BSE:514280

Stock Analysis Report

Sanrhea Technical Textiles

Executive Summary

Sanrhea Technical Textiles Ltd. manufactures and sells industrial and technical fabrics in India.

Rewards

Trading at 22% below its fair value

Risk Analysis

Interest payments are not well covered by earnings

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

Large one-off items impacting financial results

Profit margins (0.8%) are lower than last year (2.8%)

+ 1 more risk


Snowflake Analysis

Adequate balance sheet and slightly overvalued.

Share Price & News

How has Sanrhea Technical Textiles's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 514280 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

514280

1.1%

IN Luxury

-0.8%

IN Market


1 Year Return

19.5%

514280

18.4%

IN Luxury

11.1%

IN Market

Return vs Industry: 514280 exceeded the Indian Luxury industry which returned 16.6% over the past year.

Return vs Market: 514280 exceeded the Indian Market which returned 11.1% over the past year.


Shareholder returns

514280IndustryMarket
7 Day0%1.1%-0.8%
30 Day-13.0%3.3%-2.3%
90 Dayn/a9.6%2.1%
1 Year19.5%19.5%19.2%18.4%13.1%11.1%
3 Yearn/a54.9%51.5%22.9%16.2%
5 Yearn/a106.1%99.4%34.9%22.6%

Price Volatility Vs. Market

How volatile is Sanrhea Technical Textiles's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sanrhea Technical Textiles undervalued compared to its fair value and its price relative to the market?

22.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 514280 (₹20.5) is trading below our estimate of fair value (₹26.27)

Significantly Below Fair Value: 514280 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 514280 is poor value based on its PE Ratio (21.9x) compared to the Luxury industry average (11.1x).

PE vs Market: 514280 is poor value based on its PE Ratio (21.9x) compared to the Indian market (13.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 514280's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 514280 is overvalued based on its PB Ratio (0.8x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

How is Sanrhea Technical Textiles 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 Sanrhea Technical Textiles 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 Sanrhea Technical Textiles performed over the past 5 years?

41.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 514280 has a large one-off gain of ₹787.0K impacting its December 31 2019 financial results.

Growing Profit Margin: 514280's current net profit margins (0.8%) are lower than last year (2.8%).


Past Earnings Growth Analysis

Earnings Trend: 514280's earnings have grown significantly by 41% per year over the past 5 years.

Accelerating Growth: 514280's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 514280 had negative earnings growth (-75.2%) over the past year, making it difficult to compare to the Luxury industry average (2.5%).


Return on Equity

High ROE: 514280's Return on Equity (4.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sanrhea Technical Textiles's financial position?


Financial Position Analysis

Short Term Liabilities: 514280's short term assets (₹181.3M) exceed its short term liabilities (₹164.0M).

Long Term Liabilities: 514280's short term assets (₹181.3M) exceed its long term liabilities (₹16.0M).


Debt to Equity History and Analysis

Debt Level: 514280's debt to equity ratio (157.3%) is considered high.

Reducing Debt: 514280's debt to equity ratio has reduced from 249.9% to 157.3% over the past 5 years.

Debt Coverage: 514280's debt is well covered by operating cash flow (26.9%).

Interest Coverage: 514280's interest payments on its debt are not well covered by EBIT (1.4x coverage).


Balance Sheet

Inventory Level: 514280 has a high level of physical assets or inventory.

Debt Coverage by Assets: 514280's debt is covered by short term assets (assets are 1.7x debt).


Next Steps

Dividend

What is Sanrhea Technical Textiles'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 514280's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 514280'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 514280's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 514280'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 514280'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?

16.4yrs

Average board tenure


CEO

Tushar Patel (54yo)

2.5yrs

Tenure

₹4,542,438

Compensation

Mr. Tushar Mahendrabhai Patel has been Managing Director of Sanrhea Technical Textiles Ltd., since August , 2014 and serves as its Chief Executive Officer and Executive Director. Mr. Patel serves as a Dire ...


CEO Compensation Analysis

Compensation vs Market: Tushar's total compensation ($USD63.52K) is about average for companies of similar size in the Indian market ($USD50.21K).

Compensation vs Earnings: Tushar's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Tushar Patel
MD & Executive Director2.5yrs₹4.54m32.03% 24.9m
Vimal Ambani
Independent Director17.4yrsno datano data
Miten Mehta
Independent Director16.4yrsno datano data
Tejal Patel
Non-Executive Director5yrsno datano data

16.4yrs

Average Tenure

53yo

Average Age

Experienced Board: 514280's board of directors are seasoned and experienced ( 16.4 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 diluted in the past year, with total shares outstanding growing by 8.1%.


Top Shareholders

Company Information

Sanrhea Technical Textiles Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sanrhea Technical Textiles Ltd.
  • Ticker: 514280
  • Exchange: BSE
  • Founded: 1983
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹77.695m
  • Shares outstanding: 3.79m
  • Website: https://www.sanrhea.com

Number of Employees


Location

  • Sanrhea Technical Textiles Ltd.
  • Dr. Ambedkar Road
  • Near G.E.B.
  • Kalol
  • Gujarat
  • 382721
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
514280BSE (Mumbai Stock Exchange)YesEquity SharesININRMay 1995

Biography

Sanrhea Technical Textiles Ltd. manufactures and sells industrial and technical fabrics in India. It offers RFL-dipped fabrics for conveyor belts, tires, and other rubber products; belting fabrics; chafer fabrics for tires; and diaphragm, and impression and float fabrics. Sanrhea Technical Textiles Ltd. also exports its products. The company was incorporated in 1983 and is based in Kalol, 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 12:49
End of Day Share Price2020/02/13 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.