NSEI:DOLLAR

Stock Analysis Report

Executive Summary

Dollar Industries Limited manufactures and markets hosiery and garments primarily in India.

Rewards

Trading at 70.2% below its fair value

Earnings are forecast to grow 10.66% per year

Risk Analysis

Debt is not well covered by operating cash flow

Unstable dividend track record

Highly volatile share price over past 3 months



Snowflake Analysis

Adequate balance sheet and fair value.

Share Price & News

How has Dollar Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-4.3%

DOLLAR

0.3%

IN Luxury

-1.3%

IN Market


1 Year Return

-51.5%

DOLLAR

8.6%

IN Luxury

5.2%

IN Market

Return vs Industry: DOLLAR underperformed the Indian Luxury industry which returned 8.6% over the past year.

Return vs Market: DOLLAR underperformed the Indian Market which returned 5.2% over the past year.


Shareholder returns

DOLLARIndustryMarket
7 Day-4.3%0.3%-1.3%
30 Day-21.7%-0.6%-1.2%
90 Day-29.9%8.9%8.3%
1 Year-51.1%-51.5%9.4%8.6%7.2%5.2%
3 Yearn/a58.9%56.8%30.3%23.4%
5 Yearn/a101.1%97.2%39.3%26.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Dollar Industries 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: DOLLAR (₹137.8) is trading below our estimate of fair value (₹463.12)

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


Price To Earnings Ratio

PE vs Industry: DOLLAR is poor value based on its PE Ratio (11.6x) compared to the Luxury industry average (10.4x).

PE vs Market: DOLLAR is good value based on its PE Ratio (11.6x) compared to the Indian market (12.9x).


Price to Earnings Growth Ratio

PEG Ratio: DOLLAR is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: DOLLAR is overvalued based on its PB Ratio (1.8x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

How is Dollar Industries forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

10.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DOLLAR's forecast earnings growth (10.7% per year) is above the savings rate (6.5%).

Earnings vs Market: DOLLAR's earnings (10.7% per year) are forecast to grow slower than the Indian market (19.8% per year).

High Growth Earnings: DOLLAR's earnings are forecast to grow, but not significantly.

Revenue vs Market: DOLLAR's revenue (8.8% per year) is forecast to grow slower than the Indian market (11.5% per year).

High Growth Revenue: DOLLAR's revenue (8.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if DOLLAR's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Dollar Industries performed over the past 5 years?

32.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DOLLAR has high quality earnings.

Growing Profit Margin: DOLLAR's current net profit margins (6.6%) are lower than last year (7.2%).


Past Earnings Growth Analysis

Earnings Trend: DOLLAR's earnings have grown significantly by 32% per year over the past 5 years.

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

Earnings vs Industry: DOLLAR had negative earnings growth (-2.1%) over the past year, making it difficult to compare to the Luxury industry average (1%).


Return on Equity

High ROE: DOLLAR's Return on Equity (15.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Dollar Industries's financial position?


Financial Position Analysis

Short Term Liabilities: DOLLAR's short term assets (₹6.9B) exceed its short term liabilities (₹3.4B).

Long Term Liabilities: DOLLAR's short term assets (₹6.9B) exceed its long term liabilities (₹151.6M).


Debt to Equity History and Analysis

Debt Level: DOLLAR's debt to equity ratio (48.4%) is considered high.

Reducing Debt: DOLLAR's debt to equity ratio has reduced from 146.8% to 48.4% over the past 5 years.

Debt Coverage: DOLLAR's debt is not well covered by operating cash flow (13.4%).

Interest Coverage: DOLLAR's interest payments on its debt are well covered by EBIT (6.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: DOLLAR's debt is covered by short term assets (assets are 3.3x debt).


Next Steps

Dividend

What is Dollar Industries's current dividend yield, its reliability and sustainability?

1.23%

Current Dividend Yield


Dividend Yield vs Market

company1.2%marketbottom25%0.6%markettop25%2.5%industryaverage0.7%forecastin3Years2.2%

Current dividend yield vs market & industry

Notable Dividend: DOLLAR's dividend (1.23%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: DOLLAR's dividend (1.23%) is low compared to the top 25% of dividend payers in the Indian market (2.48%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, DOLLAR has been paying a dividend for less than 10 years.

Growing Dividend: DOLLAR's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (14.3%), DOLLAR'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

What is the CEO of Dollar Industries's salary, the management and board of directors tenure and is there insider trading?

