BSE:533101

Stock Analysis Report

Suryaamba Spinning Mills

Executive Summary

Suryaamba Spinning Mills Limited manufactures and sells synthetic ring spun yarn in India.

Rewards

Trading at 79.4% below its fair value

Earnings grew by 51.1% over the past year

Risk Analysis

Interest payments are not well covered by earnings

Does not have a meaningful market cap (₹157M)

Unstable dividend track record



Snowflake Analysis

Undervalued with solid track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 533101 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.4%

533101

0.2%

IN Luxury

-0.4%

IN Market


1 Year Return

-12.8%

533101

16.6%

IN Luxury

11.1%

IN Market

Return vs Industry: 533101 underperformed the Indian Luxury industry which returned 16.6% over the past year.

Return vs Market: 533101 underperformed the Indian Market which returned 11.1% over the past year.


Shareholder returns

533101IndustryMarket
7 Day1.4%0.2%-0.4%
30 Day3.2%3.3%-1.2%
90 Day8.8%8.5%3.3%
1 Year-11.1%-12.8%17.3%16.6%13.0%11.1%
3 Year-10.5%-14.4%53.8%52.0%25.3%18.6%
5 Year47.0%34.3%103.0%96.4%35.4%23.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Suryaamba Spinning 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: 533101 (₹53.7) is trading below our estimate of fair value (₹260.79)

Significantly Below Fair Value: 533101 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 533101 is good value based on its PE Ratio (3.7x) compared to the Luxury industry average (11x).

PE vs Market: 533101 is good value based on its PE Ratio (3.7x) compared to the Indian market (13.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 533101's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 533101 is good value based on its PB Ratio (0.5x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

How is Suryaamba Spinning Mills 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 Suryaamba Spinning 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 Suryaamba Spinning Mills performed over the past 5 years?

24.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 533101 has high quality earnings.

Growing Profit Margin: 533101's current net profit margins (2.6%) are higher than last year (1.7%).


Past Earnings Growth Analysis

Earnings Trend: 533101's earnings have grown significantly by 24.4% per year over the past 5 years.

Accelerating Growth: 533101's earnings growth over the past year (51.1%) exceeds its 5-year average (24.4% per year).

Earnings vs Industry: 533101 earnings growth over the past year (51.1%) exceeded the Luxury industry 2.7%.


Return on Equity

High ROE: 533101's Return on Equity (13.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Suryaamba Spinning Mills's financial position?


Financial Position Analysis

Short Term Liabilities: 533101's short term assets (₹368.1M) exceed its short term liabilities (₹362.1M).

Long Term Liabilities: 533101's short term assets (₹368.1M) exceed its long term liabilities (₹276.5M).


Debt to Equity History and Analysis

Debt Level: 533101's debt to equity ratio (107.2%) is considered high.

Reducing Debt: 533101's debt to equity ratio has increased from 93.1% to 107.2% over the past 5 years.

Debt Coverage: 533101's debt is well covered by operating cash flow (45.5%).

Interest Coverage: 533101's interest payments on its debt are not well covered by EBIT (1.7x coverage).


Balance Sheet

Inventory Level: 533101 has a high level of physical assets or inventory.

Debt Coverage by Assets: 533101's debt is covered by short term assets (assets are 1.1x debt).


Next Steps

Dividend

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

1.86%

Current Dividend Yield


Dividend Yield vs Market

company1.9%marketbottom25%0.6%markettop25%2.5%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 533101's dividend (1.86%) is higher than the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: 533101's dividend (1.86%) is low compared to the top 25% of dividend payers in the Indian market (2.51%).


Stability and Growth of Payments

Stable Dividend: 533101 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 533101's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (7%), 533101's dividend payments are thoroughly 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

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

7.2yrs

Average management tenure


CEO

Virender Agrawal (52yo)

8.9yrs

Tenure

₹3,001,000

Compensation

Mr. Virender Kumar Agrawal, B.E. (Textiles) has been the Managing Director of Suryaamba Spinning Mills Ltd. since March 1, 2011. Mr. Agrawal served as Compliance officer of Suryaamba Spinning Mills Ltd.  ...


CEO Compensation Analysis

Compensation vs Market: Virender's total compensation ($USD41.96K) is about average for companies of similar size in the Indian market ($USD50.14K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Virender Agrawal
MD & Executive Chairman8.9yrs₹3.00m42.87% 67.5m
Seema Agarwal
Joint MD & Executive Director11.1yrs₹2.43m21.91% 34.5m
Gajanan Chhawsaria
Chief Financial Officer5.5yrs₹1.40mno data
Deepa Dudani
Company Secretary & Compliance Officer1.9yrs₹286.00kno data
Mayank Agarwal
Whole-Time Director10.5yrs₹1.92m9.24% 14.6m
Pujit Agarwal
Vice President of Marketing0yrsno data1.23% 1.9m

7.2yrs

Average Tenure

40yo

Average Age

Experienced Management: 533101's management team is seasoned and experienced (7.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Virender Agrawal
MD & Executive Chairman8.9yrs₹3.00m42.87% 67.5m
Seema Agarwal
Joint MD & Executive Director11.1yrs₹2.43m21.91% 34.5m
Mayank Agarwal
Whole-Time Director10.5yrs₹1.92m9.24% 14.6m
Amit Krishan Goela
Non-Executive Independent Director8.6yrs₹25.00kno data
Sushil Kapadia
Independent Director (Leave of Absence)1.3yrs₹25.00kno data
Nilesh Panpaliya
Non-Executive Independent Director (Leave of Absence)0.6yrsno datano data

8.6yrs

Average Tenure

51.5yo

Average Age

Experienced Board: 533101'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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Suryaamba Spinning Mills Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Suryaamba Spinning Mills Limited
  • Ticker: 533101
  • Exchange: BSE
  • Founded: 1993
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹157.445m
  • Shares outstanding: 2.93m
  • Website: https://www.suryaamba.com

Number of Employees


Location

  • Suryaamba Spinning Mills Limited
  • As-101, Kanha Apartment
  • 128, Chhaoni
  • Nagpur
  • Maharashtra
  • 440013
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
533101BSE (Mumbai Stock Exchange)YesEquity SharesININRSep 2009

Biography

Suryaamba Spinning Mills Limited manufactures and sells synthetic ring spun yarn in India. It offers polyester, polyester/viscose, viscose, and fancy yarns, as well as other blends for weaving, knitting, embroidery, and other industrial applications. The company exports its products to the United States, Mexico, Italy, Germany, Spain, Portugal, Switzerland, Belgium, Turkey, Egypt, Morocco, Nigeria, Poland, Canada, Peru, Columbia, Brazil, Argentina, Chile, Bangladesh, Pakistan, and South Africa. It sells its products through wholesalers, retailers, etc. The company was founded in 1993 and is based in Nagpur, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 12:56
End of Day Share Price2020/02/14 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.