BSE:533018

Stock Analysis Report

Executive Summary

Simplex Mills Company Limited manufactures and sells industrial cloth and cotton yarn primarily in India.

Rewards

Trading at 55.1% below its fair value

Became profitable this year

Risk Analysis

Makes less than USD$1m in revenue (₹1M)

Does not have a meaningful market cap (₹30M)

Has a high level of debt

Large one-off items impacting financial results



Snowflake Analysis

Good value with questionable track record.

Share Price & News

How has Simplex Mills's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 533018 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

533018

-0.5%

IN Luxury

-1.5%

IN Market


1 Year Return

n/a

533018

18.2%

IN Luxury

10.7%

IN Market

Return vs Industry: Insufficient data to determine how 533018 performed against the Indian Luxury industry.

Return vs Market: Insufficient data to determine how 533018 performed against the Indian Market.


Shareholder returns

533018IndustryMarket
7 Day0%-0.5%-1.5%
30 Day-6.0%3.0%-2.7%
90 Day-6.0%9.2%1.3%
1 Yearn/a19.0%18.2%12.7%10.7%
3 Year-58.3%-58.3%52.2%48.8%22.0%15.1%
5 Year-38.5%-38.5%106.9%100.1%34.5%22.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Simplex Mills 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: 533018 (₹10) is trading below our estimate of fair value (₹22.27)

Significantly Below Fair Value: 533018 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 533018 is good value based on its PE Ratio (4.9x) compared to the Luxury industry average (11.2x).

PE vs Market: 533018 is good value based on its PE Ratio (4.9x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 533018's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 533018 has negative assets, so we can't compare its PB Ratio to the IN Luxury industry average.


Next Steps

Future Growth

How is Simplex Mills forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

19.9%

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 Simplex Mills 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 Simplex Mills performed over the past 5 years?

75.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 533018 has a large one-off gain of ₹4.7M impacting its December 31 2019 financial results.

Growing Profit Margin: 533018 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 533018 has become profitable over the past 5 years, growing earnings by 75.4% per year.

Accelerating Growth: 533018 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 533018 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Luxury industry (5.6%).


Return on Equity

High ROE: 533018's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Simplex Mills's financial position?


Financial Position Analysis

Short Term Liabilities: 533018 has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: 533018 has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: 533018 has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: 533018's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: 533018 has a high level of physical assets or inventory.

Debt Coverage by Assets: 533018 has negative shareholder equity (liabilities exceed assets) therefore debt is not 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: 533018 is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: 533018 is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Simplex Mills's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%0.6%markettop25%2.6%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 533018's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 533018'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 533018's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 533018'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 533018'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?

7.1yrs

Average board tenure


CEO

Simplex Mills has no CEO, or we have no data on them.


Board Members

NamePositionTenureCompensationOwnership
Sita Sunil
Non-Executive Director10.7yrs₹1.25kno data
Shekhar Singh
Non Executive Director7.1yrs₹1.50kno data
Fatima Fernandes
Non-Executive Director5yrs₹1.25kno data
Sabhapati Shukla
Non-Executive Independent Director10.3yrs₹1.50k0.0024% 711.1
Manish Harshey
Non-Executive Independent Director3yrs₹1.50kno data

7.1yrs

Average Tenure

47yo

Average Age

Experienced Board: 533018's board of directors are considered experienced (7.1 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

Simplex Mills Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Simplex Mills Company Limited
  • Ticker: 533018
  • Exchange: BSE
  • Founded: 1998
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹30.005m
  • Shares outstanding: 3.00m
  • Website: https://www.simplex-group.com/mills

Number of Employees


Location

  • Simplex Mills Company Limited
  • 30, Keshavrao Khadye Marg
  • Sant Gadge Maharaj Chowk
  • Mumbai
  • Maharashtra
  • 400011
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
533018BSE (Mumbai Stock Exchange)YesEquity SharesININRSep 2008

Biography

Simplex Mills Company Limited manufactures and sells industrial cloth and cotton yarn primarily in India. It offers yarns; and fabric products, such as grey belting fabrics, canvas cloth, and cotton and nylon, as well as bleached, dyed, printed, wearable, and sheeting fabrics in cotton and blends. The company also provides oxford weave, twill weave, leno weave, and nylon fabrics. Simplex Mills Company Limited was incorporated in 1998 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 Analysis2020/02/19 12:59
End of Day Share Price2020/02/12 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.