BSE:514030

Stock Analysis Report

Executive Summary

Deepak Spinners Limited manufactures and sells synthetic man made yarns in India.


Snowflake Analysis

Undervalued with adequate balance sheet.

Share Price & News

How has Deepak Spinners's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 514030 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.6%

514030

-4.4%

IN Luxury

-3.5%

IN Market


1 Year Return

-22.5%

514030

12.8%

IN Luxury

5.2%

IN Market

Return vs Industry: 514030 underperformed the Indian Luxury industry which returned 13.7% over the past year.

Return vs Market: 514030 underperformed the Indian Market which returned 6.4% over the past year.


Shareholder returns

514030IndustryMarket
7 Day-0.6%-4.4%-3.5%
30 Day-2.9%-1.4%-3.9%
90 Day-7.0%6.0%-2.1%
1 Year-21.0%-22.5%13.5%12.8%7.2%5.2%
3 Year-14.9%-16.5%45.8%44.0%18.9%12.4%
5 Year100.2%91.7%97.3%93.7%29.4%17.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Deepak Spinners 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: 514030 (₹75) is trading below our estimate of fair value (₹340.83)

Significantly Below Fair Value: 514030 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 514030 is good value based on its PE Ratio (5.6x) compared to the Luxury industry average (10.7x).

PE vs Market: 514030 is good value based on its PE Ratio (5.6x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 514030's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 514030 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 Deepak Spinners forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

19.7%

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 Deepak Spinners 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 Deepak Spinners performed over the past 5 years?

-1.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 514030 has high quality earnings.

Growing Profit Margin: 514030's current net profit margins (2%) are lower than last year (2.5%).


Past Earnings Growth Analysis

Earnings Trend: 514030's earnings have declined by -1.7% per year over the past 5 years.

Accelerating Growth: 514030's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 514030 had negative earnings growth (-20.7%) over the past year, making it difficult to compare to the Luxury industry average (6.4%).


Return on Equity

High ROE: 514030's Return on Equity (7.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Deepak Spinners's financial position?


Financial Position Analysis

Short Term Liabilities: 514030's short term assets (₹1.2B) exceed its short term liabilities (₹1.0B).

Long Term Liabilities: 514030's short term assets (₹1.2B) exceed its long term liabilities (₹516.5M).


Debt to Equity History and Analysis

Debt Level: 514030's debt to equity ratio (53.6%) is considered high.

Reducing Debt: 514030's debt to equity ratio has reduced from 144.5% to 53.6% over the past 5 years.

Debt Coverage: 514030's debt is well covered by operating cash flow (40.6%).

Interest Coverage: 514030's interest payments on its debt are not well covered by EBIT (2.7x coverage).


Balance Sheet

Inventory Level: 514030 has a high level of physical assets or inventory.

Debt Coverage by Assets: 514030's debt is covered by short term assets (assets are 1.6x debt).


Next Steps

Dividend

What is Deepak Spinners's current dividend yield, its reliability and sustainability?

1.99%

Current Dividend Yield


Dividend Yield vs Market

company2.0%marketbottom25%0.6%markettop25%2.7%industryaverage0.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 514030's dividend (2%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: 514030's dividend (2%) is low compared to the top 25% of dividend payers in the Indian market (2.63%).


Stability and Growth of Payments

Stable Dividend: 514030 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 514030 has only been paying a dividend for 4 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (11.2%), 514030's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

9.5yrs

Average board tenure


CEO

Pradip Daga (82yo)

9.8yrs

Tenure

₹7,687,680

Compensation

Mr. Pradip Kumar Daga, B.Com. (Hons), has been Managing Director of Deepak Spinners Limited since April 16, 2010. Mr. Daga serves as the Chairman and Managing Director of Deepak Industries Ltd. Mr. Daga se ...


CEO Compensation Analysis

Compensation vs Market: Pradip's total compensation ($USD107.04K) is above average for companies of similar size in the Indian market ($USD49.94K).

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


Board Members

NamePositionTenureCompensationOwnership
Pradip Daga
Chairman & MD9.8yrs₹7.69m7.7% 41.6m
Yashwant Daga
Non-Executive Director22yrs₹377.50k3.89% 21.0m
Pradeep Drolia
Independent Non-Executive Director14.3yrs₹382.50kno data
Nilu Agrawal
Non-Executive Independent Director4.8yrs₹315.00kno data
Binod Agrawal
Independent Non-Executive Director2.8yrs₹382.50kno data

9.5yrs

Average Tenure

61yo

Average Age

Experienced Board: 514030's board of directors are considered experienced (9.5 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

Deepak Spinners Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Deepak Spinners Limited
  • Ticker: 514030
  • Exchange: BSE
  • Founded: 1982
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹540.965m
  • Shares outstanding: 7.21m
  • Website: https://www.dsl-india.com

Number of Employees


Location

  • Deepak Spinners Limited
  • 16, Hare Street
  • Kolkata
  • West Bengal
  • 700001
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
514030BSE (Mumbai Stock Exchange)YesEquity SharesININRJan 2002

Biography

Deepak Spinners Limited manufactures and sells synthetic man made yarns in India. The company offers polyester, acrylic, viscose, and high bulk acrylic yarns/high bulk poly-acrylic yarns, as well as polyester viscose and acrylic blends, carpet pile yarns–acrylic and line blends with poly-viscose, and trilobal/polyester blends. It is also involved in the generation and sale of electricity from solar power plant. The company also exports its yarn products to Syria, the Middle East, Turkey, Belgium, the United States, and others. Deepak Spinners Limited was incorporated in 1982 and is based in Kolkata, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 12:44
End of Day Share Price2020/02/27 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.