BSE:509895

Stock Analysis Report

Executive Summary

Hindoostan Mills Limited manufactures and sells textile products in India.

Rewards

Trading at 23.9% below its fair value

Risk Analysis

Earnings have declined by -8.64% per year over past 5 years

Does not have a meaningful market cap (₹431M)

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months



Snowflake Analysis

Flawless balance sheet and slightly overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 509895's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

32.1%

509895

-0.5%

IN Luxury

-1.5%

IN Market


1 Year Return

-15.1%

509895

18.2%

IN Luxury

10.7%

IN Market

Return vs Industry: 509895 underperformed the Indian Luxury industry which returned 18.2% over the past year.

Return vs Market: 509895 underperformed the Indian Market which returned 10.7% over the past year.


Shareholder returns

509895IndustryMarket
7 Day32.1%-0.5%-1.5%
30 Day25.2%3.0%-2.7%
90 Day10.8%9.2%1.3%
1 Year-15.1%-15.1%19.0%18.2%12.7%10.7%
3 Year-27.1%-27.1%52.2%48.8%22.0%15.1%
5 Year-40.9%-42.2%106.9%100.1%34.5%22.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

23.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 509895 (₹270.05) is trading below our estimate of fair value (₹354.76)

Significantly Below Fair Value: 509895 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 509895 is unprofitable, so we can't compare its PE Ratio to the Luxury industry average.

PE vs Market: 509895 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 509895's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 509895 is overvalued based on its PB Ratio (1x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

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

-8.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 509895 is currently unprofitable.

Growing Profit Margin: 509895 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 509895 is unprofitable, and losses have increased over the past 5 years at a rate of -8.6% per year.

Accelerating Growth: Unable to compare 509895's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 509895 is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (5.6%).


Return on Equity

High ROE: 509895 has a negative Return on Equity (-11.92%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Hindoostan Mills's financial position?


Financial Position Analysis

Short Term Liabilities: 509895's short term assets (₹577.8M) exceed its short term liabilities (₹393.3M).

Long Term Liabilities: 509895's short term assets (₹577.8M) exceed its long term liabilities (₹52.6M).


Debt to Equity History and Analysis

Debt Level: 509895's debt to equity ratio (21.5%) is considered satisfactory.

Reducing Debt: 509895's debt to equity ratio has reduced from 23% to 21.5% over the past 5 years.


Balance Sheet

Inventory Level: 509895 has a high level of physical assets or inventory.

Debt Coverage by Assets: 509895's debt is covered by short term assets (assets are 6.2x 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: Whilst unprofitable 509895 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 509895 is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 45.8% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 509895's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 509895'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 509895's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 509895's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 509895 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 509895'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?

1.8yrs

Average management tenure


CEO

Rajiv Ranjan (64yo)

2.4yrs

Tenure

₹4,571,000

Compensation

Mr. Rajiv Ranjan has been Chief Executive Officer of Hindoostan Mills Limited since September 7, 2017 and its Executive Director. Mr. Ranjan served as the President of Textiles of Mafatlal Industries. He s ...


CEO Compensation Analysis

Compensation vs Market: Rajiv's total compensation ($USD63.88K) is about average for companies of similar size in the Indian market ($USD50.34K).

Compensation vs Earnings: Rajiv's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Rajiv Ranjan
CEO & Executive Director2.4yrs₹4.57mno data
Shraddha Shettigar
CFO & Assistant GM1.8yrs₹1.73mno data
Khushaal Thackersey
Executive Director3.3yrs₹2.36m1.9% 8.2m
Kaushik Kapasi
Company Secretary & Compliance Officer0.5yrsno datano data
Akash Juneja
President of Engineering0yrsno datano data

1.8yrs

Average Tenure

Experienced Management: 509895's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Rajiv Ranjan
CEO & Executive Director2.4yrs₹4.57mno data
Khushaal Thackersey
Executive Director3.3yrs₹2.36m1.9% 8.2m
Sujal Shah
Non-Executive Independent Director8.7yrs₹225.00kno data
Chandrahas Thackersey
Chairman3.5yrs₹185.00k3.8% 16.4m
Bhavesh Panjuani
Non-Executive Independent Director8.7yrs₹225.00kno data
Ashok Desai
Non-Executive Independent Director3.5yrs₹175.00kno data
Amol Pradyurnna Vora
Additional Independent Director0.8yrsno datano data

3.5yrs

Average Tenure

52yo

Average Age

Experienced Board: 509895's board of directors are considered experienced (3.5 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

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


Key Information

  • Name: Hindoostan Mills Limited
  • Ticker: 509895
  • Exchange: BSE
  • Founded: 1873
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹431.368m
  • Shares outstanding: 1.66m
  • Website: https://www.hindoostan.com

Number of Employees


Location

  • Hindoostan Mills Limited
  • Sir Vithaldas Chambers
  • 16, Mumbai Samachar Marg
  • Mumbai
  • Maharashtra
  • 400001
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
509895BSE (Mumbai Stock Exchange)YesEquity SharesININRJun 2004

Biography

Hindoostan Mills Limited manufactures and sells textile products in India. The company offers open end yarns; and cotton and blended greige and processed fabrics. It also manufactures and supplies calendar bowls, calendaring machines, squeeze rolls, and related products for the textile, paper, and steel industries. The company also exports its products. Hindoostan Mills Limited was founded in 1873 and is headquartered 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 12:43
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.