NSEI:GANECOS

Stock Analysis Report

Executive Summary

Ganesha Ecosphere Limited primarily manufactures and sells recycled polyester staple fiber in India.

Rewards

Trading at 93.5% below its fair value

Earnings grew by 62% over the past year

Pays a reliable dividend of 0.8%

Risk Analysis

Shareholders have been diluted in the past year

Does not have a meaningful market cap (₹5B)



Snowflake Analysis

Flawless balance sheet with solid track record and pays a dividend.

Share Price & News

How has Ganesha Ecosphere's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

8.2%

GANECOS

4.0%

IN Luxury

1.9%

IN Market


1 Year Return

-8.3%

GANECOS

12.5%

IN Luxury

8.1%

IN Market

Return vs Industry: GANECOS underperformed the Indian Luxury industry which returned 8.4% over the past year.

Return vs Market: GANECOS underperformed the Indian Market which returned 6.7% over the past year.


Shareholder returns

GANECOSIndustryMarket
7 Day8.2%4.0%1.9%
30 Day10.4%5.0%3.1%
90 Day-1.7%3.1%6.5%
1 Year-7.6%-8.3%13.3%12.5%10.1%8.1%
3 Year51.6%49.3%60.0%57.9%35.1%28.0%
5 Yearn/a99.2%95.8%36.6%24.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Ganesha Ecosphere 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: GANECOS (₹252.25) is trading below our estimate of fair value (₹3894.91)

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


Price To Earnings Ratio

PE vs Industry: GANECOS is good value based on its PE Ratio (7.8x) compared to the Luxury industry average (11.2x).

PE vs Market: GANECOS is good value based on its PE Ratio (7.8x) compared to the Indian market (13.8x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GANECOS is overvalued based on its PB Ratio (1.2x) compared to the IN Luxury industry average (0.6x).


Next Steps

Future Growth

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

20.2%

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 Ganesha Ecosphere 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 Ganesha Ecosphere performed over the past 5 years?

24.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GANECOS has high quality earnings.

Growing Profit Margin: GANECOS's current net profit margins (7%) are higher than last year (4.8%).


Past Earnings Growth Analysis

Earnings Trend: GANECOS's earnings have grown significantly by 24.6% per year over the past 5 years.

Accelerating Growth: GANECOS's earnings growth over the past year (62%) exceeds its 5-year average (24.6% per year).

Earnings vs Industry: GANECOS earnings growth over the past year (62%) exceeded the Luxury industry 1.2%.


Return on Equity

High ROE: GANECOS's Return on Equity (15.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ganesha Ecosphere's financial position?


Financial Position Analysis

Short Term Liabilities: GANECOS's short term assets (₹3.2B) exceed its short term liabilities (₹899.0M).

Long Term Liabilities: GANECOS's short term assets (₹3.2B) exceed its long term liabilities (₹881.1M).


Debt to Equity History and Analysis

Debt Level: GANECOS's debt to equity ratio (15.9%) is considered satisfactory.

Reducing Debt: GANECOS's debt to equity ratio has reduced from 151.9% to 15.9% over the past 5 years.

Debt Coverage: GANECOS's debt is well covered by operating cash flow (214%).

Interest Coverage: GANECOS's interest payments on its debt are well covered by EBIT (26.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: GANECOS's debt is covered by short term assets (assets are 4.5x debt).


Next Steps

Dividend

What is Ganesha Ecosphere's current dividend yield, its reliability and sustainability?

0.75%

Current Dividend Yield


Dividend Yield vs Market

company0.7%marketbottom25%0.6%markettop25%2.2%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: GANECOS's dividend (0.8%) is higher than the bottom 25% of dividend payers in the Indian market (0.56%).

High Dividend: GANECOS's dividend (0.8%) is low compared to the top 25% of dividend payers in the Indian market (2.31%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (6.3%), GANECOS'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 Ganesha Ecosphere's salary, the management and board of directors tenure and is there insider trading?

1.3yrs

Average management tenure


CEO

Sharad Sharma (53yo)

1.3yrs

Tenure

₹9,439,600

Compensation

Mr. Sharad Sharma has been Managing Director and Chief Executive Officer of Ganesha Ecosphere Ltd since September 18, 2018 and its Executive Director since 1992. He was Joint Managing Director at Ganesha E ...


