BSE:514266

Stock Analysis Report

Executive Summary

Zenith Fibres Limited manufactures and sells polypropylene (PP) staple fibers in India.

Rewards

PE ratio (6x) is below the Indian market (13.1x)

Earnings grew by 41.8% over the past year

Risk Analysis

Earnings have declined by -25.92% per year over past 5 years

Does not have a meaningful market cap (₹161M)

Unstable dividend track record

Highly volatile share price over past 3 months

+ 2 more risks


Snowflake Analysis

Flawless balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 514266's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-11.2%

514266

-0.5%

IN Luxury

-1.5%

IN Market


1 Year Return

-32.8%

514266

18.2%

IN Luxury

10.7%

IN Market

Return vs Industry: 514266 underperformed the Indian Luxury industry which returned 18.2% over the past year.

Return vs Market: 514266 underperformed the Indian Market which returned 10.7% over the past year.


Shareholder returns

514266IndustryMarket
7 Day-11.2%-0.5%-1.5%
30 Day-15.6%3.0%-2.7%
90 Day-24.3%9.2%1.3%
1 Year-31.2%-32.8%19.0%18.2%12.7%10.7%
3 Year-70.4%-72.1%52.2%48.8%22.0%15.1%
5 Year-26.2%-34.0%106.9%100.1%34.5%22.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

6.03x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 514266 (₹38.85) is trading above our estimate of fair value (₹10.68)

Significantly Below Fair Value: 514266 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 514266 is good value based on its PE Ratio (6x) compared to the Luxury industry average (11.2x).

PE vs Market: 514266 is good value based on its PE Ratio (6x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 514266's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 514266 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 Fibres 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 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 Zenith Fibres performed over the past 5 years?

-25.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 514266 has a large one-off gain of ₹10.4M impacting its December 31 2019 financial results.

Growing Profit Margin: 514266's current net profit margins (8.8%) are higher than last year (6.4%).


Past Earnings Growth Analysis

Earnings Trend: 514266's earnings have declined by -25.9% per year over the past 5 years.

Accelerating Growth: 514266's earnings growth over the past year (41.8%) exceeds its 5-year average (-25.9% per year).

Earnings vs Industry: 514266 earnings growth over the past year (41.8%) exceeded the Luxury industry 5.6%.


Return on Equity

High ROE: 514266's Return on Equity (5.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Zenith Fibres's financial position?


Financial Position Analysis

Short Term Liabilities: 514266's short term assets (₹275.9M) exceed its short term liabilities (₹13.2M).

Long Term Liabilities: 514266's short term assets (₹275.9M) exceed its long term liabilities (₹16.2M).


Debt to Equity History and Analysis

Debt Level: 514266 is debt free.

Reducing Debt: 514266 has no debt compared to 5 years ago when its debt to equity ratio was 3.3%.

Debt Coverage: 514266 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 514266 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 514266 has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 514266's debt is covered by short term assets.


Next Steps

Dividend

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

2.57%

Current Dividend Yield


Dividend Yield vs Market

company2.6%marketbottom25%0.6%markettop25%2.6%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 514266's dividend (2.57%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: 514266's dividend (2.57%) is low compared to the top 25% of dividend payers in the Indian market (2.58%).


Stability and Growth of Payments

Stable Dividend: 514266's dividend payments have been volatile in the past 10 years.

Growing Dividend: 514266's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (15.5%), 514266's dividend payments are well 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?


CEO

S. Iyer 0

0

Mr. S. S. Iyer serves as the Chief Executive Officer of Zenith Fibres Ltd. and served as its President since February 4, 2012. 


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


Key Information

  • Name: Zenith Fibres Limited
  • Ticker: 514266
  • Exchange: BSE
  • Founded: 1989
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹161.315m
  • Shares outstanding: 3.94m
  • Website: https://www.zenithfibres.com

Number of Employees


Location

  • Zenith Fibres Limited
  • 103, Synergy House
  • Subhanpura Road
  • Vadodara
  • Gujarat
  • 390023
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
514266BSE (Mumbai Stock Exchange)YesEquity SharesININRJan 2002

Biography

Zenith Fibres Limited manufactures and sells polypropylene (PP) staple fibers in India. The company offers its products for use in various applications, including spun yarn filter fabrics, non-woven filter fabrics, geo-textiles, floor coverings and carpet backings, furnishing fabrics, blankets, and wall-coverings; and construction industry. It also markets PP spun yarn for use in weaving, as well as supplies PP dref-2 yarns that are used in filtration candles. The company also exports its products. Zenith Fibres Limited was incorporated in 1989 and is based in Vadodara, 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 12:39
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.