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Veeram Ornaments

BSE:540252
Snowflake Description

Flawless balance sheet with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
540252
BSE
₹194M
Market Cap
  1. Home
  2. IN
  3. Consumer Durables
Company description

Veeram Ornaments Limited engages in the design, manufacture, and wholesale of jewellery and ornaments. The last earnings update was 130 days ago. More info.


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540252 Share Price and Events
7 Day Returns
0%
BSE:540252
0.2%
IN Luxury
-0.3%
IN Market
1 Year Returns
-0.3%
BSE:540252
2.6%
IN Luxury
3.3%
IN Market
540252 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Veeram Ornaments (540252) 0% 0.2% - -0.3% - -
IN Luxury 0.2% 7.9% 8.2% 2.6% 54.2% 180.5%
IN Market -0.3% 6.5% 2.8% 3.3% 42.8% 75.4%
1 Year Return vs Industry and Market
  • 540252 underperformed the Luxury industry which returned 2.6% over the past year.
  • 540252 underperformed the Market in India which returned 3.3% over the past year.
Price Volatility
540252
Industry
5yr Volatility vs Market

Value

 Is Veeram Ornaments undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
  • It is not possible to calculate the future cash flow value for Veeram Ornaments. This is due to cash flow or dividend data being unavailable. The share price is ₹45.1.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Veeram Ornaments's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Veeram Ornaments's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
BSE:540252 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in INR ₹1.09
BSE:540252 Share Price ** BSE (2019-03-06) in INR ₹45.1
India Luxury Industry PE Ratio Median Figure of 239 Publicly-Listed Luxury Companies 12.3x
India Market PE Ratio Median Figure of 2,730 Publicly-Listed Companies 16.29x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Veeram Ornaments.

BSE:540252 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BSE:540252 Share Price ÷ EPS (both in INR)

= 45.1 ÷ 1.09

41.32x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Veeram Ornaments is overvalued based on earnings compared to the IN Luxury industry average.
  • Veeram Ornaments is overvalued based on earnings compared to the India market.
Price based on expected Growth
Does Veeram Ornaments's expected growth come at a high price?
Raw Data
BSE:540252 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 41.32x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
15.9%per year
India Luxury Industry PEG Ratio Median Figure of 26 Publicly-Listed Luxury Companies 1.5x
India Market PEG Ratio Median Figure of 595 Publicly-Listed Companies 1.29x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Veeram Ornaments, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Veeram Ornaments's assets?
Raw Data
BSE:540252 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in INR ₹23.20
BSE:540252 Share Price * BSE (2019-03-06) in INR ₹45.1
India Luxury Industry PB Ratio Median Figure of 311 Publicly-Listed Luxury Companies 0.76x
India Market PB Ratio Median Figure of 3,621 Publicly-Listed Companies 1.11x
BSE:540252 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BSE:540252 Share Price ÷ Book Value per Share (both in INR)

= 45.1 ÷ 23.20

1.94x

* Primary Listing of Veeram Ornaments.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Veeram Ornaments is overvalued based on assets compared to the IN Luxury industry average.
X
Value checks
We assess Veeram Ornaments's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Luxury industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Luxury industry average (and greater than 0)? (1 check)
  5. Veeram Ornaments has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Veeram Ornaments expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • No analysts cover Veeram Ornaments, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
15.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Veeram Ornaments expected to grow at an attractive rate?
  • Veeram Ornaments's earnings growth is expected to exceed the low risk savings rate of 7.6%.
Growth vs Market Checks
  • Veeram Ornaments's earnings growth is positive but not above the India market average.
  • Unable to compare Veeram Ornaments's revenue growth to the India market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
BSE:540252 Future Growth Rates Data Sources
Data Point Source Value (per year)
BSE:540252 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 15.9%
India Luxury Industry Earnings Growth Rate Market Cap Weighted Average 18.3%
India Luxury Industry Revenue Growth Rate Market Cap Weighted Average 15%
India Market Earnings Growth Rate Market Cap Weighted Average 18.6%
India Market Revenue Growth Rate Market Cap Weighted Average 11.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
BSE:540252 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
BSE:540252 Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2018-09-30 210 5
2018-06-30 244 6
2018-03-31 278 46 8
2017-06-30 121 2
2017-03-31 74 -49 3
2016-03-31 14 -30 1

