NSEI:HIMATSEIDE

Stock Analysis Report

Executive Summary

Himatsingka Seide Limited manufactures, retails, and distributes home textile products in North America, India, rest of Asia Pacific, Europe, the Middle East, Africa, and internationally.


Snowflake Analysis

Very undervalued established dividend payer.


Similar Companies

Share Price & News

How has Himatsingka Seide's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-8.6%

HIMATSEIDE

-2.3%

IN Luxury

-2.9%

IN Market


1 Year Return

-74.0%

HIMATSEIDE

-26.7%

IN Luxury

-29.3%

IN Market

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

Return vs Market: HIMATSEIDE underperformed the Indian Market which returned -29.2% over the past year.


Shareholder returns

HIMATSEIDEIndustryMarket
7 Day-8.6%-2.3%-2.9%
30 Day-44.9%-28.6%-26.5%
90 Day-53.8%-25.5%-28.5%
1 Year-73.1%-74.0%-26.1%-26.7%-27.9%-29.3%
3 Year-82.7%-83.5%1.6%-0.9%-15.4%-20.0%
5 Year-25.6%-30.8%44.6%39.4%-3.3%-8.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Himatsingka Seide 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: HIMATSEIDE (₹56.6) is trading below our estimate of fair value (₹207.58)

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


Price To Earnings Ratio

PE vs Industry: HIMATSEIDE is good value based on its PE Ratio (4.3x) compared to the Luxury industry average (7.8x).

PE vs Market: HIMATSEIDE is good value based on its PE Ratio (4.3x) compared to the Indian market (9.2x).


Price to Earnings Growth Ratio

PEG Ratio: HIMATSEIDE is good value based on its PEG Ratio (0.1x)


Price to Book Ratio

PB vs Industry: HIMATSEIDE is good value based on its PB Ratio (0.4x) compared to the IN Luxury industry average (0.4x).


Next Steps

Future Growth

How is Himatsingka Seide forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

30.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HIMATSEIDE's forecast earnings growth (30.1% per year) is above the savings rate (6.5%).

Earnings vs Market: HIMATSEIDE's earnings (30.1% per year) are forecast to grow faster than the Indian market (19.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: HIMATSEIDE's revenue (7.8% per year) is forecast to grow slower than the Indian market (9.1% per year).

High Growth Revenue: HIMATSEIDE's revenue (7.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HIMATSEIDE's Return on Equity is forecast to be low in 3 years time (12.9%).


Next Steps

Past Performance

How has Himatsingka Seide performed over the past 5 years?

10.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HIMATSEIDE has high quality earnings.

Growing Profit Margin: HIMATSEIDE's current net profit margins (4.9%) are lower than last year (8%).


Past Earnings Growth Analysis

Earnings Trend: HIMATSEIDE's earnings have grown by 10% per year over the past 5 years.

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

Earnings vs Industry: HIMATSEIDE had negative earnings growth (-34.4%) over the past year, making it difficult to compare to the Luxury industry average (6.4%).


Return on Equity

High ROE: HIMATSEIDE's Return on Equity (9.1%) is considered low.


Next Steps

Financial Health

How is Himatsingka Seide's financial position?


Financial Position Analysis

Short Term Liabilities: HIMATSEIDE's short term assets (₹18.2B) exceed its short term liabilities (₹17.1B).

Long Term Liabilities: HIMATSEIDE's short term assets (₹18.2B) do not cover its long term liabilities (₹20.5B).


Debt to Equity History and Analysis

Debt Level: HIMATSEIDE's debt to equity ratio (180%) is considered high.

Reducing Debt: HIMATSEIDE's debt to equity ratio has increased from 101.4% to 180% over the past 5 years.

Debt Coverage: HIMATSEIDE's debt is not well covered by operating cash flow (18.6%).

Interest Coverage: HIMATSEIDE's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet

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

Debt Coverage by Assets: HIMATSEIDE's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

What is Himatsingka Seide's current dividend yield, its reliability and sustainability?

6.17%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HIMATSEIDE's dividend (6.17%) is higher than the bottom 25% of dividend payers in the Indian market (0.95%).

