BSE:514470

Stock Analysis Report

Winsome Textile Industries

Executive Summary

Winsome Textile Industries Limited manufactures and sells yarn and fabrics.

Rewards

Trading at 95.4% below its fair value

Earnings grew by 203.4% over the past year

Risk Analysis

Earnings have declined by -20.04% per year over past 5 years

Interest payments are not well covered by earnings

Does not have a meaningful market cap (₹340M)

Highly volatile share price over past 3 months



Snowflake Analysis

Undervalued with proven track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 514470's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-7.7%

514470

-0.5%

IN Luxury

-1.5%

IN Market


1 Year Return

-32.2%

514470

18.2%

IN Luxury

10.7%

IN Market

Return vs Industry: 514470 underperformed the Indian Luxury industry which returned 18.2% over the past year.

Return vs Market: 514470 underperformed the Indian Market which returned 10.7% over the past year.


Shareholder returns

514470IndustryMarket
7 Day-7.7%-0.5%-1.5%
30 Day-24.3%3.0%-2.7%
90 Day-5.9%9.2%1.3%
1 Year-32.2%-32.2%19.0%18.2%12.7%10.7%
3 Year-72.8%-72.8%52.2%48.8%22.0%15.1%
5 Year-55.4%-55.4%106.9%100.1%34.5%22.0%

Price Volatility Vs. Market

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


Simply Wall St News

1 year ago | Simply Wall St

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1 year ago | Simply Wall St

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Valuation

Is Winsome Textile 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: 514470 (₹17.4) is trading below our estimate of fair value (₹375.01)

Significantly Below Fair Value: 514470 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 514470 is good value based on its PE Ratio (3.1x) compared to the Luxury industry average (11.2x).

PE vs Market: 514470 is good value based on its PE Ratio (3.1x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 514470's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 514470 is good value based on its PB Ratio (0.2x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

How is Winsome Textile 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 Winsome Textile 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 Winsome Textile Industries performed over the past 5 years?

-20.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 514470 has high quality earnings.

Growing Profit Margin: 514470's current net profit margins (1.4%) are higher than last year (0.5%).


Past Earnings Growth Analysis

Earnings Trend: 514470's earnings have declined by -20% per year over the past 5 years.

Accelerating Growth: 514470's earnings growth over the past year (203.4%) exceeds its 5-year average (-20% per year).

Earnings vs Industry: 514470 earnings growth over the past year (203.4%) exceeded the Luxury industry 5.6%.


Return on Equity

High ROE: 514470's Return on Equity (5.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Winsome Textile Industries's financial position?


Financial Position Analysis

Short Term Liabilities: 514470's short term assets (₹4.0B) do not cover its short term liabilities (₹4.3B).

Long Term Liabilities: 514470's short term assets (₹4.0B) exceed its long term liabilities (₹1.1B).


Debt to Equity History and Analysis

Debt Level: 514470's debt to equity ratio (117.3%) is considered high.

Reducing Debt: 514470's debt to equity ratio has reduced from 289.1% to 117.3% over the past 5 years.

Debt Coverage: 514470's debt is well covered by operating cash flow (46.5%).

Interest Coverage: 514470's interest payments on its debt are not well covered by EBIT (2.7x coverage).


Balance Sheet

Inventory Level: 514470 has a high level of physical assets or inventory.

Debt Coverage by Assets: 514470's debt is covered by short term assets (assets are 1.7x debt).


Next Steps

Dividend

What is Winsome Textile 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 514470's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 514470'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 514470's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 514470's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 514470 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 514470'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?

8.5yrs

Average management tenure


CEO

Anil Sharma (65yo)

5.8yrs

Tenure

₹7,246,000

Compensation

Mr. Anil Kumar Sharma has been the Chief Executive Officer and President of Winsome Textile Industries Ltd. since April 1, 2014. 


CEO Compensation Analysis

Compensation vs Market: Anil's total compensation ($USD101.26K) is above average for companies of similar size in the Indian market ($USD50.34K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Ashish Bagrodia
Chairman & MD4.9yrs₹12.22m0.25% 844.1k
Anil Sharma
President & CEO5.8yrs₹7.25mno data
Sanjay Kedia
Chief Financial Officer5.8yrs₹3.38mno data
Jugal Sharma
Vice President of Technical21.8yrsno datano data
Videshwar Sharma
Company Secretary2.6yrs₹1.78mno data
Vipin Bathla
Vice President of Marketing0yrsno datano data
Sanjiv Dutt
Vice President of Raw Material12.8yrsno datano data
Alok Mishra
Vice President of Exports11.1yrsno datano data

8.5yrs

Average Tenure

48yo

Average Age

Experienced Management: 514470's management team is seasoned and experienced (8.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ashish Bagrodia
Chairman & MD4.9yrs₹12.22m0.25% 844.1k
Satish Girotra
Independent Non-Executive Director21.7yrs₹60.00kno data
Neena Singh
Independent Non-Executive Director4.9yrs₹85.00kno data

4.9yrs

Average Tenure

62yo

Average Age

Experienced Board: 514470's board of directors are considered experienced (4.9 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

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


Key Information

  • Name: Winsome Textile Industries Limited
  • Ticker: 514470
  • Exchange: BSE
  • Founded: 1980
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹339.913m
  • Shares outstanding: 19.82m
  • Website: https://www.winsometextile.com

Number of Employees


Location

  • Winsome Textile Industries Limited
  • SCO 191-192
  • Sector 34-A
  • Chandigarh
  • Chandigarh
  • 160022
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
514470BSE (Mumbai Stock Exchange)YesEquity SharesININROct 2004

Biography

Winsome Textile Industries Limited manufactures and sells yarn and fabrics. It offers raw white, dyed, fancy, mélange, neps, jaspe/siro, sparkle, shiny, chill and flake, vintage, injection slub, wool touch, linen look, and blended yarns; and knitted fashion and knitted stepper fabrics. The company was founded in 1980 and is headquartered in Chandigarh, 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.