BSE:590022

Stock Analysis Report

Eastern Silk Industries

Executive Summary

Eastern Silk Industries Limited manufactures and sells textile and allied products in India.

Rewards

Trading at 80.5% below its fair value

Risk Analysis

Does not have a meaningful market cap (₹88M)

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Slightly overvalued with imperfect balance sheet.

Share Price & News

How has Eastern Silk Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 590022's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

17.9%

590022

0.2%

IN Luxury

-0.4%

IN Market


1 Year Return

-21.7%

590022

16.6%

IN Luxury

11.1%

IN Market

Return vs Industry: 590022 underperformed the Indian Luxury industry which returned 16.6% over the past year.

Return vs Market: 590022 underperformed the Indian Market which returned 11.1% over the past year.


Shareholder returns

590022IndustryMarket
7 Day17.9%0.2%-0.4%
30 Day17.9%3.3%-1.2%
90 Day107.4%8.5%3.3%
1 Year-21.7%-21.7%17.3%16.6%13.0%11.1%
3 Year-57.1%-57.1%53.8%52.0%25.3%18.6%
5 Year-44.3%-44.3%103.0%96.4%35.4%23.1%

Price Volatility Vs. Market

How volatile is Eastern Silk Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Eastern Silk Industries 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: 590022 (₹1.12) is trading below our estimate of fair value (₹5.74)

Significantly Below Fair Value: 590022 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 590022 is unprofitable, so we can't compare its PE Ratio to the Luxury industry average.

PE vs Market: 590022 is unprofitable, so we can't compare its PE Ratio to the Indian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 590022's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 590022 has negative assets, so we can't compare its PB Ratio to the IN Luxury industry average.


Next Steps

Future Growth

How is Eastern Silk Industries forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

19.8%

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 Eastern Silk Industries 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 Eastern Silk Industries performed over the past 5 years?

41.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 590022 is currently unprofitable.

Growing Profit Margin: 590022 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 590022 is unprofitable, but has reduced losses over the past 5 years at a rate of 41.4% per year.

Accelerating Growth: Unable to compare 590022's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 590022 is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (2.7%).


Return on Equity

High ROE: 590022's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Eastern Silk Industries's financial position?


Financial Position Analysis

Short Term Liabilities: 590022 has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: 590022 has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: 590022 has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: 590022's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: 590022 has a high level of physical assets or inventory.

Debt Coverage by Assets: 590022 has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable 590022 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 590022 is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -10.7% per year.


Next Steps

Dividend

What is Eastern Silk Industries's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%0.6%markettop25%2.5%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 590022's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 590022'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 590022's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 590022's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 590022 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 590022'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?

3.0yrs

Average board tenure


CEO

Sundeep Shah (56yo)

1.1yrs

Tenure

₹1,758,000

Compensation

Mr. Sundeep Shah, B.Com has been Managing Director at Eastern Silk Industries Ltd., since January 16, 2019. He has been Chairman at Eastern Silk Industries Ltd. and its Executive Director since September 1 ...


CEO Compensation Analysis

Compensation vs Market: Sundeep's total compensation ($USD24.58K) is below average for companies of similar size in the Indian market ($USD50.14K).

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


Board Members

NamePositionTenureCompensationOwnership
Sundeep Shah
Chairman & MD1.1yrs₹1.76m2.11% 1.9m
Megha Shah
Executive Director5.1yrs₹668.40k0.043% 37.8k
G. Harnathka
Non-Executive Independent Director19.6yrs₹15.00kno data
Madhu Sharma
Non-Executive Independent Director0.9yrsno datano data
Pankaj Deorah
Non-Executive Independent Director0.8yrsno datano data

3.0yrs

Average Tenure

56yo

Average Age

Experienced Board: 590022's board of directors are considered experienced (3 years average tenure).


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 been diluted in the past year, with total shares outstanding growing by 3.7%.


Top Shareholders

Company Information

Eastern Silk Industries Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Eastern Silk Industries Limited
  • Ticker: 590022
  • Exchange: BSE
  • Founded: 1946
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹88.427m
  • Shares outstanding: 78.95m
  • Website: https://www.easternsilk.com

Location

  • Eastern Silk Industries Limited
  • 19, R. N. Mukherjee Road
  • Kolkata
  • West Bengal
  • 700001
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
590022BSE (Mumbai Stock Exchange)YesEquity SharesININRJul 1996
EASTSILKNSEI (National Stock Exchange of India)YesEquity SharesININRJul 1996

Biography

Eastern Silk Industries Limited manufactures and sells textile and allied products in India. It provides silk yarns, fabrics and made-ups, home furnishings, scarves, laces, and belts, as well as fashion, embroidered, and double width fabrics. The company exports its products to the United States, Europe, Australia, the Middle East, Canada, Japan, New Zealand, Scandinavian, and EFFTA countries. Eastern Silk Industries Limited was incorporated in 1946 and is based in Kolkata, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 12:41
End of Day Share Price2020/02/13 00:00
Earnings2019/12/31
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.