BSE:539111

Stock Analysis Report

Executive Summary

Sheshadri Industries Limited manufactures, sells, and exports textile products in India and internationally.

Rewards

Trading at 67.2% below its fair value

Risk Analysis

Earnings have declined by -20.79% per year over past 5 years

Does not have a meaningful market cap (₹21M)

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

Does not have meaningful revenue (₹221M)



Snowflake Analysis

Slightly overvalued with imperfect balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 539111 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

539111

0.08%

IN Luxury

-2.9%

IN Market


1 Year Return

n/a

539111

6.2%

IN Luxury

2.8%

IN Market

Return vs Industry: Insufficient data to determine how 539111 performed against the Indian Luxury industry.

Return vs Market: Insufficient data to determine how 539111 performed against the Indian Market.


Shareholder returns

539111IndustryMarket
7 Day0%0.08%-2.9%
30 Dayn/a-0.2%-1.4%
90 Dayn/a7.3%6.2%
1 Yearn/a7.0%6.2%4.8%2.8%
3 Year20.6%20.6%60.0%58.1%31.3%24.4%
5 Yearn/a110.7%106.9%42.7%29.9%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Sheshadri 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: 539111 (₹4.22) is trading below our estimate of fair value (₹12.85)

Significantly Below Fair Value: 539111 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 539111 is unprofitable, so we can't compare its PE Ratio to the Luxury industry average.

PE vs Market: 539111 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 539111's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 539111 has negative assets, so we can't compare its PB Ratio to the IN Luxury industry average.


Next Steps

Future Growth

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

20.6%

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 Sheshadri 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 Sheshadri Industries performed over the past 5 years?

-20.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 539111 is currently unprofitable.

Growing Profit Margin: 539111 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 539111 is unprofitable, and losses have increased over the past 5 years at a rate of -20.8% per year.

Accelerating Growth: Unable to compare 539111's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 539111 is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (1%).


Return on Equity

High ROE: 539111'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 Sheshadri Industries's financial position?


Financial Position Analysis

Short Term Liabilities: 539111 has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: 539111 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: 539111 has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: 539111's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: 539111 has a high level of physical assets or inventory.

Debt Coverage by Assets: 539111 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: Whilst unprofitable 539111 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 539111 is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -23.3% per year.


Next Steps

Dividend

What is Sheshadri Industries'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 539111's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 539111'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 539111's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 539111'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 539111'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 Sheshadri Industries's salary, the management and board of directors tenure and is there insider trading?

5.9yrs

Average board tenure


CEO

Jeetender Agarwal (55yo)

5.3yrs

Tenure

0

Mr. Jeetender Kumar Agarwal has been a Managing Director of Sheshadri Industries Limited since September 3, 2014 and also serves as its Chief Financial Officer. Mr. Agarwal has 22 years of experience in te ...


CEO Compensation Analysis

Compensation vs Market: Jeetender's total compensation ($USD0.00) is below average for companies of similar size in the Indian market ($USD50.82K).

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


Board Age and Tenure

5.9yrs

Average Tenure

Experienced Board: 539111's board of directors are considered experienced (5.9 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

  • Jeetender Agarwal (55yo)

    MD, CFO & Director

    • Tenure: 5.3yrs

Board Members

  • Jeetender Agarwal (55yo)

    MD, CFO & Director

    • Tenure: 5.3yrs
  • Surender Agarwal

    Independent Director

    • Tenure: 5.9yrs
    • Compensation: ₹24.00k
  • Manish Gupta

    Independent Director

    • Tenure: 5.9yrs
    • Compensation: ₹24.00k
  • Sushma Gupta (56yo)

    Independent Woman Director

    • Tenure: 4.8yrs
    • Compensation: ₹14.00k

Company Information

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


Key Information

  • Name: Sheshadri Industries Limited
  • Ticker: 539111
  • Exchange: BSE
  • Founded: 2009
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹20.929m
  • Shares outstanding: 4.96m
  • Website: https://www.sheshadri.in

Number of Employees


Location

  • Sheshadri Industries Limited
  • Surya Towers
  • 6th Floor
  • Secunderabad
  • Andhra Pradesh
  • 500003
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
539111BSE (Mumbai Stock Exchange)YesEquity SharesININRApr 2015

Biography

Sheshadri Industries Limited manufactures, sells, and exports textile products in India and internationally. The company’s products include cotton, polyester, polyester-viscose, and blended yarns; compact, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/12 13:06
End of Day Share Price2019/12/06 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.