Salona Cotspin Limited produces and sells cotton textile products in India.
+ 1 more risk
Mediocre balance sheet unattractive dividend payer.
Share Price & News
How has Salona Cotspin's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 590056 has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: 590056 underperformed the Indian Luxury industry which returned 16.6% over the past year.
Return vs Market: 590056 underperformed the Indian Market which returned 11.1% over the past year.
Price Volatility Vs. Market
How volatile is Salona Cotspin's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Is Salona Cotspin undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: 590056 (₹71) is trading above our estimate of fair value (₹8.24)
Significantly Below Fair Value: 590056 is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: 590056 is poor value based on its PE Ratio (43.4x) compared to the Luxury industry average (11x).
PE vs Market: 590056 is poor value based on its PE Ratio (43.4x) compared to the Indian market (13.4x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate 590056's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: 590056 is overvalued based on its PB Ratio (1.2x) compared to the IN Luxury industry average (0.5x).
How is Salona Cotspin forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
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 Salona Cotspin 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.
- Take a look at our analysis of 590056’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
- Salona Cotspin competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Consumer Durables industry.
How has Salona Cotspin performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 590056 has high quality earnings.
Growing Profit Margin: 590056's current net profit margins (0.8%) are lower than last year (1.9%).
Past Earnings Growth Analysis
Earnings Trend: 590056's earnings have declined by -8.5% per year over the past 5 years.
Accelerating Growth: 590056's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 590056 had negative earnings growth (-66.6%) over the past year, making it difficult to compare to the Luxury industry average (2.7%).
Return on Equity
High ROE: 590056's Return on Equity (2.7%) is considered low.
Return on Assets
Return on Capital Employed
How is Salona Cotspin's financial position?
Financial Position Analysis
Short Term Liabilities: 590056's short term assets (₹474.8M) exceed its short term liabilities (₹333.1M).
Long Term Liabilities: 590056's short term assets (₹474.8M) exceed its long term liabilities (₹91.2M).
Debt to Equity History and Analysis
Debt Level: 590056's debt to equity ratio (103.5%) is considered high.
Reducing Debt: 590056's debt to equity ratio has reduced from 103.7% to 103.5% over the past 5 years.
Debt Coverage: 590056's debt is not well covered by operating cash flow (18%).
Interest Coverage: 590056's interest payments on its debt are not well covered by EBIT (1.4x coverage).
Inventory Level: 590056 has a high level of physical assets or inventory.
Debt Coverage by Assets: 590056's debt is covered by short term assets (assets are 1.4x debt).
What is Salona Cotspin's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: 590056's dividend (0.85%) is higher than the bottom 25% of dividend payers in the Indian market (0.59%).
High Dividend: 590056's dividend (0.85%) is low compared to the top 25% of dividend payers in the Indian market (2.51%).
Stability and Growth of Payments
Stable Dividend: 590056 has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: 590056 has only been paying a dividend for 9 years, and since then payments have fallen.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (36.7%), 590056's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
How experienced are the management team and are they aligned to shareholders interests?
Average board tenure
Shyamlal Agarwala 0
Mr. Shyamlal Agarwala serves as the Executive Chairman, Chief Executive Officer at Salona Cotspin Ltd and has been its Managing Director since April 1,2015.
CEO Compensation Analysis
Compensation vs Market: Shyamlal's total compensation ($USD39.57K) is about average for companies of similar size in the Indian market ($USD50.14K).
Compensation vs Earnings: Shyamlal's compensation has been consistent with company performance over the past year.
|Joint MD & Executive Director||0yrs||₹1.99m||5.54% ₹21.0m|
|Additional Director||2yrs||₹1.20m||6.05% ₹23.0m|
|Non-Executive Independent Director||5.6yrs||₹16.00k||1.75% ₹6.6m|
|Non-Executive Independent Director||4.9yrs||₹8.00k||no data|
Experienced Board: 590056's board of directors are considered experienced (4.9 years average tenure).
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.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Salona Cotspin Limited's company bio, employee growth, exchange listings and data sources
- Name: Salona Cotspin Limited
- Ticker: 590056
- Exchange: BSE
- Founded: 1994
- Industry: Textiles
- Sector: Consumer Durables
- Market Cap: ₹379.928m
- Shares outstanding: 5.35m
- Website: https://www.salonagroup.com
Number of Employees
- Salona Cotspin Limited
- No. 9, Ramalinga Nagar
- IV Cross Saibaba Colony
- Tamil Nadu
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|590056||BSE (Mumbai Stock Exchange)||Yes||Equity Shares||IN||INR||Jul 2006|
|SALONA||NSEI (National Stock Exchange of India)||Yes||Equity Shares||IN||INR||Jul 2006|
Salona Cotspin Limited produces and sells cotton textile products in India. The company offers cotton, blended, ring spin, open end, slub, hank, and compact yarn products, as well as knitted fabrics and apparels. It also provides grey, dyed, and printed fabrics. The company also exports its yarns and fabrics to Sri Lanka, Bangladesh, Hong Kong, South Korea, Germany, Mexico, South America, Russia, etc. Salona Cotspin Limited was founded in 1994 and is based in Coimbatore, India.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/16 12:50|
|End of Day Share Price||2020/02/12 00:00|
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.