BSE:521242

Stock Analysis Report

Kandagiri Spinning Mills

Executive Summary

Kandagiri Spinning Mills Limited manufactures and sells cotton yarns in India.

Risk Analysis

Earnings have declined by -32.22% per year over past 5 years

Has less than 1 year of cash runway

Shares are highly illiquid

Does not have a meaningful market cap (₹24M)

+ 1 more risk


Snowflake Analysis

Imperfect balance sheet with weak fundamentals.

Share Price & News

How has Kandagiri Spinning Mills's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 521242's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

21.1%

521242

0.2%

IN Luxury

-0.4%

IN Market


1 Year Return

n/a

521242

16.6%

IN Luxury

11.1%

IN Market

Return vs Industry: Insufficient data to determine how 521242 performed against the Indian Luxury industry.

Return vs Market: Insufficient data to determine how 521242 performed against the Indian Market.


Shareholder returns

521242IndustryMarket
7 Day21.1%0.2%-0.4%
30 Day52.7%3.3%-1.2%
90 Day9.8%8.5%3.3%
1 Yearn/a17.3%16.6%13.0%11.1%
3 Year-85.5%-85.5%53.8%52.0%25.3%18.6%
5 Year-90.0%-90.0%103.0%96.4%35.4%23.1%

Price Volatility Vs. Market

How volatile is Kandagiri Spinning Mills's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Kandagiri Spinning Mills undervalued compared to its fair value and its price relative to the market?

1.35x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 521242's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 521242's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 521242 is unprofitable, so we can't compare its PE Ratio to the Luxury industry average.

PE vs Market: 521242 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 521242's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 521242 is overvalued based on its PB Ratio (1.3x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

How is Kandagiri Spinning Mills 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 Kandagiri Spinning Mills 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 Kandagiri Spinning Mills performed over the past 5 years?

-32.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 521242 is currently unprofitable.

Growing Profit Margin: 521242 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 521242 is unprofitable, and losses have increased over the past 5 years at a rate of -32.2% per year.

Accelerating Growth: Unable to compare 521242's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 521242 is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (2.7%).


Return on Equity

High ROE: 521242 has a negative Return on Equity (-490.88%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Kandagiri Spinning Mills's financial position?


Financial Position Analysis

Short Term Liabilities: 521242's short term assets (₹558.2M) exceed its short term liabilities (₹449.6M).

Long Term Liabilities: 521242's short term assets (₹558.2M) exceed its long term liabilities (₹429.1M).


Debt to Equity History and Analysis

Debt Level: 521242's debt to equity ratio (2859.8%) is considered high.

Reducing Debt: 521242's debt to equity ratio has increased from 160.6% to 2859.8% over the past 5 years.


Balance Sheet

Inventory Level: 521242 has a high level of physical assets or inventory.

Debt Coverage by Assets: 521242's debt is covered by short term assets (assets are 1.1x 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: 521242 has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: 521242 has less than a year of cash runway if free cash flow continues to reduce at historical rates of -53.3% each year


Next Steps

Dividend

What is Kandagiri Spinning Mills's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%0.6%markettop25%2.5%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 521242's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 521242'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 521242's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 521242's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 521242 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 521242'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?

6.0yrs

Average management tenure


CEO

R. Selvarajan (75yo)

17.3yrs

Tenure

0

Mr. R. Selvarajan is Managing Director of Kandagiri Spinning Mills Limited since October 23, 2002 and serves as its Director. Mr. Selvarajan served as the Chairman of Kandagiri Spinning Mills Limited since ...


CEO Compensation Analysis

Compensation vs Market: R.'s total compensation ($USD0.00) is below average for companies of similar size in the Indian market ($USD50.14K).

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


Leadership Team

NamePositionTenureCompensationOwnership
R. Selvarajan
MD & Director17.3yrsno data21.93% 5.3m
S. Shankar
CFO & Non Executive Director17.3yrsno data10.64% 2.6m
J. Asifa
Company Secretary & Compliance Officer6yrs₹585.00kno data

6.0yrs

Average Tenure

Experienced Management: 521242's management team is seasoned and experienced (6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
R. Selvarajan
MD & Director17.3yrsno data21.93% 5.3m
S. Shankar
CFO & Non Executive Director17.3yrsno data10.64% 2.6m
S. Devarajan
Non-Executive Chairman2.7yrsno data2.96% 712.8k
S. Sivakumar
Non-Executive Director2.5yrsno data7.22% 1.7m
A. Sarayu
Additional Non-Executive Director0yrsno data1.38% 332.3k
S. Gnanasekharan
Non-Executive Independent Director6yrs₹240.00kno data
Kameshwar Bhat
Non-Executive Independent Director5.4yrs₹240.00kno data
V. Sekar
Non-Executive Independent Director2.9yrs₹265.00kno data
D. Balasundaram
Non-Executive Independent Director2.8yrs₹235.00kno data

4.2yrs

Average Tenure

61yo

Average Age

Experienced Board: 521242's board of directors are considered experienced (4.2 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

Kandagiri Spinning Mills Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kandagiri Spinning Mills Limited
  • Ticker: 521242
  • Exchange: BSE
  • Founded: 1976
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹24.096m
  • Shares outstanding: 3.85m
  • Website: https://www.kandagirimills.com

Number of Employees


Location

  • Kandagiri Spinning Mills Limited
  • Mill Premises
  • Post Box No. 3
  • Salem
  • Tamil Nadu
  • 636140
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
521242BSE (Mumbai Stock Exchange)YesEquity SharesININRMay 2005

Biography

Kandagiri Spinning Mills Limited manufactures and sells cotton yarns in India. It offers single, double, TFO, weaving, and knitting carded and combed yarns; value added products, including twist, gassed and mercerized compact yarns, and slub yarns; and special yarns, such as poly cotton yarn and bamboo yarn. The company was incorporated in 1976 and is headquartered in Salem, 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 12:35
End of Day Share Price2020/02/14 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.