BSE:532678

Stock Analysis Report

Executive Summary

Bombay Rayon Fashions Limited, an integrated textile company, manufactures and sells yarn, fabrics, and garments.

Rewards

Trading at 42.3% below its fair value

Risk Analysis

Earnings have declined by -53.32% per year over past 5 years

Currently unprofitable and not forecast to become profitable over the next 3 years

Shareholders have been diluted in the past year

Does not have a meaningful market cap (₹1B)



Snowflake Analysis

Fair value with worrying balance sheet.


Similar Companies

Alok Industries

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Share Price & News

How has Bombay Rayon Fashions's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 532678 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.2%

532678

0.6%

IN Luxury

-1.1%

IN Market


1 Year Return

-52.2%

532678

11.9%

IN Luxury

7.3%

IN Market

Return vs Industry: 532678 underperformed the Indian Luxury industry which returned 8.4% over the past year.

Return vs Market: 532678 underperformed the Indian Market which returned 6.7% over the past year.


Shareholder returns

532678IndustryMarket
7 Day3.2%0.6%-1.1%
30 Day4.3%3.7%1.5%
90 Day10.3%-1.1%5.1%
1 Year-52.2%-52.2%12.7%11.9%9.3%7.3%
3 Year-97.3%-97.3%54.0%52.1%28.9%22.0%
5 Year-96.7%-96.7%92.4%89.3%33.1%21.0%

Price Volatility Vs. Market

How volatile is Bombay Rayon Fashions's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Bombay Rayon Fashions undervalued compared to its fair value and its price relative to the market?

41.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 532678 (₹4.04) is trading below our estimate of fair value (₹7)

Significantly Below Fair Value: 532678 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 532678 is unprofitable, so we can't compare its PE Ratio to the Luxury industry average.

PE vs Market: 532678 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 532678's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 532678 is good value based on its PB Ratio (0.1x) compared to the IN Luxury industry average (0.6x).


Next Steps

Future Growth

How is Bombay Rayon Fashions forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

20.1%

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 Bombay Rayon Fashions 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 Bombay Rayon Fashions performed over the past 5 years?

-53.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 532678 is currently unprofitable.

Growing Profit Margin: 532678 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 532678 is unprofitable, and losses have increased over the past 5 years at a rate of -53.3% per year.

Accelerating Growth: Unable to compare 532678's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 532678 is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (1.2%).


Return on Equity

High ROE: 532678 has a negative Return on Equity (-119.91%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Bombay Rayon Fashions's financial position?


Financial Position Analysis

Short Term Liabilities: 532678's short term assets (₹30.2B) do not cover its short term liabilities (₹43.9B).

Long Term Liabilities: 532678's short term assets (₹30.2B) exceed its long term liabilities (₹10.4B).


Debt to Equity History and Analysis

Debt Level: 532678's debt to equity ratio (276.7%) is considered high.

Reducing Debt: 532678's debt to equity ratio has increased from 208.5% to 276.7% over the past 5 years.


Balance Sheet

Inventory Level: 532678 has a high level of physical assets or inventory.

Debt Coverage by Assets: 532678's debt is not covered by short term assets (assets are 0.6x 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: Insufficient data to determine if 532678 has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if 532678 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Bombay Rayon Fashions's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%0.6%markettop25%2.3%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 532678's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 532678'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 532678's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 532678's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 532678 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 532678's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

What is the CEO of Bombay Rayon Fashions's salary, the management and board of directors tenure and is there insider trading?

3.6yrs

Average board tenure


CEO

Prashant Agrawal (45yo)

0yrs

Tenure

₹24,500,000

Compensation

Mr. Prashant Janardan Agrawal, B.Tech Chemical, M.S.-Chemical Engineering & Petr, has been Managing Director and Executive Director at STI India Limited since November 25, 2010 and serves as its Chief Exec ...


CEO Compensation Analysis

Compensation vs Market: Prashant's total compensation ($USD345.73K) is above average for companies of similar size in the Indian market ($USD50.75K).

