BSE:513515

Stock Analysis Report

Executive Summary

S.R. Industries Limited manufactures and sells footwear in India and internationally.

Rewards

Trading at 95.2% below its fair value

Risk Analysis

Earnings have declined by -76.98% per year over past 5 years

Shareholders have been substantially diluted in the past year

Does not have a meaningful market cap (₹11M)

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

+ 2 more risks


Snowflake Analysis

Slightly overvalued with weak fundamentals.

Share Price & News

How has S.R. Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 513515's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.4%

513515

1.1%

IN Luxury

-0.8%

IN Market


1 Year Return

-90.2%

513515

18.4%

IN Luxury

11.1%

IN Market

Return vs Industry: 513515 underperformed the Indian Luxury industry which returned 16.6% over the past year.

Return vs Market: 513515 underperformed the Indian Market which returned 11.1% over the past year.


Shareholder returns

513515IndustryMarket
7 Day-3.4%1.1%-0.8%
30 Day-3.4%3.3%-2.3%
90 Day40.0%9.6%2.1%
1 Year-90.2%-90.2%19.2%18.4%13.1%11.1%
3 Year-90.0%-90.0%54.9%51.5%22.9%16.2%
5 Year-89.8%-89.8%106.1%99.4%34.9%22.6%

Price Volatility Vs. Market

How volatile is S.R. Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is S.R. 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: 513515 (₹0.56) is trading below our estimate of fair value (₹11.57)

Significantly Below Fair Value: 513515 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 513515 is unprofitable, so we can't compare its PE Ratio to the Luxury industry average.

PE vs Market: 513515 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 513515's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 513515 has negative assets, so we can't compare its PB Ratio to the IN Luxury industry average.


Next Steps

Future Growth

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

19.8%

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 S.R. 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 S.R. Industries performed over the past 5 years?

-77.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 513515 is currently unprofitable.

Growing Profit Margin: 513515 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 513515 is unprofitable, and losses have increased over the past 5 years at a rate of -77% per year.

Accelerating Growth: Unable to compare 513515's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 513515 is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (2.5%).


Return on Equity

High ROE: 513515's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is S.R. Industries's financial position?


Financial Position Analysis

Short Term Liabilities: 513515 has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: 513515 has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: 513515 has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: 513515's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: 513515 has a high level of physical assets or inventory.

Debt Coverage by Assets: 513515 has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


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: Insufficient data to determine if 513515 has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if 513515 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is S.R. Industries's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%0.6%markettop25%2.5%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 513515's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 513515'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 513515's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 513515'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 513515'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?

7.6yrs

Average management tenure


CEO

Ramesh Mahajan (75yo)

13.2yrs

Tenure

₹10,819,000

Compensation

Mr. Ramesh Chander Mahajan has been the Managing Director of S. R. Industries Limited since December 28, 2006 and has been its Executive Director since July 19, 1989. 


CEO Compensation Analysis

Compensation vs Market: Ramesh's total compensation ($USD151.29K) is above average for companies of similar size in the Indian market ($USD50.21K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Ramesh Mahajan
MD & Executive Director13.2yrs₹10.82m2.85% 314.0k
Amit Mahajan
CFO, Director of Commercial & Whole-Time Director22.8yrs₹3.00m8.96% 986.6k
Amit Mahajan
Director of Operations & Whole Time Director13.4yrs₹2.76mno data
Rajesh Kaushal
Manager of Accounts & Finance0yrsno datano data
Samandeep Arya
Compliance Officer & Company Secretary2.5yrsno datano data
C. Pandey
Manager of HR0yrsno datano data
Munish Mahajan
Vice President0yrs₹1.80m0.051% 5.6k

7.6yrs

Average Tenure

49.5yo

Average Age

Experienced Management: 513515's management team is seasoned and experienced (7.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ramesh Mahajan
MD & Executive Director13.2yrs₹10.82m2.85% 314.0k
Amit Mahajan
CFO, Director of Commercial & Whole-Time Director22.8yrs₹3.00m8.96% 986.6k
Amit Mahajan
Director of Operations & Whole Time Director13.4yrs₹2.76mno data
Seema Mahajan
Non-Executive Independent Director5.3yrsno datano data
Udit Mayor
Independent Non-Executive Director0.5yrsno datano data

13.4yrs

Average Tenure

45yo

Average Age

Experienced Board: 513515's board of directors are seasoned and experienced ( 13.4 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 been substantially diluted in the past year, with total shares outstanding growing by 65%.


Top Shareholders

Company Information

S.R. Industries Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: S.R. Industries Limited
  • Ticker: 513515
  • Exchange: BSE
  • Founded: 1989
  • Industry: Footwear
  • Sector: Consumer Durables
  • Market Cap: ₹11.017m
  • Shares outstanding: 19.67m
  • Website: https://www.srfootwears.com

Number of Employees


Location

  • S.R. Industries Limited
  • E-217, Industrial Area
  • Phase 8B
  • Mohali
  • Punjab
  • 160071
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
513515BSE (Mumbai Stock Exchange)YesEquity SharesININRAug 2005

Biography

S.R. Industries Limited manufactures and sells footwear in India and internationally. Its products include EVA flip flops; lifestyle footwear; sports sandals; and sports shoes, including die-cut jogger and running shoes with IMEVA midsole. The company was incorporated in 1989 and is based in Mohali, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 12:32
End of Day Share Price2020/02/14 00:00
Earnings2019/09/30
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.