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Axita Cotton

BSE:542285
Snowflake Description

Solid track record with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
542285
BSE
₹458M
Market Cap
  1. Home
  2. IN
  3. Consumer Durables
Company description

Axita Cotton Limited engages in the manufacture and export of cotton bales and seeds in India. The last earnings update was 93 days ago. More info.


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542285 Share Price and Events
7 Day Returns
17.9%
BSE:542285
0.3%
IN Luxury
1%
IN Market
1 Year Returns
-
BSE:542285
-8.7%
IN Luxury
-8.2%
IN Market
542285 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Axita Cotton (542285) 17.9% 15.7% - - - -
IN Luxury 0.3% -0.2% -2.3% -8.7% 55.9% 186.4%
IN Market 1% -2.2% -1.2% -8.2% 46.7% 78.8%
1 Year Return vs Industry and Market
  • No trading data on 542285.
  • No trading data on 542285.
Price Volatility
Industry
5yr Volatility vs Market

Value

 Is Axita Cotton 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 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?
Raw Data
BSE:542285 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-03-31) in INR ₹3.29
BSE:542285 Share Price ** BSE (2019-02-22) in INR ₹69.9
India Luxury Industry PE Ratio Median Figure of 236 Publicly-Listed Luxury Companies 11.69x
India Market PE Ratio Median Figure of 2,709 Publicly-Listed Companies 15.49x

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

** Primary Listing of Axita Cotton.

BSE:542285 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BSE:542285 Share Price ÷ EPS (both in INR)

= 69.9 ÷ 3.29

21.28x

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

  • Axita Cotton is overvalued based on earnings compared to the IN Luxury industry average.
  • Axita Cotton is overvalued based on earnings compared to the India market.
Price based on expected Growth
Does Axita Cotton's expected growth come at a high price?
Raw Data
BSE:542285 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 21.28x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
-18.2%per year
India Luxury Industry PEG Ratio Median Figure of 27 Publicly-Listed Luxury Companies 0.99x
India Market PEG Ratio Median Figure of 607 Publicly-Listed Companies 1.15x

*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 Axita Cotton, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Axita Cotton's assets?
Raw Data
BSE:542285 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-03-31) in INR ₹12.92
BSE:542285 Share Price * BSE (2019-02-22) in INR ₹69.9
India Luxury Industry PB Ratio Median Figure of 306 Publicly-Listed Luxury Companies 0.71x
India Market PB Ratio Median Figure of 3,588 Publicly-Listed Companies 1.05x
BSE:542285 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BSE:542285 Share Price ÷ Book Value per Share (both in INR)

= 69.9 ÷ 12.92

5.41x

* Primary Listing of Axita Cotton.

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

  • Axita Cotton is overvalued based on assets compared to the IN Luxury industry average.
X
Value checks
We assess Axita Cotton'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. Axita Cotton 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 Axita Cotton expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • 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!
Annual Growth Rate
-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.
Annual Growth Rates Comparison
Raw Data
BSE:542285 Future Growth Rates Data Sources
Data Point Source Value (per year)
BSE:542285 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts -18.2%
India Luxury Industry Earnings Growth Rate Market Cap Weighted Average 18.4%
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 11.7%

*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:542285 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (10 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:542285 Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2018-03-31 1,235 35 8
2017-03-31 902 -22 0
2016-03-31 681 -0 1

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • 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.
Raw Data
BSE:542285 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (10 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

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.
X
Future performance checks
We assess Axita Cotton'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.
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.

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

Past Performance

  How has Axita Cotton 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 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.
Raw Data

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).
X
Past performance checks
We assess Axita Cotton'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.
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.

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

Health

 How is Axita Cotton'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 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.
Raw Data

All data from Axita Cotton Company Filings, last reported 10 months ago.

BSE:542285 Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-03-31 32.29 169.64 2.69
2017-03-31 24.25 149.14 0.54
2016-03-31 23.98 112.01 0.87
2015-03-31 22.73 101.14 4.15
2014-03-31 25.59 105.35 0.03
  • Axita Cotton's level of debt (525.3%) compared to net worth is high (greater than 40%).
  • Unable to establish if Axita Cotton's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (20.6%, greater than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 1.6x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Axita Cotton'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. 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:
  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 Axita Cotton'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
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.
Raw Data
BSE:542285 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 109 Stocks 0.7%
India Market Average Dividend Yield Market Cap Weighted Average of 1397 Stocks 1.4%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.6%
India Top 25% Dividend Yield 75th Percentile 2%

Industry and Market average data is calculated daily.

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

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

  • Unable to perform a dividend volatility check as Axita Cotton has not reported any payouts.
  • Unable to verify if Axita Cotton's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Axita Cotton's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Axita Cotton has not reported any payouts.
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 Axita Cotton'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 Axita Cotton afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Axita Cotton has a total score of 0/6, 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 Axita Cotton'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
Kushalkumar Patel
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.
Management Team

Nitinbhai Patel

TITLE
Chairman & Managing Director

Kushalkumar Patel

TITLE
Managing Director
Board of Directors

Nitinbhai Patel

TITLE
Chairman & Managing Director

Kushalkumar Patel

TITLE
Managing Director

Amitbhai Patel

TITLE
Whole-Time Director
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 (₹)
X
Management checks
We assess Axita Cotton'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. Axita Cotton 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

Map
Description

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.

Details
Name: Axita Cotton Limited
542285
Exchange: BSE
Founded: 2013
₹457,984,800
6,552,000
Website: http://www.axitacotton.com
Address: 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
Staff numbers
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.