BSE:540048

Stock Analysis Report

Executive Summary

S.P. Apparels Limited manufactures and sells knitted garments for infants and children under the Natalia brand in India and internationally.


Snowflake Analysis

Undervalued with excellent balance sheet.


Similar Companies

Share Price & News

How has S.P. Apparels's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 540048's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.7%

540048

-4.4%

IN Luxury

-3.5%

IN Market


1 Year Return

-35.4%

540048

12.8%

IN Luxury

5.2%

IN Market

Return vs Industry: 540048 underperformed the Indian Luxury industry which returned 12.8% over the past year.

Return vs Market: 540048 underperformed the Indian Market which returned 5.2% over the past year.


Shareholder returns

540048IndustryMarket
7 Day-4.7%-4.4%-3.5%
30 Day-25.5%-1.4%-3.9%
90 Day-20.0%6.0%-2.1%
1 Year-35.4%-35.4%13.5%12.8%7.2%5.2%
3 Year-61.5%-61.6%45.8%44.0%18.9%12.4%
5 Yearn/a97.3%93.7%29.4%17.7%

Price Volatility Vs. Market

How volatile is S.P. Apparels's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is S.P. Apparels 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: 540048 (₹160.05) is trading below our estimate of fair value (₹438.47)

Significantly Below Fair Value: 540048 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 540048 is good value based on its PE Ratio (6.5x) compared to the Luxury industry average (10.6x).

PE vs Market: 540048 is good value based on its PE Ratio (6.5x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

PEG Ratio: 540048 is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: 540048 is overvalued based on its PB Ratio (0.8x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

How is S.P. Apparels forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

23.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 540048's forecast earnings growth (23.4% per year) is above the savings rate (6.5%).

Earnings vs Market: 540048's earnings (23.4% per year) are forecast to grow faster than the Indian market (20.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 540048's revenue (9.4% per year) is forecast to grow faster than the Indian market (9% per year).

High Growth Revenue: 540048's revenue (9.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 540048's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has S.P. Apparels performed over the past 5 years?

23.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 540048 has high quality earnings.

Growing Profit Margin: 540048's current net profit margins (7.3%) are lower than last year (8.6%).


Past Earnings Growth Analysis

Earnings Trend: 540048's earnings have grown significantly by 23.2% per year over the past 5 years.

Accelerating Growth: 540048's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 540048 had negative earnings growth (-6.4%) over the past year, making it difficult to compare to the Luxury industry average (6.4%).


Return on Equity

High ROE: 540048's Return on Equity (12.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is S.P. Apparels's financial position?


Financial Position Analysis

Short Term Liabilities: 540048's short term assets (₹4.7B) exceed its short term liabilities (₹3.0B).

Long Term Liabilities: 540048's short term assets (₹4.7B) exceed its long term liabilities (₹962.3M).


Debt to Equity History and Analysis

Debt Level: 540048's debt to equity ratio (41.3%) is considered high.

Reducing Debt: 540048's debt to equity ratio has reduced from 275.1% to 41.3% over the past 5 years.

Debt Coverage: 540048's debt is well covered by operating cash flow (38.5%).

Interest Coverage: 540048's interest payments on its debt are well covered by EBIT (4.7x coverage).


Balance Sheet

Inventory Level: 540048 has a high level of physical assets or inventory.

Debt Coverage by Assets: 540048's debt is covered by short term assets (assets are 2.2x debt).


Next Steps

Dividend

What is S.P. Apparels's current dividend yield, its reliability and sustainability?

0.31%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%0.6%markettop25%2.7%industryaverage0.7%forecastin3Years0.3%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 540048's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 540048'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 540048's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 540048's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 540048 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 540048'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?

4.7yrs

Average board tenure


CEO

Perumal Sundararajan (63yo)

₹17,000,000

Compensation

Mr. Perumal Sundararajan serves as Chairman at S. P. Apparels Ltd and has been its Managing Director since November 21, 2005 and its Director November 18, 2005. Being a manufacturer and supplier of fabrics ...


CEO Compensation Analysis

Compensation vs Market: Perumal's total compensation ($USD237.50K) is above average for companies of similar size in the Indian market ($USD50.10K).

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


Board Members

NamePositionTenureCompensationOwnership
Perumal Sundararajan
Chairman & MD0yrs₹17.00m49.76% 2.1b
Chenduran Sundararajan
Director of Operations & Executive Director4.9yrs₹8.00m0.10% 4.3m
Sundararajan Latha
Executive Director14.3yrs₹12.20m11.77% 497.5m
Aravinda Anand Kumar
Independent Director4.3yrs₹140.00kno data
Yesuthasen Pathiudian
Independent Director4.4yrs₹140.00kno data
Venkidusamy Sakthivel
Independent & Non-Executive Director14.1yrs₹100.00kno data
Guruswamy Ramakrishnan
Independent Director4.3yrs₹60.00kno data

4.7yrs

Average Tenure

70yo

Average Age

Experienced Board: 540048's board of directors are considered experienced (4.7 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

S.P. Apparels Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: S.P. Apparels Limited
  • Ticker: 540048
  • Exchange: BSE
  • Founded: 1988
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: ₹4.226b
  • Shares outstanding: 25.69m
  • Website: https://www.s-p-apparels.com

Number of Employees


Location

  • S.P. Apparels Limited
  • 39-A, Extension Street
  • Kaikattipudur
  • Tirupur
  • Tamil Nadu
  • 641654
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
540048BSE (Mumbai Stock Exchange)YesEquity SharesININRAug 2016
SPALNSEI (National Stock Exchange of India)YesEquity SharesININRAug 2016

Biography

S.P. Apparels Limited manufactures and sells knitted garments for infants and children under the Natalia brand in India and internationally. The company manufactures and retails adult menswear garments, such as shirts, polo shirts, T-shirts, trousers, jeans, sweaters, jackets, vests, briefs, boxer shorts, and socks under the Crocodile brand. The company also designs, manufactures, and sells body suits, sleep suits, tops, and bottoms. In addition, it exports its products. The company was founded in 1988 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 Analysis2020/02/27 13:32
End of Day Share Price2020/02/27 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.