BSE:530525

Stock Analysis Report

Executive Summary

Sheetal Diamonds Limited engages in the manufacture and trading of diamonds and diamond jewelries in India and internationally.


Snowflake Analysis

Excellent balance sheet and fair value.

Share Price & News

How has Sheetal Diamonds's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 530525 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

530525

-4.4%

IN Luxury

-3.5%

IN Market


1 Year Return

-67.7%

530525

12.8%

IN Luxury

5.2%

IN Market

Return vs Industry: 530525 underperformed the Indian Luxury industry which returned 12.8% over the past year.

Return vs Market: 530525 underperformed the Indian Market which returned 5.2% over the past year.


Shareholder returns

530525IndustryMarket
7 Day0%-4.4%-3.5%
30 Day0%-1.4%-3.9%
90 Day0%6.0%-2.1%
1 Year-67.7%-67.7%13.5%12.8%7.2%5.2%
3 Year-62.5%-62.5%45.8%44.0%18.9%12.4%
5 Year-64.7%-64.7%97.3%93.7%29.4%17.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Sheetal Diamonds 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: 530525 (₹1.3) is trading below our estimate of fair value (₹5.42)

Significantly Below Fair Value: 530525 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 530525 is unprofitable, so we can't compare its PE Ratio to the Luxury industry average.

PE vs Market: 530525 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 530525's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 530525 is good value based on its PB Ratio (0.2x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

How is Sheetal Diamonds 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 Sheetal Diamonds 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 Sheetal Diamonds performed over the past 5 years?

25.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 530525 is currently unprofitable.

Growing Profit Margin: 530525 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 530525 is unprofitable, but has reduced losses over the past 5 years at a rate of 25.1% per year.

Accelerating Growth: Unable to compare 530525's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 530525 is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (6.4%).


Return on Equity

High ROE: 530525 has a negative Return on Equity (-12.12%), as it is currently unprofitable.


Next Steps

Financial Health

How is Sheetal Diamonds's financial position?


Financial Position Analysis

Short Term Liabilities: 530525's short term assets (₹60.8M) exceed its short term liabilities (₹28.1M).

Long Term Liabilities: 530525's short term assets (₹60.8M) do not cover its long term liabilities (₹-1,000.0).


Debt to Equity History and Analysis

Debt Level: 530525 is debt free.

Reducing Debt: 530525 has no debt compared to 5 years ago when its debt to equity ratio was 1.9%.


Balance Sheet

Inventory Level: 530525 has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 530525's debt is covered by short term assets.


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: Whilst unprofitable 530525 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 530525 is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 9.8% per year.


Next Steps

Dividend

What is Sheetal Diamonds's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 530525's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 530525's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 530525's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 530525's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 530525's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.6yrs

Average board tenure


CEO

Vinod Shah (65yo)

₹480,000

Compensation

Mr. Vinod Trikamlal Shah serves as Managing Director and Compliance Officer of Sheetal Diamonds Ltd and has been its Director since January 10, 2007. 


CEO Compensation Analysis

Compensation vs Market: Vinod's total compensation ($USD6.71K) is below average for companies of similar size in the Indian market ($USD50.10K).

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


Board Members

NamePositionTenureCompensationOwnership
Vinod Shah
MD, Compliance Officer & Director0yrs₹480.00k6.35% 413.0k
Pankaj Vinod Kumar Shah
Non–Executive Independent Director8.3yrs₹7.50kno data
Nita Shah
Non–Executive Independent Director8.9yrs₹7.50k1.56% 101.4k
Atul Kothari
Additional Non-Independent Director0.8yrsno datano data

8.6yrs

Average Tenure

55yo

Average Age

Experienced Board: 530525's board of directors are considered experienced (8.6 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

Sheetal Diamonds Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sheetal Diamonds Limited
  • Ticker: 530525
  • Exchange: BSE
  • Founded: 1994
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: ₹6.500m
  • Shares outstanding: 5.00m
  • Website: https://www.sheetaldiamonds.com

Number of Employees


Location

  • Sheetal Diamonds Limited
  • Bharat Diamond Bourse
  • Office No. BW-2030
  • Mumbai
  • Maharashtra
  • 400051
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
530525BSE (Mumbai Stock Exchange)YesEquity SharesININRAug 1998

Biography

Sheetal Diamonds Limited engages in the manufacture and trading of diamonds and diamond jewelries in India and internationally. The company offers white loose, and fancy cut and color diamonds; rings, earrings, tops, necklace sets, pendants, bracelets/bangles, and nose pins; and watches. It is also involved in the online trading of designer gold and diamond jewelries. The company also exports its products. Sheetal Diamonds Limited was incorporated in 1994 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 Analysis2020/02/27 12:37
End of Day Share Price2020/01/02 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.