BSE:532782

Stock Analysis Report

Sutlej Textiles and Industries

Executive Summary

Sutlej Textiles and Industries Limited manufactures and sells yarns and home textiles in India.

Rewards

Trading at 83% below its fair value

Risk Analysis

Earnings have declined by -11.29% per year over past 5 years

Has a high level of debt

Unstable dividend track record

Highly volatile share price over past 3 months

+ 1 more risk


Snowflake Analysis

Excellent balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 532782's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.8%

532782

0.6%

IN Luxury

-1.1%

IN Market


1 Year Return

-17.1%

532782

11.9%

IN Luxury

7.3%

IN Market

Return vs Industry: 532782 underperformed the Indian Luxury industry which returned 8.4% over the past year.

Return vs Market: 532782 underperformed the Indian Market which returned 6.7% over the past year.


Shareholder returns

532782IndustryMarket
7 Day3.8%0.6%-1.1%
30 Day20.3%3.7%1.5%
90 Day30.3%-1.1%5.1%
1 Year-15.1%-17.1%12.7%11.9%9.3%7.3%
3 Year-54.4%-57.2%54.0%52.1%28.9%22.0%
5 Year14.4%3.2%92.4%89.3%33.1%21.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Sutlej Textiles and Industries 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: 532782 (₹34.3) is trading below our estimate of fair value (₹201.73)

Significantly Below Fair Value: 532782 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 532782 is poor value based on its PE Ratio (11.3x) compared to the Luxury industry average (11.2x).

PE vs Market: 532782 is good value based on its PE Ratio (11.3x) compared to the Indian market (13.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 532782's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 532782 is overvalued based on its PB Ratio (0.6x) compared to the IN Luxury industry average (0.6x).


Next Steps

Future Growth

How is Sutlej Textiles and Industries 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 Sutlej Textiles and 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 Sutlej Textiles and Industries performed over the past 5 years?

-11.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 532782 has high quality earnings.

Growing Profit Margin: 532782's current net profit margins (1.9%) are lower than last year (2.3%).


Past Earnings Growth Analysis

Earnings Trend: 532782's earnings have declined by -11.3% per year over the past 5 years.

Accelerating Growth: 532782's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 532782 had negative earnings growth (-15.4%) over the past year, making it difficult to compare to the Luxury industry average (1.2%).


Return on Equity

High ROE: 532782's Return on Equity (5.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sutlej Textiles and Industries's financial position?


Financial Position Analysis

Short Term Liabilities: 532782's short term assets (₹8.7B) exceed its short term liabilities (₹5.6B).

Long Term Liabilities: 532782's short term assets (₹8.7B) exceed its long term liabilities (₹4.9B).


Debt to Equity History and Analysis

Debt Level: 532782's debt to equity ratio (70.3%) is considered high.

Reducing Debt: 532782's debt to equity ratio has reduced from 107.8% to 70.3% over the past 5 years.

Debt Coverage: 532782's debt is well covered by operating cash flow (37.8%).

Interest Coverage: 532782's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet

Inventory Level: 532782 has a high level of physical assets or inventory.

Debt Coverage by Assets: 532782's debt is covered by short term assets (assets are 1.3x debt).


Next Steps

Dividend

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

1.83%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%0.6%markettop25%2.3%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 532782's dividend (1.9%) is higher than the bottom 25% of dividend payers in the Indian market (0.56%).

High Dividend: 532782's dividend (1.9%) is low compared to the top 25% of dividend payers in the Indian market (2.31%).


Stability and Growth of Payments

Stable Dividend: 532782's dividend payments have been volatile in the past 10 years.

Growing Dividend: 532782's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21.4%), 532782's dividend payments are 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

What is the CEO of Sutlej Textiles and Industries's salary, the management and board of directors tenure and is there insider trading?

2.7yrs

Average management tenure


CEO

Suresh Khandelia (68yo)

0yrs

Tenure

₹61,371,089

Compensation

Mr. Suresh Kumar Khandelia serves as the President and Chief Executive Officer of Sutlej Textiles and Industries Limited, which he joined in July 1, 2005. Mr. Khandelia served as President of Kathua Unit a ...


CEO Compensation Analysis

Compensation vs Market: Suresh's total compensation ($USD866.04K) is above average for companies of similar size in the Indian market ($USD50.75K).

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


Management Age and Tenure

2.7yrs

Average Tenure

54yo

Average Age

Experienced Management: 532782's management team is considered experienced (2.7 years average tenure).


