BSE:514450

Stock Analysis Report

Executive Summary

Mahalaxmi Rubtech Limited manufactures and sells textiles, dyes, pigments, auxiliaries, and synthetic rubber/PU coated fabrics in India.

Rewards

PE ratio (11.8x) is below the Indian market (13.1x)

Risk Analysis

Does not have a meaningful market cap (₹496M)

Large one-off items impacting financial results

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet and overvalued.

Share Price & News

How has Mahalaxmi Rubtech's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 514450 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

22.4%

514450

-0.5%

IN Luxury

-1.5%

IN Market


1 Year Return

-13.8%

514450

18.2%

IN Luxury

10.7%

IN Market

Return vs Industry: 514450 underperformed the Indian Luxury industry which returned 18.2% over the past year.

Return vs Market: 514450 underperformed the Indian Market which returned 10.7% over the past year.


Shareholder returns

514450IndustryMarket
7 Day22.4%-0.5%-1.5%
30 Day20.2%3.0%-2.7%
90 Day18.1%9.2%1.3%
1 Year-13.8%-13.8%19.0%18.2%12.7%10.7%
3 Year-22.7%-22.7%52.2%48.8%22.0%15.1%
5 Year-1.7%-1.7%106.9%100.1%34.5%22.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Mahalaxmi Rubtech undervalued compared to its fair value and its price relative to the market?

11.8x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 514450 (₹36.85) is trading above our estimate of fair value (₹20.74)

Significantly Below Fair Value: 514450 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 514450 is poor value based on its PE Ratio (11.8x) compared to the Luxury industry average (11.2x).

PE vs Market: 514450 is good value based on its PE Ratio (11.8x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 514450's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 514450 is overvalued based on its PB Ratio (0.6x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

How is Mahalaxmi Rubtech 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 Mahalaxmi Rubtech 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 Mahalaxmi Rubtech performed over the past 5 years?

10.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 514450 has a large one-off gain of ₹13.3M impacting its December 31 2019 financial results.

Growing Profit Margin: 514450's current net profit margins (2.1%) are lower than last year (3%).


Past Earnings Growth Analysis

Earnings Trend: 514450's earnings have grown by 10.2% per year over the past 5 years.

Accelerating Growth: 514450's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 514450 had negative earnings growth (-27.3%) over the past year, making it difficult to compare to the Luxury industry average (5.6%).


Return on Equity

High ROE: 514450's Return on Equity (4.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Mahalaxmi Rubtech's financial position?


Financial Position Analysis

Short Term Liabilities: 514450's short term assets (₹1.0B) exceed its short term liabilities (₹692.1M).

Long Term Liabilities: 514450's short term assets (₹1.0B) exceed its long term liabilities (₹177.0M).


Debt to Equity History and Analysis

Debt Level: 514450's debt to equity ratio (38.1%) is considered satisfactory.

Reducing Debt: 514450's debt to equity ratio has reduced from 112.2% to 38.1% over the past 5 years.

Debt Coverage: 514450's debt is well covered by operating cash flow (35.1%).

Interest Coverage: 514450's interest payments on its debt are well covered by EBIT (4.1x coverage).


Balance Sheet

Inventory Level: 514450 has a high level of physical assets or inventory.

Debt Coverage by Assets: 514450's debt is covered by short term assets (assets are 3.1x debt).


Next Steps

Dividend

What is Mahalaxmi Rubtech'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 514450's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 514450'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 514450's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 514450's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 514450 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 514450'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?

3.9yrs

Average board tenure


CEO

Rahul Parekh (47yo)

17.5yrs

Tenure

₹1,832,400

Compensation

Mr. Rahul Jeetmal Parekh has been the Managing Director of Mahalaxmi Rubtech Ltd since August 1, 2002 and has been its Executive Director since July 5, 1995. 


CEO Compensation Analysis

Compensation vs Market: Rahul's total compensation ($USD25.61K) is below average for companies of similar size in the Indian market ($USD50.34K).

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


Board Members

NamePositionTenureCompensationOwnership
Rahul Parekh
MD & Executive Director17.5yrs₹1.83m19.15% 94.9m
Anand Parekh
Joint MD & Director11.3yrs₹1.83m18.4% 91.2m
Jeetmal Bhoorchand Parekh
Non-Executive Chairman0yrsno data14.45% 71.6m
Sangita Singhi
Non-Executive Independent Director3.9yrsno datano data
Chiragbhai Shah
Independent Non-Executive Director0.5yrsno datano data
Nirmal Desai
Independent Non-Executive Director0.5yrsno datano data

3.9yrs

Average Tenure

49yo

Average Age

Experienced Board: 514450's board of directors are considered experienced (3.9 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 3.9%.


Top Shareholders

Company Information

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


Key Information

  • Name: Mahalaxmi Rubtech Limited
  • Ticker: 514450
  • Exchange: BSE
  • Founded: 1991
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹495.514m
  • Shares outstanding: 13.32m
  • Website: https://www.mrtglobal.com

Location

  • Mahalaxmi Rubtech Limited
  • YSL Avenue
  • Opposite Ketav Petrol Pump
  • Ahmedabad
  • Gujarat
  • 380015
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
514450BSE (Mumbai Stock Exchange)INR10ININRNo data
514450BSE (Mumbai Stock Exchange)YesEquity SharesININRMay 2005

Biography

Mahalaxmi Rubtech Limited manufactures and sells textiles, dyes, pigments, auxiliaries, and synthetic rubber/PU coated fabrics in India. The company operates in two segments, Traditional Textiles and Technical Textile. It offers offset printing blankets; rubber textile printing blankets and coated fabrics; and rubber coated fabrics. The company also provides hydraulic seals, including single acting piston/rod seals, double acting piston seals, wiper dust seals, O-rings, wear rings, and anti-extrusion rings; air cells; and technical textiles. In addition, it exports its products. Mahalaxmi Rubtech Limited was founded in 1991 and is based in Ahmedabad, 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 Price2020/02/19 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.