Donear Industries (BSE:512519) - Share price, News & Analysis

Q: What is the Fair Price of 512519 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

512519 (₹52.9) is trading above our estimate of [[fair value]] (₹2.62)

512519 fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	0/6
Past Performance	2/6
Financial Health	3/6
Dividends	2/6

512519 Stock Overview

Donear Industries Limited engages in the manufacture and sale of suitings, trousers, and shirting fabrics for men and women in India and internationally.

Rewards

Price-To-Earnings ratio (12.1x) is below the Indian market (21.1x)

Became profitable this year

Risk Analysis

Earnings have declined by 15.4% per year over past 5 years

Interest payments are not well covered by earnings

Does not have a meaningful market cap (₹3B)

Donear Industries Competitors

Pasupati Acrylon

BSE:500456

₹3.0b

Superhouse

BSE:523283

₹3.1b

Orbit Exports

BSE:512626

₹3.6b

Mafatlal Industries

BSE:500264

₹3.2b

Price History & Performance

Summary of all time highs, changes and price drops for Donear Industries
Historical stock prices
Current Share Price	₹52.90
52 Week High	₹76.50
52 Week Low	₹43.25
Beta	0.48
1 Month Change	4.55%
3 Month Change	8.85%
1 Year Change	-0.094%
3 Year Change	94.49%
5 Year Change	-10.03%
Change since IPO	-76.39%

Shareholder Returns

	512519	IN Luxury	IN Market
7D	-0.9%	0.3%	1.1%
1Y	-0.09%	20.2%	8.5%

Return vs Industry: 512519 underperformed the Indian Luxury industry which returned 20.2% over the past year.

Return vs Market: 512519 underperformed the Indian Market which returned 8.5% over the past year.

Price Volatility

Is 512519's price volatile compared to industry and market?
512519 volatility
512519 Average Weekly Movement	6.2%
Luxury Industry Average Movement	6.8%
Market Average Movement	6.4%
10% most volatile stocks in IN Market	9.1%
10% least volatile stocks in IN Market	4.2%

Stable Share Price: 512519 is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 512519's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1977	749	Rajendra Agarwal	https://www.donear.com

Donear Industries Limited engages in the manufacture and sale of suitings, trousers, and shirting fabrics for men and women in India and internationally. It operates in two segments, Manufacturing and Dealing in Textiles; and Rental Property. The company’s products include polyester viscose blended fabrics, polyester cotton blended fabrics, polyester fabrics, and cotton plain and yarn dyed shirting fabrics and bottomwear, as well as polyester wool, wool rich, and all wool fabrics.

Donear Industries Fundamentals Summary

How do Donear Industries's earnings and revenue compare to its market cap?
512519 fundamental statistics
Market Cap	₹2.75b
Earnings (TTM)	₹227.72m
Revenue (TTM)	₹5.69b

12.1x

P/E Ratio

0.5x

P/S Ratio

Is 512519 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
512519 income statement (TTM)
Revenue	₹5.69b
Cost of Revenue	₹2.76b
Gross Profit	₹2.93b
Other Expenses	₹2.70b
Earnings	₹227.72m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	4.38
Gross Margin	51.46%
Net Profit Margin	4.00%
Debt/Equity Ratio	230.5%

How did 512519 perform over the long term?

See historical performance and comparison

Dividends

0.4%

Current Dividend Yield

5%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 512519 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 512519?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 512519. This is calculated by dividing 512519's market cap by their current preferred multiple.
What is 512519's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₹2.75b

512519 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1x
Enterprise Value/EBITDA	12.2x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 512519's PE Ratio compare to its peers?

512519 PE Ratio vs Peers

The above table shows the PE ratio for 512519 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	8.6x
500456 Pasupati Acrylon	7.5x	n/a	₹3.0b
523283 Superhouse	8.6x	n/a	₹3.1b
512626 Orbit Exports	12.9x	n/a	₹3.6b
500264 Mafatlal Industries	5.3x	n/a	₹3.2b
512519 Donear Industries	12.1x	n/a	₹2.8b

Price-To-Earnings vs Peers: 512519 is expensive based on its Price-To-Earnings Ratio (12.1x) compared to the peer average (8.6x).

Price to Earnings Ratio vs Industry

How does 512519's PE Ratio compare vs other companies in the IN Luxury Industry?

Price-To-Earnings vs Industry: 512519 is good value based on its Price-To-Earnings Ratio (12.1x) compared to the Indian Luxury industry average (12.8x)

Price to Earnings Ratio vs Fair Ratio

What is 512519's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

512519 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	12.1x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 512519's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of 512519 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 512519 (₹52.9) is trading above our estimate of fair value (₹2.62)

Significantly Below Fair Value: 512519 is trading above our estimate of fair value.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

22.6%

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 Donear 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.

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Take a look at our analysis of 512519’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
Donear Industries competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Donear Industries performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-15.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 512519 has high quality earnings.

Growing Profit Margin: 512519 became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: 512519's earnings have declined by 15.4% per year over the past 5 years.

Accelerating Growth: 512519 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 512519 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Luxury industry (56.8%).

Return on Equity

High ROE: 512519's Return on Equity (16.8%) is considered low.

Discover strong past performing companies

Financial Health

How is Donear Industries's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 512519's short term assets (₹5.1B) exceed its short term liabilities (₹4.4B).

Long Term Liabilities: 512519's short term assets (₹5.1B) exceed its long term liabilities (₹308.5M).

Debt to Equity History and Analysis

Debt Level: 512519's net debt to equity ratio (221.6%) is considered high.

Reducing Debt: 512519's debt to equity ratio has reduced from 305% to 230.5% over the past 5 years.

Debt Coverage: 512519's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 512519's interest payments on its debt are not well covered by EBIT (1.9x coverage).

Balance Sheet

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Dividend

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

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

0.38%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 512519's dividend (0.38%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.39%).

High Dividend: 512519's dividend (0.38%) is low compared to the top 25% of dividend payers in the Indian market (1.72%).

Stability and Growth of Payments

Stable Dividend: 512519's dividends per share have been stable in the past 10 years.

Growing Dividend: 512519's dividend payments have not increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (4.6%), 512519's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: 512519 is paying a dividend but the company has no free cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

7.3yrs

Average board tenure

CEO

Rajendra Agarwal (60 yo)

no data

Tenure

Mr. Rajendra Vishwanath Agarwal serves as the Managing Director and Chairman of Donear Industries Ltd. Mr. Agarwal has techno-commercial experience in the textile industry. With all the knowledge and techn...

CEO Compensation Analysis

Compensation vs Market: Insufficient data to establish whether Rajendra's total compensation is reasonable compared to companies of similar size in the Indian market.

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

Board Members

Experienced Board: 512519's board of directors are considered experienced (7.3 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.

Data	Last Updated (UTC time)
Company Analysis	2022/08/12 00:00
End of Day Share Price	2022/08/12 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31