BSE:532230

Stock Analysis Report

Executive Summary

Bengal Tea & Fabrics Limited engages in textile, tea, and real estate businesses in India.

Risk Analysis

Earnings have declined by -10.45% per year over past 5 years

Does not have a meaningful market cap (₹283M)

Highly volatile share price over past 3 months

Large one-off items impacting financial results

+ 1 more risk


Snowflake Analysis

Excellent balance sheet and overvalued.

Share Price & News

How has Bengal Tea & Fabrics's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 532230's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-16.9%

532230

1.1%

IN Luxury

-0.8%

IN Market


1 Year Return

-23.4%

532230

18.4%

IN Luxury

11.1%

IN Market

Return vs Industry: 532230 underperformed the Indian Luxury industry which returned 16.6% over the past year.

Return vs Market: 532230 underperformed the Indian Market which returned 11.1% over the past year.


Shareholder returns

532230IndustryMarket
7 Day-16.9%1.1%-0.8%
30 Day-5.2%3.3%-2.3%
90 Day11.6%9.6%2.1%
1 Year-23.4%-23.4%19.2%18.4%13.1%11.1%
3 Year-39.2%-39.2%54.9%51.5%22.9%16.2%
5 Year-28.6%-30.1%106.1%99.4%34.9%22.6%

Price Volatility Vs. Market

How volatile is Bengal Tea & Fabrics's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Bengal Tea & Fabrics undervalued compared to its fair value and its price relative to the market?

31.65x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 532230 (₹29.85) is trading above our estimate of fair value (₹14.39)

Significantly Below Fair Value: 532230 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 532230 is poor value based on its PE Ratio (31.7x) compared to the Luxury industry average (11.1x).

PE vs Market: 532230 is poor value based on its PE Ratio (31.7x) compared to the Indian market (13.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 532230's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 532230 is good value based on its PB Ratio (0.3x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

How is Bengal Tea & Fabrics 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 Bengal Tea & Fabrics 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 Bengal Tea & Fabrics performed over the past 5 years?

-10.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 532230 has a large one-off gain of ₹1.8M impacting its December 31 2019 financial results.

Growing Profit Margin: 532230's current net profit margins (0.7%) are lower than last year (1.2%).


Past Earnings Growth Analysis

Earnings Trend: 532230's earnings have declined by -10.4% per year over the past 5 years.

Accelerating Growth: 532230's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 532230 had negative earnings growth (-37.4%) over the past year, making it difficult to compare to the Luxury industry average (2.5%).


Return on Equity

High ROE: 532230's Return on Equity (0.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Bengal Tea & Fabrics's financial position?


Financial Position Analysis

Short Term Liabilities: 532230's short term assets (₹654.2M) exceed its short term liabilities (₹407.1M).

Long Term Liabilities: 532230's short term assets (₹654.2M) exceed its long term liabilities (₹9.8M).


Debt to Equity History and Analysis

Debt Level: 532230's debt to equity ratio (19.1%) is considered satisfactory.

Reducing Debt: 532230's debt to equity ratio has reduced from 112.4% to 19.1% over the past 5 years.

Debt Coverage: 532230's debt is well covered by operating cash flow (21.1%).

Interest Coverage: 532230's interest payments on its debt are not well covered by EBIT (1x coverage).


Balance Sheet

Inventory Level: 532230 has a high level of physical assets or inventory.

Debt Coverage by Assets: 532230's debt is covered by short term assets (assets are 3.4x debt).


Next Steps

Dividend

What is Bengal Tea & Fabrics's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%0.6%markettop25%2.5%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 532230's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 532230'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 532230's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 532230's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 532230 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 532230'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?

7.3yrs

Average management tenure


CEO

Adarsh Kanoria (52yo)

12.1yrs

Tenure

₹6,101,314

Compensation

Mr. Adarsh Kanoria, B.Com (Hons), has been the Managing Director of Bengal Tea & Fabrics Limited. since January 1, 2008 and has been its Chairman since November 5, 2016. Mr. Kanoria has experience in the f ...


CEO Compensation Analysis

Compensation vs Market: Adarsh's total compensation ($USD85.32K) is above average for companies of similar size in the Indian market ($USD50.21K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Adarsh Kanoria
Chairman & MD12.1yrs₹6.10m12.2% 34.5m
Atul Doshi
Chief Financial Officer0yrsno datano data
Sunita Shah
Compliance Officer & Company Secretary7.3yrsno data0.0067% 18.8k
Kailash Khandelwal
Whole-Time Director6.1yrs₹3.25mno data
Sanjay Rathore
President of Textile Division1.2yrsno datano data
Manish Agarwal
Assistant General Manager of Finance & Accounts0yrsno datano data

7.3yrs

Average Tenure

52yo

Average Age

Experienced Management: 532230's management team is seasoned and experienced (7.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Adarsh Kanoria
Chairman & MD12.1yrs₹6.10m12.2% 34.5m
Kailash Khandelwal
Whole-Time Director6.1yrs₹3.25mno data
Samvegbhai Sheth
Non-Executive Director 15.8yrs₹50.00kno data
Golam Momen
Non-Executive Independent Director32.2yrs₹200.00k0.0083% 23.6k
Abhijit Datta
Non-Executive Independent Director10.6yrs₹100.00kno data
Dhirendra Kumar
Non-Executive Independent Director16.5yrs₹200.00kno data
Ashutosh Bhagat
Non-Executive Independent Director5.8yrs₹120.00kno data
Navin Nayar
Non-Executive Independent Director 5.8yrs₹170.00kno data
Shubha Kanoria
Non-Executive Director5.8yrs₹120.00k4.99% 14.1m

6.1yrs

Average Tenure

58yo

Average Age

Experienced Board: 532230's board of directors are considered experienced (6.1 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

Bengal Tea & Fabrics Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bengal Tea & Fabrics Limited
  • Ticker: 532230
  • Exchange: BSE
  • Founded: 1983
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹282.788m
  • Shares outstanding: 9.01m
  • Website: https://www.bengaltea.com

Number of Employees


Location

  • Bengal Tea & Fabrics Limited
  • Century Towers
  • 4th Floor
  • Kolkata
  • West Bengal
  • 700017
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532230BSE (Mumbai Stock Exchange)YesEquity SharesININRMay 2002

Biography

Bengal Tea & Fabrics Limited engages in textile, tea, and real estate businesses in India. The company manufactures and sells cotton and cotton mixture fabrics, such as satin, PC, and twill fabrics. It is also involved in the growing, processing, and blending of tea; manufacture of instant tea; and sale of developed plots. The company’s tea products include black tea, tea leaf and dust, and tea seeds. It operates three tea estates with a planted area of approximately 621.73 hectares located in North Lakhimpur in Upper Assam. In addition, Bengal Tea & Fabrics Limited exports its products. The company was incorporated in 1983 and is based in Kolkata, India. Bengal Tea & Fabrics Limited is a subsidiary of Rydak Enterprises & Investments Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 12:45
End of Day Share Price2020/02/17 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.