BSE:540243

Stock Analysis Report

Executive Summary

New Light Apparels Limited manufactures, exports, and supplies apparels in India.

Rewards

Trading at 90.7% below its fair value

Risk Analysis

Interest payments are not well covered by earnings

Does not have a meaningful market cap (₹68M)

Profit margins (0.9%) are lower than last year (1.4%)

Shareholders have been diluted in the past year

+ 1 more risk


Snowflake Analysis

Mediocre balance sheet and slightly overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 540243 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.1%

540243

1.5%

IN Luxury

-0.1%

IN Market


1 Year Return

-31.6%

540243

16.3%

IN Luxury

10.4%

IN Market

Return vs Industry: 540243 underperformed the Indian Luxury industry which returned 8.4% over the past year.

Return vs Market: 540243 underperformed the Indian Market which returned 6.7% over the past year.


Shareholder returns

540243IndustryMarket
7 Day-3.1%1.5%-0.1%
30 Day-12.5%5.8%1.8%
90 Day-16.6%1.3%3.7%
1 Year-31.6%-31.6%17.1%16.3%12.4%10.4%
3 Yearn/a57.2%55.3%28.8%21.7%
5 Yearn/a94.8%91.5%35.7%23.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is New Light 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: 540243 (₹31.5) is trading below our estimate of fair value (₹337.38)

Significantly Below Fair Value: 540243 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 540243 is poor value based on its PE Ratio (53.5x) compared to the Luxury industry average (11.2x).

PE vs Market: 540243 is poor value based on its PE Ratio (53.5x) compared to the Indian market (13.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 540243's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 540243 is overvalued based on its PB Ratio (1.9x) compared to the IN Luxury industry average (0.6x).


Next Steps

Future Growth

How is New Light Apparels forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

19.3%

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 New Light 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 New Light Apparels performed over the past 5 years?

25.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 540243 has high quality earnings.

Growing Profit Margin: 540243's current net profit margins (0.9%) are lower than last year (1.4%).


Past Earnings Growth Analysis

Earnings Trend: 540243's earnings have grown significantly by 25.2% per year over the past 5 years.

Accelerating Growth: 540243's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 540243 had negative earnings growth (-55%) over the past year, making it difficult to compare to the Luxury industry average (1.2%).


Return on Equity

High ROE: 540243's Return on Equity (3.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is New Light Apparels's financial position?


Financial Position Analysis

Short Term Liabilities: 540243's short term assets (₹138.5M) exceed its short term liabilities (₹101.8M).

Long Term Liabilities: 540243's short term assets (₹138.5M) exceed its long term liabilities (₹1.1M).


Debt to Equity History and Analysis

Debt Level: 540243's debt to equity ratio (75.6%) is considered high.

Reducing Debt: 540243's debt to equity ratio has increased from 22.8% to 75.6% over the past 5 years.

Debt Coverage: 540243's debt is well covered by operating cash flow (32.5%).

Interest Coverage: 540243's interest payments on its debt are not well covered by EBIT (2.3x coverage).


Balance Sheet

Inventory Level: 540243 has a high level of physical assets or inventory.

Debt Coverage by Assets: 540243's debt is covered by short term assets (assets are 4.7x debt).


Next Steps

Dividend

What is New Light Apparels's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%0.5%markettop25%2.3%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 540243's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 540243'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 540243's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 540243'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 540243'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 New Light Apparels's salary, the management and board of directors tenure and is there insider trading?

3.9yrs

Average board tenure


CEO

Sandeep Makkad (50yo)

3.4yrs

Tenure

₹2,400,000

Compensation

Mr. Sandeep Makkad has been Managing Director at New Light Apparels Limited since August 10, 2016 and serves as its Chairman. Mr. Makkad serves as Compliance Officer at New Light Apparels Limited since Dec ...


CEO Compensation Analysis

Compensation vs Market: Sandeep's total compensation ($USD33.87K) is below average for companies of similar size in the Indian market ($USD50.75K).

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


Board Age and Tenure

3.9yrs

Average Tenure

55.5yo

Average Age

Experienced Board: 540243's board of directors are considered experienced (3.9 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 been diluted in the past year, with total shares outstanding growing by 2.2%.


Management Team

  • Sandeep Makkad (50yo)

    Chairman

    • Tenure: 3.4yrs
    • Compensation: ₹2.40m
  • Gurcharan Makkad (74yo)

    Whole Time Director

    • Tenure: 25yrs
    • Compensation: ₹2.40m
  • Meetu Makkad (48yo)

    Whole Time Director

    • Tenure: 13.3yrs
    • Compensation: ₹2.40m
  • Rajesh Sharma

    Chief Financial Officer

    • Compensation: ₹300.00k

Board Members

  • Sandeep Makkad (50yo)

    Chairman

    • Tenure: 3.4yrs
    • Compensation: ₹2.40m
  • Gurcharan Makkad (74yo)

    Whole Time Director

    • Tenure: 25yrs
    • Compensation: ₹2.40m
  • Meetu Makkad (48yo)

    Whole Time Director

    • Tenure: 13.3yrs
    • Compensation: ₹2.40m
  • Sunil Grover (61yo)

    Non-Executive Independent Director

    • Tenure: 3.9yrs
    • Compensation: ₹240.00k
  • Rishita Sethi (44yo)

    Non-Executive Independent Director

    • Tenure: 3.9yrs
    • Compensation: ₹240.00k
  • Sudesh Katyal (77yo)

    Non-Executive Independent Director

    • Tenure: 3.9yrs
    • Compensation: ₹240.00k

Company Information

New Light Apparels Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: New Light Apparels Limited
  • Ticker: 540243
  • Exchange: BSE
  • Founded: 1959
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: ₹64.350m
  • Shares outstanding: 2.20m
  • Website: https://newlightapparels.com

Number of Employees


Location

  • New Light Apparels Limited
  • GC-24, Shivaji Enclave
  • 1st floor
  • New Delhi
  • Delhi
  • 110027
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
540243BSE (Mumbai Stock Exchange)YesEquity SharesININRJan 2017

Biography

New Light Apparels Limited manufactures, exports, and supplies apparels in India. The company offers a range of men’s, ladies, girls, boys, unisex, and kids wears; woolen products, such as sweaters, cardigans, pullovers, gloves, and socks; school uniforms for girls and boys; accessories; and workwear/uniform for hotel industry, security, corporate stores, restaurants, etc. It also provides nylon and cotton socks; and industrial safety gloves for automobile, construction, shipping, engineering, electronics, and packaging industries. In addition, the company offers glove knitting machines for gloves and socks. New Light Apparels Limited exports its products. The company was founded in 1959 and is based in New Delhi, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/27 13:11
End of Day Share Price2020/01/27 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.