BSE:526365

Stock Analysis Report

Executive Summary

Swarnsarita Gems Limited manufactures, trades in, and sells gold jewelry and precious stone studded jewelry in India and internationally.

Rewards

PE ratio (3.4x) is below the Indian market (13.3x)

Earnings grew by 23.6% over the past year

Risk Analysis

Interest payments are not well covered by earnings

Does not have a meaningful market cap (₹187M)

Highly volatile share price over past 3 months



Snowflake Analysis

Solid track record and fair value.


Similar Companies

Share Price & News

How has Swarnsarita Gems's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 526365's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.2%

526365

1.1%

IN Luxury

-0.8%

IN Market


1 Year Return

17.8%

526365

18.4%

IN Luxury

11.1%

IN Market

Return vs Industry: 526365 matched the Indian Luxury industry which returned 18.4% over the past year.

Return vs Market: 526365 exceeded the Indian Market which returned 11.1% over the past year.


Shareholder returns

526365IndustryMarket
7 Day0.2%1.1%-0.8%
30 Day4.2%3.3%-2.3%
90 Day6.3%9.6%2.1%
1 Year17.8%17.8%19.2%18.4%13.1%11.1%
3 Year-62.3%-62.3%54.9%51.5%22.9%16.2%
5 Year-71.0%-71.0%106.1%99.4%34.9%22.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Swarnsarita Gems undervalued compared to its fair value and its price relative to the market?

3.41x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 526365's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 526365's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 526365 is good value based on its PE Ratio (3.4x) compared to the Luxury industry average (11.1x).

PE vs Market: 526365 is good value based on its PE Ratio (3.4x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 526365's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 526365 is good value based on its PB Ratio (0.2x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

How is Swarnsarita Gems 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 Swarnsarita Gems 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 Swarnsarita Gems performed over the past 5 years?

14.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 526365 has high quality earnings.

Growing Profit Margin: 526365's current net profit margins (0.9%) are higher than last year (0.9%).


Past Earnings Growth Analysis

Earnings Trend: 526365's earnings have grown by 14.3% per year over the past 5 years.

Accelerating Growth: 526365's earnings growth over the past year (23.6%) exceeds its 5-year average (14.3% per year).

Earnings vs Industry: 526365 earnings growth over the past year (23.6%) exceeded the Luxury industry 2.7%.


Return on Equity

High ROE: 526365's Return on Equity (5.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Swarnsarita Gems's financial position?


Financial Position Analysis

Short Term Liabilities: 526365's short term assets (₹2.1B) exceed its short term liabilities (₹1.2B).

Long Term Liabilities: 526365's short term assets (₹2.1B) exceed its long term liabilities (₹2.7M).


Debt to Equity History and Analysis

Debt Level: 526365's debt to equity ratio (113%) is considered high.

Reducing Debt: 526365's debt to equity ratio has increased from 52.9% to 113% over the past 5 years.

Debt Coverage: 526365's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 526365's interest payments on its debt are not well covered by EBIT (2.1x coverage).


Balance Sheet

Inventory Level: 526365 has a high level of physical assets or inventory.

Debt Coverage by Assets: 526365's debt is covered by short term assets (assets are 1.9x debt).


Next Steps

Dividend

What is Swarnsarita Gems'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 526365's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 526365'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 526365's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 526365's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 526365 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 526365'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?

4.6yrs

Average management tenure


CEO

Mahendra Chordia (51yo)

8.8yrs

Tenure

₹7,200,000

Compensation

Mr. Mahendra Madanlal Chordia has been the Chairman of the Board and Managing Director of Swarnsarita Gems Limited since April 1, 2011 and has been its Whole Time Director since March 7, 2011. Mr. Chordia  ...


CEO Compensation Analysis

Compensation vs Market: Mahendra's total compensation ($USD100.91K) is above average for companies of similar size in the Indian market ($USD50.25K).

Compensation vs Earnings: Mahendra's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Mahendra Chordia
Chairman & MD8.8yrs₹7.20m1.7% 3.2m
Sanket Dangi
Chief Financial Officer4.6yrsno datano data
Pankaj Kharwad
President of Manufacturing Division0yrsno datano data
Seema Chordia
Whole Time Director2.3yrs₹2.40mno data
Sunny Chordia
Whole Time Director & President of Overseas Market2.3yrs₹4.80m1% 1.9m
Rajendra Chordia
Vice President of Gold Division0yrsno data0.45% 843.6k
Lalit Chordia
Vice President of Diamond Division0yrsno datano data
Nishita Chordia
Vice President of Manufacturing Division0yrsno datano data
Deepak Suthar
Compliance Officer & Company Secretary0.2yrsno datano data

4.6yrs

Average Tenure

43yo

Average Age

Experienced Management: 526365's management team is considered experienced (4.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mahendra Chordia
Chairman & MD8.8yrs₹7.20m1.7% 3.2m
Seema Chordia
Whole Time Director2.3yrs₹2.40mno data
Sunny Chordia
Whole Time Director & President of Overseas Market2.3yrs₹4.80m1% 1.9m
Dhruvin Shah
Non-Executive Independent Director3.8yrsno datano data
Deep Lakhani
Non- Executive Independent Director1.3yrsno datano data
Umang Mehta
Additional Independent Director0yrsno datano data

2.3yrs

Average Tenure

26yo

Average Age

Experienced Board: 526365's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


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

Swarnsarita Gems Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Swarnsarita Gems Limited
  • Ticker: 526365
  • Exchange: BSE
  • Founded: 1989
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: ₹187.474m
  • Shares outstanding: 20.88m
  • Website: https://www.swarnsarita.com

Location

  • Swarnsarita Gems Limited
  • 125/127, Daya Mandir
  • 6th Floor, Room No.5 to 10
  • Mumbai
  • Maharashtra
  • 400003
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
526365BSE (Mumbai Stock Exchange)YesEquity SharesININROct 2004

Biography

Swarnsarita Gems Limited manufactures, trades in, and sells gold jewelry and precious stone studded jewelry in India and internationally. The company also imports, exports, wholesales, and retails jewelries. It supplies the jewelry to wholesalers, jewelry manufacturers, traders, and retailers. The company was formerly known as Shyam Star Gems Limited. Swarnsarita Gems Limited was founded in 1989 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 12:31
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.