NSEI:JINDCOT

Stock Analysis Report

Executive Summary

Jindal Cotex Limited manufactures and sells yarns in India and internationally.

Rewards

Trading at 99% below its fair value

Became profitable this year

Risk Analysis

Does not have a meaningful market cap (₹72M)

Has a high level of debt

Large one-off items impacting financial results



Snowflake Analysis

Undervalued with mediocre balance sheet.

Share Price & News

How has Jindal Cotex's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-3.1%

JINDCOT

1.1%

IN Luxury

-0.8%

IN Market


1 Year Return

-61.3%

JINDCOT

18.4%

IN Luxury

11.1%

IN Market

Return vs Industry: JINDCOT underperformed the Indian Luxury industry which returned 16.6% over the past year.

Return vs Market: JINDCOT underperformed the Indian Market which returned 11.1% over the past year.


Shareholder returns

JINDCOTIndustryMarket
7 Day-3.1%1.1%-0.8%
30 Day-11.4%3.3%-2.3%
90 Day-11.4%9.6%2.1%
1 Year-61.3%-61.3%19.2%18.4%13.1%11.1%
3 Year-90.5%-90.5%54.9%51.5%22.9%16.2%
5 Year-85.9%-85.9%106.1%99.4%34.9%22.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Jindal Cotex 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: JINDCOT (₹1.55) is trading below our estimate of fair value (₹155.15)

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


Price To Earnings Ratio

PE vs Industry: JINDCOT is good value based on its PE Ratio (0.7x) compared to the Luxury industry average (11.1x).

PE vs Market: JINDCOT is good value based on its PE Ratio (0.7x) compared to the Indian market (13.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: JINDCOT is good value based on its PB Ratio (0.1x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

How is Jindal Cotex 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 Jindal Cotex 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 Jindal Cotex performed over the past 5 years?

39.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JINDCOT has a large one-off gain of ₹147.2M impacting its September 30 2019 financial results.

Growing Profit Margin: JINDCOT became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: JINDCOT has become profitable over the past 5 years, growing earnings by 39.9% per year.

Accelerating Growth: JINDCOT has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: JINDCOT has become profitable in the last year, making it difficult to compare its past year earnings growth to the Luxury industry (2.5%).


Return on Equity

High ROE: JINDCOT's Return on Equity (17.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Jindal Cotex's financial position?


Financial Position Analysis

Short Term Liabilities: JINDCOT's short term assets (₹2.4B) exceed its short term liabilities (₹237.4M).

Long Term Liabilities: JINDCOT's short term assets (₹2.4B) exceed its long term liabilities (₹2.3B).


Debt to Equity History and Analysis

Debt Level: JINDCOT's debt to equity ratio (393.4%) is considered high.

Reducing Debt: JINDCOT's debt to equity ratio has increased from 187.2% to 393.4% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: JINDCOT's debt is covered by short term assets (assets are 1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: JINDCOT is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: Insufficient data to determine if JINDCOT has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Jindal Cotex's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%0.6%markettop25%2.5%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

7.5yrs

Average management tenure


CEO

Sandeep Jindal (42yo)

12.3yrs

Tenure

₹750,000

Compensation

Mr. Sandeep Jindal has been the Managing Director of Jindal Cotex Limited since October 1st, 2007. Mr. Jindal has an overall experience of 10 years in Textiles sector. He looks after day to day affairs of  ...


CEO Compensation Analysis

Compensation vs Market: Sandeep's total compensation ($USD10.49K) is below average for companies of similar size in the Indian market ($USD50.21K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Sandeep Jindal
MD & Promoter Executive Director12.3yrs₹750.00k0.99% 714.2k
Pawan Sharma
President7.5yrsno datano data
Harish Kumar
Chief Financial Officer0.8yrsno datano data
Anoop Kumar
Assistant General Manager of Accounts0yrsno datano data
Pankaj Gupta
Assistant General Manager of Engineering0yrsno datano data
Indu Prakash
Deputy General Manager of Technical0yrsno datano data

7.5yrs

Average Tenure

49.5yo

Average Age

Experienced Management: JINDCOT's management team is seasoned and experienced (7.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sandeep Jindal
MD & Promoter Executive Director12.3yrs₹750.00k0.99% 714.2k
. Alisha
Independent Non Executive Director3.7yrsno datano data
Kartar Dhiman
Independent Non-Executive Director2.4yrsno datano data
Kanik Sharma
Independent Chairman0.6yrsno datano data

3.0yrs

Average Tenure

36yo

Average Age

Experienced Board: JINDCOT's board of directors are considered experienced (3 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

Jindal Cotex Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Jindal Cotex Limited
  • Ticker: JINDCOT
  • Exchange: NSEI
  • Founded: 1998
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹72.005m
  • Shares outstanding: 45.00m
  • Website: https://www.jindalcotex.com

Number of Employees


Location

  • Jindal Cotex Limited
  • VPO Jugiana
  • G.T. Road
  • Ludhiana
  • Punjab
  • 141017
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
JINDCOTNSEI (National Stock Exchange of India)YesEquity SharesININRSep 2009
533103BSE (Mumbai Stock Exchange)YesEquity SharesININRSep 2009

Biography

Jindal Cotex Limited manufactures and sells yarns in India and internationally. It operates in two segments, Textile and Energy Generation. The Textile segment produces and trades in acrylic, polyester, poly/cotton blended, cotton, and other blended yarns and knitted clothes. The Energy Generation segment is involved in the generation and sale of energy from the windmill. Jindal Cotex Limited was incorporated in 1998 and is headquartered in Ludhiana, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 13:00
End of Day Share Price2020/02/17 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.