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
Axita Cotton. This is due to cash flow or dividend data being
unavailable. The share price is
₹69.9.
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
Axita Cotton's
earnings,
growth
and
assets
is considered below, and whether this is a fair price.
Price based on past earnings
Are
Axita Cotton's earnings available for a low price, and how does
this compare to other companies in the same industry?
No analysts cover Axita Cotton, 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!
-18.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is
Axita Cotton
expected to grow at an
attractive
rate?
Axita Cotton's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 7.6%.
Growth vs Market Checks
Axita Cotton's earnings are expected to decrease over the next 1-3 years, this is below the India market average.
Unable to compare Axita Cotton's revenue growth to the India market average as no estimate data is available.
Axita Cotton's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
Unable to determine if Axita Cotton 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.
All data from Axita Cotton Company Filings, last reported 10 months ago, and in
Trailing twelve months (TTM)
annual period rather than quarterly.
BSE:542285 Past Financials Data
Date (Data in INR Millions)
EPS *
2018-03-31
3.29
2017-03-31
0.11
2016-03-31
0.50
*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 Axita Cotton will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
We assess
Axita Cotton's future performance by looking at:
Is the annual earnings growth rate expected to beat the low risk savings rate, plus a
premium to keep pace with inflation?
Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
Is the annual earnings growth rate expected to be above 20%? (1 check)
Is the annual revenue growth rate expected to be above 20%? (1 check)
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.
Axita Cotton
has a total score of
0/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
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
Axita Cotton'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.
Axita Cotton has delivered over 20% year on year earnings growth in the past 5 years.
Axita Cotton's 1-year earnings growth exceeds its 5-year average (2930.6% vs 69.8%)
Axita Cotton's earnings growth has exceeded the IN Luxury industry average in the past year (2930.6% vs 14.1%).
Earnings and Revenue History
Axita Cotton'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.
All data from Axita Cotton Company Filings, last reported 10 months ago, and in
Trailing twelve months (TTM)
annual period rather than quarterly.
BSE:542285 Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions)
Revenue
Net Income *
G+A Expenses
R&D Expenses
2018-03-31
1,234.58
8.21
9.70
2017-03-31
902.31
0.27
7.53
2016-03-31
680.88
1.25
3.36
2015-03-31
769.12
-2.85
2.29
2014-03-31
173.61
0.59
0.77
*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.
Whilst Axita Cotton has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
Axita Cotton used its assets more efficiently than the IN Luxury industry average last year based on Return on Assets.
Axita Cotton has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
We assess
Axita Cotton's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
Luxury
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
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.
Axita Cotton
has a total score of
5/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
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
Axita Cotton's finances.
The net worth of a company is the difference between its assets and liabilities.
Net Worth
Axita Cotton is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Axita Cotton's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of
Axita Cotton'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.
Debt is covered by short term assets, assets are 1.1x debt.
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.
We assess
Axita Cotton's financial health by checking for:
Are short term assets greater than short term liabilities? (1 check)
Are short term assets greater than long term liabilities? (1 check)
Has the debt to equity ratio increased in the past 5 years? (1 check)
Is the debt to equity ratio over 40%? (1 check)
Is the debt covered by operating cash flow? (1 check)
Are earnings greater than 5x the interest on debt (if company pays interest
at all)? (1 check)
Axita Cotton
has a total score of
3/6, 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:
Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
0%
Current annual income from
Axita Cotton
dividends.
If you bought
₹2,000 of
Axita Cotton
shares you are expected to receive
₹0
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?
Unable to evaluate Axita Cotton's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
Unable to evaluate Axita Cotton's dividend against the top 25% market benchmark as the company has not reported any payouts.
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.
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
KushalkumarPatel
CEO Bio
Mr. Kushalkumar Nitinbhai Patel servea as Managing Director at Axita Cotton Limited
CEO Compensation
Insufficient data for Kushalkumar to compare compensation growth.
Insufficient data for Kushalkumar to establish whether their remuneration is reasonable compared to companies of similar size in India.
Axita Cotton Limited engages in the manufacture and export of cotton bales and seeds in India. The company primarily produces two varieties of cotton bales, including Shankar-6 and MCU-5/MECH. It also trades in seed cotton, cotton bales, and cotton seeds; and engages in ginning and pressing of seed cotton on job work basis. The company also exports its products to Bangladesh, Vietnam, and Pakistan. Axita Cotton Limited was incorporated in 2013 and is based in Ahmedabad, India.
Axita Cotton Limited
Noopur,
Flat No. 1,133, Azad Society,
Ahmedabad,
380015,
India
Listings
Exchange Symbol
Ticker Symbol
Security
Exchange
Country
Currency
Listed on
BSE
542285
Equity Shares
Mumbai Stock Exchange
IN
INR
10. Jan 2019
Number of employees
Current staff
0
Axita Cotton
employees.
Industry
Textiles
Consumer Durables
Company Analysis and Financial Data Status
Area
Date (UTC time)
Company Analysis updated:
2019/02/23 13:20
End of day share price update:
2019/02/22 00:00
Last earnings filing:
2018/11/22
Last earnings reported:
2018/03/31
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.