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Veeram Ornaments's earnings are expected to grow by 15.9% yearly, however this is not considered high growth (20% yearly).
  • Unable to determine if Veeram Ornaments is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
BSE:540252 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Veeram Ornaments Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BSE:540252 Past Financials Data
Date (Data in INR Millions) EPS *
2018-09-30 1.09
2018-06-30 1.43
2018-03-31 1.78
2017-06-30 0.51
2017-03-31 0.69
2016-03-31 2.38

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Veeram Ornaments will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Veeram Ornaments's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Veeram Ornaments has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Veeram Ornaments performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Veeram Ornaments's growth in the last year to its industry (Luxury).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Veeram Ornaments has delivered over 20% year on year earnings growth in the past 5 years.
  • Veeram Ornaments's 1-year earnings growth is less than its 5-year average (14.3% vs 49.8%)
  • Veeram Ornaments's earnings growth has exceeded the IN Luxury industry average in the past year (14.3% vs 14.2%).
Earnings and Revenue History
Veeram Ornaments's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Veeram Ornaments Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BSE:540252 Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-30 209.51 4.72 1.10
2018-06-30 243.71 6.19 1.10
2018-03-31 277.90 7.66 1.11
2017-06-30 121.47 2.35 1.39
2017-03-31 74.24 2.95 1.49
2016-03-31 13.72 0.82 0.54
2015-03-31 0.44 0.02 0.25
2014-03-31 0.74 0.03 0.13
2013-03-31 0.01 0.00
2012-03-31 -0.02

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Veeram Ornaments has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Veeram Ornaments used its assets less efficiently than the IN Luxury industry average last year based on Return on Assets.
  • Veeram Ornaments has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Veeram Ornaments's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Luxury industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Veeram Ornaments has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Veeram Ornaments's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Veeram Ornaments's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Veeram Ornaments is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Veeram Ornaments has no long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Veeram Ornaments's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Veeram Ornaments has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Veeram Ornaments Company Filings, last reported 5 months ago.

BSE:540252 Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-30 101.29 0.00 36.93
2018-06-30 101.29 0.00 36.93
2018-03-31 99.89 0.00 60.94
2017-06-30 96.92 0.00 60.02
2017-03-31 92.59 0.00 20.67
2016-03-31 30.98 0.00 1.71
2015-03-31 0.59 0.72 1.40
2014-03-31 0.52 0.00 0.33
2013-03-31 0.08 0.00 0.08
2012-03-31 0.08 0.00 0.08
  • Veeram Ornaments has no debt.
  • Veeram Ornaments has no debt compared to 5 years ago when it was 0.3%.
  • Veeram Ornaments has no debt, it does not need to be covered by operating cash flow.
  • Veeram Ornaments has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Veeram Ornaments's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Veeram Ornaments has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.11%
Current annual income from Veeram Ornaments dividends.
If you bought ₹2,000 of Veeram Ornaments shares you are expected to receive ₹22 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Veeram Ornaments's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.5%).
  • Veeram Ornaments's dividend is below the markets top 25% of dividend payers in India (1.91%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
BSE:540252 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
India Luxury Industry Average Dividend Yield Market Cap Weighted Average of 110 Stocks 0.6%
India Market Average Dividend Yield Market Cap Weighted Average of 1399 Stocks 1.4%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.5%
India Top 25% Dividend Yield 75th Percentile 1.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

BSE:540252 Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2018-10-23 0.500 1.027
2018-05-30 0.500 1.125
2017-11-10 0.250 0.433
2017-06-13 0.250 0.459

