NSEI:BOMDYEING

Stock Analysis Report

Bombay Dyeing and Manufacturing

Executive Summary

The Bombay Dyeing and Manufacturing Company Limited produces and sells polyester staple fiber products in India.

Rewards

PE ratio (1x) is below the Indian market (13.4x)

Earnings grew by 63.1% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

High level of non-cash earnings

Unstable dividend track record



Snowflake Analysis

Proven track record with mediocre balance sheet.


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Share Price & News

How has Bombay Dyeing and Manufacturing's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-4.8%

BOMDYEING

0.2%

IN Luxury

-0.4%

IN Market


1 Year Return

-16.5%

BOMDYEING

16.6%

IN Luxury

11.1%

IN Market

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

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


Shareholder returns

BOMDYEINGIndustryMarket
7 Day-4.8%0.2%-0.4%
30 Day-4.4%2.6%-1.5%
90 Day8.1%8.7%3.3%
1 Year-15.0%-16.5%17.3%16.6%13.0%11.1%
3 Year56.3%51.6%53.8%52.0%25.3%18.6%
5 Year13.1%7.5%103.0%96.4%35.4%23.1%

Price Volatility Vs. Market

How volatile is Bombay Dyeing and Manufacturing's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Bombay Dyeing and Manufacturing undervalued compared to its fair value and its price relative to the market?

1.03x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BOMDYEING (₹85.8) is trading above our estimate of fair value (₹20.89)

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


Price To Earnings Ratio

PE vs Industry: BOMDYEING is good value based on its PE Ratio (1x) compared to the Luxury industry average (11x).

PE vs Market: BOMDYEING is good value based on its PE Ratio (1x) compared to the Indian market (13.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: BOMDYEING is overvalued based on its PB Ratio (18x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

How is Bombay Dyeing and Manufacturing 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 Bombay Dyeing and Manufacturing 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 Bombay Dyeing and Manufacturing performed over the past 5 years?

49.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BOMDYEING has a high level of non-cash earnings.

Growing Profit Margin: BOMDYEING's current net profit margins (35.3%) are higher than last year (23.7%).


Past Earnings Growth Analysis

Earnings Trend: BOMDYEING's earnings have grown significantly by 49.9% per year over the past 5 years.

Accelerating Growth: BOMDYEING's earnings growth over the past year (63.1%) exceeds its 5-year average (49.9% per year).

Earnings vs Industry: BOMDYEING earnings growth over the past year (63.1%) exceeded the Luxury industry 2.7%.


Return on Equity

High ROE: Whilst BOMDYEING's Return on Equity (2134.39%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Bombay Dyeing and Manufacturing's financial position?


Financial Position Analysis

Short Term Liabilities: BOMDYEING's short term assets (₹35.7B) exceed its short term liabilities (₹14.3B).

Long Term Liabilities: BOMDYEING's short term assets (₹35.7B) exceed its long term liabilities (₹33.9B).


Debt to Equity History and Analysis

Debt Level: BOMDYEING's debt to equity ratio (5623.6%) is considered high.

Reducing Debt: BOMDYEING's debt to equity ratio has increased from 79.3% to 5623.6% over the past 5 years.

Debt Coverage: BOMDYEING's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: BOMDYEING's interest payments on its debt are well covered by EBIT (3.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: BOMDYEING's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

What is Bombay Dyeing and Manufacturing's current dividend yield, its reliability and sustainability?

1.75%

Current Dividend Yield


Dividend Yield vs Market

company1.7%marketbottom25%0.6%markettop25%2.5%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: BOMDYEING's dividend (1.75%) is higher than the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: BOMDYEING's dividend (1.75%) is low compared to the top 25% of dividend payers in the Indian market (2.51%).


Stability and Growth of Payments

Stable Dividend: BOMDYEING's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (1.8%), BOMDYEING'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?

3.6yrs

Average management tenure


CEO

Jeh Wadia (46yo)

8.8yrs

Tenure

₹81,200,000

Compensation

Mr. Jehangir Nusli Wadia, also known as Jeh, M.D., Esq., serves as the Managing Director of Go Airlines (India) Ltd. Mr. Wadia serves as Managing Director of Bombay Realty. He has been Managing Director of ...


CEO Compensation Analysis

Compensation vs Market: Jeh's total compensation ($USD1.14M) is above average for companies of similar size in the Indian market ($USD298.20K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jehangir Wadia
MD & Director8.8yrs₹81.20m0.14% 24.7m
Sanjive Arora
Company Secretary & Compliance Officer3.6yrsno datano data
Hitesh Vora
Chief Financial Officer0.3yrsno datano data
S. Raja
Vice President of Corporate Accounts & Taxation0yrsno datano data
Suresh Khurana
Chief Executive Officer of PSF0yrsno datano data
Alokendra Banerjee
Chief Executive Officer of Retail0yrsno datano data

3.6yrs

Average Tenure

56.5yo

Average Age

Experienced Management: BOMDYEING's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jehangir Wadia
MD & Director8.8yrs₹81.20m0.14% 24.7m
Nusli Wadia
Chairman42.8yrs₹10.90m0.067% 11.8m
Sunil Lalbhai
Non-Executive Independent Director1yrsno datano data
Sethumadhava Ragothaman
Independent Non-Executive Director16.7yrs₹1.80m0.017% 3.0m
Ness Wadia
Non-Executive & Non Independent Director8.8yrs₹700.00k0.59% 104.6m
Keki Elavia
Independent Non-Executive Director2.8yrs₹2.30mno data
Vinesh Jairath
Independent Non-Executive Director3yrs₹3.90mno data
Minnie Bodhanwala
Non-Executive Non-Independent Director2.9yrs₹1.10mno data
Gauri Kirloskar
Non-Executive Independent Director1yrsno datano data

3.0yrs

Average Tenure

59yo

Average Age

Experienced Board: BOMDYEING'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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

The Bombay Dyeing and Manufacturing Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Bombay Dyeing and Manufacturing Company Limited
  • Ticker: BOMDYEING
  • Exchange: NSEI
  • Founded: 1879
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹17.710b
  • Shares outstanding: 206.53m
  • Website: https://www.bombaydyeing.com

Number of Employees


Location

  • The Bombay Dyeing and Manufacturing Company Limited
  • Neville House
  • J.N. Heredia Marg
  • Mumbai
  • Maharashtra
  • 400038
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BOMDYBDL (Bourse de Luxembourg)GDR EACH REPR 1 ORD INR2 REG SLUUSDJan 1994
500020BSE (Mumbai Stock Exchange)YesEquity SharesININRApr 1995
BOMDYEINGNSEI (National Stock Exchange of India)YesEquity SharesININRApr 1995

Biography

The Bombay Dyeing and Manufacturing Company Limited produces and sells polyester staple fiber products in India. It operates through Real Estate, Polyster, and Retail/Textile segments. The company is also involved in the manufacture of textile grade PET chips; and retail of home textiles. In addition, it develops real estate properties, such as residences, offices, hotels, serviced apartments, hospitals, schools, and retail facilities. The company exports its products to Europe, North and South America, the Middle East, Africa, and Asia. The Bombay Dyeing and Manufacturing Company Limited was founded in 1879 and is headquartered in Mumbai, 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 12:52
End of Day Share Price2020/02/14 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.