BSE:540718

Stock Analysis Report

Executive Summary

AKM Lace and Embrotex Limited manufactures and trades in textile products in India.

Rewards

Trading at 98.3% below its fair value

Earnings grew by 98.4% over the past year

Risk Analysis

Makes less than USD$1m in revenue (₹59M)

Does not have a meaningful market cap (₹37M)



Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

How has AKM Lace and Embrotex's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 540718 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

540718

-0.5%

IN Luxury

-1.5%

IN Market


1 Year Return

n/a

540718

18.2%

IN Luxury

10.7%

IN Market

Return vs Industry: Insufficient data to determine how 540718 performed against the Indian Luxury industry.

Return vs Market: Insufficient data to determine how 540718 performed against the Indian Market.


Shareholder returns

540718IndustryMarket
7 Day0%-0.5%-1.5%
30 Day0%3.0%-2.7%
90 Dayn/a9.2%1.3%
1 Yearn/a19.0%18.2%12.7%10.7%
3 Yearn/a52.2%48.8%22.0%15.1%
5 Yearn/a106.9%100.1%34.5%22.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is AKM Lace and Embrotex 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: 540718 (₹12.4) is trading below our estimate of fair value (₹725.63)

Significantly Below Fair Value: 540718 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 540718 is poor value based on its PE Ratio (38.7x) compared to the Luxury industry average (11.2x).

PE vs Market: 540718 is poor value based on its PE Ratio (38.7x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 540718's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 540718 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 AKM Lace and Embrotex forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

19.9%

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 AKM Lace and Embrotex 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 AKM Lace and Embrotex performed over the past 5 years?

12.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 540718 has high quality earnings.

Growing Profit Margin: 540718's current net profit margins (1.7%) are higher than last year (0.4%).


Past Earnings Growth Analysis

Earnings Trend: 540718's earnings have grown by 12.5% per year over the past 5 years.

Accelerating Growth: 540718's earnings growth over the past year (98.4%) exceeds its 5-year average (12.5% per year).

Earnings vs Industry: 540718 earnings growth over the past year (98.4%) exceeded the Luxury industry 5.6%.


Return on Equity

High ROE: 540718's Return on Equity (1.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is AKM Lace and Embrotex's financial position?


Financial Position Analysis

Short Term Liabilities: 540718's short term assets (₹40.1M) exceed its short term liabilities (₹977.0K).

Long Term Liabilities: 540718 has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: 540718 is debt free.

Reducing Debt: 540718 had no debt 5 years ago.

Debt Coverage: 540718 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 540718 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 540718 has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 540718's debt is covered by short term assets.


Next Steps

Dividend

What is AKM Lace and Embrotex's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%0.6%markettop25%2.6%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 540718's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 540718'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 540718's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 540718'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 540718'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?

1.7yrs

Average management tenure


CEO

Anoop Mangal (40yo)

2.8yrs

Tenure

₹810,000

Compensation

Mr. Anoop Kumar Mangal has been Managing Director of AKM Lace and Embrotex Limited since April 28, 2017 and also serves as its Chairman and Founding Promoter. Mr. Mangal has a vast experience working in ac ...


CEO Compensation Analysis

Compensation vs Market: Anoop's total compensation ($USD11.32K) is below average for companies of similar size in the Indian market ($USD50.34K).

Compensation vs Earnings: Anoop's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Anoop Mangal
Chairman & MD2.8yrs₹810.00k15.57% 5.8m
Purva Mangal
Whole Time Director2.8yrs₹416.00k4.02% 1.5m
Himanshu Agarwal
Chief Financial Officer0.3yrsno datano data
Rashmi Gupta
Operational Head2.8yrsno datano data
Rajeev Jaiswal
Company Secretary & Compliance Officer0.6yrsno datano data

1.7yrs

Average Tenure

Experienced Management: 540718's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Anoop Mangal
Chairman & MD2.8yrs₹810.00k15.57% 5.8m
Purva Mangal
Whole Time Director2.8yrs₹416.00k4.02% 1.5m
Shambhu Mangal
Non-Executive Director10.3yrs₹16.00k7.39% 2.8m
Manoj Kumar
Non Executive Independent Director2.6yrs₹21.00kno data
Rinku Goyal
Non Executive Independent Director2.6yrs₹21.00kno data

2.7yrs

Average Tenure

39yo

Average Age

Experienced Board: 540718's board of directors are not considered experienced ( 2.7 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

AKM Lace and Embrotex Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AKM Lace and Embrotex Limited
  • Ticker: 540718
  • Exchange: BSE
  • Founded: 2009
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹37.351m
  • Shares outstanding: 3.01m
  • Website: https://www.akmlace.com

Number of Employees


Location

  • AKM Lace and Embrotex Limited
  • 328-329, RG Complex-II
  • Plot No. 5
  • New Delhi
  • Delhi
  • 110085
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
540718BSE (Mumbai Stock Exchange)YesEquity SharesININRSep 2017

Biography

AKM Lace and Embrotex Limited manufactures and trades in textile products in India. It is involved in the sale of traded goods, which comprise of cotton fabrics, grey cloth, etc.; and sale of manufactured/processed goods that comprises of knitted fabrics primarily lace based. The company offers various embrotex goods, laces, fabrics, clothing, and wearing apparel for personal, commercial and industrial applications. AKM Lace and Embrotex Limited was incorporated in 2009 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 Analysis2020/02/19 13:25
End of Day Share Price2019/12/17 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.