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Sunil Industries

BSE:521232
Snowflake Description

Undervalued with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
521232
BSE
₹126M
Market Cap
  1. Home
  2. IN
  3. Consumer Durables
Company description

Sunil Industries Limited processes and sells fabrics. The last earnings update was 147 days ago. More info.


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  • Sunil Industries has significant price volatility in the past 3 months.
SHARE PRICE
3 Month History
521232
Industry
5yr Volatility vs Market

Value

 Is Sunil Industries undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Sunil Industries to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.

How is this discounted cash flow calculated?

Current Discount
Amount off the current price Sunil Industries is available for.
Intrinsic value
>50%
Share price is ₹30 vs Future cash flow value of ₹80.57
Current Discount Checks
For Sunil Industries to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Sunil Industries's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Sunil Industries's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Sunil Industries's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Sunil Industries's earnings available for a low price, and how does this compare to other companies in the same industry?
  • Sunil Industries is good value based on earnings compared to the IN Luxury industry average.
  • Sunil Industries is good value based on earnings compared to the IN market.
Price based on expected Growth
Does Sunil Industries's expected growth come at a high price?
  • Unable to calculate PEG ratio for Sunil Industries, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Sunil Industries's assets?
  • Sunil Industries is good value based on assets compared to the IN Luxury industry average.
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Value checks
We assess Sunil Industries's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Luxury industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Luxury industry average (and greater than 0)? (1 check)
  5. Sunil Industries has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
    Note 2: PEG ratio is based on analysts EPS growth expectations in 1 year (0%).

    Full details on the Value part of the Simply Wall St company analysis model.
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Discounted cash flow (2 Stage Free Cash Flow to Equity)

The calculations below outline how an intrinsic value for Sunil Industries is arrived at by discounting future cash flows to their present value. We use analyst's estimates of cash flows going forward 5 years.

See our documentation to learn about this calculation.

5 year cash flow forecast

Present value of next 5 years cash flows:
₹164

Terminal Value

Terminal Value = FCF2022 × (1 + g) ÷ (Discount Rate – g)

Terminal Value = ₹67 × (1 + 7%) ÷ (22.17% – 7%)

Terminal value based on the Perpetuity Method where growth (g) = 7%:
₹474

Present value of terminal value:
₹174

Equity Value

Equity Value (Total value) = Present value of next 5 years cash flows + terminal value
₹338 = ₹164 + ₹174

Value = Total value / Shares Outstanding (₹338 / 4)

Discount to Share Price

Value per share (INR): ₹80.57

Current discount (share price of ₹30.00): 62.77%



Estimate of Discount Rate

The discount rate, or required rate of return, is estimated by calculating the Cost of Equity.

Discount rate = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)

Discount rate = 22.17% = 7% + (1.896 * 8%)



Estimate of Bottom Up Beta

The Levered Beta is the Unlevered Beta adjusted for financial leverage. It is limited to 0.8 to 2.0 (practical range for a stable firm). Note the market value of equity is used not the book value (₹126,000,000).

Levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))

1.896 = 0.623 (1 + (1- 30%) (291.78%))

Levered Beta used in calculation = 1.896



Assumptions
  1. The risk free rate of 7% is from the 10 year government bond rate in INR.
  2. The bottom-up beta is estimated by analysing other companies in the same industry.
  3. The Equity Risk Premium is calculated by subtracting the risk free rate from the market return premium (8%) (source: Buffet).
  4. The dividend discount model is automatically used for companies in the following industries: Banks, Insurance, Real Estate Investment Trusts (REITs), Diversified Financial Services and Capital Markets.

Future Performance

 How is Sunil Industries expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

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 Sunil 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 Simply Wall St do have past financial data. You can see them here.

