NSEI:GLOBE

Stock Analysis Report

Executive Summary

Globe Textiles (India) Limited manufactures and trades in textile and apparel products in India and internationally.


Snowflake Analysis

Solid track record and good value.


Similar Companies

Share Price & News

How has Globe Textiles (India)'s share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

GLOBE

1.1%

IN Luxury

-0.07%

IN Market


1 Year Return

-19.3%

GLOBE

17.4%

IN Luxury

9.5%

IN Market

Return vs Industry: GLOBE underperformed the Indian Luxury industry which returned 17.4% over the past year.

Return vs Market: GLOBE underperformed the Indian Market which returned 9.5% over the past year.


Shareholder returns

GLOBEIndustryMarket
7 Day0%1.1%-0.07%
30 Day0%2.3%-1.3%
90 Day-4.8%10.5%1.9%
1 Year-19.3%-19.3%18.1%17.4%11.5%9.5%
3 Yearn/a54.7%52.9%23.6%16.7%
5 Yearn/a107.0%100.1%35.5%22.9%

Price Volatility Vs. Market

How volatile is Globe Textiles (India)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Globe Textiles (India) 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: GLOBE (₹26) is trading below our estimate of fair value (₹565.04)

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


Price To Earnings Ratio

PE vs Industry: GLOBE is good value based on its PE Ratio (6.2x) compared to the Luxury industry average (11.4x).

PE vs Market: GLOBE is good value based on its PE Ratio (6.2x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GLOBE is overvalued based on its PB Ratio (0.6x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

How is Globe Textiles (India) 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 Globe Textiles (India) 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 Globe Textiles (India) performed over the past 5 years?

12.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GLOBE has high quality earnings.

Growing Profit Margin: GLOBE's current net profit margins (1.9%) are higher than last year (1.2%).


Past Earnings Growth Analysis

Earnings Trend: GLOBE's earnings have grown by 12.2% per year over the past 5 years.

Accelerating Growth: GLOBE's earnings growth over the past year (37.3%) exceeds its 5-year average (12.2% per year).

Earnings vs Industry: GLOBE earnings growth over the past year (37.3%) exceeded the Luxury industry 6.4%.


Return on Equity

High ROE: GLOBE's Return on Equity (10.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Globe Textiles (India)'s financial position?


Financial Position Analysis

Short Term Liabilities: GLOBE's short term assets (₹1.2B) exceed its short term liabilities (₹883.3M).

Long Term Liabilities: GLOBE's short term assets (₹1.2B) exceed its long term liabilities (₹72.9M).


Debt to Equity History and Analysis

Debt Level: GLOBE's debt to equity ratio (124.6%) is considered high.

Reducing Debt: GLOBE's debt to equity ratio has reduced from 189.1% to 124.6% over the past 5 years.

Debt Coverage: GLOBE's debt is well covered by operating cash flow (21.1%).

Interest Coverage: GLOBE's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: GLOBE's debt is covered by short term assets (assets are 2.3x debt).


Next Steps

Dividend

What is Globe Textiles (India)'s current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%0.6%markettop25%2.6%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if GLOBE'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 GLOBE'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?

5.4yrs

Average management tenure


CEO

Bhavin Parikh (41yo)

2.9yrs

Tenure

₹3,802,455

Compensation

Mr. Bhavin Suryakantbhai Parikh has been the Chief Executive Officer and Chief Financial Officer of Globe Textiles (India) Limited since March 22, 2017. Mr. Parikh has been a Non-Executive Non-Independent  ...


CEO Compensation Analysis

Compensation vs Market: Bhavin's total compensation ($USD52.93K) is about average for companies of similar size in the Indian market ($USD50.06K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Bhavik Parikh
Chairman & MD0yrs₹5.07m32.05% 84.0m
Bhavin Parikh
CEO & CFO2.9yrs₹3.80m28.53% 74.7m
Faruk Diwan
Company Secretary & Compliance Officer0.9yrs₹31.63kno data
Nilaybhai Vora
Whole Time Director11.9yrs₹1.07m12.74% 33.4m

5.4yrs

Average Tenure

Experienced Management: GLOBE's management team is seasoned and experienced (5.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bhavik Parikh
Chairman & MD0yrs₹5.07m32.05% 84.0m
Nilaybhai Vora
Whole Time Director11.9yrs₹1.07m12.74% 33.4m
Purvi Parikh
Non-Executive Woman Director3yrsno datano data
Yogesh Vaidya
Non-Executive Independent Director2.9yrsno data0.099% 260.0k
Bharat Patel
Non-Executive Independent Director2.8yrsno datano data
Monish Bhalla
Non-Executive Independent Director2.8yrsno datano data

2.9yrs

Average Tenure

47.5yo

Average Age

Experienced Board: GLOBE's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


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 been diluted in the past year, with total shares outstanding growing by 3.5%.


Top Shareholders

Company Information

Globe Textiles (India) Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Globe Textiles (India) Limited
  • Ticker: GLOBE
  • Exchange: NSEI
  • Founded: 1995
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹261.979m
  • Shares outstanding: 10.08m
  • Website: https://www.globetextiles.net

Number of Employees


Location

  • Globe Textiles (India) Limited
  • Plot No. 38 to 41
  • Ahmedabad Apparel Park
  • Ahmedabad
  • Gujarat
  • 380008
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GLOBENSEI (National Stock Exchange of India)YesEquity SharesININROct 2017

Biography

Globe Textiles (India) Limited manufactures and trades in textile and apparel products in India and internationally. The company offers denim and non-denim fabrics; shirting fabrics, such as printed linens, suiting prints, and dyed shirting fabrics; printed fabrics consisting of polyester print fabrics, chadri voiles, sarongs, scarfs, polyester dyed fabrics, cotton prints, and cotton dyed fabrics; and jeans for men and women under the Afford, INDIGEN, and INDIGIRL brand names. It also provides home textiles comprising bedsheets, comforters, fitted and flat sheets, curtains, table linens, and fancy cushions; and various yarns. The company also exports its products. Globe Textiles (India) Limited was founded in 1995 and is based in Ahmedabad, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 13:28
End of Day Share Price2020/01/08 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.