Libas Designs Limited engages in the process of fabrication of fabric into garments and other products in India.
The last earnings update was 166 days ago.
More info.
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
Libas Designs. This is due to cash flow or dividend data being
unavailable. The share price is
₹54.15.
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
Libas Designs's
earnings,
growth
and
assets
is considered below, and whether this is a fair price.
Price based on past earnings
Are
Libas Designs's earnings available for a low price, and how does
this compare to other companies in the same industry?
No analysts cover Libas Designs, 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!
-0.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is
Libas Designs
expected to grow at an
attractive
rate?
Libas Designs'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
Libas Designs's earnings are expected to decrease over the next 1-3 years, this is below the India market average.
Unable to compare Libas Designs's revenue growth to the India market average as no estimate data is available.
Libas Designs's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
Unable to determine if Libas Designs 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.
All data from Libas Designs Company Filings, last reported 10 months ago, and in
Trailing twelve months (TTM)
annual period rather than quarterly.
NSEI:LIBAS Past Financials Data
Date (Data in INR Millions)
EPS *
2018-03-31
2.59
2017-03-31
0.92
2016-03-31
6.07
*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 Libas Designs will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
We assess
Libas Designs's future performance by looking at:
Is the annual earnings growth rate expected to beat the low risk savings rate, plus a
premium to keep pace with inflation?
Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
Is the annual earnings growth rate expected to be above 20%? (1 check)
Is the annual revenue growth rate expected to be above 20%? (1 check)
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.
Libas Designs
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.
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
Libas Designs'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.
Libas Designs has delivered over 20% year on year earnings growth in the past 5 years.
Libas Designs's 1-year earnings growth exceeds its 5-year average (180.4% vs 46.3%)
Libas Designs's earnings growth has exceeded the IN Luxury industry average in the past year (180.4% vs 14.1%).
Earnings and Revenue History
Libas Designs'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.
All data from Libas Designs Company Filings, last reported 10 months ago, and in
Trailing twelve months (TTM)
annual period rather than quarterly.
NSEI:LIBAS 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
440.81
29.11
55.09
2017-03-31
241.00
10.38
34.01
2016-03-31
214.65
9.10
12.85
2015-03-31
176.80
3.52
28.19
2014-03-31
140.73
3.33
24.96
2013-03-31
106.69
2.94
23.64
2012-03-31
91.75
2.69
21.50
*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.
Libas Designs has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
Libas Designs used its assets more efficiently than the IN Luxury industry average last year based on Return on Assets.
Libas Designs's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
We assess
Libas Designs's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
Luxury
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
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.
Libas Designs
has a total score of
4/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
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
Libas Designs's finances.
The net worth of a company is the difference between its assets and liabilities.
Net Worth
Libas Designs is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Libas Designs's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of
Libas Designs'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 covered by short term assets, assets are 3.4x 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.
We assess
Libas Designs's financial health by checking for:
Are short term assets greater than short term liabilities? (1 check)
Are short term assets greater than long term liabilities? (1 check)
Has the debt to equity ratio increased in the past 5 years? (1 check)
Is the debt to equity ratio over 40%? (1 check)
Is the debt covered by operating cash flow? (1 check)
Are earnings greater than 5x the interest on debt (if company pays interest
at all)? (1 check)
Libas Designs
has a total score of
4/6, 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:
Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
0%
Current annual income from
Libas Designs
dividends.
If you bought
₹2,000 of
Libas Designs
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 Libas Designs's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
Unable to evaluate Libas Designs'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.
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
ReshmaGanji
COMPENSATION
₹1,800,000
AGE
45
CEO Bio
Mrs. Reshma Riyaz Ganji serves as Managing Director of Libas Designs Limited and also has been its Director since July 26, 2016. Mrs. Ganji is a Mumbai based International Fashion Designer and having experience of more than 20 years in this field. She is the first Indian Female Designer to represent India at the World Trade Center (New York). She has also received the 'No. 1 Fashion Designer Brand Award' in 2015 for Libas. Mrs. Ganji has done her graduation from Mumbai University.
CEO Compensation
Reshma's compensation has been consistent with company performance over the past year.
Reshma's remuneration is about average for companies of similar size in India.
Management Team
Nishant Mahimtura
TITLE
Chairman & CFO
COMPENSATION
₹1M
AGE
71
TENURE
2.4 yrs
Reshma Ganji
TITLE
MD & Director
COMPENSATION
₹2M
AGE
45
Riyaz Ganji
TITLE
Executive Director
COMPENSATION
₹2M
AGE
48
Board of Directors Tenure
Average tenure and age of the
Libas Designs
board of directors in years:
2.4
Average Tenure
50
Average Age
The average tenure for the Libas Designs board of directors is less than 3 years, this suggests a new board.
How Does Investing In Libas Designs Limited (NSE:LIBAS) Impact The Volatility Of Your Portfolio?
The second type is the broader market volatility, which you cannot diversify away, since it arises from macroeconomic factors which directly affects all the stocks on the market. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … A stock with a beta greater than one is more sensitive to broader market movements than a stock with a beta of less than one.
Here's What Libas Designs Limited's (NSE:LIBAS) P/E Is Telling Us
The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … Libas Designs has a price to earnings ratio of 19.36, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
What Do You Get For Owning Libas Designs Limited (NSE:LIBAS)?
To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Return On Capital Employed (ROCE): What is it? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.
Why Libas Designs Limited (NSE:LIBAS) Looks Like A Quality Company
With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … To keep the lesson grounded in practicality, we'll use ROE to better understand Libas Designs Limited (NSE:LIBAS). … Return on Equity = Net Profit ÷ Shareholders' Equity
Libas Designs Limited (NSE:LIBAS): Time For A Financial Health Check
While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Assessing first and foremost the financial health is. … Here are few basic financial health checks you should consider before taking the plunge.
What Do You Get For Owning Libas Designs Limited (NSE:LIBAS)?
and want to begin learning the link between Libas Designs Limited (NSE:LIBAS)’s return fundamentals and stock market performance. … Your equity share is granted in return for the capital provided to the business to operate, and in order for an investment to be successful the business has to create earnings from the funds that make up this capital … This is because the actual cash flow generated by the business dictates the potential for income (dividends) and capital appreciation (price increases), which are the two ways to achieve positive returns when buying a stock.
What does Libas Designs Limited's (NSEI:LIBAS) Balance Sheet Tell Us Abouts Its Future?
How does LIBAS’s operating cash flow stack up against its debt? … Additionally, LIBAS has produced ₹4.0M in operating cash flow in the last twelve months, resulting in an operating cash to total debt ratio of 0.07x, indicating that LIBAS’s operating cash is not sufficient to cover its debt. … At its current level of cash flow coverage, LIBAS has room for improvement to better cushion for events which may require debt repayment.
Libas Designs Limited engages in the process of fabrication of fabric into garments and other products in India. The company offers sherwanis, suits, jackets, shirts, pants, and Indo Western products for men; sarees, suits, lehenga, gowns, and anarkari for women; accessories comprising jewelries, belts, mojaris, cufflinks, and saffa; jute bags, such as carry, gifts, bottle, lunch, and grocery bags; and formal shoes and accessories for men and women. It also provides beauty services. The company markets its products under the LIBAS RIYAZ GANGJI, Gangji Jewels, and LIBAS reshma riyaz gangji brands. Libas Designs Limited was incorporated in 2004 and is based in Mumbai, India.
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.