BSE:521248

Stock Analysis Report

Executive Summary

Kitex Garments Limited manufactures fabric and readymade garments in India.

Rewards

PE ratio (9.4x) is below the Indian market (13.8x)

Earnings grew by 14.8% over the past year

Pays a reliable dividend of 1.18%

Risk Analysis

Earnings have declined by -5.63% per year over past 5 years

High level of non-cash earnings

Highly volatile share price over past 3 months



Snowflake Analysis

Flawless balance sheet average dividend payer.


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K.P.R. Mill

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Share Price & News

How has Kitex Garments's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 521248's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.8%

521248

0.6%

IN Luxury

-1.1%

IN Market


1 Year Return

17.6%

521248

11.9%

IN Luxury

7.3%

IN Market

Return vs Industry: 521248 exceeded the Indian Luxury industry which returned 8.4% over the past year.

Return vs Market: 521248 exceeded the Indian Market which returned 6.7% over the past year.


Shareholder returns

521248IndustryMarket
7 Day-1.8%0.6%-1.1%
30 Day31.4%3.7%1.5%
90 Day44.8%-1.1%5.1%
1 Year19.8%17.6%12.7%11.9%9.3%7.3%
3 Year-56.7%-58.0%54.0%52.1%28.9%22.0%
5 Year-64.6%-65.9%92.4%89.3%33.1%21.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Kitex Garments undervalued compared to its fair value and its price relative to the market?

9.24x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 521248 (₹127.5) is trading above our estimate of fair value (₹20.77)

Significantly Below Fair Value: 521248 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 521248 is good value based on its PE Ratio (9.4x) compared to the Luxury industry average (11.2x).

PE vs Market: 521248 is good value based on its PE Ratio (9.4x) compared to the Indian market (13.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 521248's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 521248 is overvalued based on its PB Ratio (1.4x) compared to the IN Luxury industry average (0.6x).


Next Steps

Future Growth

How is Kitex Garments forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

20.1%

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 Kitex Garments 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 Kitex Garments performed over the past 5 years?

-5.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 521248 has a high level of non-cash earnings.

Growing Profit Margin: 521248's current net profit margins (11.8%) are higher than last year (11.6%).


Past Earnings Growth Analysis

Earnings Trend: 521248's earnings have declined by -5.6% per year over the past 5 years.

Accelerating Growth: 521248's earnings growth over the past year (14.8%) exceeds its 5-year average (-5.6% per year).

Earnings vs Industry: 521248 earnings growth over the past year (14.8%) exceeded the Luxury industry 1.2%.


Return on Equity

High ROE: 521248's Return on Equity (12.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Kitex Garments's financial position?


Financial Position Analysis

Short Term Liabilities: 521248's short term assets (₹5.7B) exceed its short term liabilities (₹2.0B).

Long Term Liabilities: 521248's short term assets (₹5.7B) exceed its long term liabilities (₹226.2M).


Debt to Equity History and Analysis

Debt Level: 521248's debt to equity ratio (15.3%) is considered satisfactory.

Reducing Debt: 521248's debt to equity ratio has reduced from 70.1% to 15.3% over the past 5 years.

Debt Coverage: 521248's debt is well covered by operating cash flow (32.6%).

Interest Coverage: 521248's interest payments on its debt are well covered by EBIT (28.5x coverage).


Balance Sheet

Inventory Level: 521248 has a high level of physical assets or inventory.

Debt Coverage by Assets: 521248's debt is covered by short term assets (assets are 6.2x debt).


Next Steps

Dividend

What is Kitex Garments's current dividend yield, its reliability and sustainability?

1.20%

Current Dividend Yield


Dividend Yield vs Market

company1.2%marketbottom25%0.6%markettop25%2.3%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 521248's dividend (1.18%) is higher than the bottom 25% of dividend payers in the Indian market (0.56%).

High Dividend: 521248's dividend (1.18%) is low compared to the top 25% of dividend payers in the Indian market (2.31%).


Stability and Growth of Payments

Stable Dividend: 521248's dividends per share have been stable in the past 10 years.

Growing Dividend: 521248's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (11.1%), 521248's dividend payments are thoroughly covered by earnings.


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

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

1.2yrs

Average management tenure


CEO

Sabu Jacob (57yo)

13.4yrs

Tenure

₹68,501,203

Compensation

Mr. Sabu Meckamkunnel Jacob has been Managing Director of Kitex Garments Limited since August 16, 2006 and was its Interim Chief Financial Officer since May 20, 2019 until July 1, 2019. He serves as Chairm ...


CEO Compensation Analysis

Compensation vs Market: Sabu's total compensation ($USD966.66K) is above average for companies of similar size in the Indian market ($USD50.75K).

