BSE:509835

Stock Analysis Report

Executive Summary

Premier Synthetics Limited manufactures and sells cotton yarns to denim and towel industries in India.

Snowflake

Fundamentals

Fair value with mediocre balance sheet.

Share Price & News

How has Premier Synthetics's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-3.9%

509835

-0.02%

IN Luxury

1.6%

IN Market


1 Year Return

-90.9%

509835

7.7%

IN Luxury

0.8%

IN Market

Return vs Industry: 509835 underperformed the Indian Luxury industry which returned 7.7% over the past year.

Return vs Market: 509835 underperformed the Indian Market which returned 0.8% over the past year.


Shareholder returns

509835IndustryMarket
7 Day-3.9%-0.02%1.6%
30 Day-24.5%5.5%1.5%
90 Day-16.9%3.9%-3.3%
1 Year-90.9%-90.9%8.6%7.7%2.7%0.8%
3 Year-57.4%-57.4%49.5%47.8%22.0%16.0%
5 Year-1.9%-1.9%108.9%105.0%42.3%29.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Premier Synthetics undervalued compared to its fair value and its price relative to the market?

4.26x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: Insufficient data to calculate 509835's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate 509835's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 509835 is good value based on its PE Ratio (4.3x) compared to the Luxury industry average (10.1x).

PE vs Market: 509835 is good value based on its PE Ratio (4.3x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate 509835's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 509835 is good value based on its PB Ratio (0.2x) compared to the IN Luxury industry average (0.6x).


Next Steps

Future Growth

How is Premier Synthetics forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

15.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 509835's forecast earnings growth (15.2% per year) is above the savings rate (7.6%).

Earnings vs Market: 509835's earnings (15.2% per year) are forecast to grow slower than the Indian market (18.3% per year).

High Growth Earnings: 509835's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 509835's revenue is forecast to grow faster than the Indian market.

High Growth Revenue: Insufficient data to determine if 509835's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if 509835's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Premier Synthetics performed over the past 5 years?

53.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 509835's earnings have grown significantly by 53.1% per year over the past 5 years.

Accelerating Growth: 509835's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 509835 had negative earnings growth (-42.8%) over the past year, making it difficult to compare to the Luxury industry average (7.8%).


Return on Equity

High ROE: 509835's Return on Equity (4.4%) is considered low.


Return on Assets

ROA vs Industry: 509835's Return on Assets is below or equal to the Luxury industry average last year.


Return on Capital Employed

ROCE Improving: 509835's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Premier Synthetics's financial position?


Financial Position Analysis

Short Term Liabilities: 509835's short term assets (₹165.5M) exceeds its short term liabilities (₹20.6M)

Long Term Liabilities: 509835's short term assets (165.5M) do not cover its long term liabilities (196.1M)


Debt to Equity History and Analysis

Debt Level: 509835's debt to equity ratio (73.6%) is considered high

Reducing Debt: 509835's debt to equity ratio has reduced from 97.4% to 73.6% over the past 5 years.

Debt Coverage: 509835's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 509835's interest payments on its debt are well covered by EBIT (12.3x coverage).


Balance Sheet

Inventory Level: 509835 has a high level of physical assets or inventory.

Debt Coverage by Assets: 509835's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

What is Premier Synthetics's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%0.6%markettop25%2.5%industryaverage0.7%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 509835's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 509835's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if 509835's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 509835's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 509835's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

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

1.2yrs

Average management tenure


CEO

Sanjaykumar Majethia (47yo)

0yrs

Tenure

0

Mr. Sanjaykumar Vinodbhai Majethia has been Executive Director at Premier Synthetics Limited since May 28, 2019 and served as its Whole-Time Director since February 10, 2016 until May 28, 2019. 


Management Age and Tenure

1.2yrs

Average Tenure

Experienced Management: 509835's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Age and Tenure

3.7yrs

Average Tenure

45.5yo

Average Age

Experienced Board: 509835's board of directors are considered experienced (3.7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Sanjaykumar Majethia (47yo)

    Executive Director

    • Tenure: 0yrs
  • Kartik Jain

    Chief Financial Officer

    • Tenure: 3.7yrs
    • Compensation: ₹420.00k
  • Gautamchand Surana (67yo)

    MD & Director

    • Tenure: 3.7yrs
  • Vinod Rana

    Company Secretary & Compliance Officer

    • Tenure: 1yrs
    • Compensation: ₹120.00k

Board Members

  • Sanjaykumar Majethia (47yo)

    Executive Director

    • Tenure: 0yrs
  • Sachin Kansal (32yo)

    Independent Director

    • Tenure: 3.7yrs
  • Jayesh Jain (44yo)

    Independent Director

    • Tenure: 3.7yrs
  • Gautamchand Surana (67yo)

    MD & Director

    • Tenure: 3.7yrs
  • Anusha Maheshwary

    Independent Director

    • Tenure: 2.5yrs
  • Sunny Singhi

    Non-Executive Director

    • Tenure: 2.5yrs

Company Information

Premier Synthetics Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Premier Synthetics Limited
  • Ticker: 509835
  • Exchange: BSE
  • Founded: 1970
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹49.561m
  • Shares outstanding: 4.59m
  • Website: https://www.premiersyntheticsltd.com

Number of Employees


Location

  • Premier Synthetics Limited
  • Surana House
  • Swastik X Road, Behind Klassic Chambers
  • Ahmedabad
  • Gujarat
  • 380009
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
509835BSE (Mumbai Stock Exchange)YesEquity SharesININROct 1996

Biography

Premier Synthetics Limited manufactures and sells cotton yarns to denim and towel industries in India. The company was formerly known as Premier Synthetics and Processors Ltd. and changed its name to Premi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 12:34
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
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.