BSE:512553

Stock Analysis Report

Executive Summary

Zenith Exports Limited designs, manufactures, and sells fabrics to furnishing and fashion trades, editors, and jobbers in India.

Rewards

Trading at 45.3% below its fair value

Risk Analysis

Earnings have declined by -48.41% per year over past 5 years

Does not have a meaningful market cap (₹236M)

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 fair value.

Share Price & News

How has Zenith Exports's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 512553's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-11.0%

512553

-0.5%

IN Luxury

-1.5%

IN Market


1 Year Return

2.7%

512553

18.2%

IN Luxury

10.7%

IN Market

Return vs Industry: 512553 underperformed the Indian Luxury industry which returned 18.2% over the past year.

Return vs Market: 512553 underperformed the Indian Market which returned 10.7% over the past year.


Shareholder returns

512553IndustryMarket
7 Day-11.0%-0.5%-1.5%
30 Day-7.6%3.0%-2.7%
90 Day20.4%9.2%1.3%
1 Year2.7%2.7%19.0%18.2%12.7%10.7%
3 Year19.1%19.1%52.2%48.8%22.0%15.1%
5 Year-27.1%-27.1%106.9%100.1%34.5%22.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Zenith Exports undervalued compared to its fair value and its price relative to the market?

45.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 512553 (₹45.2) is trading below our estimate of fair value (₹82.68)

Significantly Below Fair Value: 512553 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 512553 is unprofitable, so we can't compare its PE Ratio to the Luxury industry average.

PE vs Market: 512553 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 512553's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 512553 is good value based on its PB Ratio (0.3x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

How is Zenith Exports 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 Zenith Exports 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 Zenith Exports performed over the past 5 years?

-48.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 512553 is currently unprofitable.

Growing Profit Margin: 512553 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 512553 is unprofitable, and losses have increased over the past 5 years at a rate of -48.4% per year.

Accelerating Growth: Unable to compare 512553's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 512553 is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (5.6%).


Return on Equity

High ROE: 512553 has a negative Return on Equity (-6.16%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Zenith Exports's financial position?


Financial Position Analysis

Short Term Liabilities: 512553's short term assets (₹669.6M) exceed its short term liabilities (₹149.5M).

Long Term Liabilities: 512553's short term assets (₹669.6M) exceed its long term liabilities (₹27.0M).


Debt to Equity History and Analysis

Debt Level: 512553's debt to equity ratio (8.9%) is considered satisfactory.

Reducing Debt: 512553's debt to equity ratio has reduced from 30.3% to 8.9% over the past 5 years.


Balance Sheet

Inventory Level: 512553 has a high level of physical assets or inventory.

Debt Coverage by Assets: 512553's debt is covered by short term assets (assets are 9.6x 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 512553 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 512553 is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -23.8% per year.


Next Steps

Dividend

What is Zenith Exports's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%0.6%markettop25%2.6%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 512553's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 512553'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 512553's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 512553'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 512553'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?

3.3yrs

Average management tenure


CEO

Raj Loyalka (75yo)

3.3yrs

Tenure

₹2,908,167

Compensation

Mr. Raj Kumar Loyalka, B.E.E., has been Chief Executive Officer of Zenith Exports Limited since November 14, 2016. Mr. Loyalka served as a Joint Managing Director of Zenith Exports Limited until September  ...


CEO Compensation Analysis

Compensation vs Market: Raj's total compensation ($USD40.64K) is about average for companies of similar size in the Indian market ($USD50.34K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Surendra Loyalka
Chairman of the Board & MD0yrs₹4.05m19.33% 45.6m
Raj Loyalka
Chief Executive Officer3.3yrs₹2.91m0.44% 1.0m
Sushil Kasera
Chief Financial Officer0yrs₹382.08kno data
Vikram Mishra
Company Secretary & Compliance Officer1.3yrs₹502.04kno data
Varun Loyalka
Joint MD & Additional Executive Director1.8yrs₹1.27m5.43% 12.8m

3.3yrs

Average Tenure

51yo

Average Age

Experienced Management: 512553's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Surendra Loyalka
Chairman of the Board & MD0yrs₹4.05m19.33% 45.6m
Varun Loyalka
Joint MD & Additional Executive Director1.8yrs₹1.27m5.43% 12.8m
Surendra Bafna
Additional Non-Executive Independent Director1.3yrs₹13.00kno data
Urmila Loyalka
Non-Independent Non-Executive Director5yrsno data11.66% 27.5m
Rabindra Sarawgee
Additional Non-Executive Independent Director1.3yrs₹13.00kno data
Kamal Jain
Additional Non-Executive Independent Director1yrsno datano data
Sanjay Shaw
Additional Non-Executive Independent Director0.5yrsno datano data

1.3yrs

Average Tenure

59yo

Average Age

Experienced Board: 512553's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


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

Zenith Exports Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Zenith Exports Limited
  • Ticker: 512553
  • Exchange: BSE
  • Founded: 1969
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: ₹235.816m
  • Shares outstanding: 5.40m
  • Website: https://www.zenithexportslimited.com

Number of Employees


Location

  • Zenith Exports Limited
  • 19, Rajendra Nath Mukherjee Road
  • First Floor
  • Kolkata
  • West Bengal
  • 700001
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
512553BSE (Mumbai Stock Exchange)YesEquity SharesININRJul 1996
ZENITHEXPONSEI (National Stock Exchange of India)YesEquity SharesININRJul 1996

Biography

Zenith Exports Limited designs, manufactures, and sells fabrics to furnishing and fashion trades, editors, and jobbers in India. The company offers a range of silk, velvet, damask, embroidery, weave, and sheer fabrics. It also provides industrial leather hand gloves, cotton fabrics, and made-ups. The company also exports its products. Zenith Exports Limited was founded in 1969 and is headquartered in Kolkata, 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.