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


Management Age and Tenure

1.2yrs

Average Tenure

57yo

Average Age

Experienced Management: 521248's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Age and Tenure

6.8yrs

Average Tenure

62yo

Average Age

Experienced Board: 521248's board of directors are considered experienced (6.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy₹9303 Oct 19
Kitex Childrenswear Ltd
EntityCompany
Shares57,199
Max Price₹0.0016
Buy₹9730 Sep 19
Kitex Childrenswear Ltd
EntityCompany
Shares17,894
Max Price₹0.0054
Buy₹8721 Sep 19
Kitex Childrenswear Ltd
EntityCompany
Shares55,451
Max Price₹0.0016
Buy₹9019 Sep 19
Kitex Childrenswear Ltd
EntityCompany
Shares24,225
Max Price₹0.0037
Buy₹8513 Sep 19
Kitex Childrenswear Ltd
EntityCompany
Shares501
Max Price₹0.17
Buy₹1,839,69307 Sep 19
Kitex Childrenswear Ltd
EntityCompany
Shares22,125
Max Price₹83.15
Buy₹1,853,77006 Sep 19
Kitex Childrenswear Ltd
EntityCompany
Shares22,920
Max Price₹80.88
Buy₹10104 Feb 19
Kitex Childrenswear Ltd
EntityCompany
Shares27,229
Max Price₹0.0037
Buy₹10231 Jan 19
Kitex Childrenswear Ltd
EntityCompany
Shares33,214
Max Price₹0.0031
Buy₹10430 Jan 19
Kitex Childrenswear Ltd
EntityCompany
Shares34,604
Max Price₹0.003
Buy₹9630 Jan 19
Sabu Jacob
EntityIndividual
Role
Chief Executive Officer
Chairman & MD
Shares112,781
Max Price₹0.00085

Ownership Breakdown

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


Management Team

  • Sabu Jacob (57yo)

    Chairman & MD

    • Tenure: 13.4yrs
    • Compensation: ₹68.50m
  • Donnie Hodge

    President & COO of Kitex USA LLC

    • Dan De Yoe (69yo)

      Vice President and Director of Operations - USA

      • Boby Michael

        Chief Financial Officer

        • Tenure: 0.5yrs
        • Compensation: ₹1.29m
      • Sindhu Chandrasekharan (50yo)

        Woman Whole-Time Director

        • Tenure: 4.8yrs
        • Compensation: ₹1.78m
      • Mithun Shenoy

        Company Secretary & Compliance Officer

        • Tenure: 1.2yrs
        • Compensation: ₹950.42k
      • Harkishan Sodhi

        Vice President of Business Operations


        Board Members

        • Sabu Jacob (57yo)

          Chairman & MD

          • Tenure: 13.4yrs
          • Compensation: ₹68.50m
        • Benni Joseph (62yo)

          Independent Non Executive Director

          • Tenure: 21.5yrs
          • Compensation: ₹280.00k
        • Erumala Paulose (83yo)

          Independent & Non-Executive Director

          • Tenure: 8.5yrs
          • Compensation: ₹250.00k
        • Kalpathy Lekshmi Narayanan (62yo)

          Non Executive Director

          • Tenure: 6.8yrs
          • Compensation: ₹240.00k
        • Sindhu Chandrasekharan (50yo)

          Woman Whole-Time Director

          • Tenure: 4.8yrs
          • Compensation: ₹1.78m
        • Chenakkott Philipose (76yo)

          Independent Non Executive Director

          • Tenure: 3.6yrs
          • Compensation: ₹200.00k

        Company Information

        Kitex Garments Limited's company bio, employee growth, exchange listings and data sources


        Key Information

        • Name: Kitex Garments Limited
        • Ticker: 521248
        • Exchange: BSE
        • Founded: 1992
        • Industry: Apparel, Accessories and Luxury Goods
        • Sector: Consumer Durables
        • Market Cap: ₹8.455b
        • Shares outstanding: 66.50m
        • Website: https://www.kitexgarments.com

        Number of Employees


        Location

        • Kitex Garments Limited
        • P. B. No. 5, Kizhakkambalam
        • Alwaye
        • Kochi
        • Kerala
        • 683562
        • India

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        521248BSE (Mumbai Stock Exchange)YesEquity SharesININRMar 1995
        KITEXNSEI (National Stock Exchange of India)YesEquity SharesININRMar 1995

        Biography

        Kitex Garments Limited manufactures fabric and readymade garments in India. The company primarily offers infant wear comprising body suits, rompters, bibs, burps, sleepwear, and training pants. It also exports its products to the United States and Europe. The company was founded in 1992 and is based in Kochi, India. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2020/01/22 12:50
        End of Day Share Price2020/01/22 00:00
        Earnings2019/09/30
        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.