BSE:523537

Stock Analysis Report

Executive Summary

APM Industries Limited manufactures and sells synthetic blended spun yarns in India.

Rewards

PE ratio (4.8x) is below the Indian market (13.4x)

Earnings grew by 3.7% over the past year

Risk Analysis

Earnings have declined by -17% per year over past 5 years

Does not have a meaningful market cap (₹419M)

Unstable dividend track record



Snowflake Analysis

Proven track record and fair value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 523537 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.9%

523537

1.1%

IN Luxury

-0.8%

IN Market


1 Year Return

-45.1%

523537

18.4%

IN Luxury

11.1%

IN Market

Return vs Industry: 523537 underperformed the Indian Luxury industry which returned 16.6% over the past year.

Return vs Market: 523537 underperformed the Indian Market which returned 11.1% over the past year.


Shareholder returns

523537IndustryMarket
7 Day3.9%1.1%-0.8%
30 Day-2.2%3.3%-2.3%
90 Day7.8%9.6%2.1%
1 Year-43.7%-45.1%19.2%18.4%13.1%11.1%
3 Year-66.5%-68.2%54.9%51.5%22.9%16.2%
5 Year-34.1%-44.5%106.1%99.4%34.9%22.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

4.81x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 523537 (₹20.05) is trading above our estimate of fair value (₹6.38)

Significantly Below Fair Value: 523537 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 523537 is good value based on its PE Ratio (4.8x) compared to the Luxury industry average (11.1x).

PE vs Market: 523537 is good value based on its PE Ratio (4.8x) compared to the Indian market (13.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 523537's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 523537 is good value based on its PB Ratio (0.3x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

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

-17.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 523537 has high quality earnings.

Growing Profit Margin: 523537's current net profit margins (3.3%) are higher than last year (3.2%).


Past Earnings Growth Analysis

Earnings Trend: 523537's earnings have declined by -17% per year over the past 5 years.

Accelerating Growth: 523537's earnings growth over the past year (3.7%) exceeds its 5-year average (-17% per year).

Earnings vs Industry: 523537 earnings growth over the past year (3.7%) exceeded the Luxury industry 2.5%.


Return on Equity

High ROE: 523537's Return on Equity (6.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is APM Industries's financial position?


Financial Position Analysis

Short Term Liabilities: 523537's short term assets (₹758.2M) exceed its short term liabilities (₹629.7M).

Long Term Liabilities: 523537's short term assets (₹758.2M) exceed its long term liabilities (₹449.8M).


Debt to Equity History and Analysis

Debt Level: 523537's debt to equity ratio (33.3%) is considered satisfactory.

Reducing Debt: 523537's debt to equity ratio has increased from 7.6% to 33.3% over the past 5 years.

Debt Coverage: 523537's debt is not well covered by operating cash flow (12.9%).

Interest Coverage: 523537's interest payments on its debt are not well covered by EBIT (2.3x coverage).


Balance Sheet

Inventory Level: 523537 has a high level of physical assets or inventory.

Debt Coverage by Assets: 523537's debt is covered by short term assets (assets are 1.8x debt).


Next Steps

Dividend

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

2.49%

Current Dividend Yield


Dividend Yield vs Market

company2.5%marketbottom25%0.6%markettop25%2.5%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 523537's dividend (2.49%) is higher than the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: 523537's dividend (2.49%) is low compared to the top 25% of dividend payers in the Indian market (2.52%).


Stability and Growth of Payments

Stable Dividend: 523537 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 523537 has only been paying a dividend for 8 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (12%), 523537'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

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

3.4yrs

Average management tenure


CEO

Hari Sharma (68yo)

3.4yrs

Tenure

₹9,673,579

Compensation

Mr. Hari Ram Sharma has been Managing Director of APM Industries Limited since September 24, 2016 and has been its Executive Director since March 1, 2007 and was its Director from March 1, 1997 to March 1, ...


CEO Compensation Analysis

Compensation vs Market: Hari's total compensation ($USD135.27K) is above average for companies of similar size in the Indian market ($USD50.21K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Rajendra Rajgarhia
Executive Chairman10.5yrs₹10.88m25.87% 108.4m
Hari Sharma
MD & Executive Director3.4yrs₹9.67m0.0048% 20.3k
Chandra Vijay
Chief Financial Officer0yrs₹1.88m0.0012% 4.9k
Ajay Rajgarhia
Vice President of Business Development24.6yrsno data10.53% 44.1m
Suresh Gupta
Vice President of Operations0yrsno datano data
Anup Banerjee
Vice President of Technology & Development0yrsno datano data
Arun Sharma
Vice President of Personal & Administration0yrsno datano data
Neha Jain
Company Secretary & Compliance Officer0.8yrsno datano data
J. Somani
Vice President of Marketing0yrsno datano data
Girish Madan
Vice President of Technology & Prodution0yrs₹1.52mno data

3.4yrs

Average Tenure

67yo

Average Age

Experienced Management: 523537's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Rajendra Rajgarhia
Executive Chairman10.5yrs₹10.88m25.87% 108.4m
Hari Sharma
MD & Executive Director3.4yrs₹9.67m0.0048% 20.3k
Shri Rajgarhia
Non Executive Non Independent Director19.6yrs₹200.00k5.5% 23.1m
Ram Bagri
Non Executive & Independent Director17.1yrs₹275.00k0.093% 388.0k
Khushi Gupta
Non Executive & Independent Director27.3yrs₹275.00kno data
Uma Hada
Non Executive & Independent Director4.8yrs₹135.00k0.0093% 38.8k

18.3yrs

Average Tenure

74yo

Average Age

Experienced Board: 523537's board of directors are seasoned and experienced ( 18.3 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

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


Key Information

  • Name: APM Industries Limited
  • Ticker: 523537
  • Exchange: BSE
  • Founded: 1973
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹419.260m
  • Shares outstanding: 21.61m
  • Website: https://www.apmindustries.co.in

Number of Employees


Location

  • APM Industries Limited
  • 910, Chiranjiv Tower
  • 43, Nehru Place
  • New Delhi
  • Delhi
  • 110019
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
523537BSE (Mumbai Stock Exchange)YesEquity SharesININRNov 2001

Biography

APM Industries Limited manufactures and sells synthetic blended spun yarns in India. It offers single autoconed spliced yarns and double yarn auto coned TFO, including polyester/viscose blended spun yarns, polyester/acrylic blended spun fiber dyed yarns, polyester yarns, acrylic yarns, and polyester fancy yarns. The company was formerly known as Ajay Paper Mills Limited and changed its name to APM Industries Limited in April 1990. APM Industries Limited was incorporated in 1973 and is based in New Delhi, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 12:41
End of Day Share Price2020/02/17 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.