14.2yrs

Average board tenure


CEO

Vinod Gupta (69yo)

0yrs

Tenure

₹10,900,000

Compensation

Mr. Vinod Kumar Gupta, B.Sc, L.L.B has been the Chief Financial Officer of Parenteral Drug (India) Limited since April 23, 2019 and its Director and Managing Director since April 2019 and June 10, 2019 res ...


CEO Compensation Analysis

Compensation vs Market: Vinod's total compensation ($USD152.47K) is above average for companies of similar size in the Indian market ($USD33.57K).

Compensation vs Earnings: Vinod's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Age and Tenure

14.2yrs

Average Tenure

53yo

Average Age

Experienced Board: DOLLAR's board of directors are seasoned and experienced ( 14.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy₹3,530,39023 Sep 19
Simplex Impex Pvt. Ltd
EntityCompany
Shares17,000
Max Price₹207.67

Ownership Breakdown

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


Management Team

  • Vinod Gupta (69yo)

    CEO, MD & Director

    • Tenure: 0yrs
    • Compensation: ₹10.90m
  • Bajrang Gupta (47yo)

    Whole-Time Director

    • Tenure: 14.2yrs
    • Compensation: ₹7.70m
  • Binay Gupta (51yo)

    MD & Director

    • Tenure: 14.2yrs
    • Compensation: ₹10.60m
  • Krishan Gupta (49yo)

    Whole-Time Director

    • Tenure: 14.3yrs
    • Compensation: ₹8.00m
  • Gopalakrishnan Sarankapani (54yo)

    Administrative Director & Executive Director

    • Tenure: 0yrs
    • Compensation: ₹800.00k
  • Shashi Agarwal (47yo)

    Senior Vice President of Corporate Strategy & Investors Relation

    • Tenure: 1.6yrs
  • Ankit Gupta (28yo)

    Chief Financial Officer

    • Tenure: 0.08yrs
  • Abhishek Mishra

    Company Secretary & Compliance Officer

    • Tenure: 0yrs
    • Compensation: ₹600.00k
  • Sanjay Srivastava (53yo)

    General Manager of Marketing

    • Tenure: 0yrs
  • Ankur Bubna (31yo)

    AGM- Finance & Accounts

    • Tenure: 0yrs

Board Members

  • Sunil Mitra (68yo)

    Non-Executive Independent Director

    • Tenure: 2.7yrs
    • Compensation: ₹40.00k
  • Vinod Gupta (69yo)

    CEO, MD & Director

    • Tenure: 0yrs
    • Compensation: ₹10.90m
  • Bajrang Gupta (47yo)

    Whole-Time Director

    • Tenure: 14.2yrs
    • Compensation: ₹7.70m
  • Binay Gupta (51yo)

    MD & Director

    • Tenure: 14.2yrs
    • Compensation: ₹10.60m
  • Krishan Gupta (49yo)

    Whole-Time Director

    • Tenure: 14.3yrs
    • Compensation: ₹8.00m
  • Binay Agarwal (53yo)

    Non-Executive Independent Director

    • Tenure: 0yrs
    • Compensation: ₹62.00k
  • Rajesh Bubna

    Non-Executive Independent Director

    • Tenure: 0yrs
    • Compensation: ₹148.00k
  • Gopalakrishnan Sarankapani (54yo)

    Administrative Director & Executive Director

    • Tenure: 0yrs
    • Compensation: ₹800.00k
  • Divyaa Newatia (39yo)

    Independent Women Director

    • Tenure: 1.8yrs
    • Compensation: ₹94.00k
  • Sanjay Jhunjhunwalla (56yo)

    Non Executive Director

    • Tenure: 1.3yrs
    • Compensation: ₹20.00k

Company Information

Dollar Industries Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Dollar Industries Limited
  • Ticker: DOLLAR
  • Exchange: NSEI
  • Founded: 1972
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: ₹7.807b
  • Shares outstanding: 56.72m
  • Website: https://www.dollarglobal.in/

Number of Employees


Location

  • Dollar Industries Limited
  • OM Tower
  • 15th Floor
  • Kolkata
  • West Bengal
  • 700071
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DOLLARNSEI (National Stock Exchange of India)YesEquity SharesININRApr 2017
541403BSE (Mumbai Stock Exchange)YesEquity SharesININRApr 2017

Biography

Dollar Industries Limited manufactures and markets hosiery and garments primarily in India. It offers vests, briefs, trunks, T-shirts, atheleisure, boxers, bermudas, capris, track pants, camisoles, panties ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/08 13:03
End of Day Share Price2019/12/05 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.