Board Age and Tenure

10.5yrs

Average Tenure

55yo

Average Age

Experienced Board: 532782's board of directors are seasoned and experienced ( 10.5 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.


Ownership Breakdown

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


Management Team

  • Chandra Nopany (54yo)

    Executive Chairman

    • Tenure: 11.3yrs
    • Compensation: ₹47.40m
  • Suresh Khandelia (68yo)

    CEO & President

    • Compensation: ₹61.37m
  • Manoj Contractor (49yo)

    Compliance Officer & Company Secretary

    • Tenure: 2.3yrs
    • Compensation: ₹6.92m
  • Vipul Saxena (55yo)

    Executive Vice President of Group Human Resource

    • R. Kankani

      Senior Vice President of Marketing - RTM

      • Manoj John (47yo)

        Vice President of Strategic Initiatives

        • Tenure: 6.2yrs
      • Bipeen Valame (50yo)

        CFO & Whole Time Director

        • Tenure: 2.9yrs
        • Compensation: ₹11.44m
      • P. Mittal

        Executive Vice President of Communications & Administration

        • Updeep Chatrath (54yo)

          Deputy Chief Executive Officer

          • Tenure: 2yrs
        • Hari Vashisth

          Executive President of Bhawanimandi Unit

          • Tenure: 1.8yrs

        Board Members

        • Umesh Khaitan (71yo)

          Independent Non-Executive Director

          • Tenure: 13.6yrs
          • Compensation: ₹800.00k
        • Chandra Nopany (54yo)

          Executive Chairman

          • Tenure: 11.3yrs
          • Compensation: ₹47.40m
        • Amit Dalal (56yo)

          Independent Non-Executive Director

          • Tenure: 13.6yrs
          • Compensation: ₹875.00k
        • Rohit Kumar Dhoot (51yo)

          Non-Executive Director

          • Tenure: 2.3yrs
          • Compensation: ₹700.00k
        • Rajan Dalal (70yo)

          Independent Non Executive Director

          • Tenure: 11.2yrs
          • Compensation: ₹750.00k
        • Ashok Mittal (54yo)

          Non-Executive Non-Independent Director

          • Tenure: 0.9yrs
          • Compensation: ₹60.27k
        • Rajiv Podar (55yo)

          Independent Non-Executive Director

          • Tenure: 10.5yrs
          • Compensation: ₹900.00k
        • Sonu Bhasin (56yo)

          Independent Non-Executive Director

          • Tenure: 4.7yrs
          • Compensation: ₹700.00k
        • Bipeen Valame (50yo)

          CFO & Whole Time Director

          • Tenure: 2.9yrs
          • Compensation: ₹11.44m

        Company Information

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


        Key Information

        • Name: Sutlej Textiles and Industries Limited
        • Ticker: 532782
        • Exchange: BSE
        • Founded: 2005
        • Industry: Textiles
        • Sector: Consumer Durables
        • Market Cap: ₹5.980b
        • Shares outstanding: 163.83m
        • Website: https://www.sutlejtextiles.com

        Number of Employees


        Location

        • Sutlej Textiles and Industries Limited
        • Lotus Corporate Park
        • E-Wing, 5th and 6th Floor
        • Mumbai
        • Maharashtra
        • 400063
        • India

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        532782BSE (Mumbai Stock Exchange)YesEquity SharesININRDec 2006
        SUTLEJTEXNSEI (National Stock Exchange of India)YesEquity SharesININRDec 2006

        Biography

        Sutlej Textiles and Industries Limited manufactures and sells yarns and home textiles in India. It operates through two segments, Yarn and Home Textiles. The company offers various yarns, including polyester, viscose, acrylic, modal and tencel, cotton mélange and cone-dyed, polyester/viscose, polyester/cotton, acrylic/cotton, polyester/acrylic, modal/cotton, modal/polyester, viscose/cotton, and bamboo/cotton yarns; and micro-polyester, micro-acrylic, micro-modal, hamel covered, low piling, carpet backing and pile, ready-to-dye package, cationic dyeable, bamboo, and soy milk fiber yarns. It also provides home textiles, such as drapery fabrics; upholstery fabrics; made-ups comprising cushions, throws, curtains, bed scarves, shams, quilts and quilting materials, and chenille items; and finishes consisting of fire retardants, insect repellents, scotchgard protection finishes, aero and decca finishes, soil repellents, and bio and aroma finishes. In addition, the company exports its products to approximately 65 countries. Sutlej Textiles and Industries Limited was incorporated in 2005 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 Analysis2020/01/23 12:45
        End of Day Share Price2020/01/23 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.