BSE:526851

Stock Analysis Report

Executive Summary

Arex Industries Limited manufactures and sells various woven and printed labels to garment manufacturers in India and internationally.


Snowflake Analysis

Average dividend payer with poor track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 526851's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.6%

526851

0.08%

IN Luxury

-0.7%

IN Market


1 Year Return

-20.1%

526851

18.0%

IN Luxury

10.0%

IN Market

Return vs Industry: 526851 underperformed the Indian Luxury industry which returned 18% over the past year.

Return vs Market: 526851 underperformed the Indian Market which returned 10% over the past year.


Shareholder returns

526851IndustryMarket
7 Day4.6%0.08%-0.7%
30 Day39.5%4.9%-0.3%
90 Day40.5%11.4%3.2%
1 Year-17.0%-20.1%18.8%18.0%12.0%10.0%
3 Year-19.4%-26.1%55.1%53.3%23.9%17.1%
5 Year69.0%43.9%110.5%103.6%38.3%25.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

20.07x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 526851 (₹59) is trading above our estimate of fair value (₹27.83)

Significantly Below Fair Value: 526851 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 526851 is poor value based on its PE Ratio (20.1x) compared to the Luxury industry average (11.4x).

PE vs Market: 526851 is poor value based on its PE Ratio (20.1x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 526851's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 526851 is overvalued based on its PB Ratio (0.9x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

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

19.7%

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 Arex 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 Arex Industries performed over the past 5 years?

-5.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 526851 has high quality earnings.

Growing Profit Margin: 526851's current net profit margins (2.5%) are lower than last year (5.6%).


Past Earnings Growth Analysis

Earnings Trend: 526851's earnings have declined by -5.9% per year over the past 5 years.

Accelerating Growth: 526851's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 526851 had negative earnings growth (-48.4%) over the past year, making it difficult to compare to the Luxury industry average (6.4%).


Return on Equity

High ROE: 526851's Return on Equity (4.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Arex Industries's financial position?


Financial Position Analysis

Short Term Liabilities: 526851's short term assets (₹250.1M) exceed its short term liabilities (₹148.9M).

Long Term Liabilities: 526851's short term assets (₹250.1M) do not cover its long term liabilities (₹324.2M).


Debt to Equity History and Analysis

Debt Level: 526851's debt to equity ratio (141.8%) is considered high.

Reducing Debt: 526851's debt to equity ratio has increased from 43.8% to 141.8% over the past 5 years.

Debt Coverage: 526851's debt is not well covered by operating cash flow (17.5%).

Interest Coverage: 526851's interest payments on its debt are not well covered by EBIT (1.6x coverage).


Balance Sheet

Inventory Level: 526851 has a high level of physical assets or inventory.

Debt Coverage by Assets: 526851's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

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

3.39%

Current Dividend Yield


Dividend Yield vs Market

company3.4%marketbottom25%0.6%markettop25%2.6%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 526851's dividend (3.39%) is higher than the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: 526851's dividend (3.39%) is in the top 25% of dividend payers in the Indian market (2.56%)


Stability and Growth of Payments

Stable Dividend: 526851's dividend payments have been volatile in the past 10 years.

Growing Dividend: 526851's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (68%), 526851's dividend payments are 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?

5.5yrs

Average management tenure


CEO

Dinesh Bilgi (67yo)

5.5yrs

Tenure

₹10,298,000

Compensation

Mr. Dinesh Apparao Bilgi has been Managing Director of Arex Industries Limited. since May 1, 2004 and has been Chief Financial Officer since August 1, 2014. Mr. Bilgi is a textile engineer and promoter of  ...


CEO Compensation Analysis

Compensation vs Market: Dinesh's total compensation ($USD143.22K) is above average for companies of similar size in the Indian market ($USD50.21K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Dinesh Bilgi
Chairman5.5yrs₹10.30m24.51% 57.2m
Neel Bilgi
MD & Director14.5yrs₹10.30m6.42% 15.0m
Chirag Bilgi
MD & Director9.5yrs₹10.30m6.49% 15.2m
Kairavi Bilgi
Company Secretary & Compliance Officer4.4yrs₹308.00k0.0025% 5.9k
Pragnesh Shah
Whole Time Director10.3yrs₹608.00k0.79% 1.8m

5.5yrs

Average Tenure

53.5yo

Average Age

Experienced Management: 526851's management team is seasoned and experienced (5.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Dinesh Bilgi
Chairman5.5yrs₹10.30m24.51% 57.2m
Neel Bilgi
MD & Director14.5yrs₹10.30m6.42% 15.0m
Chirag Bilgi
MD & Director9.5yrs₹10.30m6.49% 15.2m
Pragnesh Shah
Whole Time Director10.3yrs₹608.00k0.79% 1.8m
Laxman Tilani
Non-Executive Non-Independent Director29.2yrs₹40.00k1.98% 4.6m
Balkrishna Makwana
Independent Director17yrs₹40.00k0.00025% 583.9
Vasant Shah
Non-Executive Non-Independent Director25.6yrs₹40.00kno data
Dinesh Pande
Independent Director10.1yrs₹40.00k0.14% 318.6k
Harsha Parikh
Independent Director5.5yrsno data0.00025% 583.9

12.4yrs

Average Tenure

67yo

Average Age

Experienced Board: 526851's board of directors are seasoned and experienced ( 12.4 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Arex Industries Limited
  • Ticker: 526851
  • Exchange: BSE
  • Founded: 1989
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹233.563m
  • Shares outstanding: 3.96m
  • Website: https://www.arex.co.in

Number of Employees


Location

  • Arex Industries Limited
  • 612, G.I.D.C. Estate
  • Chhatral
  • Gandhinagar
  • Gujarat
  • 382729
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
526851BSE (Mumbai Stock Exchange)YesEquity SharesININRMar 2005

Biography

Arex Industries Limited manufactures and sells various woven and printed labels to garment manufacturers in India and internationally. The company offers woven labels in various finishes, including end fold, center fold, miter fold, manhattan fold, starched, specially coated, self-adhesive, thermo adhesive, laser cut, die cut, filled in, comfort soft, and others. Arex Industries Limited was founded in 1989 and is based in Gandhinagar, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 12:37
End of Day Share Price2020/02/20 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.