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


Board Age and Tenure

3.6yrs

Average Tenure

52yo

Average Age

Experienced Board: 532678's board of directors are considered experienced (3.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Sell₹618,89601 Nov 19
Ashwell Holding Company Private Limited
EntityCompany
Shares164,780
Max Price₹3.78
Sell₹898,23824 Oct 19
Ashwell Holding Company Private Limited
EntityCompany
Shares211,370
Max Price₹4.44
Sell₹1,770,75625 Sep 19
Ashwell Holding Company Private Limited
EntityCompany
Shares287,095
Max Price₹6.19

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.3%.


Management Team

  • Anand Mundra (63yo)

    Executive Director of Finance

    • Tenure: 3.6yrs
    • Compensation: ₹4.90m
  • Prachi Deshpande (42yo)

    Director of Secretarial & Corporate Affairs

    • Tenure: 3.6yrs
    • Compensation: ₹2.80m
  • Prashant Agrawal (45yo)

    MD & Executive Non-Independent Director

    • Compensation: ₹24.50m
  • D. Rajagopalan

    Head of Engineering

    • Hemachandra Raje

      Chief Executive Officer of Operations

      • Compensation: ₹260.05k
    • M. Gopi

      Head of Processing

      • Sudhakar Parab

        Chief Executive of Processing

        • Compensation: ₹298.70k
      • Peermohamed Sirajudeen

        General Manager of Accounts & Commercial


        Board Members

        • Anand Mundra (63yo)

          Executive Director of Finance

          • Tenure: 3.6yrs
          • Compensation: ₹4.90m
        • John Mathew (57yo)

          Non-Executive Independent Director

          • Tenure: 4.7yrs
          • Compensation: ₹220.00k
        • Prachi Deshpande (42yo)

          Director of Secretarial & Corporate Affairs

          • Tenure: 3.6yrs
          • Compensation: ₹2.80m
        • Aman Agrawal (47yo)

          Chairman

          • Tenure: 1.7yrs
          • Compensation: ₹24.50m
        • Prashant Agrawal (45yo)

          MD & Executive Non-Independent Director

          • Compensation: ₹24.50m
        • Suresh Vishwasrao (73yo)

          Non-Executive Independent Director

          • Tenure: 10.8yrs
          • Compensation: ₹220.00k
        • Vishal Sharma

          Additional Independent & Non-Executive Director

          • Tenure: 0.08yrs
        • Jasmeet Bhasin

          Additional Independent & Non-Executive Director

          • Tenure: 0.08yrs

        Company Information

        Bombay Rayon Fashions Limited's company bio, employee growth, exchange listings and data sources


        Key Information

        • Name: Bombay Rayon Fashions Limited
        • Ticker: 532678
        • Exchange: BSE
        • Founded: 1986
        • Industry: Textiles
        • Sector: Consumer Durables
        • Market Cap: ₹1.333b
        • Shares outstanding: 317.48m
        • Website: https://www.bombayrayon.com

        Location

        • Bombay Rayon Fashions Limited
        • DLH Mangal Murti
        • 3rd floor
        • Mumbai
        • Maharashtra
        • 400054
        • India

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        532678BSE (Mumbai Stock Exchange)YesEquity SharesININRDec 2005
        BRFLNSEI (National Stock Exchange of India)YesEquity SharesININRDec 2005

        Biography

        Bombay Rayon Fashions Limited, an integrated textile company, manufactures and sells yarn, fabrics, and garments. The company also manufactures apparel; and polyester buttons for shirts, coats, outer wear, and trousers, as well as fancy buttons. In addition, it engages in the wholesale, marketing, and distribution of clothing products. Bombay Rayon Fashions Limited also exports its products. The company was founded in 1986 and is headquartered in Mumbai, India. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2020/01/22 12:46
        End of Day Share Price2020/01/22 00:00
        Earnings2019/09/30
        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.