BSE:590075

Stock Analysis Report

Executive Summary

Lambodhara Textiles Limited manufactures and sells synthetic yarns in India and Internationally.

Rewards

Trading at 81.9% below its fair value

Earnings grew by 46.1% over the past year

Pays a high and reliable dividend of 3.11%

Risk Analysis

Does not have a meaningful market cap (₹318M)

Has a high level of debt



Snowflake Analysis

Undervalued with solid track record and pays a dividend.

Share Price & News

How has Lambodhara Textiles's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 590075 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.3%

590075

-0.5%

IN Luxury

-1.5%

IN Market


1 Year Return

-11.5%

590075

18.2%

IN Luxury

10.7%

IN Market

Return vs Industry: 590075 underperformed the Indian Luxury industry which returned 18.2% over the past year.

Return vs Market: 590075 underperformed the Indian Market which returned 10.7% over the past year.


Shareholder returns

590075IndustryMarket
7 Day-5.3%-0.5%-1.5%
30 Day-14.6%3.0%-2.7%
90 Day0.9%9.2%1.3%
1 Year-8.8%-11.5%19.0%18.2%12.7%10.7%
3 Year-57.7%-60.3%52.2%48.8%22.0%15.1%
5 Year-49.8%-53.4%106.9%100.1%34.5%22.0%

Price Volatility Vs. Market

How volatile is Lambodhara Textiles's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Lambodhara Textiles 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: 590075 (₹32.2) is trading below our estimate of fair value (₹177.42)

Significantly Below Fair Value: 590075 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 590075 is good value based on its PE Ratio (3.6x) compared to the Luxury industry average (11.2x).

PE vs Market: 590075 is good value based on its PE Ratio (3.6x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 590075's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 590075 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 Lambodhara Textiles 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 Lambodhara Textiles 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 Lambodhara Textiles performed over the past 5 years?

11.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 590075 has high quality earnings.

Growing Profit Margin: 590075's current net profit margins (4.7%) are higher than last year (3.2%).


Past Earnings Growth Analysis

Earnings Trend: 590075's earnings have grown by 11.2% per year over the past 5 years.

Accelerating Growth: 590075's earnings growth over the past year (46.1%) exceeds its 5-year average (11.2% per year).

Earnings vs Industry: 590075 earnings growth over the past year (46.1%) exceeded the Luxury industry 5.6%.


Return on Equity

High ROE: 590075's Return on Equity (14.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Lambodhara Textiles's financial position?


Financial Position Analysis

Short Term Liabilities: 590075's short term assets (₹420.0M) exceed its short term liabilities (₹210.1M).

Long Term Liabilities: 590075's short term assets (₹420.0M) exceed its long term liabilities (₹337.5M).


Debt to Equity History and Analysis

Debt Level: 590075's debt to equity ratio (68.5%) is considered high.

Reducing Debt: 590075's debt to equity ratio has reduced from 187.8% to 68.5% over the past 5 years.

Debt Coverage: 590075's debt is well covered by operating cash flow (57.5%).

Interest Coverage: 590075's interest payments on its debt are well covered by EBIT (4.7x coverage).


Balance Sheet

Inventory Level: 590075 has a high level of physical assets or inventory.

Debt Coverage by Assets: 590075's debt is covered by short term assets (assets are 1x debt).


Next Steps

Dividend

What is Lambodhara Textiles's current dividend yield, its reliability and sustainability?

3.11%

Current Dividend Yield


Dividend Yield vs Market

company3.1%marketbottom25%0.6%markettop25%2.6%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 590075's dividend (3.11%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: 590075's dividend (3.11%) is in the top 25% of dividend payers in the Indian market (2.58%)


Stability and Growth of Payments

Stable Dividend: 590075's dividends per share have been stable in the past 10 years.

Growing Dividend: 590075's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (11.3%), 590075's dividend payments are thoroughly 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.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.4yrs

Average board tenure


CEO

Ramesh Kalyanpur (51yo)

₹1,109,000

Compensation

Mr. Ramesh Shenoy Kalyanpur has been Chief Financial Officer at Lambodhara Textiles Ltd since 2014 and has been its Whole-Time Director since July 11, 2018. Mr. Kalyanpur served as Compliance Officer of La ...


CEO Compensation Analysis

Compensation vs Market: Ramesh's total compensation ($USD15.50K) is below average for companies of similar size in the Indian market ($USD50.34K).

Compensation vs Earnings: Ramesh's compensation has increased by more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Ramesh Kalyanpur
CFO & Whole-Time Director0yrs₹1.11mno data
Giulia Bosco
Whole Time Director11.9yrs₹1.37m17.33% 55.2m
K. Balu
Whole-Time Director & Factory Manager1.6yrs₹1.27mno data
Vasthupal Mehta
Non-Executive Director24.3yrsno datano data
Meenakshi Rajkumar
Independent Chairman of the Board0yrsno datano data
Baba Ramakrishnan
Non-Executive Director5.3yrsno data0.0042% 13.3k
Akkalnaicker Veluchamy
Additional Independent Non Executive Director0.5yrsno datano data

3.4yrs

Average Tenure

57yo

Average Age

Experienced Board: 590075's board of directors are considered experienced (3.4 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Lambodhara Textiles Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lambodhara Textiles Limited
  • Ticker: 590075
  • Exchange: BSE
  • Founded: 1994
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹318.455m
  • Shares outstanding: 9.58m
  • Website: https://www.lambodharatextiles.com

Number of Employees


Location

  • Lambodhara Textiles Limited
  • Pioneer Apartments
  • 3rd Floor, 3A, B Block
  • Coimbatore
  • Tamil Nadu
  • 641018
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
590075BSE (Mumbai Stock Exchange)YesEquity SharesININRMay 2007
LAMBODHARANSEI (National Stock Exchange of India)YesEquity SharesININRMay 2007
590075BSE (Mumbai Stock Exchange)INR5ININROct 2015
LAMBODHARANSEI (National Stock Exchange of India)INR5ININROct 2015

Biography

Lambodhara Textiles Limited manufactures and sells synthetic yarns in India and Internationally. The company operates through Textile, Wind Mills, and Real Estate segments. It offers slub yarns, multi count and multi twist yarns, siro yarns, and neppy yarns. The company also exports its products. In addition, it generates electricity through wind. Lambodhara Textiles Limited was founded in 1994 and is based in Coimbatore, 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 12:59
End of Day Share Price2020/02/19 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.