Surat Textile Mills Limited manufactures and sells polyester filament yarns, polyester chips, and spun yarn in India.
The last earnings update was 11 days ago.
More info.
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Surat Textile Mills
to its discounted cash flow analysis.value.
The discounted cash flow value is simply looking at what the company is worth
today, based on estimates of how much money it is expected to make in the
future.
Discounted Cash Flow Calculation for BSE:530185 using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
Surat Textile Mills
is arrived at by discounting future cash flows to their present value using the 2 stage method. We use
analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.
BSE:530185 DCF 1st Stage: Next 5 year cash flow forecast
= Present value of next 5 years cash flows +
Terminal Value
=
₹2,407.10 +
₹7,598.63
₹10,005.73
Equity Value per Share (INR)
= Total value / Shares Outstanding
= ₹10,005.73 /
222.06
₹45.06
BSE:530185 Discount to Share Price
Calculation
Result
Value per share (INR)
From above.
₹45.06
Current discount
Discount to share price of
₹2.54
= -1 x (₹2.54 - ₹45.06) / ₹45.06
94.4%
Learn more about our DCF calculations in Simply Wall St’s
analysis model
.
Current Discount
Amount off the current price
Surat Textile Mills
is available for.
>50%
Share price is
₹2.54
vs Future cash flow value of
₹45.06
Current Discount Checks
For
Surat Textile Mills
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Surat Textile Mills's share price is below the future cash flow value, and at a moderate discount (> 20%).
Surat Textile Mills's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
Surat Textile Mills's
earnings,
growth
and
assets
is considered below, and whether this is a fair price.
Price based on past earnings
Are
Surat Textile Mills's earnings available for a low price, and how does
this compare to other companies in the same industry?
No analysts cover Surat Textile Mills, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.
Future estimates come from
professional analysts. Just like forecasting the weather, they don’t always get
it right!
9.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is
Surat Textile Mills
expected to grow at an
attractive
rate?
Surat Textile Mills's earnings growth is expected to exceed the low risk savings rate of 7.6%.
Growth vs Market Checks
Surat Textile Mills's earnings growth is positive but not above the India market average.
Unable to compare Surat Textile Mills's revenue growth to the India market average as no estimate data is available.
Surat Textile Mills's earnings are expected to grow by 9.4% yearly, however this is not considered high growth (20% yearly).
Unable to determine if Surat Textile Mills is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
All data from Surat Textile Mills Company Filings, last reported 1 month ago, and in
Trailing twelve months (TTM)
annual period rather than quarterly.
BSE:530185 Past Financials Data
Date (Data in INR Millions)
EPS *
2018-12-31
0.34
2018-09-30
0.37
2018-06-30
0.32
2018-03-31
0.37
2017-12-31
0.48
2017-09-30
0.69
2017-06-30
0.73
2017-03-31
0.75
2016-12-31
0.63
2016-09-30
0.47
2016-06-30
0.35
2016-03-31
0.28
*GAAP earnings excluding extraordinary items.
Performance in 3 years
In the same way as past performance we look at the future estimated return
(profit) compared to the available
funds. We do this looking forward 3 years.
Unable to establish if Surat Textile Mills will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
We assess
Surat Textile Mills's future performance by looking at:
Is the annual earnings growth rate expected to beat the low risk savings rate, plus a
premium to keep pace with inflation?
Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
Is the annual earnings growth rate expected to be above 20%? (1 check)
Is the annual revenue growth rate expected to be above 20%? (1 check)
Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making
in the relevant year.
Surat Textile Mills
has a total score of
1/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Below we compare
Surat Textile Mills's growth in the last year to its industry (Luxury).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it
has maintained that growth in the year.
Surat Textile Mills has delivered over 20% year on year earnings growth in the past 5 years.
Surat Textile Mills's 1-year earnings growth is negative, it can't be compared to the 5-year average.
Surat Textile Mills's 1-year earnings growth is negative, it can't be compared to the IN Luxury industry average.
Earnings and Revenue History
Surat Textile Mills's
revenue
and
profit
over the past 5 years is shown below, any years where they have experienced a
loss will show up in red.
All data from Surat Textile Mills Company Filings, last reported 1 month ago, and in
Trailing twelve months (TTM)
annual period rather than quarterly.
BSE:530185 Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions)
Revenue
Net Income *
G+A Expenses
R&D Expenses
2018-12-31
2,214.24
74.60
26.71
2018-09-30
2,272.06
82.30
29.96
2018-06-30
2,054.32
68.94
34.68
2018-03-31
2,005.10
81.86
34.84
2017-12-31
1,727.35
107.31
34.85
2017-09-30
1,570.76
153.00
32.80
2017-06-30
1,512.87
165.34
30.36
2017-03-31
1,387.17
166.24
29.13
2016-12-31
1,451.08
135.08
42.02
2016-09-30
1,350.98
112.85
41.85
2016-06-30
1,170.91
79.42
41.65
2016-03-31
1,172.19
61.33
42.29
2015-12-31
976.91
10.38
66.16
2015-09-30
926.90
-18.74
70.35
2015-06-30
1,130.32
-10.66
76.64
2015-03-31
1,275.50
25.65
58.44
2014-12-31
1,484.37
33.78
98.88
2014-09-30
1,544.16
13.33
101.84
2014-06-30
1,666.47
34.40
102.91
2014-03-31
1,815.08
11.56
104.40
2013-12-31
2,039.88
8.77
95.03
2013-09-30
2,302.08
72.80
94.53
2013-06-30
2,305.34
88.54
94.31
2013-03-31
2,177.66
75.72
93.84
2012-12-31
1,994.93
13.55
100.62
2012-06-30
1,944.92
214.79
100.37
2012-03-31
1,884.18
197.80
92.30
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
Surat Textile Mills has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
Surat Textile Mills used its assets less efficiently than the IN Luxury industry average last year based on Return on Assets.