High Dividend: HIMATSEIDE's dividend (6.17%) is in the top 25% of dividend payers in the Indian market (4.18%)


Stability and Growth of Payments

Stable Dividend: HIMATSEIDE's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.4%), HIMATSEIDE's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HIMATSEIDE's dividends in 3 years are forecast to be thoroughly covered by earnings (14.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

SKH Himatsingka (39yo)

4.17s

Tenure

₹84,134,000

Compensation

Mr. Shrikant Himatsingka, also known as SKH, has been Chief Executive Officer and Managing Director of Himatsingka Seide Ltd. since January 30, 2016 and May 21, 2016 respectively and its Executive Director ...


CEO Compensation Analysis

Compensation vs Market: SKH's total compensation ($USD1.12M) is above average for companies of similar size in the Indian market ($USD48.50K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Dinesh Himatsingka
Founder & Executive Chairman3.83yrs₹84.44m18.15% 1.0b
Shrikant Himatsingka
MD, CEO & Executive Director4.17yrs₹84.13m8.61% 481.3m
K. Rangaraj
Group CFO & President of Finance2.58yrsno datano data
Ashok Sharma
Chief Compliance Officer8.5yrsno data0.00020% 11.2k
Veeraraghvan Vasudevan
Executive Director of Manufacturing Operations - Group & Executive Director3.83yrs₹21.40mno data
C. Ganapathy
Executive VP of Corporate Affairs & Group General Counselno datano datano data
Kumud Kumar
President of HR & Group CHROno datano datano data
S. Sundaram
President of Manufacturing Operations - Hassanno data₹6.38mno data
Ashutosh Halbe
Chief Financial Officer of North American operations2.58yrsno datano data
Akanksha Himatsingka
Head of Business Development for Europe & Asia Pacificno datano datano data

3.8yrs

Average Tenure

63yo

Average Age

Experienced Management: HIMATSEIDE's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Dinesh Himatsingka
Founder & Executive Chairman3.83yrs₹84.44m18.15% 1.0b
Shrikant Himatsingka
MD, CEO & Executive Director4.17yrs₹84.13m8.61% 481.3m
Veeraraghvan Vasudevan
Executive Director of Manufacturing Operations - Group & Executive Director3.83yrs₹21.40mno data
Raja Venkataraman
Non-Executive Independent Director0.33yrno datano data
Pradeep Bhargava
Independent Non-Executive Director1.5yrs₹960.00kno data
Rajiv Khaitan
Independent Director23.42yrs₹2.31m0.0043% 238.6k
Manjiri Bhalerao
Nominee Director0.33yrno datano data
Sangeeta Kulkarni
Independent Director3.83yrs₹2.04mno data

3.8yrs

Average Tenure

63yo

Average Age

Experienced Board: HIMATSEIDE's board of directors are considered experienced (3.8 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

Himatsingka Seide Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Himatsingka Seide Limited
  • Ticker: HIMATSEIDE
  • Exchange: NSEI
  • Founded: 1985
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹5.587b
  • Shares outstanding: 98.46m
  • Website: https://www.himatsingka.com

Number of Employees


Location

  • Himatsingka Seide Limited
  • 10/24 Kumara Krupa Road
  • High Grounds
  • Bengaluru
  • Karnataka
  • 560001
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
514043BSE (Mumbai Stock Exchange)YesEquity SharesININRFeb 1995
HIMATSEIDENSEI (National Stock Exchange of India)YesEquity SharesININRFeb 1995

Biography

Himatsingka Seide Limited manufactures, retails, and distributes home textile products in North America, India, rest of Asia Pacific, Europe, the Middle East, Africa, and internationally. It offers bed ensembles, including sheet sets, pillowcases, duvets, comforters, decorative pillows, bedskrits, shams, and dust ruffles, as well as a range of quilted products; fabrics for drapery and upholstery applications; and silk and blended yarn products, such as spun silk yarns, and silk yarns blended with wool, tussar, and linen. The company is also involved in the retail and distribution activities under the Calvin Klein Home, Barbara Barry, Divatex, Bellora, and Atmosphere brands. Himatsingka Seide Limited was founded in 1985 and is headquartered in Bengaluru, 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 13:19
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.