BSE:530459

Stock Analysis Report

Executive Summary

Valson Industries Limited manufactures and sells polyester texturized and twisted yarns under the VALSON brand primarily in India.

Risk Analysis

Earnings have declined by -11.1% per year over past 5 years

Does not have a meaningful market cap (₹132M)

Dividend of 5.8% is not well covered by earnings

Profit margins (0.7%) are lower than last year (2.4%)



Snowflake Analysis

Excellent balance sheet unattractive dividend payer.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 530459 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.4%

530459

0.2%

IN Luxury

-0.4%

IN Market


1 Year Return

-34.7%

530459

16.6%

IN Luxury

11.1%

IN Market

Return vs Industry: 530459 underperformed the Indian Luxury industry which returned 16.6% over the past year.

Return vs Market: 530459 underperformed the Indian Market which returned 11.1% over the past year.


Shareholder returns

530459IndustryMarket
7 Day-4.4%0.2%-0.4%
30 Day-6.8%3.3%-1.2%
90 Day-5.7%8.5%3.3%
1 Year-31.2%-34.7%17.3%16.6%13.0%11.1%
3 Year-42.4%-48.5%53.8%52.0%25.3%18.6%
5 Year27.3%6.8%103.0%96.4%35.4%23.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

20.99x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 530459 (₹17.25) is trading above our estimate of fair value (₹12.2)

Significantly Below Fair Value: 530459 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 530459 is poor value based on its PE Ratio (21x) compared to the Luxury industry average (11x).

PE vs Market: 530459 is poor value based on its PE Ratio (21x) compared to the Indian market (13.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 530459's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 530459 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 Valson Industries forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

19.8%

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 Valson 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 Valson Industries performed over the past 5 years?

-11.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 530459 has high quality earnings.

Growing Profit Margin: 530459's current net profit margins (0.7%) are lower than last year (2.4%).


Past Earnings Growth Analysis

Earnings Trend: 530459's earnings have declined by -11.1% per year over the past 5 years.

Accelerating Growth: 530459's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 530459 had negative earnings growth (-74.8%) over the past year, making it difficult to compare to the Luxury industry average (2.7%).


Return on Equity

High ROE: 530459's Return on Equity (2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Valson Industries's financial position?


Financial Position Analysis

Short Term Liabilities: 530459's short term assets (₹198.5M) exceed its short term liabilities (₹142.7M).

Long Term Liabilities: 530459's short term assets (₹198.5M) exceed its long term liabilities (₹84.0M).


Debt to Equity History and Analysis

Debt Level: 530459's debt to equity ratio (30.7%) is considered satisfactory.

Reducing Debt: 530459's debt to equity ratio has reduced from 41.3% to 30.7% over the past 5 years.

Debt Coverage: 530459's debt is well covered by operating cash flow (39.8%).

Interest Coverage: 530459's interest payments on its debt are not well covered by EBIT (2.3x coverage).


Balance Sheet

Inventory Level: 530459 has a high level of physical assets or inventory.

Debt Coverage by Assets: 530459's debt is covered by short term assets (assets are 2x debt).


Next Steps

Dividend

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

5.80%

Current Dividend Yield


Dividend Yield vs Market

company5.8%marketbottom25%0.6%markettop25%2.5%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 530459's dividend (5.8%) is higher than the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: 530459's dividend (5.8%) is in the top 25% of dividend payers in the Indian market (2.51%)


Stability and Growth of Payments

Stable Dividend: 530459's dividend payments have been volatile in the past 10 years.

Growing Dividend: 530459's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (121.7%), 530459's dividend payments are not 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?

5.3yrs

Average management tenure


CEO

Kunal Mutreja 0

₹2,464,000

Compensation

Mr. Kunal S. Mutreja serves as the Chief Executive Officer of Valson Industries Limited and has been its Director since May 27, 2017. 


CEO Compensation Analysis

Compensation vs Market: Kunal's total compensation ($USD34.45K) is below average for companies of similar size in the Indian market ($USD50.14K).

Compensation vs Earnings: Kunal's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Suresh Mutreja
Chairman & MD10.7yrs₹5.04m35.61% 47.1m
Kunal Mutreja
CEO & Director0yrs₹2.46m12.85% 17.0m
Varun Mutreja
CFO & Whole Time Director5.3yrs₹2.46m6.9% 9.1m
Pritesh Shah
Compliance Officer & VP0.08yrs₹1.34mno data
Asha Mutreja
Whole–Time Woman Director5yrs₹636.00k10.89% 14.4m
Ram Sharma
Technical Advisor0yrs₹265.00kno data

5.3yrs

Average Tenure

Experienced Management: 530459's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Suresh Mutreja
Chairman & MD10.7yrs₹5.04m35.61% 47.1m
Kunal Mutreja
CEO & Director0yrs₹2.46m12.85% 17.0m
Varun Mutreja
CFO & Whole Time Director5.3yrs₹2.46m6.9% 9.1m
Asha Mutreja
Whole–Time Woman Director5yrs₹636.00k10.89% 14.4m
Surendra Suri
Independent Director14.8yrs₹130.00k0.0052% 6.9k
Pradip Shah
Independent Director5yrs₹130.00kno data
Chandan Gupta
Independent Director16.3yrs₹120.00kno data
Radhika Shah
Independent Director2.5yrs₹60.00kno data

5.1yrs

Average Tenure

62.5yo

Average Age

Experienced Board: 530459's board of directors are considered experienced (5.1 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

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


Key Information

  • Name: Valson Industries Limited
  • Ticker: 530459
  • Exchange: BSE
  • Founded: 1965
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹132.149m
  • Shares outstanding: 7.66m
  • Website: https://www.valsonindia.com

Number of Employees


Location

  • Valson Industries Limited
  • Building No. 6
  • Ground Floor, Unit No. 28
  • Mumbai
  • Maharashtra
  • 400059
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
530459BSE (Mumbai Stock Exchange)YesEquity SharesININRFeb 2002

Biography

Valson Industries Limited manufactures and sells polyester texturized and twisted yarns under the VALSON brand primarily in India. The company offers weft, micro twisted, full dull text and twisted, S/Z, catonic and catonic twisted, airtex slub, flame retardant, denim, thick and thin, CTS, FDY, spun poly, airtex and ring, poly/viscone, and poly/cotton yarns. Its products are used in shirting, suiting, labels, upholstery, hosiery, furnishings, automotive and ready-made garments industries, etc. The company also exports its products to the Middle East, the United Kingdom, Egypt, Russia, and other European markets. The company was formerly known as Valson Synthetics Ltd and changed its name to Valson Industries Limited in October 1998. Valson Industries Limited was founded in 1965 and is based in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 12:36
End of Day Share Price2020/02/14 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.