BSE:526885

Stock Analysis Report

Sarla Performance Fibers

Executive Summary

Sarla Performance Fibers Limited manufactures and sells yarns in India.


Snowflake Analysis

Adequate balance sheet with proven track record and pays a dividend.

Share Price & News

How has Sarla Performance Fibers's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 526885's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.5%

526885

-2.2%

IN Luxury

-1.2%

IN Market


1 Year Return

-14.3%

526885

13.7%

IN Luxury

6.4%

IN Market

Return vs Industry: 526885 underperformed the Indian Luxury industry which returned 13.7% over the past year.

Return vs Market: 526885 underperformed the Indian Market which returned 6.4% over the past year.


Shareholder returns

526885IndustryMarket
7 Day4.5%-2.2%-1.2%
30 Day-18.4%-0.6%-3.6%
90 Day1.4%7.6%-0.5%
1 Year-10.2%-14.3%14.4%13.7%8.4%6.4%
3 Year-63.0%-66.4%49.0%47.2%20.9%14.3%
5 Year-38.9%-46.1%101.2%94.5%29.8%18.0%

Price Volatility Vs. Market

How volatile is Sarla Performance Fibers's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sarla Performance Fibers undervalued compared to its fair value and its price relative to the market?

5.12x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 526885 (₹21) is trading above our estimate of fair value (₹15.31)

Significantly Below Fair Value: 526885 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 526885 is good value based on its PE Ratio (5.1x) compared to the Luxury industry average (10.7x).

PE vs Market: 526885 is good value based on its PE Ratio (5.1x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 526885's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 526885 is overvalued based on its PB Ratio (0.6x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

How is Sarla Performance Fibers 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 Sarla Performance Fibers 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 Sarla Performance Fibers performed over the past 5 years?

-8.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 526885 has high quality earnings.

Growing Profit Margin: 526885's current net profit margins (10.5%) are higher than last year (3.7%).


Past Earnings Growth Analysis

Earnings Trend: 526885's earnings have declined by -8.1% per year over the past 5 years.

Accelerating Growth: 526885's earnings growth over the past year (195.9%) exceeds its 5-year average (-8.1% per year).

Earnings vs Industry: 526885 earnings growth over the past year (195.9%) exceeded the Luxury industry 6.4%.


Return on Equity

High ROE: 526885's Return on Equity (11.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sarla Performance Fibers's financial position?


Financial Position Analysis

Short Term Liabilities: 526885's short term assets (₹2.5B) exceed its short term liabilities (₹1.6B).

Long Term Liabilities: 526885's short term assets (₹2.5B) exceed its long term liabilities (₹2.1B).


Debt to Equity History and Analysis

Debt Level: 526885's debt to equity ratio (84.9%) is considered high.

Reducing Debt: 526885's debt to equity ratio has reduced from 120.6% to 84.9% over the past 5 years.

Debt Coverage: 526885's debt is not well covered by operating cash flow (11.7%).

Interest Coverage: 526885 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 526885 has a high level of physical assets or inventory.

Debt Coverage by Assets: 526885's debt is not covered by short term assets (assets are 1x debt).


Next Steps

Dividend

What is Sarla Performance Fibers's current dividend yield, its reliability and sustainability?

5.24%

Current Dividend Yield


Dividend Yield vs Market

company5.2%marketbottom25%0.6%markettop25%2.6%industryaverage0.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 526885's dividend (5.24%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: 526885's dividend (5.24%) is in the top 25% of dividend payers in the Indian market (2.63%)


Stability and Growth of Payments

Stable Dividend: 526885's dividend payments have been volatile in the past 10 years.

Growing Dividend: 526885's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.8%), 526885's dividend payments are well 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?

4.9yrs

Average board tenure


CEO

Krishnakumar Jhunjhunwala (57yo)

₹13,800,000

Compensation

Mr. Krishnakumar M. Jhunjhunwala, B.Com serves as Managing Director, Chief Executive Officer of Sarla Performance Fibers Limited and serves as its Director since June 14, 1994. 


CEO Compensation Analysis

Compensation vs Market: Krishnakumar's total compensation ($USD192.14K) is above average for companies of similar size in the Indian market ($USD49.94K).

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


Board Members

NamePositionTenureCompensationOwnership
Madhusudan Jhunjhunwala
Executive Chairman0yrs₹13.80m9.79% 168.3m
Krishnakumar Jhunjhunwala
MD, CEO & Executive Director0yrs₹13.80m2.74% 47.1m
Neha Jhunjhunwala
VP of Operations & Non-Executive Non-Independent Director4.9yrs₹60.00k0.0048% 82.4k
Parantap Dave
Non Executive Independent Director5.4yrs₹80.00kno data
Shreya Desai
Independent Director2.2yrs₹80.00kno data
Paulo Manuel De Castro
Additional Independent Director0.8yrsno datano data

4.9yrs

Average Tenure

57yo

Average Age

Experienced Board: 526885's board of directors are considered experienced (4.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 526885 insiders have sold more shares than they have bought 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

Sarla Performance Fibers Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sarla Performance Fibers Limited
  • Ticker: 526885
  • Exchange: BSE
  • Founded: 1993
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹1.720b
  • Shares outstanding: 83.50m
  • Website: https://www.sarlafibers.com

Location

  • Sarla Performance Fibers Limited
  • 304, Arcadia
  • 195, Nariman Point
  • Mumbai
  • Maharashtra
  • 400021
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SARLAPOLYNSEI (National Stock Exchange of India)INR1ININRNo data
526885BSE (Mumbai Stock Exchange)INR1ININRNo data
526885BSE (Mumbai Stock Exchange)YesEquity SharesININRMay 2005
SARLAPOLYNSEI (National Stock Exchange of India)YesEquity SharesININRMay 2005

Biography

Sarla Performance Fibers Limited manufactures and sells yarns in India. It operates through two segments, Manufacturing of Yarn and Generation of Wind Power. The company offers textured polyester, textured nylon stretch, high bulk textured polyester, high tenacity, covered, and twisted and dyed yarns, as well as textured sewing and specialty sewing threads. It also owns 14.75 MW of windmills in Maharashtra, Gujarat, and Madhya Pradesh. Sarla Performance Fibers Limited also exports its products to approximately 40 countries in South America, North and Central America, the Middle East, Europe, Africa, and the Asia Pacific. The company was formerly known as Sarla Polyester Limited and changed its name to Sarla Performance Fibers Limited in 2006. Sarla Performance Fibers Limited was founded in 1993 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 Analysis2020/02/26 12:35
End of Day Share Price2020/02/26 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.