NSEI:LIBAS

Stock Analysis Report

Executive Summary

Libas Designs Limited engages in the process of fabrication of fabric into garments and other products in India.

Rewards

PE ratio (6.8x) is below the Indian market (13.4x)

Earnings grew by 54.2% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

Does not have a meaningful market cap (₹600M)



Snowflake Analysis

Outstanding track record with adequate balance sheet.


Similar Companies

Share Price & News

How has Libas Designs's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-5.0%

LIBAS

1.1%

IN Luxury

-0.8%

IN Market


1 Year Return

-14.0%

LIBAS

18.4%

IN Luxury

11.1%

IN Market

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

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


Shareholder returns

LIBASIndustryMarket
7 Day-5.0%1.1%-0.8%
30 Day-6.8%3.3%-2.3%
90 Day-11.8%9.6%2.1%
1 Year-14.0%-14.0%19.2%18.4%13.1%11.1%
3 Yearn/a54.9%51.5%22.9%16.2%
5 Yearn/a106.1%99.4%34.9%22.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Libas Designs undervalued compared to its fair value and its price relative to the market?

6.76x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

PE vs Industry: LIBAS is good value based on its PE Ratio (6.8x) compared to the Luxury industry average (11.1x).

PE vs Market: LIBAS is good value based on its PE Ratio (6.8x) compared to the Indian market (13.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: LIBAS is overvalued based on its PB Ratio (1.5x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

How is Libas Designs 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 Libas Designs 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 Libas Designs performed over the past 5 years?

41.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LIBAS has high quality earnings.

Growing Profit Margin: LIBAS's current net profit margins (9.6%) are higher than last year (8.6%).


Past Earnings Growth Analysis

Earnings Trend: LIBAS's earnings have grown significantly by 41.2% per year over the past 5 years.

Accelerating Growth: LIBAS's earnings growth over the past year (54.2%) exceeds its 5-year average (41.2% per year).

Earnings vs Industry: LIBAS earnings growth over the past year (54.2%) exceeded the Luxury industry 2.5%.


Return on Equity

High ROE: LIBAS's Return on Equity (20.4%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Libas Designs's financial position?


Financial Position Analysis

Short Term Liabilities: LIBAS's short term assets (₹478.3M) exceed its short term liabilities (₹222.3M).

Long Term Liabilities: LIBAS's short term assets (₹478.3M) exceed its long term liabilities (₹14.6M).


Debt to Equity History and Analysis

Debt Level: LIBAS's debt to equity ratio (42%) is considered high.

Reducing Debt: LIBAS's debt to equity ratio has reduced from 140.6% to 42% over the past 5 years.

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

Interest Coverage: LIBAS's interest payments on its debt are well covered by EBIT (6.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: LIBAS's debt is covered by short term assets (assets are 3x debt).


Next Steps

Dividend

What is Libas Designs'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 LIBAS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

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

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

3.4yrs

Average board tenure


CEO

Reshma Ganji (46yo)

₹2,400,000

Compensation

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 exper ...


CEO Compensation Analysis

Compensation vs Market: Reshma's total compensation ($USD33.56K) is below average for companies of similar size in the Indian market ($USD50.21K).

Compensation vs Earnings: Reshma's compensation has increased by more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Nishant Mahimtura
Founder & Chairman0yrs₹600.00k26.96% 161.8m
Reshma Ganji
MD & Director0yrs₹2.40m16.62% 99.7m
Riyaz Ganji
Executive Director15.3yrs₹2.40m15.39% 92.4m
Anand Taggarsi
Non-Executive & Independent Director3.4yrsno datano data
Vivek Kamath
Non-Executive & Independent Director3.4yrsno datano data
Reema Varde
Non-Executive & Independent Director3.4yrsno datano data

3.4yrs

Average Tenure

51yo

Average Age

Experienced Board: LIBAS's board of directors are considered experienced (3.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: LIBAS 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

Libas Designs Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Libas Designs Limited
  • Ticker: LIBAS
  • Exchange: NSEI
  • Founded: 2004
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: ₹600.250m
  • Shares outstanding: 12.25m
  • Website: https://www.libasfashion.com

Location

  • Libas Designs Limited
  • 401, Crecent Royal
  • 4th Floor
  • Mumbai
  • Maharashtra
  • 400053
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LIBASNSEI (National Stock Exchange of India)YesEquity SharesININRJan 2017

Biography

Libas Designs Limited engages in the process of fabrication of fabric into garments and other products in India. It offers western contemporary and ethnic Indian men's and women's wear, which cover business suits, shirts, trousers, sherwanis, indo-westerns, kurtas, designer wedding suits, and formal shirts and trousers; men and women formal shoes and accessories; and jewelries. It markets its products under the LIBAS RIYAZ GANGJI, Gangji Jewels, and LIBAS reshma riyaz gangji brands. The company offers its products through its retail stores, Shoppers Shop, online retailers, and its website. Libas Designs Limited was incorporated in 2004 and is based in Mumbai, 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 13:12
End of Day Share Price2020/02/17 00:00
Earnings2019/12/31
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.