NSEI:LAXMICOT

Stock Analysis Report

Executive Summary

Laxmi Cotspin Limited engages in processing and selling textiles in India.


Snowflake Analysis

Undervalued with adequate balance sheet.

Share Price & News

How has Laxmi Cotspin's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.8%

LAXMICOT

-2.3%

IN Luxury

-2.9%

IN Market


1 Year Return

n/a

LAXMICOT

-26.7%

IN Luxury

-29.3%

IN Market

Return vs Industry: Insufficient data to determine how LAXMICOT performed against the Indian Luxury industry.

Return vs Market: Insufficient data to determine how LAXMICOT performed against the Indian Market.


Shareholder returns

LAXMICOTIndustryMarket
7 Day-2.8%-2.3%-2.9%
30 Day-21.7%-28.6%-26.5%
90 Dayn/a-25.5%-28.5%
1 Yearn/a-26.1%-26.7%-27.9%-29.3%
3 Yearn/a1.6%-0.9%-15.4%-20.0%
5 Yearn/a44.6%39.4%-3.3%-8.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Laxmi Cotspin 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: LAXMICOT (₹7.05) is trading below our estimate of fair value (₹23.71)

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


Price To Earnings Ratio

PE vs Industry: LAXMICOT is good value based on its PE Ratio (5.7x) compared to the Luxury industry average (7.8x).

PE vs Market: LAXMICOT is good value based on its PE Ratio (5.7x) compared to the Indian market (9.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: LAXMICOT is good value based on its PB Ratio (0.3x) compared to the IN Luxury industry average (0.4x).


Next Steps

Future Growth

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

20.0%

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 Laxmi Cotspin 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 Laxmi Cotspin performed over the past 5 years?

3.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LAXMICOT has high quality earnings.

Growing Profit Margin: LAXMICOT's current net profit margins (1.3%) are lower than last year (1.9%).


Past Earnings Growth Analysis

Earnings Trend: LAXMICOT's earnings have grown by 3.2% per year over the past 5 years.

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

Earnings vs Industry: LAXMICOT had negative earnings growth (-33%) over the past year, making it difficult to compare to the Luxury industry average (6.4%).


Return on Equity

High ROE: LAXMICOT's Return on Equity (4.4%) is considered low.


Next Steps

Financial Health

How is Laxmi Cotspin's financial position?


Financial Position Analysis

Short Term Liabilities: LAXMICOT's short term assets (₹612.6M) exceed its short term liabilities (₹353.4M).

Long Term Liabilities: LAXMICOT's short term assets (₹612.6M) exceed its long term liabilities (₹132.3M).


Debt to Equity History and Analysis

Debt Level: LAXMICOT's debt to equity ratio (79.9%) is considered high.

Reducing Debt: LAXMICOT's debt to equity ratio has reduced from 98.8% to 79.9% over the past 5 years.

Debt Coverage: LAXMICOT's debt is well covered by operating cash flow (37.4%).

Interest Coverage: LAXMICOT's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet

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

Debt Coverage by Assets: LAXMICOT's debt is covered by short term assets (assets are 1.6x debt).


Next Steps

Dividend

What is Laxmi Cotspin's current dividend yield, its reliability and sustainability?

7.09%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LAXMICOT's dividend (7.09%) is higher than the bottom 25% of dividend payers in the Indian market (0.95%).

High Dividend: LAXMICOT's dividend (7.09%) is in the top 25% of dividend payers in the Indian market (4.18%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, LAXMICOT has been paying a dividend for less than 10 years.

Growing Dividend: LAXMICOT has only been paying a dividend for 2 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (40.4%), LAXMICOT's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

3.8yrs

Average board tenure


CEO

Sanjay Rathi (53yo)

5.17s

Tenure

₹4,200,000

Compensation

Mr. Sanjay Kachrulal Rathi has been Managing Director and Director of Laxmi Cotspin Limited since January 2, 2015 and October 19, 2005 respectively and served as its Chairman. 


CEO Compensation Analysis

Compensation vs Market: Sanjay's total compensation ($USD55.72K) is about average for companies of similar size in the Indian market ($USD48.50K).

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


Board Members

NamePositionTenureCompensationOwnership
Sanjay Rathi
MD & Director5.17yrs₹4.20m1.47% 1.8m
Bhaveshbhai Patel
Additional Executive Director3.75yrsno data1.94% 2.3m
Rajesh Bansal
Non-Executive Chairmanno datano data5.33% 6.4m
Prafullata Rathi
Non Executive Director3yrsno data0.14% 165.2k
Ritesh Mantri
Non Executive Independent Directorno datano datano data
Satish Bhakkad
Non Executive Independent Directorno datano data0.035% 42.3k

3.8yrs

Average Tenure

51.5yo

Average Age

Experienced Board: LAXMICOT'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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Laxmi Cotspin Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Laxmi Cotspin Limited
  • Ticker: LAXMICOT
  • Exchange: NSEI
  • Founded: 2005
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹120.891m
  • Shares outstanding: 17.15m
  • Website: https://www.laxmicotspin.com

Number of Employees


Location

  • Laxmi Cotspin Limited
  • Gut No.399
  • Opposite Meenatai Thakare Vridhashram
  • Jalna
  • Maharashtra
  • 431203
  • India

Listings

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

Biography

Laxmi Cotspin Limited engages in processing and selling textiles in India. It provides cotton yarn, fabrics, and garments. The company also offers cotton bales, seeds, and oil and oil cakes. It exports its products to Asia and European countries. The company was incorporated in 2005 and is based in Jalna, 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 13:41
End of Day Share Price2020/03/25 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.