BSE:530201

Stock Analysis Report

Executive Summary

Kallam Textiles Limited manufactures and sells cotton and dyed yarns, and grey and dyed fabrics in India.

Rewards

Trading at 84.7% below its fair value

Risk Analysis

Earnings have declined by -3.07% per year over past 5 years

Interest payments are not well covered by earnings

Does not have a meaningful market cap (₹253M)

Dividend of 3.38% is not well covered by earnings

+ 1 more risk


Snowflake Analysis

Fair value second-rate dividend payer.

Share Price & News

How has Kallam Textiles's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 530201's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.3%

530201

-0.5%

IN Luxury

-1.5%

IN Market


1 Year Return

-60.6%

530201

18.2%

IN Luxury

10.7%

IN Market

Return vs Industry: 530201 underperformed the Indian Luxury industry which returned 18.2% over the past year.

Return vs Market: 530201 underperformed the Indian Market which returned 10.7% over the past year.


Shareholder returns

530201IndustryMarket
7 Day-5.3%-0.5%-1.5%
30 Day-21.2%3.0%-2.7%
90 Day-20.2%9.2%1.3%
1 Year-59.7%-60.6%19.0%18.2%12.7%10.7%
3 Year-69.7%-70.8%52.2%48.8%22.0%15.1%
5 Year-15.4%-20.9%106.9%100.1%34.5%22.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Kallam Textiles undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 530201 (₹5.91) is trading below our estimate of fair value (₹38.67)

Significantly Below Fair Value: 530201 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 530201 is unprofitable, so we can't compare its PE Ratio to the Luxury industry average.

PE vs Market: 530201 is unprofitable, so we can't compare its PE Ratio to the Indian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 530201's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 530201 is good value based on its PB Ratio (0.1x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

How is Kallam Textiles 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 Kallam Textiles 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 Kallam Textiles performed over the past 5 years?

-3.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 530201 is currently unprofitable.

Growing Profit Margin: 530201 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 530201 is unprofitable, and losses have increased over the past 5 years at a rate of -3.1% per year.

Accelerating Growth: Unable to compare 530201's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 530201 is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (5.6%).


Return on Equity

High ROE: 530201 has a negative Return on Equity (-1.55%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Kallam Textiles's financial position?


Financial Position Analysis

Short Term Liabilities: 530201's short term assets (₹1.6B) do not cover its short term liabilities (₹1.9B).

Long Term Liabilities: 530201's short term assets (₹1.6B) do not cover its long term liabilities (₹1.6B).


Debt to Equity History and Analysis

Debt Level: 530201's debt to equity ratio (138.9%) is considered high.

Reducing Debt: 530201's debt to equity ratio has reduced from 364.1% to 138.9% over the past 5 years.


Balance Sheet

Inventory Level: 530201 has a high level of physical assets or inventory.

Debt Coverage by Assets: 530201's debt is not covered by short term assets (assets are 0.5x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 530201 has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: 530201 has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is Kallam Textiles's current dividend yield, its reliability and sustainability?

3.38%

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: 530201's dividend (3.38%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: 530201's dividend (3.38%) is in the top 25% of dividend payers in the Indian market (2.58%)


Stability and Growth of Payments

Stable Dividend: 530201's dividend payments have been volatile in the past 10 years.

Growing Dividend: 530201's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: 530201 is paying a dividend but the company is unprofitable.


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?

8.1yrs

Average management tenure


CEO

Gurram Krishna Reddy (62yo)

₹4,217,690

Compensation

Mr. Gurram Venkata Krishna Reddy serves as the Joint Managing Director of Kallam Spinning Mills Ltd and serves as its Non-Independent and Executive Director. Mr. Reddy has served in Indian Navy in various  ...


CEO Compensation Analysis

Compensation vs Market: Gurram's total compensation ($USD58.94K) is about average for companies of similar size in the Indian market ($USD50.34K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Poluri Reddy
Chairman & MD0yrs₹4.45m8.29% 20.9m
Gurram Krishna Reddy
Joint MD0yrs₹4.22m9.98% 25.2m
Movva Subba Reddy
CFO, Director of Finance & Whole Time Director12.6yrs₹1.21m2.76% 7.0m
Nandan Bisoi
Company Secretary & Compliance Officer1.4yrs₹397.80kno data
Kallam Reddy
28.1yrsno data14.05% 35.5m
Poluri Reddy
Head of Weaving Division7.3yrsno data2.55% 6.5m

8.1yrs

Average Tenure

65yo

Average Age

Experienced Management: 530201's management team is seasoned and experienced (8.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Poluri Reddy
Chairman & MD0yrs₹4.45m8.29% 20.9m
Gurram Krishna Reddy
Joint MD0yrs₹4.22m9.98% 25.2m
Movva Subba Reddy
CFO, Director of Finance & Whole Time Director12.6yrs₹1.21m2.76% 7.0m
Vaddadi Surya Murthy
Independent Director0.4yrs₹75.00kno data
Vangala Bhargavi
Independent Non-Executive Director5.4yrs₹75.00kno data
Varanasi Ramgopal
Non-Executive Independent Director2.5yrs₹60.00kno data

4.0yrs

Average Tenure

64yo

Average Age

Experienced Board: 530201's board of directors are considered experienced (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.


Ownership Breakdown

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


Top Shareholders

Company Information

Kallam Textiles Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kallam Textiles Limited
  • Ticker: 530201
  • Exchange: BSE
  • Founded: 1992
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹252.634m
  • Shares outstanding: 42.82m
  • Website: https://www.ksml.in

Number of Employees


Location

  • Kallam Textiles Limited
  • NH-5, Chowdavaram
  • Guntur
  • Andhra Pradesh
  • 522019
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
530201BSE (Mumbai Stock Exchange)INR2ININRNo data
530201BSE (Mumbai Stock Exchange)YesEquity SharesININRMay 2005

Biography

Kallam Textiles Limited manufactures and sells cotton and dyed yarns, and grey and dyed fabrics in India. The company offers ring spinning and TFO yarns. It also generates and sells power through three hydro-electric plants with 4.0 MW capacity located at Nelakondapally Mandalam, Khammam District of Telangana. The company also exports its products to various countries. The company was formerly known as Kallam Spinning Mills Limited and changed its name to Kallam Textiles Limited in April 2018. Kallam Textiles Limited was founded in 1992 and is based in Guntur, 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.