CEO Compensation Analysis

Compensation vs Market: Sharad's total compensation ($USD133.21K) is above average for companies of similar size in the Indian market ($USD50.75K).

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


Management Age and Tenure

1.3yrs

Average Tenure

59.5yo

Average Age

Experienced Management: GANECOS's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

11.5yrs

Average Tenure

65.5yo

Average Age

Experienced Board: GANECOS's board of directors are seasoned and experienced ( 11.5 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

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Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8.1%.


Management Team

  • Vishnu Khandelwal (69yo)

    Executive Vice Chairman

    • Tenure: 11.3yrs
    • Compensation: ₹10.17m
  • Sharad Sharma (53yo)

    MD, CEO & Executive Director

    • Tenure: 1.3yrs
    • Compensation: ₹9.44m
  • Gopal Agarwal

    Chief Finance Officer

    • Compensation: ₹2.45m
  • Rajesh Sharma (53yo)

    Joint MD & Executive Director

    • Tenure: 11.6yrs
    • Compensation: ₹10.18m
  • Bharat Sajnani

    Compliance Officer & Company Secretary

    • Compensation: ₹1.08m
  • Gopal Shekhavat (66yo)

    Director of Administration & Director

    • Tenure: 6.6yrs
    • Compensation: ₹2.27m
  • Raj Khandelwal

    Executive Officer


    Board Members

    • Shyam Sharmma (76yo)

      Non-Executive Chairman

      • Tenure: 30.6yrs
      • Compensation: ₹2.14m
    • Pradeep Goenka (65yo)

      Non Executive Independent Director

      • Tenure: 13.5yrs
      • Compensation: ₹545.00k
    • Surendra Kabra (75yo)

      Non-Executive Independent Director

      • Tenure: 25.5yrs
      • Compensation: ₹363.33k
    • Vishnu Khandelwal (69yo)

      Executive Vice Chairman

      • Tenure: 11.3yrs
      • Compensation: ₹10.17m
    • Sharad Sharma (53yo)

      MD, CEO & Executive Director

      • Tenure: 1.3yrs
      • Compensation: ₹9.44m
    • Anoop Gupta (61yo)

      Non-Executive Independent Director

      • Tenure: 7.7yrs
      • Compensation: ₹60.56k
    • Rajesh Sharma (53yo)

      Joint MD & Executive Director

      • Tenure: 11.6yrs
      • Compensation: ₹10.18m
    • Vishwa Chandak (82yo)

      Non-Executive Independent Director

      • Tenure: 10.9yrs
      • Compensation: ₹423.89k
    • Abhilash Lal (54yo)

      Non-Executive Independent Director

      • Tenure: 5.3yrs
      • Compensation: ₹423.89k
    • Gopal Shekhavat (66yo)

      Director of Administration & Director

      • Tenure: 6.6yrs
      • Compensation: ₹2.27m

    Company Information

    Ganesha Ecosphere Limited's company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Ganesha Ecosphere Limited
    • Ticker: GANECOS
    • Exchange: NSEI
    • Founded: 1987
    • Industry: Textiles
    • Sector: Consumer Durables
    • Market Cap: ₹5.904b
    • Shares outstanding: 21.83m
    • Website: https://www.ganeshaecosphere.com

    Number of Employees


    Location

    • Ganesha Ecosphere Limited
    • 113/216-B, Swaroop Nagar
    • Kanpur
    • Uttar Pradesh
    • 208002
    • India

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    514167BSE (Mumbai Stock Exchange)YesEquity SharesININRMar 2002
    GANECOSNSEI (National Stock Exchange of India)YesEquity SharesININRMar 2002

    Biography

    Ganesha Ecosphere Limited primarily manufactures and sells recycled polyester staple fiber in India. The company also provides dyed texturized/twisted filament yarns and spun yarns. Its products are used in the manufacture of textiles, such as T-shirts, body warmers, dress material, sarees, etc., as well as suiting, shirting, and furnishing fabrics; functional textiles, including non-woven air filter fabrics, geo textiles, carpets, car upholstery, etc.; and filtration and fillings for pillows, duvets, toys, etc. Ganesha Ecosphere Limited also exports its products. The company was formerly known as Ganesh Polytex Ltd. and changed its name to Ganesha Ecosphere Limited in September 2011. Ganesha Ecosphere Limited was founded in 1987 and is headquartered in Kanpur, India. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/20 13:05
    End of Day Share Price2020/01/20 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.