BSE:539216

Stock Analysis Report

Junction Fabrics and Apparels

Executive Summary

Junction Fabrics and Apparels Limited manufactures, distributes, and sells fabrics and hosiery garments in India.

Rewards

PE ratio (8.2x) is below the Indian market (13.8x)

Earnings grew by 118% over the past year

Risk Analysis

Interest payments are not well covered by earnings

Does not have a meaningful market cap (₹118M)



Snowflake Analysis

Solid track record with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 539216 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

539216

0.6%

IN Luxury

-1.1%

IN Market


1 Year Return

66.0%

539216

11.9%

IN Luxury

7.3%

IN Market

Return vs Industry: 539216 exceeded the Indian Luxury industry which returned 8.4% over the past year.

Return vs Market: 539216 exceeded the Indian Market which returned 6.7% over the past year.


Shareholder returns

539216IndustryMarket
7 Day0%0.6%-1.1%
30 Day10.3%3.7%1.5%
90 Dayn/a-1.1%5.1%
1 Year66.0%66.0%12.7%11.9%9.3%7.3%
3 Year50.9%50.9%54.0%52.1%28.9%22.0%
5 Yearn/a92.4%89.3%33.1%21.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

8.01x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 539216's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 539216's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 539216 is good value based on its PE Ratio (8.2x) compared to the Luxury industry average (11.2x).

PE vs Market: 539216 is good value based on its PE Ratio (8.2x) compared to the Indian market (13.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 539216's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 539216 is overvalued based on its PB Ratio (1.5x) compared to the IN Luxury industry average (0.6x).


Next Steps

Future Growth

How is Junction Fabrics and Apparels 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 Junction Fabrics and Apparels 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 Junction Fabrics and Apparels performed over the past 5 years?

27.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 539216 has high quality earnings.

Growing Profit Margin: 539216's current net profit margins (1.7%) are higher than last year (0.8%).


Past Earnings Growth Analysis

Earnings Trend: 539216's earnings have grown significantly by 27.3% per year over the past 5 years.

Accelerating Growth: 539216's earnings growth over the past year (118%) exceeds its 5-year average (27.3% per year).

Earnings vs Industry: 539216 earnings growth over the past year (118%) exceeded the Luxury industry 1.2%.


Return on Equity

High ROE: 539216's Return on Equity (17.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Junction Fabrics and Apparels's financial position?


Financial Position Analysis

Short Term Liabilities: 539216's short term assets (₹322.4M) exceed its short term liabilities (₹213.6M).

Long Term Liabilities: 539216's short term assets (₹322.4M) exceed its long term liabilities (₹66.8M).


Debt to Equity History and Analysis

Debt Level: 539216's debt to equity ratio (197.7%) is considered high.

Reducing Debt: 539216's debt to equity ratio has reduced from 344% to 197.7% over the past 5 years.

Debt Coverage: 539216's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 539216's interest payments on its debt are not well covered by EBIT (2.3x coverage).


Balance Sheet

Inventory Level: 539216 has a high level of physical assets or inventory.

Debt Coverage by Assets: 539216's debt is covered by short term assets (assets are 2x debt).


Next Steps

Dividend

What is Junction Fabrics and Apparels's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%0.6%markettop25%2.3%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 539216's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 539216'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 539216's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 539216'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 539216'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 Junction Fabrics and Apparels's salary, the management and board of directors tenure and is there insider trading?

4.8yrs

Average board tenure


CEO

Prem Aggarwal (55yo)

4.8yrs

Tenure

₹1,800,000

Compensation

Mr. Prem Dinanath Aggarwal has been Chairman and Managing Director of Junction Fabrics and Apparels Limited since March 20, 2015 and serves as its Director since November 15, 2011. Mr. Aggarwal has more th ...


CEO Compensation Analysis

Compensation vs Market: Prem's total compensation ($USD25.40K) is below average for companies of similar size in the Indian market ($USD50.75K).

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


Board Age and Tenure

4.8yrs

Average Tenure

53yo

Average Age

Experienced Board: 539216's board of directors are considered experienced (4.8 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

  • Shikha Aggarwal (53yo)

    Whole-Time Director

    • Tenure: 8.2yrs
    • Compensation: ₹1.80m
  • Prem Aggarwal (55yo)

    Chairman & MD

    • Tenure: 4.8yrs
    • Compensation: ₹1.80m
  • D. Durasamy (41yo)

    Production Manager

    • Pulak Saha (63yo)

      Quality Control Manager

      • K. Priya

        Company Secretary

        • Tenure: 3.8yrs

      Board Members

      • Shikha Aggarwal (53yo)

        Whole-Time Director

        • Tenure: 8.2yrs
        • Compensation: ₹1.80m
      • Prem Aggarwal (55yo)

        Chairman & MD

        • Tenure: 4.8yrs
        • Compensation: ₹1.80m
      • Ramasubramaniam Senthilrajagopal (50yo)

        Non Executive & Independent Director

        • Tenure: 4.8yrs
      • Subramanian Thirumurugan (46yo)

        Non Executive & Independent Director

        • Tenure: 4.8yrs
      • Sankaranarayanan Muthuramakrishnan (63yo)

        Non Executive & Independent Director

        • Tenure: 4.8yrs
      • Ashmita Agarwal

        Director

        • Tenure: 4.2yrs
        • Compensation: ₹1.50m

      Company Information

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


      Key Information

      • Name: Junction Fabrics and Apparels Limited
      • Ticker: 539216
      • Exchange: BSE
      • Founded: 2011
      • Industry: Apparel, Accessories and Luxury Goods
      • Sector: Consumer Durables
      • Market Cap: ₹115.768m
      • Shares outstanding: 2.69m
      • Website: https://junctionfabrics.in

      Number of Employees


      Location

      • Junction Fabrics and Apparels Limited
      • No.15, Murthy’s Plaza
      • Karia Gounder Street
      • Tirupur
      • Tamil Nadu
      • 641601
      • India

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      539216BSE (Mumbai Stock Exchange)YesEquity SharesININRJul 2015

      Biography

      Junction Fabrics and Apparels Limited manufactures, distributes, and sells fabrics and hosiery garments in India. The company offers Polo T-shirts, round neck T-shirts, sweatshirts, and nightwear for men; leggings, nightwear, yoga wear, shrugs and jackets, and T-shirts for women; and T-shirts, shorts and 3/4th, and sleepwear for kids. It also sells knitted fabrics to domestic garment manufacturers and exports its products to the Middle East countries, such as the United Arab Emirates, Kuwait, Qatar, Bahrain, and the Saudi Arabia. The company was founded in 2011 and is based in Tirupur, 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 13:05
      End of Day Share Price2020/01/16 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.