BSE:514300

Stock Analysis Report

Executive Summary

Pioneer Embroideries Limited, together with its subsidiaries, manufactures and sells embroideries, torchon/bobbin laces, raschel laces, and other garment accessories in India.

Rewards

Trading at 71.8% below its fair value

Earnings grew by 315% over the past year

Risk Analysis

Interest payments are not well covered by earnings

Does not have a meaningful market cap (₹701M)



Snowflake Analysis

Solid track record and good value.

Share Price & News

How has Pioneer Embroideries's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 514300 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.1%

514300

-0.5%

IN Luxury

-1.5%

IN Market


1 Year Return

43.1%

514300

18.2%

IN Luxury

10.7%

IN Market

Return vs Industry: 514300 exceeded the Indian Luxury industry which returned 18.2% over the past year.

Return vs Market: 514300 exceeded the Indian Market which returned 10.7% over the past year.


Shareholder returns

514300IndustryMarket
7 Day-5.1%-0.5%-1.5%
30 Day-10.6%3.0%-2.7%
90 Day21.0%9.2%1.3%
1 Year43.1%43.1%19.0%18.2%12.7%10.7%
3 Year-43.4%-43.4%52.2%48.8%22.0%15.1%
5 Year37.2%37.2%106.9%100.1%34.5%22.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Pioneer Embroideries 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: 514300 (₹28.2) is trading below our estimate of fair value (₹100.12)

Significantly Below Fair Value: 514300 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 514300 is good value based on its PE Ratio (9.4x) compared to the Luxury industry average (11.2x).

PE vs Market: 514300 is good value based on its PE Ratio (9.4x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 514300's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 514300 is overvalued based on its PB Ratio (0.9x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

How is Pioneer Embroideries 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 Pioneer Embroideries 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 Pioneer Embroideries performed over the past 5 years?

-8.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 514300 has high quality earnings.

Growing Profit Margin: 514300's current net profit margins (2.8%) are higher than last year (0.7%).


Past Earnings Growth Analysis

Earnings Trend: 514300 has become profitable over the past 5 years, growing earnings by -8.4% per year.

Accelerating Growth: 514300's earnings growth over the past year (315%) exceeds its 5-year average (-8.4% per year).

Earnings vs Industry: 514300 earnings growth over the past year (315%) exceeded the Luxury industry 5.6%.


Return on Equity

High ROE: 514300's Return on Equity (8.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Pioneer Embroideries's financial position?


Financial Position Analysis

Short Term Liabilities: 514300's short term assets (₹935.1M) exceed its short term liabilities (₹841.6M).

Long Term Liabilities: 514300's short term assets (₹935.1M) exceed its long term liabilities (₹214.5M).


Debt to Equity History and Analysis

Debt Level: 514300's debt to equity ratio (41.4%) is considered high.

Reducing Debt: 514300's debt to equity ratio has reduced from 144.1% to 41.4% over the past 5 years.


Balance Sheet

Inventory Level: 514300 has a high level of physical assets or inventory.

Debt Coverage by Assets: 514300's debt is covered by short term assets (assets are 2.8x 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: 514300 is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: 514300 is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Pioneer Embroideries's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%0.6%markettop25%2.6%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 514300's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 514300'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 514300's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 514300'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 514300'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?

3.7yrs

Average management tenure


CEO

Harsh Bassi (45yo)

5.8yrs

Tenure

₹4,096,458

Compensation

Mr. Harsh Vardhan Bassi has been the Managing Director of Pioneer Embroideries Limited since May 23, 2014. Mr. Bassi served as a Compliance Officer of Pioneer Embroideries Limited until September 2008. Mr. ...


CEO Compensation Analysis

Compensation vs Market: Harsh's total compensation ($USD57.25K) is about average for companies of similar size in the Indian market ($USD50.34K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Raj Sekhani
Executive Chairman12.5yrs₹6.04m9.08% 63.6m
Harsh Bassi
MD & Executive Director5.8yrs₹4.10mno data
Deepak Sipani
Chief Financial Officer1.3yrs₹1.81mno data
Ami Thakkar
Compliance Officer & Company Secretary3.7yrs₹600.00kno data
Gangadharan Kandam Panicker
Executive Director2.8yrs₹2.00mno data

3.7yrs

Average Tenure

60yo

Average Age

Experienced Management: 514300's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Raj Sekhani
Executive Chairman12.5yrs₹6.04m9.08% 63.6m
Harsh Bassi
MD & Executive Director5.8yrs₹4.10mno data
Gangadharan Kandam Panicker
Executive Director2.8yrs₹2.00mno data
Joginder Baweja
Independent Director6yrs₹77.50kno data
Gopalkrishnan Sivaraman
Independent Director5.8yrs₹77.50kno data
Sujata Chakravarthy
Independent Director3.5yrs₹37.50kno data

5.9yrs

Average Tenure

62.5yo

Average Age

Experienced Board: 514300's board of directors are considered experienced (5.9 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

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


Key Information

  • Name: Pioneer Embroideries Limited
  • Ticker: 514300
  • Exchange: BSE
  • Founded: 1991
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: ₹701.037m
  • Shares outstanding: 24.95m
  • Website: https://www.pelhakoba.com

Number of Employees


Location

  • Pioneer Embroideries Limited
  • Orient House
  • Unit No. 21 to 25, 2nd Floor
  • Mumbai
  • Maharashtra
  • 400062
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
514300BSE (Mumbai Stock Exchange)YesEquity SharesININROct 2004
PIONEEREMBNSEI (National Stock Exchange of India)YesEquity SharesININROct 2004

Biography

Pioneer Embroideries Limited, together with its subsidiaries, manufactures and sells embroideries, torchon/bobbin laces, raschel laces, and other garment accessories in India. Its products include dope dyed polyester yarns; embroidered laces-fabric and guipure, and embroidered dress materials; braided laces; embroidered fabrics, allover fabrics, and laces; and apparel. The company also provides elastics, flat bed knitted laces, and motifs/collars/necks. In addition, the company engages in the retail of embroidered clothing under the Hakoba brand. It also exports its products. Pioneer Embroideries Limited was founded in 1991 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 Analysis2020/02/19 12:34
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.