yrs₹3.00m1.28% 2.4m
Shahin Khemani
Executive Director10.1yrs₹3.00m1.45% 2.7m
Kumar Nathani
Non-Executive Independent Director5.4yrs₹20.00kno data
Shraddha Teli
Non-Executive Independent Director5.3yrs₹15.00kno data
Rohit Bajaj
Additional Non-Executive Independent Director0.08yrsno datano data
Shatrughun Jiwnani
Additional Non-Executive Independent Director0.08yrsno datano data

5.3yrs

Average Tenure

Experienced Board: 506981's board of directors are considered experienced (5.3 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Blue Chip Tex Industries Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Blue Chip Tex Industries Limited
  • Ticker: 506981
  • Exchange: BSE
  • Founded: 1985
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹183.946m
  • Shares outstanding: 1.97m
  • Website: https://www.bluechiptexindustrieslimited.com

Location

  • Blue Chip Tex Industries Limited
  • MakerChambers-lll
  • Office Nos. 15,16 & 17, 1st Floor
  • Mumbai
  • Maharashtra
  • 400021
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
506981BSE (Mumbai Stock Exchange)YesEquity SharesININRApr 2005

Biography

Blue Chip Tex Industries Limited manufactures and sells polyester texturizing yarns in India. It also generates electricity through wind farms in the State of Tamil Nadu for the Tamil Nadu Electricity Board. The company was incorporated in 1985 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 Analysis2020/02/19 12:33
End of Day Share Price2020/02/19 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.