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Lagnam Spintex

NSEI:LAGNAM
Snowflake Description

Fair value with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
LAGNAM
NSEI
₹269M
Market Cap
  1. Home
  2. IN
  3. Consumer Durables
Company description

Lagnam Spintex Limited manufactures cotton yarns for apparel and garment industry in India. The last earnings update was 282 days ago. More info.


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LAGNAM Share Price and Events
7 Day Returns
0%
NSEI:LAGNAM
-0.6%
IN Luxury
-1.9%
IN Market
1 Year Returns
-
NSEI:LAGNAM
-4%
IN Luxury
-2.8%
IN Market
LAGNAM Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Lagnam Spintex (LAGNAM) 0% -2.6% -7.9% - - -
IN Luxury -0.6% 1.4% 8.8% -4% 47.5% 162.4%
IN Market -1.9% 1.2% 5.1% -2.8% 38.3% 71%
1 Year Return vs Industry and Market
  • No trading data on LAGNAM.
  • No trading data on LAGNAM.
Price Volatility
Industry
5yr Volatility vs Market

LAGNAM Value

 Is Lagnam Spintex undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
  • It is not possible to calculate the future cash flow value for Lagnam Spintex. This is due to cash flow or dividend data being unavailable. The share price is ₹15.2.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Lagnam Spintex's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Lagnam Spintex's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:LAGNAM PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-03-31) in INR ₹4.15
NSEI:LAGNAM Share Price ** NSEI (2019-04-24) in INR ₹15.2
India Luxury Industry PE Ratio Median Figure of 240 Publicly-Listed Luxury Companies 12.23x
India Market PE Ratio Median Figure of 2,739 Publicly-Listed Companies 16.02x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Lagnam Spintex.

NSEI:LAGNAM PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NSEI:LAGNAM Share Price ÷ EPS (both in INR)

= 15.2 ÷ 4.15

3.66x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Lagnam Spintex is good value based on earnings compared to the IN Luxury industry average.
  • Lagnam Spintex is good value based on earnings compared to the India market.
Price based on expected Growth
Does Lagnam Spintex's expected growth come at a high price?
Raw Data
NSEI:LAGNAM PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 3.66x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
-5.3%per year
India Luxury Industry PEG Ratio Median Figure of 25 Publicly-Listed Luxury Companies 1.48x
India Market PEG Ratio Median Figure of 586 Publicly-Listed Companies 1.32x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Lagnam Spintex, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Lagnam Spintex's assets?
Raw Data
NSEI:LAGNAM PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-03-31) in INR ₹22.66
NSEI:LAGNAM Share Price * NSEI (2019-04-24) in INR ₹15.2
India Luxury Industry PB Ratio Median Figure of 311 Publicly-Listed Luxury Companies 0.75x
India Market PB Ratio Median Figure of 3,630 Publicly-Listed Companies 1.09x
NSEI:LAGNAM PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NSEI:LAGNAM Share Price ÷ Book Value per Share (both in INR)

= 15.2 ÷ 22.66

0.67x

* Primary Listing of Lagnam Spintex.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Lagnam Spintex is good value based on assets compared to the IN Luxury industry average.
X
Value checks
We assess Lagnam Spintex's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Luxury industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Luxury industry average (and greater than 0)? (1 check)
  5. Lagnam Spintex has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

LAGNAM Future Performance

 How is Lagnam Spintex expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • No analysts cover Lagnam Spintex, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-5.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Lagnam Spintex expected to grow at an attractive rate?
  • Lagnam Spintex's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 7.6%.
Growth vs Market Checks
  • Lagnam Spintex's earnings are expected to decrease over the next 1-3 years, this is below the India market average.
  • Unable to compare Lagnam Spintex's revenue growth to the India market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
NSEI:LAGNAM Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:LAGNAM Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts -5.3%
India Luxury Industry Earnings Growth Rate Market Cap Weighted Average 19.3%
India Luxury Industry Revenue Growth Rate Market Cap Weighted Average 15%
India Market Earnings Growth Rate Market Cap Weighted Average 18.3%
India Market Revenue Growth Rate Market Cap Weighted Average 11.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NSEI:LAGNAM Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 year ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:LAGNAM Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2018-03-31 839 47 47
2017-03-31 750 84 37
2016-03-31 562 64 21

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Lagnam Spintex's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Unable to determine if Lagnam Spintex is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:LAGNAM Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 year ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Lagnam Spintex Company Filings, last reported 1 year ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:LAGNAM Past Financials Data
Date (Data in INR Millions) EPS *
2018-03-31 4.15
2017-03-31 3.27
2016-03-31 1.86

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Lagnam Spintex will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Lagnam Spintex's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Lagnam Spintex has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

LAGNAM Past Performance

  How has Lagnam Spintex performed over the past 5 years?

  • Lagnam Spintex's last earnings update was 282 days ago.
The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Lagnam Spintex's growth in the last year to its industry (Luxury).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Insufficient data to establish if Lagnam Spintex's year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare Lagnam Spintex's 1-year earnings growth to the 5-year average due to insufficient past data.
  • Lagnam Spintex's earnings growth has exceeded the IN Luxury industry average in the past year (27.6% vs 14.8%).
Earnings and Revenue History
Lagnam Spintex's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Lagnam Spintex Company Filings, last reported 1 year ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:LAGNAM Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-03-31 839.06 46.85 16.35
2017-03-31 750.33 36.71 12.91
2016-03-31 561.74 20.85 13.37
2015-03-31 494.64 15.78 10.61
2014-03-31 418.79 14.47 7.85

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Lagnam Spintex has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Lagnam Spintex used its assets more efficiently than the IN Luxury industry average last year based on Return on Assets.
  • Lagnam Spintex has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Lagnam Spintex's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Luxury industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Lagnam Spintex has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

LAGNAM Health

 How is Lagnam Spintex's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Lagnam Spintex's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Lagnam Spintex is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Lagnam Spintex's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Lagnam Spintex's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Lagnam Spintex Company Filings, last reported 1 year ago.

