NSEI:LAGNAM

Stock Analysis Report

Executive Summary

Lagnam Spintex Limited manufactures and sells cotton yarns in India.


Snowflake Analysis

Fair value with questionable track record.


Similar Companies

Share Price & News

How has Lagnam Spintex's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

10.0%

LAGNAM

-0.5%

IN Luxury

-1.5%

IN Market


1 Year Return

-20.4%

LAGNAM

18.2%

IN Luxury

10.7%

IN Market

Return vs Industry: LAGNAM underperformed the Indian Luxury industry which returned 18.2% over the past year.

Return vs Market: LAGNAM underperformed the Indian Market which returned 10.7% over the past year.


Shareholder returns

LAGNAMIndustryMarket
7 Day10.0%-0.5%-1.5%
30 Day16.9%3.0%-2.7%
90 Day15.2%9.2%1.3%
1 Year-20.4%-20.4%19.0%18.2%12.7%10.7%
3 Yearn/a52.2%48.8%22.0%15.1%
5 Yearn/a106.9%100.1%34.5%22.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Lagnam Spintex undervalued compared to its fair value and its price relative to the market?

5.45x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate LAGNAM's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate LAGNAM's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: LAGNAM is good value based on its PE Ratio (5.4x) compared to the Luxury industry average (11.2x).

PE vs Market: LAGNAM is good value based on its PE Ratio (5.4x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: LAGNAM is good value based on its PB Ratio (0.4x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

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

19.9%

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 Lagnam Spintex 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 Lagnam Spintex performed over the past 5 years?

18.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LAGNAM has high quality earnings.

Growing Profit Margin: LAGNAM's current net profit margins (3.5%) are lower than last year (5.8%).


Past Earnings Growth Analysis

Earnings Trend: LAGNAM's earnings have grown by 18.3% per year over the past 5 years.

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

Earnings vs Industry: LAGNAM had negative earnings growth (-14%) over the past year, making it difficult to compare to the Luxury industry average (5.6%).


Return on Equity

High ROE: LAGNAM's Return on Equity (7.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Lagnam Spintex's financial position?


Financial Position Analysis

Short Term Liabilities: LAGNAM's short term assets (₹672.8M) exceed its short term liabilities (₹539.8M).

Long Term Liabilities: LAGNAM's short term assets (₹672.8M) do not cover its long term liabilities (₹1.2B).


Debt to Equity History and Analysis

Debt Level: LAGNAM's debt to equity ratio (281%) is considered high.

Reducing Debt: LAGNAM's debt to equity ratio has increased from 235.9% to 281% over the past 5 years.

Debt Coverage: LAGNAM's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: LAGNAM's interest payments on its debt are not well covered by EBIT (2.5x coverage).


Balance Sheet

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

Debt Coverage by Assets: LAGNAM's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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

2.0yrs

Average board tenure


CEO

Anand Mangal (36yo)

₹3,836,071

Compensation

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 Stud ...


CEO Compensation Analysis

Compensation vs Market: Anand's total compensation ($USD53.61K) is about average for companies of similar size in the Indian market ($USD50.34K).

Compensation vs Earnings: Insufficient data to compare Anand's compensation with company performance.


Board Members

NamePositionTenureCompensationOwnership
Dwarka Mangal
Chairman0yrs₹5.34m31.34% 64.0m
Anand Mangal
MD & Executive Director0yrs₹3.84m6.37% 13.0m
Jagdish Laddha
Independent Director2yrs₹104.00kno data
Vijay Bapna
Non-Executive Director2.2yrs₹58.00kno data
Dipali Mathur
Independent Director2yrs₹24.00kno data
Anil Shah
Independent Director2yrs₹89.50kno data

2.0yrs

Average Tenure

67.5yo

Average Age

Experienced Board: LAGNAM's board of directors are not considered experienced ( 2 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 40.1%.


Top Shareholders

Company Information

Lagnam Spintex Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lagnam Spintex Limited
  • Ticker: LAGNAM
  • Exchange: NSEI
  • Founded: 2010
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹204.077m
  • Shares outstanding: 17.67m
  • Website: https://www.lagnamspintex.com

Number of Employees


Location

  • Lagnam Spintex Limited
  • A 51- 53, RIICO Growth Centre
  • Hamirgarh
  • Bhilwara
  • Rajasthan
  • 311001
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LAGNAMNSEI (National Stock Exchange of India)YesEquity SharesININRSep 2018

Biography

Lagnam Spintex Limited manufactures and sells cotton yarns in India. Its products are used in denim, terry towel, bed sheets, industrial fabrics, home textile, bottom wear, apparel and garment, 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 founded in 2010 and is based in Bhilwara, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 13:21
End of Day Share Price2020/02/19 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.