BSE:530043

Stock Analysis Report

Executive Summary

Acknit Industries Limited manufactures, sells, and exports industrial safety gloves and garments in India.

Rewards

PE ratio (3.7x) is below the Indian market (13.1x)

Earnings grew by 14.4% over the past year

Risk Analysis

Interest payments are not well covered by earnings

Does not have a meaningful market cap (₹176M)

Shareholders have been diluted in the past year



Snowflake Analysis

Solid track record and fair value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 530043 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.7%

530043

-0.5%

IN Luxury

-1.5%

IN Market


1 Year Return

-23.0%

530043

18.2%

IN Luxury

10.7%

IN Market

Return vs Industry: 530043 underperformed the Indian Luxury industry which returned 18.2% over the past year.

Return vs Market: 530043 underperformed the Indian Market which returned 10.7% over the past year.


Shareholder returns

530043IndustryMarket
7 Day-1.7%-0.5%-1.5%
30 Day-4.9%3.0%-2.7%
90 Day1.6%9.2%1.3%
1 Year-20.9%-23.0%19.0%18.2%12.7%10.7%
3 Year-42.8%-45.7%52.2%48.8%22.0%15.1%
5 Year5.3%-3.7%106.9%100.1%34.5%22.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

3.72x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 530043 (₹60.95) is trading above our estimate of fair value (₹42.42)

Significantly Below Fair Value: 530043 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 530043 is good value based on its PE Ratio (3.7x) compared to the Luxury industry average (11.2x).

PE vs Market: 530043 is good value based on its PE Ratio (3.7x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 530043's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 530043 is good value based on its PB Ratio (0.4x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

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

19.9%

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 Acknit 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 Acknit Industries performed over the past 5 years?

11.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 530043 has high quality earnings.

Growing Profit Margin: 530043's current net profit margins (2.8%) are higher than last year (2.6%).


Past Earnings Growth Analysis

Earnings Trend: 530043's earnings have grown by 11.7% per year over the past 5 years.

Accelerating Growth: 530043's earnings growth over the past year (14.4%) exceeds its 5-year average (11.7% per year).

Earnings vs Industry: 530043 earnings growth over the past year (14.4%) exceeded the Luxury industry 5.6%.


Return on Equity

High ROE: 530043's Return on Equity (10.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Acknit Industries's financial position?


Financial Position Analysis

Short Term Liabilities: 530043's short term assets (₹898.9M) exceed its short term liabilities (₹671.4M).

Long Term Liabilities: 530043's short term assets (₹898.9M) exceed its long term liabilities (₹107.5M).


Debt to Equity History and Analysis

Debt Level: 530043's debt to equity ratio (119.4%) is considered high.

Reducing Debt: 530043's debt to equity ratio has reduced from 180.8% to 119.4% over the past 5 years.

Debt Coverage: 530043's debt is not well covered by operating cash flow (12.6%).

Interest Coverage: 530043's interest payments on its debt are not well covered by EBIT (1.7x coverage).


Balance Sheet

Inventory Level: 530043 has a high level of physical assets or inventory.

Debt Coverage by Assets: 530043's debt is covered by short term assets (assets are 1.6x debt).


Next Steps

Dividend

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

2.46%

Current Dividend Yield


Dividend Yield vs Market

company2.5%marketbottom25%0.6%markettop25%2.6%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 530043's dividend (2.46%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: 530043's dividend (2.46%) is low compared to the top 25% of dividend payers in the Indian market (2.58%).


Stability and Growth of Payments

Stable Dividend: 530043's dividends per share have been stable in the past 10 years.

Growing Dividend: 530043's dividend payments have not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (9.2%), 530043'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?

3.8yrs

Average board tenure


CEO

Shri Saraf (65yo)

₹6,000,000

Compensation

Mr. Shri Krishan Saraf serves as the Chairman, Managing Director and Executive Director at Acknit Industries Limited. 


CEO Compensation Analysis

Compensation vs Market: Shri's total compensation ($USD83.85K) is above average for companies of similar size in the Indian market ($USD50.34K).

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


Board Members

NamePositionTenureCompensationOwnership
Shri Saraf
Chairman0yrs₹6.00m18.81% 33.2m
Deo Saraf
CFO & Whole Time Director29.3yrs₹4.80m12% 21.2m
Samir Ghosh
Non Executive Independent Director14.8yrs₹74.50k0.016% 29.0k
Mukul Banerjee
Non-Executive Independent Director3.8yrs₹68.50kno data
Rashi Saraf
Non-Executive-Non-Independent Director3.4yrs₹57.00k2.8% 4.9m
Jadav Mukherjee
Independent Non-Executive Director1.8yrs₹42.50k0.033% 58.0k

3.8yrs

Average Tenure

65yo

Average Age

Experienced Board: 530043's board of directors are considered experienced (3.8 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 been diluted in the past year, with total shares outstanding growing by 2.3%.


Top Shareholders

Company Information

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


Key Information

  • Name: Acknit Industries Limited
  • Ticker: 530043
  • Exchange: BSE
  • Founded: 1990
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: ₹176.320m
  • Shares outstanding: 3.04m
  • Website: https://www.acknitindia.com

Number of Employees


Location

  • Acknit Industries Limited
  • Ecostation
  • 5th Floor, Suit No. 504
  • Kolkata
  • West Bengal
  • 700091
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
530043BSE (Mumbai Stock Exchange)YesEquity SharesININRJan 2005

Biography

Acknit Industries Limited manufactures, sells, and exports industrial safety gloves and garments in India. It operates through three segments: Hand Gloves, Garments, and Power Generation. The company offers cut and sewn dipped, seamless dipped, cut level 3/5 protection, cut level 5 protection, knitted, Kevlar, Canadian, welder, driver, cut resistant, heat resistant, and Kevlar leather gloves. It also provides leather garments, including jackets, bib trousers, aprons, and arm and leg protectors; and industrial and readymade garments. In addition, the company generates power through windmills. The company was formerly known as Acknit Knitting Limited. Acknit Industries Limited was incorporated in 1990 and is based in Kolkata, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 12:30
End of Day Share Price2020/02/19 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.