BSE:539979

Stock Analysis Report

Executive Summary

Digjam Limited designs, manufactures, sells, and trades in woolen worsted textiles and fabrics under the DIGJAM brand in India.

Risk Analysis

Earnings have declined by -30.49% per year over past 5 years

Does not have a meaningful market cap (₹79M)

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

Highly volatile share price over past 3 months

+ 1 more risk


Snowflake Analysis

Overvalued with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 539979's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.2%

539979

0.2%

IN Luxury

-0.4%

IN Market


1 Year Return

-74.2%

539979

16.6%

IN Luxury

11.1%

IN Market

Return vs Industry: 539979 underperformed the Indian Luxury industry which returned 16.6% over the past year.

Return vs Market: 539979 underperformed the Indian Market which returned 11.1% over the past year.


Shareholder returns

539979IndustryMarket
7 Day7.2%0.2%-0.4%
30 Day-8.2%3.3%-1.2%
90 Day-2.2%8.5%3.3%
1 Year-74.2%-74.2%17.3%16.6%13.0%11.1%
3 Year-92.3%-92.3%53.8%52.0%25.3%18.6%
5 Yearn/a103.0%96.4%35.4%23.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

0.27x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 539979's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 539979's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 539979 is unprofitable, so we can't compare its PE Ratio to the Luxury industry average.

PE vs Market: 539979 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 539979's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 539979 is good value based on its PB Ratio (0.3x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

How is Digjam 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 Digjam 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 Digjam performed over the past 5 years?

-30.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 539979 is currently unprofitable.

Growing Profit Margin: 539979 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 539979 is unprofitable, and losses have increased over the past 5 years at a rate of -30.5% per year.

Accelerating Growth: Unable to compare 539979's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 539979 is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (2.7%).


Return on Equity

High ROE: 539979 has a negative Return on Equity (-153.12%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Digjam's financial position?


Financial Position Analysis

Short Term Liabilities: 539979's short term assets (₹301.1M) do not cover its short term liabilities (₹1.4B).

Long Term Liabilities: 539979's short term assets (₹301.1M) do not cover its long term liabilities (₹345.4M).


Debt to Equity History and Analysis

Debt Level: 539979's debt to equity ratio (302%) is considered high.

Reducing Debt: Insufficient data to determine if 539979's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: 539979 has a high level of physical assets or inventory.

Debt Coverage by Assets: 539979's debt is not covered by short term assets (assets are 0.3x debt).


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: Insufficient data to determine if 539979 has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if 539979 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%0.6%markettop25%2.5%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 539979's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 539979'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 539979's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 539979'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 539979'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?

3.0yrs

Average management tenure


CEO

Digjam has no CEO, or we have no data on them.


Leadership Team

NamePositionTenureCompensationOwnership
Satish Shah
Chief Financial Officer0yrs₹1.78mno data
G. Sureka
Executive Vice President of Legal0yrsno datano data
R. Mathur
Vice President of Sales & Marketing3yrsno datano data
Jatin Jain
Company Secretary4.1yrs₹570.38kno data
Ajay Agarwal
Chief Operating Officer1.1yrs₹2.45mno data

3.0yrs

Average Tenure

62yo

Average Age

Experienced Management: 539979's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sethumadhava Ragothaman
Independent Director3.9yrs₹215.00kno data
Sudarshan Birla
Chairman Emeritus0yrsno data0.043% 33.8k
Sidharth Birla
Chairman3.9yrs₹50.00k0.057% 45.0k
Atthibele Sreekanth
Independent Additional Director1.1yrsno datano data
Gajendran Ramanathan
Independent Additional Director1.1yrsno datano data

2.5yrs

Average Tenure

62yo

Average Age

Experienced Board: 539979's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


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

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


Key Information

  • Name: Digjam Limited
  • Ticker: 539979
  • Exchange: BSE
  • Founded: 2015
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: ₹78.877m
  • Shares outstanding: 87.64m
  • Website: https://www.digjam.co.in

Number of Employees


Location

  • Digjam Limited
  • Aerodrome Road
  • Jamnagar
  • Gujarat
  • 361006
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DIGJAMLTDNSEI (National Stock Exchange of India)YesEquity SharesININRJul 2016
539979BSE (Mumbai Stock Exchange)YesEquity SharesININRJul 2016

Biography

Digjam Limited designs, manufactures, sells, and trades in woolen worsted textiles and fabrics under the DIGJAM brand in India. The company manufactures wool and wool mixture fabrics; and man-made fiber and mixture fabrics. It also engages in the wholesale of textiles and fabrics. Digjam Limited also exports its products to Europe, the United States, Canada, the Middle East, the Far East, etc. The company was formerly known as Digjam Textiles Limited and changed its name to Digjam Limited in March 2016. Digjam Limited was incorporated in 2015 and is based in Jamnagar, 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 13:11
End of Day Share Price2020/02/14 00:00
Earnings2019/03/31
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.