BSE:514400

Stock Analysis Report

Executive Summary

Garware Synthetics Limited manufactures and sells nylon monofilaments, bristles, and fishing lines in India.

Risk Analysis

Earnings have declined by -65.64% per year over past 5 years

Has less than 1 year of cash runway

Shares are highly illiquid

Does not have a meaningful market cap (₹7M)

+ 3 more risks


Snowflake Analysis

Weak fundamentals or lack of information.

Share Price & News

How has Garware Synthetics's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 514400's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.4%

514400

-0.5%

IN Luxury

-1.5%

IN Market


1 Year Return

n/a

514400

18.2%

IN Luxury

10.7%

IN Market

Return vs Industry: Insufficient data to determine how 514400 performed against the Indian Luxury industry.

Return vs Market: Insufficient data to determine how 514400 performed against the Indian Market.


Shareholder returns

514400IndustryMarket
7 Day-4.4%-0.5%-1.5%
30 Day-16.2%3.0%-2.7%
90 Day-40.8%9.2%1.3%
1 Yearn/a19.0%18.2%12.7%10.7%
3 Year-82.1%-82.1%52.2%48.8%22.0%15.1%
5 Year-96.6%-96.6%106.9%100.1%34.5%22.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Garware Synthetics undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether Garware Synthetics is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Garware Synthetics has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of 514400’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Garware Synthetics regulatory filings.
  • Explore potentially undervalued companies in the Consumer Durables industry.

Future Growth

How is Garware Synthetics 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 Garware Synthetics 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 Garware Synthetics performed over the past 5 years?

-65.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 514400 is currently unprofitable.

Growing Profit Margin: 514400 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 514400 is unprofitable, and losses have increased over the past 5 years at a rate of -65.6% per year.

Accelerating Growth: Unable to compare 514400's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 514400 is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (5.6%).


Return on Equity

High ROE: 514400's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Garware Synthetics's financial position?


Financial Position Analysis

Short Term Liabilities: 514400 has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: 514400 has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: 514400 has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: 514400's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: 514400 has a high level of physical assets or inventory.

Debt Coverage by Assets: 514400 has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


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: 514400 has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: 514400 has less than a year of cash runway if free cash flow continues to reduce at historical rates of -56.3% each year


Next Steps

Dividend

What is Garware Synthetics'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 514400's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 514400'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 514400's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 514400'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 514400'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?

5.9yrs

Average board tenure


CEO

Sunder Moolya (68yo)

₹530,000

Compensation

Mr. Sunder Kocha Moolya serves as a Managing Director Whole Time Director at Garware Synthetics Limited and serves its Whole Time Director since May 02, 2001. 


CEO Compensation Analysis

Compensation vs Market: Sunder's total compensation ($USD7.43K) is below average for companies of similar size in the Indian market ($USD50.34K).

Compensation vs Earnings: Sunder's compensation has increased whilst the company is unprofitable.


Board Members

NamePositionTenureCompensationOwnership
Sunder Moolya
MD & Whole Time Director0yrs₹530.00kno data
Santosh Borkar
Executive Director10.8yrs₹388.50kno data
Kirtikumar Doshi
Non-Executive & Independent Director0yrs₹15.00kno data
Sandip Pawar
Independent Director0.7yrsno datano data
Shilpa Parab
Independent & Non- Executive Director1.1yrsno datano data

5.9yrs

Average Tenure

51yo

Average Age

Experienced Board: 514400'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 been diluted in the past year, with total shares outstanding growing by 2.3%.


Top Shareholders

Company Information

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


Key Information

  • Name: Garware Synthetics Limited
  • Ticker: 514400
  • Exchange: BSE
  • Founded: 1969
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹7.493m
  • Shares outstanding: 5.81m
  • Website: https://www.garwaresyn.com

Number of Employees


Location

  • Garware Synthetics Limited
  • Manish Textiles Industrial Premises
  • Opposite Golden Chemical
  • Thane
  • Maharashtra
  • 401104
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
514400BSE (Mumbai Stock Exchange)YesEquity SharesININRSep 2013

Biography

Garware Synthetics Limited manufactures and sells nylon monofilaments, bristles, and fishing lines in India. The company offers nylon bristles for use in tooth, shaving, and industrial and household brushes; polypropylene bristles; and nylon finishing line products. It also provides nylon rods, bushes, and machinery parts for applications in engineering, textile, metal, material handling equipment, automobile, marine, paper/sugar mill, bottling and food processing, railway, and chemical industries. In addition, the company offers nylon tubings for use in automotive gasoline, high pressure lubricant, refrigeration line, air lines on pneumatic control system, gasoline, fuel line for petrol engine, and beverage line applications. Further, it develops nylon sutures for medical applications. The company offers its products under the Garflon brand name. Garware Synthetics Limited was incorporated in 1969 and is based in Thane, 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 12:33
End of Day Share Price2020/02/14 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.