BSE:521133

Stock Analysis Report

Executive Summary

Gem Spinners India Limited manufactures, trades in, and exports cotton yarns, grey fabrics, and garments in India.

Rewards

PE ratio (1.5x) is below the Indian market (13.4x)

Became profitable this year

Risk Analysis

Debt is not well covered by operating cash flow

High level of non-cash earnings

Does not have a meaningful market cap (₹139M)

Does not have meaningful revenue (₹119M)



Snowflake Analysis

Slightly overvalued with questionable track record.

Share Price & News

How has Gem Spinners India's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 521133 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

521133

0.2%

IN Luxury

-0.4%

IN Market


1 Year Return

-9.2%

521133

16.6%

IN Luxury

11.1%

IN Market

Return vs Industry: 521133 underperformed the Indian Luxury industry which returned 16.6% over the past year.

Return vs Market: 521133 underperformed the Indian Market which returned 11.1% over the past year.


Shareholder returns

521133IndustryMarket
7 Day0%0.2%-0.4%
30 Day0%3.3%-1.2%
90 Dayn/a8.5%3.3%
1 Year-9.2%-9.2%17.3%16.6%13.0%11.1%
3 Yearn/a53.8%52.0%25.3%18.6%
5 Year-17.8%-17.8%103.0%96.4%35.4%23.1%

Price Volatility Vs. Market

How volatile is Gem Spinners India's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Gem Spinners India undervalued compared to its fair value and its price relative to the market?

1.47x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 521133's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 521133's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 521133 is good value based on its PE Ratio (1.5x) compared to the Luxury industry average (11x).

PE vs Market: 521133 is good value based on its PE Ratio (1.5x) compared to the Indian market (13.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 521133's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 521133 is overvalued based on its PB Ratio (8.6x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

How is Gem Spinners India forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

19.8%

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 Gem Spinners India 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 Gem Spinners India performed over the past 5 years?

46.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 521133 has a high level of non-cash earnings.

Growing Profit Margin: 521133 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 521133 has become profitable over the past 5 years, growing earnings by 46.5% per year.

Accelerating Growth: 521133 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 521133 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Luxury industry (2.7%).


Return on Equity

High ROE: Whilst 521133's Return on Equity (513.18%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Gem Spinners India's financial position?


Financial Position Analysis

Short Term Liabilities: 521133's short term assets (₹1.3M) do not cover its short term liabilities (₹12.4M).

Long Term Liabilities: 521133's short term assets (₹1.3M) do not cover its long term liabilities (₹50.9M).


Debt to Equity History and Analysis

Debt Level: 521133's debt to equity ratio (280.4%) is considered high.

Reducing Debt: 521133 had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


Balance Sheet

Inventory Level: 521133 has a high level of physical assets or inventory.

Debt Coverage by Assets: 521133's debt is not covered by short term assets (assets are 0x 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: 521133 is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: 521133 is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Gem Spinners India's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%0.6%markettop25%2.5%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 521133's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 521133'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 521133's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 521133'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 521133'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?

7.4yrs

Average board tenure


CEO

R. Veeramani (77yo)

3.3yrs

Tenure

₹9,000

Compensation

Mr. R. Veeramani serves as the Managing Director of Gem Spinners India Ltd. and serves as its Chairman. Mr. Veeramani served as Non Executive Chairman of the Board at Numeric Power Systems Ltd until April  ...


CEO Compensation Analysis

Compensation vs Market: R.'s total compensation ($USD125.85) is below average for companies of similar size in the Indian market ($USD50.14K).

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


Board Members

NamePositionTenureCompensationOwnership
R. Veeramani
Chairman & MD3.3yrs₹9.00k24.43% 34.0m
Pushpadant Doddanavar
Independent Non-Executive Director26.2yrs₹6.00kno data
S. Gopal
Independent Director7.4yrs₹9.00kno data
Poorana Juliet
Woman Independent Director4.9yrs₹12.00kno data

7.4yrs

Average Tenure

59yo

Average Age

Experienced Board: 521133's board of directors are considered experienced (7.4 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

Gem Spinners India Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Gem Spinners India Limited
  • Ticker: 521133
  • Exchange: BSE
  • Founded: 1990
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹139.314m
  • Shares outstanding: 61.37m
  • Website: https://www.gemspin.com

Location

  • Gem Spinners India Limited
  • 78, Cathedral Road
  • Chennai
  • Tamil Nadu
  • 600086
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
521133BSE (Mumbai Stock Exchange)YesEquity SharesININRNov 2006

Biography

Gem Spinners India Limited manufactures, trades in, and exports cotton yarns, grey fabrics, and garments in India. The company was incorporated in 1990 and is headquartered in Chennai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 12:50
End of Day Share Price2020/01/01 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.