BSE:535136

Stock Analysis Report

Executive Summary

Kavita Fabrics Limited manufactures and sells synthetic fabrics in the form of semi-finished sarees and dress materials primarily in India.

Risk Analysis

Earnings have declined by -22.4% per year over past 5 years

Shares are highly illiquid

Makes less than USD$1m in revenue (₹18M)

Does not have a meaningful market cap (₹127M)

+ 1 more risk


Snowflake Analysis

Flawless balance sheet with poor track record.


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Share Price & News

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


Latest Share Price and Events

Stable Share Price: 535136's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.8%

535136

-0.5%

IN Luxury

-1.5%

IN Market


1 Year Return

n/a

535136

18.2%

IN Luxury

10.7%

IN Market

Return vs Industry: Insufficient data to determine how 535136 performed against the Indian Luxury industry.

Return vs Market: Insufficient data to determine how 535136 performed against the Indian Market.


Shareholder returns

535136IndustryMarket
7 Day4.8%-0.5%-1.5%
30 Day22.7%3.0%-2.7%
90 Dayn/a9.2%1.3%
1 Yearn/a19.0%18.2%12.7%10.7%
3 Year22.3%22.3%52.2%48.8%22.0%15.1%
5 Year28.2%28.2%106.9%100.1%34.5%22.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Kavita Fabrics undervalued compared to its fair value and its price relative to the market?

371.75x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 535136 (₹12.18) is trading above our estimate of fair value (₹9.2)

Significantly Below Fair Value: 535136 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 535136 is poor value based on its PE Ratio (371.7x) compared to the Luxury industry average (11.2x).

PE vs Market: 535136 is poor value based on its PE Ratio (371.7x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 535136's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 535136 is overvalued based on its PB Ratio (1x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

How is Kavita Fabrics 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 Kavita 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 Kavita Fabrics performed over the past 5 years?

-22.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 535136 has a large one-off gain of ₹317.7K impacting its December 31 2019 financial results.

Growing Profit Margin: 535136's current net profit margins (1.7%) are higher than last year (1.4%).


Past Earnings Growth Analysis

Earnings Trend: 535136's earnings have declined by -22.4% per year over the past 5 years.

Accelerating Growth: 535136's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 535136 had negative earnings growth (-15.5%) over the past year, making it difficult to compare to the Luxury industry average (5.6%).


Return on Equity

High ROE: 535136's Return on Equity (0.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Kavita Fabrics's financial position?


Financial Position Analysis

Short Term Liabilities: 535136's short term assets (₹65.7M) exceed its short term liabilities (₹7.3M).

Long Term Liabilities: 535136 has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: 535136 is debt free.

Reducing Debt: 535136 has no debt compared to 5 years ago when its debt to equity ratio was 10.7%.

Debt Coverage: 535136 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 535136 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 535136 has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 535136's debt is covered by short term assets.


Next Steps

Dividend

What is Kavita Fabrics'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 535136's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 535136'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 535136's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 535136'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 535136'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?


CEO

Ganesh Nibe 0

0

Mr. Ganesh Ramesh Nibe serves as Additional Director and Managing Director of Kavita Fabrics Limited since February 7, 2020. 


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

Kavita Fabrics Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kavita Fabrics Limited
  • Ticker: 535136
  • Exchange: BSE
  • Founded: 2005
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹126.900m
  • Shares outstanding: 10.42m
  • Website: https://www.kavitafabrics.com

Location

  • Kavita Fabrics Limited
  • 105, Balaji Industrial Society-1
  • Udhana Magdalla Road
  • Surat
  • Gujarat
  • 395007
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
535136BSE (Mumbai Stock Exchange)YesEquity SharesININRMar 2013

Biography

Kavita Fabrics Limited manufactures and sells synthetic fabrics in the form of semi-finished sarees and dress materials primarily in India. The company was formerly known as Kavita Fabrics Private Limited and changed its name to Kavita Fabrics Limited in July 2012. Kavita Fabrics Limited was incorporated in 2005 and is based in Surat, 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 13:10
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.