BSE:514128

Stock Analysis Report

Executive Summary

Konark Synthetic Limited, together with its subsidiaries, engages in the textile business in India.

Rewards

Trading at 26.9% below its fair value

Risk Analysis

Earnings have declined by -26.76% per year over past 5 years

Shares are highly illiquid

Does not have a meaningful market cap (₹78M)

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



Snowflake Analysis

Adequate balance sheet and slightly overvalued.

Share Price & News

How has Konark Synthetic's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 514128's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.0%

514128

1.1%

IN Luxury

-0.8%

IN Market


1 Year Return

8.5%

514128

18.4%

IN Luxury

11.1%

IN Market

Return vs Industry: 514128 underperformed the Indian Luxury industry which returned 16.6% over the past year.

Return vs Market: 514128 underperformed the Indian Market which returned 11.1% over the past year.


Shareholder returns

514128IndustryMarket
7 Day-5.0%1.1%-0.8%
30 Day-26.0%3.3%-2.3%
90 Day-24.9%9.6%2.1%
1 Year8.5%8.5%19.2%18.4%13.1%11.1%
3 Year-19.8%-19.8%54.9%51.5%22.9%16.2%
5 Year-6.3%-6.3%106.1%99.4%34.9%22.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Konark Synthetic undervalued compared to its fair value and its price relative to the market?

26.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 514128 (₹13.4) is trading below our estimate of fair value (₹18.33)

Significantly Below Fair Value: 514128 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 514128 is unprofitable, so we can't compare its PE Ratio to the Luxury industry average.

PE vs Market: 514128 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 514128's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 514128 is overvalued based on its PB Ratio (2.4x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

How is Konark Synthetic 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 Konark Synthetic 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 Konark Synthetic performed over the past 5 years?

-26.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 514128 is currently unprofitable.

Growing Profit Margin: 514128 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 514128 is unprofitable, and losses have increased over the past 5 years at a rate of -26.8% per year.

Accelerating Growth: Unable to compare 514128's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 514128 is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (2.5%).


Return on Equity

High ROE: 514128 has a negative Return on Equity (-260.65%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Konark Synthetic's financial position?


Financial Position Analysis

Short Term Liabilities: 514128's short term assets (₹991.4M) exceed its short term liabilities (₹948.4M).

Long Term Liabilities: 514128's short term assets (₹991.4M) exceed its long term liabilities (₹531.1M).


Debt to Equity History and Analysis

Debt Level: 514128's debt to equity ratio (3396.8%) is considered high.

Reducing Debt: 514128's debt to equity ratio has increased from 404.2% to 3396.8% over the past 5 years.


Balance Sheet

Inventory Level: 514128 has a high level of physical assets or inventory.

Debt Coverage by Assets: 514128's debt is not covered by short term assets (assets are 0.9x 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 514128 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 514128 is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 7.3% per year.


Next Steps

Dividend

What is Konark Synthetic's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%0.6%markettop25%2.5%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 514128's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 514128'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 514128's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 514128's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 514128 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 514128'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?

4.5yrs

Average management tenure


CEO

Amitabh Kejriwal (54yo)

2.8yrs

Tenure

₹1,110,007

Compensation

Mr. Amitabh Ramswaroop Kejriwal has been Managing Director of Konark Synthetics Limited since April 1, 2017 and previously served as its Director of Textiles from May 25, 2016 to April 1, 2017. Mr. Kejriwa ...


CEO Compensation Analysis

Compensation vs Market: Amitabh's total compensation ($USD15.52K) is below average for companies of similar size in the Indian market ($USD50.21K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Amitabh Kejriwal
MD & Director2.8yrs₹1.11m1.17% 913.9k
Ramniwas Somany
Chief Financial Officer4.9yrs₹1.20m0.0086% 6.7k
Karunakar Sherigar
Chief Accountant0yrsno datano data
Mehnuddin Khan
Company Secretary & Compliance Officer4.5yrs₹402.00kno data
Dinesh Didwania
Sales Head0yrsno datano data
Pramod Kakrania
Factory Head0yrsno datano data
G. Rajgar
Factory Head0yrsno datano data
Shonit Dalmia
Executive Officer0yrs₹600.00k0.46% 354.8k

4.5yrs

Average Tenure

54yo

Average Age

Experienced Management: 514128's management team is considered experienced (4.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Amitabh Kejriwal
MD & Director2.8yrs₹1.11m1.17% 913.9k
Prakashchand Dalmia
Non-Executive Chairman2.9yrsno data43.08% 33.5m
Satish Deshmukh
Independent Non-Executive Director8.8yrsno datano data
Suvriti Gupta
Non-Executive Independent Director2.8yrsno datano data

5.8yrs

Average Tenure

59yo

Average Age

Experienced Board: 514128's board of directors are considered experienced (5.8 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

Konark Synthetic Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Konark Synthetic Limited
  • Ticker: 514128
  • Exchange: BSE
  • Founded: 1984
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹77.827m
  • Shares outstanding: 5.81m
  • Website: https://www.konarkgroup.co.in

Location

  • Konark Synthetic Limited
  • Building No. 7, Mittal Industrial Estate
  • Andheri Kurla Road
  • Mumbai
  • Maharashtra
  • 400059
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
514128BSE (Mumbai Stock Exchange)YesEquity SharesININRMay 2005

Biography

Konark Synthetic Limited, together with its subsidiaries, engages in the textile business in India. The company offers synthetic or artificial filament yarns, including high tenacity yarns, and specialty polyester yarns, including texturized and air-texturized yarns; fabrics, including yarn dyed and piece dyed polyester fabrics; blends with cotton, linen, rayon, and silk; and carded, combed, and compact cotton yarns. It also provides apparel comprising trousers, shirts, and shorts, as well as curtains, and bed covers and furnishings. The company also exports its products. Konark Synthetic Limited was incorporated in 1984 and is based in Mumbai, 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 Price2020/02/11 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.