BSE:539221

Stock Analysis Report

Executive Summary

Sportking India Limited manufactures and sells cotton, synthetic, and blended yarns in India.


Snowflake Analysis

Undervalued with mediocre balance sheet.

Share Price & News

How has Sportking India's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 539221's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-15.7%

539221

1.1%

IN Luxury

-0.6%

IN Market


1 Year Return

-37.6%

539221

19.3%

IN Luxury

11.1%

IN Market

Return vs Industry: 539221 underperformed the Indian Luxury industry which returned 19.3% over the past year.

Return vs Market: 539221 underperformed the Indian Market which returned 11.1% over the past year.


Shareholder returns

539221IndustryMarket
7 Day-15.7%1.1%-0.6%
30 Day12.1%4.6%-0.5%
90 Day12.0%11.5%3.0%
1 Year-37.6%-37.6%20.1%19.3%13.1%11.1%
3 Yearn/a54.7%52.8%24.5%18.0%
5 Yearn/a110.4%103.4%37.8%25.7%

Price Volatility Vs. Market

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


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1 year ago | Simply Wall St

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Valuation

Is Sportking India 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: 539221 (₹324.9) is trading below our estimate of fair value (₹1015.64)

Significantly Below Fair Value: 539221 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 539221 is good value based on its PE Ratio (7.7x) compared to the Luxury industry average (11.4x).

PE vs Market: 539221 is good value based on its PE Ratio (7.7x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 539221's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 539221 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 Sportking India forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

19.7%

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 Sportking India 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 Sportking India performed over the past 5 years?

11.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 539221 has high quality earnings.

Growing Profit Margin: 539221's current net profit margins (1.1%) are lower than last year (2.8%).


Past Earnings Growth Analysis

Earnings Trend: 539221 has become profitable over the past 5 years, growing earnings by 11.5% per year.

Accelerating Growth: 539221's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 539221 had negative earnings growth (-50.4%) over the past year, making it difficult to compare to the Luxury industry average (6%).


Return on Equity

High ROE: 539221's Return on Equity (6.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sportking India's financial position?


Financial Position Analysis

Short Term Liabilities: 539221's short term assets (₹5.2B) exceed its short term liabilities (₹5.1B).

Long Term Liabilities: 539221's short term assets (₹5.2B) exceed its long term liabilities (₹2.7B).


Debt to Equity History and Analysis

Debt Level: 539221's debt to equity ratio (209%) is considered high.

Reducing Debt: 539221's debt to equity ratio has reduced from 379.2% to 209% over the past 5 years.

Debt Coverage: 539221's debt is not well covered by operating cash flow (18.8%).

Interest Coverage: 539221's interest payments on its debt are not well covered by EBIT (1.7x coverage).


Balance Sheet

Inventory Level: 539221 has a high level of physical assets or inventory.

Debt Coverage by Assets: 539221's debt is covered by short term assets (assets are 1x debt).


Next Steps

Dividend

What is Sportking India's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 539221's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 539221'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 539221's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 539221'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 539221'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?

21.1yrs

Average management tenure


CEO

Raj Avasthi (73yo)

25.1yrs

Tenure

₹24,000,000

Compensation

Mr. Raj Kumar Avasthi has been the Chairman and Managing Director at Sportking India Limited since 1995 and has been its Director since February 15, 1989. 


CEO Compensation Analysis

Compensation vs Market: Raj's total compensation ($USD335.39K) is above average for companies of similar size in the Indian market ($USD50.31K).

Compensation vs Earnings: Raj's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Raj Avasthi
Chairman & MD25.1yrs₹24.00m8.89% 108.3m
Munish Avasthi
MD & Director0yrs₹24.00m6.76% 82.3m
Parveen Gupta
Chief Financial Officer0yrsno datano data
Shiv Sharma
President of Operations0yrsno datano data
Ashok Sharma
President of Operations0yrsno data0.084% 1.0m
Lovlesh Verma
Company Secretary & Compliance Officer1.1yrsno datano data
Rashim Jindal
President of Marketing0yrsno datano data
D. Yadav
Vice President of Human Resources0yrsno datano data
Naresh Jain
Executive Director10.6yrs₹2.07m0.037% 444.6k
Rajender Pal
General Manager of HR & Admin.0yrsno datano data

21.1yrs

Average Tenure

55yo

Average Age

Experienced Management: 539221's management team is seasoned and experienced (21.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Raj Avasthi
Chairman & MD25.1yrs₹24.00m8.89% 108.3m
Munish Avasthi
MD & Director0yrs₹24.00m6.76% 82.3m
Naresh Jain
Executive Director10.6yrs₹2.07m0.037% 444.6k
Harbhajan Bal
Non-Executive Independent Director13.8yrs₹30.00kno data
Sunil Puri
Non-Executive Independent Director14.2yrs₹25.00kno data
Prashant Kochhar
Non-Executive Independent Director4.4yrs₹45.00kno data
Sandeep Kapur
Non Executive Independent Director1.3yrs₹10.00kno data

12.2yrs

Average Tenure

65yo

Average Age

Experienced Board: 539221's board of directors are seasoned and experienced ( 12.2 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

Sportking India Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sportking India Limited
  • Ticker: 539221
  • Exchange: BSE
  • Founded: 1989
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹1.218b
  • Shares outstanding: 3.56m
  • Website: https://www.sportking.co.in

Number of Employees


Location

  • Sportking India Limited
  • Village Kanech
  • Near Sahnewal
  • Ludhiana
  • Punjab
  • 141120
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
539221BSE (Mumbai Stock Exchange)YesEquity SharesININRJul 2015

Biography

Sportking India Limited manufactures and sells cotton, synthetic, and blended yarns in India. The company also offers knitted fabrics. In addition, it produces T-shirts, shirts, sweatshirts, sweaters, jackets, jeans, trousers, track pants, tracksuits, Bermuda and shorts, and nightwear for boys and men; and tops, tunics, shirts, kurtis, sweatshirts, sweaters, cardigans, jeans, trousers, leggings, track pants, tracksuits, shorts, nightwear, and lingerie for girls and ladies. The company sells its products through approximately 80 retail outlets, as well as through its online retail store. Sportking India Limited also exports its products to the United States, Europe, and France. The company was incorporated in 1989 and is based in Ludhiana, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 13:03
End of Day Share Price2020/02/20 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.