BSE:514010

Stock Analysis Report

Executive Summary

Himachal Fibres Limited manufactures and sells cotton polyester yarns and knitted clothes in India.

Rewards

Trading at 75.6% below its fair value

Risk Analysis

Does not have a meaningful market cap (₹115M)

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

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Fair value with mediocre balance sheet.

Share Price & News

How has Himachal Fibres's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 514010's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.0%

514010

0.2%

IN Luxury

-0.4%

IN Market


1 Year Return

-47.8%

514010

16.6%

IN Luxury

11.1%

IN Market

Return vs Industry: 514010 underperformed the Indian Luxury industry which returned 16.6% over the past year.

Return vs Market: 514010 underperformed the Indian Market which returned 11.1% over the past year.


Shareholder returns

514010IndustryMarket
7 Day-5.0%0.2%-0.4%
30 Day9.0%3.3%-1.2%
90 Day33.0%8.5%3.3%
1 Year-47.8%-47.8%17.3%16.6%13.0%11.1%
3 Year-86.8%-86.8%53.8%52.0%25.3%18.6%
5 Year-87.0%-87.0%103.0%96.4%35.4%23.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Himachal Fibres 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: 514010 (₹1.33) is trading below our estimate of fair value (₹5.44)

Significantly Below Fair Value: 514010 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 514010 is unprofitable, so we can't compare its PE Ratio to the Luxury industry average.

PE vs Market: 514010 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 514010's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 514010 is good value based on its PB Ratio (0.4x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

How is Himachal Fibres 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 Himachal Fibres 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 Himachal Fibres performed over the past 5 years?

14.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 514010 is currently unprofitable.

Growing Profit Margin: 514010 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 514010 is unprofitable, but has reduced losses over the past 5 years at a rate of 14.9% per year.

Accelerating Growth: Unable to compare 514010's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 514010 is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (2.7%).


Return on Equity

High ROE: 514010 has a negative Return on Equity (-1.26%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Himachal Fibres's financial position?


Financial Position Analysis

Short Term Liabilities: 514010's short term assets (₹399.4M) exceed its short term liabilities (₹233.3M).

Long Term Liabilities: 514010's short term assets (₹399.4M) exceed its long term liabilities (₹76.6M).


Debt to Equity History and Analysis

Debt Level: 514010's debt to equity ratio (67.8%) is considered high.

Reducing Debt: 514010's debt to equity ratio has reduced from 94% to 67.8% over the past 5 years.


Balance Sheet

Inventory Level: 514010 has a high level of physical assets or inventory.

Debt Coverage by Assets: 514010's debt is covered by short term assets (assets are 1.8x 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: Insufficient data to determine if 514010 has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if 514010 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Himachal Fibres'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 514010's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 514010'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 514010's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 514010'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 514010'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?

3.8yrs

Average management tenure


CEO

Gian Thakur (47yo)

₹720,000

Compensation

Mr. Gian Chand Thakur has been a Whole Time Director of Himachal Fibres Ltd., since May 13, 2015. 


CEO Compensation Analysis

Compensation vs Market: Gian's total compensation ($USD10.07K) is below average for companies of similar size in the Indian market ($USD50.14K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Gian Thakur
Whole Time Director0yrs₹720.00kno data
Navrattan Sharma
Chief Financial Officer3.8yrs₹712.23kno data
Sat Gupta
38.1yrsno datano data
Laxmi Khatri
Company Secretary & Compliance Officer0.8yrsno datano data
Rajesh Sharma
Chief Engineer0yrsno datano data

3.8yrs

Average Tenure

Experienced Management: 514010's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gian Thakur
Whole Time Director0yrs₹720.00kno data
Pawan Nagpal
Additional Independent Director0yrs₹350.00kno data
Malkeet Kaur
Independent Woman Director4.9yrs₹18.00kno data
Manoj Kumar
Non Executive Director3.5yrs₹18.00kno data
Sh. Singh
Independent Non-Executive Chairman1.3yrs₹6.00kno data

4.1yrs

Average Tenure

48.5yo

Average Age

Experienced Board: 514010's board of directors are considered experienced (4.1 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 diluted in the past year, with total shares outstanding growing by 16.2%.


Top Shareholders

Company Information

Himachal Fibres Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Himachal Fibres Limited
  • Ticker: 514010
  • Exchange: BSE
  • Founded: 1980
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹114.713m
  • Shares outstanding: 86.25m
  • Website: https://www.himachalfibre.com

Number of Employees


Location

  • Himachal Fibres Limited
  • 8-L, Model Town
  • Backside Hotel Chevron
  • Ludhiana
  • Punjab
  • 141002
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
514010BSE (Mumbai Stock Exchange)YesEquity SharesININRSep 1996

Biography

Himachal Fibres Limited manufactures and sells cotton polyester yarns and knitted clothes in India. It offers cotton, melange, cotton dyed, and open end yarns. The company also provides blended yarns that comprise cotton/polyester, cotton/viscose, and acrylic/polyester yarns, as well as grey and dyed yarns in hosiery and weaving sector. The company was incorporated in 1980 and is based in Ludhiana, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 12:38
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.