Show me the analysis anyway

  • Sunil Industries is not covered by any analysts.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
22.9%
Expected Luxury industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Sunil Industries expected to grow at an attractive rate?
  • Unable to compare Sunil Industries's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Sunil Industries's earnings growth to the IN market average as no estimate data is available.
  • Unable to compare Sunil Industries's revenue growth to the IN market average as no estimate data is available.
Annual Growth Rates Comparison
Analysts growth expectations
Super high growth metrics
High Growth Checks
  • Unable to determine if Sunil Industries is high growth as no earnings estimate data is available.
  • Unable to determine if Sunil Industries is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Sunil Industries will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. Examine whether Sunil Industries is trading at Sunil Industries'san attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  2. Sunil Industries's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Consumer Durables companies here
  3. Sunil Industries's competitive advantages and company strategy can generally be found in its financial reports archived here.
  4. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
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Future performance checks
We assess Sunil Industries's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the IN market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the IN market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Sunil Industries has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Sunil Industries performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Sunil Industries's growth in the last year to its industry (Luxury).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Sunil Industries's year on year earnings growth rate has been positive over the past 5 years.
  • Sunil Industries's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Sunil Industries's 1-year earnings growth is negative, it can't be compared to the IN Luxury industry average.
Earnings and Revenue History
Sunil Industries's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Sunil Industries has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Sunil Industries used its assets less efficiently than the IN Luxury industry average last year based on Return on Assets.
  • Sunil Industries's use of capital has not improved over the past 3 years (Return on Capital Employed).
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Past performance checks
We assess Sunil Industries's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Luxury industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Sunil Industries has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Sunil Industries's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Sunil Industries's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Sunil Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Sunil Industries's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Sunil Industries's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
  • Sunil Industries's level of debt (108.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (84.5% vs 108.9% today).
  • Debt is well covered by operating cash flow (32.3%, greater than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.2x annual interest expense, ideally 3x coverage).
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Financial health checks
We assess Sunil Industries's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Sunil Industries has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Sunil Industries dividends.
If you bought ₹2,000 of Sunil Industries shares you are expected to receive ₹0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Sunil Industries's dividend against the low risk savings benchmark as the company has not reported any payouts.
  • Unable to evaluate Sunil Industries's dividend against the market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
  • Unable to perform a dividend volatility check as Sunil Industries has not reported any payouts.
  • Unable to verify if Sunil Industries's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Sunil Industries's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Sunil Industries has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
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Income/ dividend checks
We assess Sunil Industries's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.5%) - if not then the rest of the checks are ignored.
  2. Current dividend yield, is there one at all, is it higher than the low risk savings rate, and is it above the top 25% of dividend payers? (2 checks)
  3. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  4. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  5. How sustainable is the dividend, can Sunil Industries afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  6. Sunil Industries has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Sunil Industries's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Vinod Lath, image provided by Google.
Vinod Lath
COMPENSATION ₹1,200,000
AGE 67
CEO Bio

Mr. Vinod Gajanand Lath, B.Com serves as the Chairman, Chief Executive Officer and Director of Sunil Industries Limited and has been its Managing Director since September 1, 2011. Mr. Lath served as Compliance Officer of Sunil Industries Limited.

CEO Compensation
  • Vinod's compensation has increased by more than 20% in the past year.
  • Vinod's compensation is higher than average for a company of this size and profit level.
Management Team

Vinod Lath

TITLE
Chairman
COMPENSATION
₹1M
AGE
67

Pradeep Roongta

TITLE
CFO & Whole Time Director
COMPENSATION
₹1M
AGE
54

Ramesh Khanna

TITLE
Whole-Time Director
COMPENSATION
₹642K
AGE
66

Laxmikant Lath

TITLE
Business Owner
Board of Directors Tenure

Average tenure and age of the Sunil Industries board of directors in years:

6.2
Average Tenure
60
Average Age
  • The tenure for the Sunil Industries board of directors is about average.
Board of Directors

Vinod Lath

TITLE
Chairman
COMPENSATION
₹1M
AGE
67

Pradeep Roongta

TITLE
CFO & Whole Time Director
COMPENSATION
₹1M
AGE
54
TENURE
6.7 yrs

Ramesh Khanna

TITLE
Whole-Time Director
COMPENSATION
₹642K
AGE
66
TENURE
6.7 yrs

Rohit Gadia

TITLE
Independent Non Executive Director
AGE
33
TENURE
6.2 yrs

Shruti Saraf

TITLE
Independent & Non Executive Woman Director
TENURE
2 yrs

Rajesh Tibrewal

TITLE
Independent Director
TENURE
0.8 yrs
Recent Insider Trading
  • No 3 month insider trading information.
Who owns this company?
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Management checks
We assess Sunil Industries's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap and profit (greater than 0.5% of the company's profit + 0.03% of market cap)? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Sunil Industries has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

External News
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Simply Wall St News

Company Info

Map
Description

Sunil Industries Limited processes and sells fabrics. It offers cotton fabrics; flannelette cloth and rolls; polyester/cotton and polyester/viscose blended shirting and suiting; and polyester/viscose dope dyed suiting and shirting for uniform, as well as basic fabrics for tent manufacturing. The company also provides woolen blended fabrics; polyester fabrics for curtains and upholstery; polyester mosquito nets and fabrics; synthetic Web equipment; high visibility garments; and sarees, dhotis, and lungis. It serves Ministry of Defence and its Ordnance factories, Ministry of Home Affairs, Ministry of Railways, Director General of Supplies and Disposal, Indian Air Force, Mumbai Port Trust, Police Department of State Governments, Indian Postal Departments, State Roadways, State Electricity Boards, Department of Women and Child Development, and Department of Social Welfare. Sunil Industries Limited was founded in 1976 and is based in Mumbai, India.

Details
Name: Sunil Industries Limited
521232
Exchange: BSE
Founded: 1976
₹126,000,000
4,200,000
Website: http://www.sunilgroup.com
Address: Sunil Industries Limited
315, Rewa Chambers,
New Marine Lines,
Mumbai,
Maharashtra, 400020,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BSE 521232 Equity Shares Mumbai Stock Exchange IN INR 01. Jun 2012
Number of employees
Current staff
Staff numbers
34
Sunil Industries employees.
Industry
Textiles
Consumer Durables
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/05/27 09:30
End of day share price update: 2018/05/25 00:00
Last earnings update: 2017/12/31
Last annual earnings update: 2017/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.