BSE:521220

Stock Analysis Report

Executive Summary

Damodar Industries Limited manufactures and processes cotton and fancy yarns in India.


Snowflake Analysis

Second-rate dividend payer with imperfect balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 521220 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.6%

521220

-0.5%

IN Luxury

-1.5%

IN Market


1 Year Return

-25.0%

521220

18.2%

IN Luxury

10.7%

IN Market

Return vs Industry: 521220 underperformed the Indian Luxury industry which returned 18.4% over the past year.

Return vs Market: 521220 underperformed the Indian Market which returned 11.1% over the past year.


Shareholder returns

521220IndustryMarket
7 Day-5.6%-0.5%-1.5%
30 Day-10.4%3.0%-2.7%
90 Day-5.6%9.2%1.3%
1 Year-23.4%-25.0%19.0%18.2%12.7%10.7%
3 Year-24.4%-30.2%52.2%48.8%22.0%15.1%
5 Year71.3%45.2%106.9%100.1%34.5%22.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Damodar Industries undervalued compared to its fair value and its price relative to the market?

0.58x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: 521220 (₹27) is trading above our estimate of fair value (₹10.44)

Significantly Below Fair Value: 521220 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 521220 is unprofitable, so we can't compare its PE Ratio to the Luxury industry average.

PE vs Market: 521220 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 521220's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 521220 is overvalued based on its PB Ratio (0.6x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

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

-17.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 521220 is currently unprofitable.

Growing Profit Margin: 521220 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 521220 is unprofitable, and losses have increased over the past 5 years at a rate of -17.5% per year.

Accelerating Growth: Unable to compare 521220's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 521220 is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (2.7%).


Return on Equity

High ROE: 521220 has a negative Return on Equity (-2.86%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Damodar Industries's financial position?


Financial Position Analysis

Short Term Liabilities: 521220's short term assets (₹2.3B) exceed its short term liabilities (₹1.8B).

Long Term Liabilities: 521220's short term assets (₹2.3B) exceed its long term liabilities (₹2.2B).


Debt to Equity History and Analysis

Debt Level: 521220's debt to equity ratio (354.4%) is considered high.

Reducing Debt: 521220's debt to equity ratio has increased from 153.2% to 354.4% over the past 5 years.


Balance Sheet

Inventory Level: 521220 has a high level of physical assets or inventory.

Debt Coverage by Assets: 521220's debt is not covered by short term assets (assets are 0.6x 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: 521220 has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: Insufficient data to determine if 521220 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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

2.78%

Current Dividend Yield


Dividend Yield vs Market

company2.8%marketbottom25%0.6%markettop25%2.6%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 521220's dividend (2.78%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: 521220's dividend (2.78%) is in the top 25% of dividend payers in the Indian market (2.55%)


Stability and Growth of Payments

Stable Dividend: 521220's dividend payments have been volatile in the past 10 years.

Growing Dividend: 521220's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: 521220 is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.3yrs

Average management tenure


CEO

Ajay Biyani (57yo)

21.7yrs

Tenure

₹6,240,000

Compensation

Mr. Ajay D. Biyani has been the Managing Director of Damodar Industries Limited (formerly, Damodar Threads Ltd.) since June 5, 1998., and served as its Vigilance & Ethics Officer. Mr. Biyani is a Co-Founde ...


CEO Compensation Analysis

Compensation vs Market: Ajay's total compensation ($USD87.45K) is above average for companies of similar size in the Indian market ($USD50.25K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Arun Biyani
Co-Founder & Executive Chairman10.8yrs₹6.24m30.11% 180.9m
Ajay Biyani
Co-Founder21.7yrs₹6.24m16.09% 96.7m
Anil Biyani
Co-Founder & Executive Director27.9yrs₹6.24m13.26% 79.7m
R. Kumar
Chief Financial Officer2.8yrs₹1.53mno data
Shree Valsalan
President of Technical0yrsno datano data
Subodh Soni
Compliance Officer & Company Secretary7.3yrs₹954.00kno data
Milind Malwade
Vice President of Marketing0yrsno datano data
Chandra Porwal
Vice President of Factory0yrsno datano data
Payal Biyani
Head of Administration0yrsno data0.45% 2.7m
Aditya Biyani
Head of Finance & Marketing0yrsno data1.44% 8.6m

7.3yrs

Average Tenure

56yo

Average Age

Experienced Management: 521220's management team is seasoned and experienced (7.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Arun Biyani
Co-Founder & Executive Chairman10.8yrs₹6.24m30.11% 180.9m
Ajay Biyani
Co-Founder21.7yrs₹6.24m16.09% 96.7m
Anil Biyani
Co-Founder & Executive Director27.9yrs₹6.24m13.26% 79.7m
Farida Jambusarwalla
Independent Non-Executive Director4.9yrs₹30.00k0.81% 4.9m
Ketan Patel
Non-Executive Independent Additional Director0.3yrsno datano data

10.8yrs

Average Tenure

57yo

Average Age

Experienced Board: 521220's board of directors are seasoned and experienced ( 10.8 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Damodar Industries Limited
  • Ticker: 521220
  • Exchange: BSE
  • Founded: 1987
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹600.794m
  • Shares outstanding: 22.25m
  • Website: https://www.damodargroup.com

Number of Employees


Location

  • Damodar Industries Limited
  • 19/22 & 27/30, Madhu Estate
  • Pandurang Budhkar Marg
  • Mumbai
  • Maharashtra
  • 400013
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
521220BSE (Mumbai Stock Exchange)YesEquity SharesININRMay 2005
DAMODARINDNSEI (National Stock Exchange of India)YesEquity SharesININRMay 2005

Biography

Damodar Industries Limited manufactures and processes cotton and fancy yarns in India. It also exports its products to approximately 40 countries across Europe, South Africa, South America, Australia, Korea, Belgium, Singapore, Italy, Egypt, and the Gulf countries. The company was formerly known as Damodar Threads Limited and changed its name to Damodar Industries Limited in January 2013. Damodar Industries Limited was incorporated in 1987 and is headquartered in Mumbai, 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.