NSEI:LAGNAM Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-03-31 264.44 487.08 0.90
2017-03-31 207.47 454.69 0.24
2016-03-31 170.76 503.10 0.84
2015-03-31 149.91 371.39 2.84
2014-03-31 124.13 274.75 13.37
  • Lagnam Spintex's level of debt (184.2%) compared to net worth is high (greater than 40%).
  • Unable to establish if Lagnam Spintex's debt level has increased without past 5-year debt data.
  • Debt is not well covered by operating cash flow (9.7%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.5x coverage).
X
Financial health checks
We assess Lagnam Spintex's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Lagnam Spintex has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

LAGNAM Dividends

 What is Lagnam Spintex's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Lagnam Spintex dividends.
If you bought ₹2,000 of Lagnam Spintex shares you are expected to receive ₹0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Lagnam Spintex's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Lagnam Spintex's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NSEI:LAGNAM Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
India Luxury Industry Average Dividend Yield Market Cap Weighted Average of 110 Stocks 0.6%
India Market Average Dividend Yield Market Cap Weighted Average of 1400 Stocks 1.4%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.5%
India Top 25% Dividend Yield 75th Percentile 2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Lagnam Spintex has not reported any payouts.
  • Unable to verify if Lagnam Spintex's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Lagnam Spintex's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Lagnam Spintex has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Lagnam Spintex's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Lagnam Spintex afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Lagnam Spintex has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

LAGNAM Management

 What is the CEO of Lagnam Spintex's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Anand Mangal
COMPENSATION ₹0
AGE 35
CEO Bio

Mr. Anand Mangal, is the Promoter & Managing Director of Lagnam Spintex Limited and is its Executive Director since April 01, 2017. Mr. Mangal has completed his B.Sc. (Honors) in Business & Management Studies from University of Bradford, UK. He has experience of 7 years in the field of business administration & Sales & Marketing. He is a proven influencer & negotiator and has pragmatic approach of getting the required results. He guides his employees in achieving targets in a dynamic and complex business environment. He looks at the production, marketing, purchase and administration department of the Lagnam Spintex.

CEO Compensation
  • Insufficient data for Anand to compare compensation growth.
  • Anand's remuneration is lower than average for companies of similar size in India.
Management Team

Dwarka Mangal

TITLE
Chairman
AGE
69

Anand Mangal

TITLE
MD & Executive Director
AGE
35

Devi Mundra

TITLE
Chief Financial Officer
AGE
57
TENURE
1.2 yrs

Rajeev Parashar

TITLE
Company Secretary & Compliance Officer
AGE
25
Board of Directors Tenure

Average tenure and age of the Lagnam Spintex board of directors in years:

1.2
Average Tenure
66.5
Average Age
  • The average tenure for the Lagnam Spintex board of directors is less than 3 years, this suggests a new board.
Board of Directors

Dwarka Mangal

TITLE
Chairman
AGE
69

Anand Mangal

TITLE
MD & Executive Director
AGE
35
TENURE
2 yrs

Vijay Bapna

TITLE
Non-Executive Director
AGE
70
TENURE
1.3 yrs

Jagdish Laddha

TITLE
Independent Director
AGE
69
TENURE
1.2 yrs

Dipali Mathur

TITLE
Independent Director
AGE
36
TENURE
1.2 yrs

Anil Shah

TITLE
Independent Director
AGE
64
TENURE
1.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
X
Management checks
We assess Lagnam Spintex's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Lagnam Spintex has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

LAGNAM News

Simply Wall St News

Do You Know What Lagnam Spintex Limited's (NSE:LAGNAM) P/E Ratio Means?

To keep it practical, we'll show how Lagnam Spintex Limited's (NSE:LAGNAM) P/E ratio could help you assess the value on offer. … Lagnam Spintex has a P/E ratio of 4.02, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

LAGNAM Company Info

Description

Lagnam Spintex Limited manufactures cotton yarns for apparel and garment industry in India. Its products are used in denim, terry towel, home textile, bottom wear, and knitting segments. The company exports its products to Portugal, Italy, Germany, Belgium, South Africa, Slovenia, Columbia, China, Pakistan, Bangladesh, and other countries. Lagnam Spintex Limited was incorporated in 2010 and is based in Bhilwara, India.

Details
Name: Lagnam Spintex Limited
LAGNAM
Exchange: NSEI
Founded: 2010
₹268,568,800
17,669,000
Website: http://www.lagnamspintex.com
Address: Lagnam Spintex Limited
A 51- 53, RIICO Growth Centre,
Hamirgarh,
Bhilwara,
Rajasthan, 311001,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NSEI LAGNAM Equity Shares National Stock Exchange of India IN INR 18. Sep 2018
Number of employees
Current staff
Staff numbers
79
Lagnam Spintex employees.
Industry
Textiles
Consumer Durables
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/24 13:06
End of day share price update: 2019/04/24 00:00
Last earnings filing: 2018/07/16
Last earnings reported: 2018/03/31
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.