BSE:514412

Stock Analysis Report

Executive Summary

Sarup Industries Limited manufactures and sells footwear for men and women in India.

Rewards

Trading at 64.9% below its fair value

Risk Analysis

Earnings have declined by -59.91% per year over past 5 years

Does not have a meaningful market cap (₹100M)

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

Does not have meaningful revenue (₹198M)



Snowflake Analysis

Slightly overvalued with imperfect balance sheet.

Share Price & News

How has Sarup Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 514412 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.9%

514412

-0.5%

IN Luxury

-1.5%

IN Market


1 Year Return

-43.5%

514412

18.2%

IN Luxury

10.7%

IN Market

Return vs Industry: 514412 underperformed the Indian Luxury industry which returned 18.4% over the past year.

Return vs Market: 514412 underperformed the Indian Market which returned 11.1% over the past year.


Shareholder returns

514412IndustryMarket
7 Day-4.9%-0.5%-1.5%
30 Day0.3%3.0%-2.7%
90 Day8.3%9.2%1.3%
1 Year-43.5%-43.5%19.0%18.2%12.7%10.7%
3 Year-52.4%-53.1%52.2%48.8%22.0%15.1%
5 Year-70.6%-71.6%106.9%100.1%34.5%22.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Sarup Industries 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: 514412 (₹29.4) is trading below our estimate of fair value (₹83.7)

Significantly Below Fair Value: 514412 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 514412 is unprofitable, so we can't compare its PE Ratio to the Luxury industry average.

PE vs Market: 514412 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 514412's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 514412 is overvalued based on its PB Ratio (1.3x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

How is Sarup Industries 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 Sarup Industries 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 Sarup Industries performed over the past 5 years?

-59.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 514412 is currently unprofitable.

Growing Profit Margin: 514412 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 514412 is unprofitable, and losses have increased over the past 5 years at a rate of -59.9% per year.

Accelerating Growth: Unable to compare 514412's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 514412 is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (2.7%).


Return on Equity

High ROE: 514412 has a negative Return on Equity (-88.02%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sarup Industries's financial position?


Financial Position Analysis

Short Term Liabilities: 514412's short term assets (₹457.2M) exceed its short term liabilities (₹382.9M).

Long Term Liabilities: 514412's short term assets (₹457.2M) exceed its long term liabilities (₹284.6M).


Debt to Equity History and Analysis

Debt Level: 514412's debt to equity ratio (516.1%) is considered high.

Reducing Debt: 514412's debt to equity ratio has increased from 49.2% to 516.1% over the past 5 years.


Balance Sheet

Inventory Level: 514412 has a high level of physical assets or inventory.

Debt Coverage by Assets: 514412's debt is covered by short term assets (assets are 1.2x 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: Insufficient data to determine if 514412 has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if 514412 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Sarup Industries's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%0.6%markettop25%2.6%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 514412's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 514412'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 514412's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 514412's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 514412 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 514412'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?

0.5yrs

Average management tenure


CEO

Simarjit Bawa (46yo)

0.8yrs

Tenure

₹496,400

Compensation

Mr. Simarjit Singh Bawa has been Managing Director of Sarup Industries Limited since May 18, 2019. He served as the Managing Director of Sarup Industries Limited since 2016 until April 22, 2019. Mr. Bawa h ...


CEO Compensation Analysis

Compensation vs Market: Simarjit's total compensation ($USD6.96K) is below average for companies of similar size in the Indian market ($USD50.25K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Simarjit Bawa
MD & Director0.8yrs₹496.40k4.96% 5.0m
Megha Gandhi
Compliance Officer & Company Secretary0.5yrs₹228.00kno data
- Sajan
Chief Financial Officer0.5yrsno datano data
Ashwani Arora
Executive Director12.4yrsno datano data
Lissy Jacob
Executive Director3.8yrsno datano data

0.5yrs

Average Tenure

47yo

Average Age

Experienced Management: 514412's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Simarjit Bawa
MD & Director0.8yrs₹496.40k4.96% 5.0m
Ashwani Arora
Executive Director12.4yrsno datano data
Lissy Jacob
Executive Director3.8yrsno datano data
Atamjit Bawa
Director4.1yrsno data69.4% 69.7m
Gurendra Bedi
Independent Non-Executive Director24.4yrsno data0.0062% 6.2k
Surinder Cheema
Independent Non-Executive Director4.5yrsno datano data
Harnarinder Kaur
Independent Non-Executive Director3.5yrsno datano data

4.5yrs

Average Tenure

58yo

Average Age

Experienced Board: 514412's board of directors are considered experienced (4.5 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

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


Key Information

  • Name: Sarup Industries Limited
  • Ticker: 514412
  • Exchange: BSE
  • Founded: 1951
  • Industry: Footwear
  • Sector: Consumer Durables
  • Market Cap: ₹100.499m
  • Shares outstanding: 3.25m
  • Website: https://www.sarupindustries.com

Number of Employees


Location

  • Sarup Industries Limited
  • Plot No. 141, Leather Complex
  • Jalandhar
  • Punjab
  • 144021
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
514412BSE (Mumbai Stock Exchange)YesEquity SharesININRNov 2004

Biography

Sarup Industries Limited manufactures and sells footwear for men and women in India. It offers a range of uppers, soles, and tanneries, as well as leather and sports footwear under the Lotus Bawa brand. The company also sells its products through retail stores. Sarup Industries Limited also exports its products. The company was formerly known as Sarup Tanneries Limited. Sarup Industries Limited was founded in 1951 and is based in Jalandhar, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 12:33
End of Day Share Price2020/02/18 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.