Surat Textile Mills has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
We assess
Surat Textile Mills's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
Luxury
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
Surat Textile Mills
has a total score of
2/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).
The boxes below represent the relative size of what makes up
Surat Textile Mills's finances.
The net worth of a company is the difference between its assets and liabilities.
Net Worth
Surat Textile Mills is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Surat Textile Mills's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of
Surat Textile Mills's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Low level of unsold assets.
Debt is covered by short term assets, assets are 90.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
We assess
Surat Textile Mills's financial health by checking for:
Are short term assets greater than short term liabilities? (1 check)
Are short term assets greater than long term liabilities? (1 check)
Has the debt to equity ratio increased in the past 5 years? (1 check)
Is the debt to equity ratio over 40%? (1 check)
Is the debt covered by operating cash flow? (1 check)
Are earnings greater than 5x the interest on debt (if company pays interest
at all)? (1 check)
Surat Textile Mills
has a total score of
6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
0%
Current annual income from
Surat Textile Mills
dividends.
If you bought
₹2,000 of
Surat Textile Mills
shares you are expected to receive
₹0
in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you
can get in a
savings account?
It is up there with the
best dividend paying companies?
Unable to evaluate Surat Textile Mills's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
Unable to evaluate Surat Textile Mills's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.
We also check to see if the dividend has increased in the past 10 years.
We assess
Surat Textile Mills's dividend by checking for:
Firstly is the company paying a notable dividend (greater than 0.3%) - if
not then the rest of the checks are ignored.
Is current dividend yield above the bottom 25% of dividend payers? (1 check)
Is current dividend yield above the top 25% of dividend payers? (1 check)
Have they paid a dividend for 10 years, and during this period has the
dividend been volatile (drop of more than 25%)? (1 check)
If they have paid a dividend for 10 years has it increased in this time? (1
check)
How sustainable is the dividend, can
Surat Textile Mills
afford to pay it from its earnings today and in 3 years (Payout ratio less than
90%)? (2 checks)
Surat Textile Mills
has a total score of
0/6, see the detailed checks below.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
CEO
ManikantMomaya
COMPENSATION
₹840,240
AGE
86
TENURE AS CEO
4.7 years
CEO Bio
Mr. Manikant R. Momaya serves as the Chairman of Surat Textile Mills Limited and has been its Managing Director since June 1, 2014. Mr. Momaya served as Managing Director at Surat Textile Mills Limited from December 2005 to May 1, 2012. He has wide experience in the textile industry. He was associated with one of the most reputed textile Company of Surat for about 33 years. He served as a Consultant Engineer at Surat Textile Mills Ltd. He has been Wholetime Director of Surat Textile Mills Limited since October 23, 2000. He serves as a Director of Como Textiles Private Ltd., Amalfi Textiles Private Ltd., Sorrento Textiles Private Ltd. and Porus Textiles & Trading Pvt. Ltd.
CEO Compensation
Manikant's compensation has been consistent with company performance over the past year.
Manikant's remuneration is lower than average for companies of similar size in India.
Management Team Tenure
Average tenure of the
Surat Textile Mills
management team in years:
4.5
Average Tenure
The tenure for the Surat Textile Mills management team is about average.
Management Team
Manikant Momaya
TITLE
Chairman & MD
COMPENSATION
₹840K
AGE
86
TENURE
4.7 yrs
Yogesh Papaiya
TITLE
CFO & Whole Time Director
COMPENSATION
₹3M
AGE
66
TENURE
4.5 yrs
Hanisha Arora
TITLE
Compliance Officer & Company Secretary
COMPENSATION
₹197K
TENURE
3.8 yrs
Board of Directors Tenure
Average tenure and age of the
Surat Textile Mills
board of directors in years:
6.4
Average Tenure
75
Average Age
The tenure for the Surat Textile Mills board of directors is about average.
Surat Textile Mills Limited manufactures and sells polyester filament yarns, polyester chips, and spun yarn in India. It produces ring spun yarn for domestic market in various product range comprising polyester, viscose, modal, polyester viscose blend, and polyester modal blend. The company was formerly known as Garden Cottons & Yarns Ltd. Surat Textile Mills Limited was incorporated in 1945 and is based in Surat, India.
Surat Textile Mills Limited
Tulsi Krupa Arcade,
6th Floor,
Surat,
Gujarat, 395010,
India
Listings
Exchange Symbol
Ticker Symbol
Security
Exchange
Country
Currency
Listed on
BSE
530185
Equity Shares
Mumbai Stock Exchange
IN
INR
24. Aug 2005
Number of employees
Current staff
88
Surat Textile Mills
employees.
Industry
Textiles
Consumer Durables
Company Analysis and Financial Data Status
Area
Date (UTC time)
Company Analysis updated:
2019/02/16 12:31
End of day share price update:
2019/02/15 00:00
Last earnings filing:
2019/02/05
Last earnings reported:
2018/12/31
Last annual earnings reported:
2018/03/31
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.