NSEI:ARROWTEX

Stock Analysis Report

Executive Summary

Arrow Textiles Limited manufactures and sells textile woven labels, fabric printed labels, and elastic/woven tapes primarily in India.

Risk Analysis

Earnings have declined by -31.73% per year over past 5 years

Does not have a meaningful market cap (₹177M)

Highly volatile share price over past 3 months

Large one-off items impacting financial results

+ 1 more risk


Snowflake Analysis

Excellent balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

ARROWTEX

1.1%

IN Luxury

-0.6%

IN Market


1 Year Return

-40.6%

ARROWTEX

19.3%

IN Luxury

11.1%

IN Market

Return vs Industry: ARROWTEX underperformed the Indian Luxury industry which returned 19.3% over the past year.

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


Shareholder returns

ARROWTEXIndustryMarket
7 Day0%1.1%-0.6%
30 Day-10.0%4.6%-0.5%
90 Day-5.3%11.5%3.0%
1 Year-40.6%-40.6%20.1%19.3%13.1%11.1%
3 Year-78.4%-80.1%54.7%52.8%24.5%18.0%
5 Year-69.1%-72.3%110.4%103.4%37.8%25.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Arrow Textiles undervalued compared to its fair value and its price relative to the market?

131.5x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ARROWTEX (₹9) is trading above our estimate of fair value (₹0.5)

Significantly Below Fair Value: ARROWTEX is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ARROWTEX is poor value based on its PE Ratio (131.5x) compared to the Luxury industry average (11.4x).

PE vs Market: ARROWTEX is poor value based on its PE Ratio (131.5x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ARROWTEX is overvalued based on its PB Ratio (0.5x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

How is Arrow Textiles forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

19.7%

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 Arrow 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 Arrow Textiles performed over the past 5 years?

-31.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ARROWTEX has a large one-off gain of ₹2.4M impacting its September 30 2019 financial results.

Growing Profit Margin: ARROWTEX's current net profit margins (0.3%) are lower than last year (5%).


Past Earnings Growth Analysis

Earnings Trend: ARROWTEX's earnings have declined by -31.7% per year over the past 5 years.

Accelerating Growth: ARROWTEX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ARROWTEX had negative earnings growth (-93.6%) over the past year, making it difficult to compare to the Luxury industry average (6%).


Return on Equity

High ROE: ARROWTEX's Return on Equity (0.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Arrow Textiles's financial position?


Financial Position Analysis

Short Term Liabilities: ARROWTEX's short term assets (₹272.9M) exceed its short term liabilities (₹70.8M).

Long Term Liabilities: ARROWTEX's short term assets (₹272.9M) exceed its long term liabilities (₹5.6M).


Debt to Equity History and Analysis

Debt Level: ARROWTEX's debt to equity ratio (0.9%) is considered satisfactory.

Reducing Debt: ARROWTEX's debt to equity ratio has reduced from 25.9% to 0.9% over the past 5 years.

Debt Coverage: ARROWTEX's debt is well covered by operating cash flow (665%).

Interest Coverage: Insufficient data to determine if ARROWTEX's interest payments on its debt are well covered by EBIT.


Balance Sheet

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

Debt Coverage by Assets: ARROWTEX's debt is covered by short term assets (assets are 91.3x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%0.6%markettop25%2.6%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

1.8yrs

Average management tenure


CEO

Ram Shroff (48yo)

1.3yrs

Tenure

₹6,499,992

Compensation

Dr. Ram Hemant Shroff has been Managing Director at Arrow Textiles Limited since November1, 2018. Dr. Shroff has been Managing Director and Executive Vice Chairman of Delta Magnets Limited since October 1, ...


CEO Compensation Analysis

Compensation vs Market: Ram's total compensation ($USD90.83K) is above average for companies of similar size in the Indian market ($USD50.31K).

Compensation vs Earnings: Insufficient data to compare Ram's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Ram Shroff
Managing Director & Director1.3yrs₹6.50mno data
Ulhas Kale
CFO & Director0yrs₹1.31mno data
Saurabh Gangadhare
Company Secretary & Compliance Officer1.8yrs₹433.46k0.000010% 17.7

1.8yrs

Average Tenure

Experienced Management: ARROWTEX's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Ram Shroff
Managing Director & Director1.3yrs₹6.50mno data
Ulhas Kale
CFO & Director0yrs₹1.31mno data
Jaydev Mody
Non-Executive Chairman0yrs₹10.00k0.22% 380.4k
Aditya Mangaldas
Independent Director11.3yrs₹35.00kno data
Vrajesh Udani
Independent Director5.5yrs₹35.00kno data
Aurobind Patel
Independent Director11.3yrs₹27.50kno data
Anjali Mody
Non Executive Director5.5yrs₹20.00kno data

5.5yrs

Average Tenure

59.5yo

Average Age

Experienced Board: ARROWTEX's board of directors are considered experienced (5.5 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

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


Key Information

  • Name: Arrow Textiles Limited
  • Ticker: ARROWTEX
  • Exchange: NSEI
  • Founded: 1983
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹176.728m
  • Shares outstanding: 19.04m
  • Website: https://www.arrowtextiles.com

Number of Employees


Location

  • Arrow Textiles Limited
  • Plot No. 101-103, 19th Street
  • MIDC
  • Nashik
  • Maharashtra
  • 422007
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
533068BSE (Mumbai Stock Exchange)YesEquity SharesININRMay 2009
ARROWTEXNSEI (National Stock Exchange of India)YesEquity SharesININRMay 2009

Biography

Arrow Textiles Limited manufactures and sells textile woven labels, fabric printed labels, and elastic/woven tapes primarily in India. The company offers belly bands, button hole and wash care labels, children's printed elastic tapes, cotton printed labels, cut and fold types, woven tapes, trouser gripper tapes, grosgrain tapes, hanger loop labels, iron on printed labels, fabric labels with consecutive numbering, laser cut labels, name elastic tapes, and woven labels. It also provides plain woven elastic, paper price stickers and tickets, plain elastic tapes, polyester printed labels, print on slub substrates, print on tear away substrates, printed elastic tapes, printed woven labels, satin printed labels, screen printed labels, and self-adhesive woven and printed labels. In addition, the company exports its products. It provides its products for use in apparels and made-ups, including terry towels and home furnishings. The company was founded in 1983 and is based in Nashik, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 13:06
End of Day Share Price2020/02/05 00:00
Earnings2019/09/30
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.