NSEI:GARFIBRES

Stock Analysis Report

Executive Summary

Garware Technical Fibres Limited manufactures and sells various technical textile products worldwide.


Snowflake Analysis

Excellent balance sheet with proven track record.


Similar Companies

Share Price & News

How has Garware Technical Fibres's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-4.0%

GARFIBRES

-2.3%

IN Luxury

-2.9%

IN Market


1 Year Return

-7.9%

GARFIBRES

-26.7%

IN Luxury

-29.3%

IN Market

Return vs Industry: GARFIBRES exceeded the Indian Luxury industry which returned -26.9% over the past year.

Return vs Market: GARFIBRES exceeded the Indian Market which returned -29.2% over the past year.


Shareholder returns

GARFIBRESIndustryMarket
7 Day-4.0%-2.3%-2.9%
30 Day-33.7%-28.6%-26.5%
90 Day-11.0%-25.5%-28.5%
1 Year-5.8%-7.9%-26.1%-26.7%-27.9%-29.3%
3 Year51.4%46.8%1.6%-0.9%-15.4%-20.0%
5 Year485.3%457.4%44.6%39.4%-3.3%-8.3%

Price Volatility Vs. Market

How volatile is Garware Technical Fibres's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Garware Technical Fibres undervalued compared to its fair value and its price relative to the market?

16.03x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GARFIBRES (₹1042.15) is trading above our estimate of fair value (₹946.91)

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


Price To Earnings Ratio

PE vs Industry: GARFIBRES is poor value based on its PE Ratio (16x) compared to the Luxury industry average (7.8x).

PE vs Market: GARFIBRES is poor value based on its PE Ratio (16x) compared to the Indian market (9.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GARFIBRES is overvalued based on its PB Ratio (3.2x) compared to the IN Luxury industry average (0.4x).


Next Steps

Future Growth

How is Garware Technical Fibres forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

15.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GARFIBRES's forecast earnings growth (15.1% per year) is above the savings rate (6.5%).

Earnings vs Market: GARFIBRES's earnings (15.1% per year) are forecast to grow slower than the Indian market (19.8% per year).

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

Revenue vs Market: GARFIBRES's revenue (12.2% per year) is forecast to grow faster than the Indian market (9.1% per year).

High Growth Revenue: GARFIBRES's revenue (12.2% 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 GARFIBRES's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Garware Technical Fibres performed over the past 5 years?

19.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GARFIBRES has high quality earnings.

Growing Profit Margin: GARFIBRES's current net profit margins (14.3%) are higher than last year (12.2%).


Past Earnings Growth Analysis

Earnings Trend: GARFIBRES's earnings have grown by 19.9% per year over the past 5 years.

Accelerating Growth: GARFIBRES's earnings growth over the past year (17.3%) is below its 5-year average (19.9% per year).

Earnings vs Industry: GARFIBRES earnings growth over the past year (17.3%) exceeded the Luxury industry 6.4%.


Return on Equity

High ROE: GARFIBRES's Return on Equity (19.8%) is considered low.


Next Steps

Financial Health

How is Garware Technical Fibres's financial position?


Financial Position Analysis

Short Term Liabilities: GARFIBRES's short term assets (₹5.5B) exceed its short term liabilities (₹4.3B).

Long Term Liabilities: GARFIBRES's short term assets (₹5.5B) exceed its long term liabilities (₹384.9M).


Debt to Equity History and Analysis

Debt Level: GARFIBRES's debt to equity ratio (21.1%) is considered satisfactory.

Reducing Debt: GARFIBRES's debt to equity ratio has increased from 15.7% to 21.1% over the past 5 years.

Debt Coverage: GARFIBRES's debt is well covered by operating cash flow (97.2%).

Interest Coverage: GARFIBRES's interest payments on its debt are well covered by EBIT (18x coverage).


Balance Sheet

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

Debt Coverage by Assets: GARFIBRES's debt is covered by short term assets (assets are 3.6x debt).


Next Steps

Dividend

What is Garware Technical Fibres's current dividend yield, its reliability and sustainability?

0.67%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GARFIBRES's dividend (0.68%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.95%).

High Dividend: GARFIBRES's dividend (0.68%) is low compared to the top 25% of dividend payers in the Indian market (4.18%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (7.7%), GARFIBRES'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?

5.5yrs

Average board tenure


CEO

Vayu Garware (47yo)

8.33s

Tenure

₹85,086,000

Compensation

Mr. Vayu Ramesh Garware serves as the Managing Director of Garware-Wall Ropes Ltd. since November 7, 2011 and served as its Head of Finance Department. Mr. Garware is In Charge of Domestic Marketing, Globa ...


CEO Compensation Analysis

Compensation vs Market: Vayu's total compensation ($USD1.13M) is above average for companies of similar size in the Indian market ($USD355.40K).

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


Board Members

NamePositionTenureCompensationOwnership
Vayu Garware
Chairman & MD8.33yrs₹85.09m16.31% 3.7b
Ramesh Telang
Non-Executive Independent Director5.5yrs₹200.00kno data
Shrikant Kulkarni
Non-Executive Independent Director12.67yrs₹200.00kno data
Shridhar Rajpathak
Non Independent Non Executive Director2.83yrs₹100.00k0.0014% 310.7k
Mayuri Garware
Non-Executive Director5.58yrs₹100.00k0.000050% 11.3k
Ashish Goel
Independent & Non-Executive Director5.5yrs₹60.00k0.015% 3.4m
Mallika Sagar
Additional Non-Executive Independent Director0.83yrno datano data

5.5yrs

Average Tenure

47yo

Average Age

Experienced Board: GARFIBRES'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

Garware Technical Fibres Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Garware Technical Fibres Limited
  • Ticker: GARFIBRES
  • Exchange: NSEI
  • Founded: 1976
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹22.675b
  • Shares outstanding: 21.88m
  • Website: https://www.garwarefibres.com

Number of Employees


Location

  • Garware Technical Fibres Limited
  • Plot No. 11, Block D1
  • M.I.D.C.
  • Pune
  • Maharashtra
  • 411019
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
509557BSE (Mumbai Stock Exchange)YesEquity SharesININRNov 1999
GARFIBRESNSEI (National Stock Exchange of India)YesEquity SharesININRNov 1999

Biography

Garware Technical Fibres Limited manufactures and sells various technical textile products worldwide. It offers fishing nets, ropes, and twines for the deep sea fishing industry; aquaculture cages and predator systems; synthetic ropes for various applications from power transmission to marine hawsers for shipping, mooring, and towing applications; and yarn and thread solutions under the Garlon brand. The company also provides sports products, including tennis nets, volley ball nets, basketball nets, ski nets, cricket nets, badminton nets, soccer nets, handball nets, etc. under Sportiva brand name; coated fabric products, such as truck tarpaulins, awnings, tents, hangar covers, inflatable bouncies, bio gas covers, trailer curtains, oil booms, and others; and agricultural products comprising agriculture shade nets, sericulture nets, insect nets, fencing nets, floriculture nets, crop support nets, grape nets, anti-bird nets, and staking cords. In addition, it offers geo-synthetics products in the field of civil engineering and infrastructure development. The company was formerly known as Garware-Wall Ropes Limited and changed its name to Garware Technical Fibres Limited in July 2018. Garware Technical Fibres Limited was founded in 1976 and is headquartered in Pune, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 13:06
End of Day Share Price2020/03/27 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.