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Veeram Ornaments has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Veeram Ornaments only paid a dividend in the past 2 years.
Current Payout to shareholders
What portion of Veeram Ornaments's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.2x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Veeram Ornaments's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Veeram Ornaments afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Veeram Ornaments has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Veeram Ornaments's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mahendrabhai Shah
COMPENSATION ₹50,000
AGE 57
CEO Bio

Mr. Mahendrabhai Ramniklal Shah serves as Executive Director of Darshan Orna Limited. He served as Managing Director at Darshan Orna Limited. He serves as Managing Director and Director of Veeram Ornaments Limited and has been its Compliance Officer since June 5, 2017. Mr. Shah served as Chairman at Darshan Orna Limited and served as its Managing Director since May 20, 2015 until September 1, 2017. Mr. Shah has more than 25 years of experience in the functioning and management of Jewellery Trade. He started his career in 1985 with Gold and Silver Jewellery business and after few years with his entrepreneurial skills established his own Proprietorship Firm named Darshan Ornaments at Manek Chowk area which is known as hub of bullion market in Ahmedabad. He gradually, as the business expanded, in 2011 he incorporated a company M/s. Darshan Orna Private Limited. He has been a Director of Darshan Orna Limited since January 20, 2011.

CEO Compensation
  • Insufficient data for Mahendrabhai to compare compensation growth.
  • Mahendrabhai's remuneration is lower than average for companies of similar size in India.
Management Team

Mahendrabhai Shah

TITLE
MD, Compliance Officer & Director
COMPENSATION
₹50K
AGE
57
Board of Directors Tenure

Average tenure and age of the Veeram Ornaments board of directors in years:

1.9
Average Tenure
54
Average Age
  • The average tenure for the Veeram Ornaments board of directors is less than 3 years, this suggests a new board.
Board of Directors

Mahendrabhai Shah

TITLE
MD, Compliance Officer & Director
COMPENSATION
₹50K
AGE
57

Pinal Shah

TITLE
Director
AGE
36

Rakshit Shah

TITLE
Director
AGE
40
TENURE
1.9 yrs

Rajesh Shah

TITLE
Independent Director
AGE
54
TENURE
2 yrs

Satish Sheth

TITLE
Independent Director
AGE
64
TENURE
0.7 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
12. Dec 18 Buy Veeram Vendors Private Limited Company 06. Dec 18 10. Dec 18 75,000 ₹60.00 ₹4,499,997
12. Dec 18 Buy Pinal Shah Individual 11. Apr 18 10. Dec 18 70,500 ₹45.00 ₹3,172,499
12. Dec 18 Buy Rakshit Shah Individual 22. Mar 18 10. Dec 18 88,500 ₹45.00 ₹3,982,499
X
Management checks
We assess Veeram Ornaments's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Veeram Ornaments has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Veeram Ornaments Limited engages in the design, manufacture, and wholesale of jewellery and ornaments. It provides gold and silver jewellery products, including rings, bracelets, necklaces, ear chains, earrings, pendants, chains, mangalsutras, zudas, toe rings, anklets, bangles, etc. with or without studded precious and semi-precious stones. Veeram Ornaments Limited was incorporated in 2011 and is based in Ahmedabad, India.

Details
Name: Veeram Ornaments Limited
540252
Exchange: BSE
Founded: 2011
₹194,381,676
4,310,015
Website: http://www.veeramornaments.com
Address: Veeram Ornaments Limited
Naroda Pride,
Shop No. 2,
Ahmedabad,
Gujarat, 382350,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BSE 540252 Equity Shares Mumbai Stock Exchange IN INR 05. Jan 2017
Number of employees
Current staff
Staff numbers
8
Veeram Ornaments employees.
Industry
Apparel, Accessories and Luxury Goods
Consumer Durables
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/24 12:57
End of day share price update: 2019/03/06 00:00
Last earnings filing: 2018/11/14
Last earnings reported: 2018/09/30
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.