NSEI:CELEBRITY

Stock Analysis Report

Executive Summary

Celebrity Fashions Limited manufactures and sells garments and clothing accessories in India.

Rewards

Trading at 93.9% below its fair value

Earnings grew by 204.1% over the past year

Risk Analysis

Interest payments are not well covered by earnings

High level of non-cash earnings

Does not have a meaningful market cap (₹263M)

Highly volatile share price over past 3 months



Snowflake Analysis

Good value with proven track record.

Share Price & News

How has Celebrity Fashions's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-14.4%

CELEBRITY

1.1%

IN Luxury

-0.8%

IN Market


1 Year Return

-34.8%

CELEBRITY

18.4%

IN Luxury

11.1%

IN Market

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

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


Shareholder returns

CELEBRITYIndustryMarket
7 Day-14.4%1.1%-0.8%
30 Day-24.1%3.3%-2.3%
90 Day-25.2%9.6%2.1%
1 Year-34.8%-34.8%19.2%18.4%13.1%11.1%
3 Year-55.7%-55.7%54.9%51.5%22.9%16.2%
5 Year-66.6%-66.6%106.1%99.4%34.9%22.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Celebrity Fashions 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: CELEBRITY (₹5.05) is trading below our estimate of fair value (₹83)

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


Price To Earnings Ratio

PE vs Industry: CELEBRITY is good value based on its PE Ratio (0.7x) compared to the Luxury industry average (11.1x).

PE vs Market: CELEBRITY is good value based on its PE Ratio (0.7x) compared to the Indian market (13.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: CELEBRITY is overvalued based on its PB Ratio (2.6x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

How is Celebrity Fashions 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 Celebrity Fashions 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 Celebrity Fashions performed over the past 5 years?

18.1%

Historical annual earnings growth


Earnings and Revenue History

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

Growing Profit Margin: CELEBRITY's current net profit margins (7.9%) are higher than last year (2.8%).


Past Earnings Growth Analysis

Earnings Trend: CELEBRITY has become profitable over the past 5 years, growing earnings by 18.1% per year.

Accelerating Growth: CELEBRITY's earnings growth over the past year (204.1%) exceeds its 5-year average (18.1% per year).

Earnings vs Industry: CELEBRITY earnings growth over the past year (204.1%) exceeded the Luxury industry 2.5%.


Return on Equity

High ROE: Whilst CELEBRITY's Return on Equity (204.37%) 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 Celebrity Fashions's financial position?


Financial Position Analysis

Short Term Liabilities: CELEBRITY's short term assets (₹695.2M) do not cover its short term liabilities (₹800.1M).

Long Term Liabilities: CELEBRITY's short term assets (₹695.2M) exceed its long term liabilities (₹307.9M).


Debt to Equity History and Analysis

Debt Level: CELEBRITY's debt to equity ratio (628.8%) is considered high.

Reducing Debt: CELEBRITY's debt to equity ratio has reduced from 7158.9% to 628.8% over the past 5 years.

Debt Coverage: CELEBRITY's debt is well covered by operating cash flow (78%).

Interest Coverage: CELEBRITY's interest payments on its debt are not well covered by EBIT (1.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: CELEBRITY's debt is covered by short term assets (assets are 1.2x debt).


Next Steps

Dividend

What is Celebrity Fashions's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%0.6%markettop25%2.5%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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

3.3yrs

Average management tenure


CEO

Vidyuth Rajagopal (33yo)

1.5yrs

Tenure

₹3,000,000

Compensation

Mr. Vidyuth Rajagopal has been Managing Director of Celebrity Fashions Limited since August 8, 2018 and served as its Joint Managing Director until August 8, 2018 and has been its Executive Additional Dire ...


CEO Compensation Analysis

Compensation vs Market: Vidyuth's total compensation ($USD41.95K) is about average for companies of similar size in the Indian market ($USD50.21K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Vidyuth Rajagopal
MD & Whole-Time Director1.5yrs₹3.00m0.067% 176.0k
S. Venkataraghavan
Chief Financial Officer2.8yrsno datano data
C. Reubalin
Chief Operating Officer0yrsno datano data
A. Premkumar
Head of Technical and QA0yrsno datano data
A. Kumar
Compliance Officer & Company Secretary3.8yrsno datano data
W. Manickarayan
General Manager of Human Resources0yrsno datano data
Rama Rajagopal
Executive Director26.1yrs₹2.40m18.81% 49.4m
John Kumar
Senior Vice President of Merchandising9.8yrsno datano data

3.3yrs

Average Tenure

Experienced Management: CELEBRITY's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Vidyuth Rajagopal
MD & Whole-Time Director1.5yrs₹3.00m0.067% 176.0k
Rama Rajagopal
Executive Director26.1yrs₹2.40m18.81% 49.4m
Venkatesh Rajagopal
Chairman of the Board14.3yrs₹2.40m22.94% 60.3m
Nugahalli Ranganath
Independent & Non Executive Director14.4yrs₹21.50kno data
Nidhi Reddy
Independent & Non Executive Director13.4yrs₹6.50kno data
Manoj Mohanka
Additional Independent Director0.3yrsno datano data
Krishnamurthy Sridhar
Independent & Non Executive Director3.5yrs₹20.00kno data

13.4yrs

Average Tenure

62.5yo

Average Age

Experienced Board: CELEBRITY's board of directors are seasoned and experienced ( 13.4 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

Celebrity Fashions Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Celebrity Fashions Limited
  • Ticker: CELEBRITY
  • Exchange: NSEI
  • Founded: 1988
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: ₹262.724m
  • Shares outstanding: 47.77m
  • Website: https://www.celebritygroup.com

Number of Employees


Location

  • Celebrity Fashions Limited
  • SDF –IV & C2
  • 3rd Main Road
  • Chennai
  • Tamil Nadu
  • 600045
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532695BSE (Mumbai Stock Exchange)YesEquity SharesININRJan 2006
CELEBRITYNSEI (National Stock Exchange of India)YesEquity SharesININRJan 2006

Biography

Celebrity Fashions Limited manufactures and sells garments and clothing accessories in India. It also exports its garments. The company was founded in 1988 and is based in Chennai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 13:02
End of Day Share Price2020/02/17 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.