NSEI:MORARJEE

Stock Analysis Report

Executive Summary

Morarjee Textiles Limited manufactures and sells yarns and fabrics in India and internationally.


Snowflake Analysis

Slightly overvalued with weak fundamentals.

Share Price & News

How has Morarjee Textiles's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-10.0%

MORARJEE

-4.4%

IN Luxury

-3.5%

IN Market


1 Year Return

-37.9%

MORARJEE

12.8%

IN Luxury

5.2%

IN Market

Return vs Industry: MORARJEE underperformed the Indian Luxury industry which returned 13.7% over the past year.

Return vs Market: MORARJEE underperformed the Indian Market which returned 6.4% over the past year.


Shareholder returns

MORARJEEIndustryMarket
7 Day-10.0%-4.4%-3.5%
30 Day-17.1%-1.4%-3.9%
90 Day0.8%6.0%-2.1%
1 Year-37.9%-37.9%13.5%12.8%7.2%5.2%
3 Year-74.6%-75.3%45.8%44.0%18.9%12.4%
5 Year-67.1%-70.1%97.3%93.7%29.4%17.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Morarjee Textiles 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: MORARJEE (₹13.45) is trading below our estimate of fair value (₹118.51)

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


Price To Earnings Ratio

PE vs Industry: MORARJEE is unprofitable, so we can't compare its PE Ratio to the Luxury industry average.

PE vs Market: MORARJEE is unprofitable, so we can't compare its PE Ratio to the Indian market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: MORARJEE is overvalued based on its PB Ratio (0.7x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

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

19.7%

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 Morarjee Textiles 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 Morarjee Textiles performed over the past 5 years?

-60.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MORARJEE is currently unprofitable.

Growing Profit Margin: MORARJEE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MORARJEE is unprofitable, and losses have increased over the past 5 years at a rate of -60.1% per year.

Accelerating Growth: Unable to compare MORARJEE's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MORARJEE is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (6.4%).


Return on Equity

High ROE: MORARJEE has a negative Return on Equity (-24.11%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Morarjee Textiles's financial position?


Financial Position Analysis

Short Term Liabilities: MORARJEE's short term assets (₹2.3B) do not cover its short term liabilities (₹3.1B).

Long Term Liabilities: MORARJEE's short term assets (₹2.3B) do not cover its long term liabilities (₹3.3B).


Debt to Equity History and Analysis

Debt Level: MORARJEE's debt to equity ratio (672.7%) is considered high.

Reducing Debt: MORARJEE's debt to equity ratio has increased from 149.7% to 672.7% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: MORARJEE's debt is not covered by short term assets (assets are 0.5x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: MORARJEE has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: MORARJEE has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is Morarjee Textiles's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%0.6%markettop25%2.7%industryaverage0.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if MORARJEE's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: MORARJEE is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MORARJEE'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?

10.0yrs

Average board tenure


CEO

Rajendar Rewari (63yo)

10yrs

Tenure

₹14,423,322

Compensation

Mr. Rajendar Kumar Rewari, B.Sc., LLB, PGDPM, MEP, has been the Managing Director of Morarjee Textiles Limited since April 1, 2015 and has been its Chief Executive Officer since January 2010. Mr. Rewari ha ...


CEO Compensation Analysis

Compensation vs Market: Rajendar's total compensation ($USD200.82K) is above average for companies of similar size in the Indian market ($USD49.94K).

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


Board Members

NamePositionTenureCompensationOwnership
Rajendar Rewari
MD & Director10yrs₹14.42m0.00028% 1.5k
Harshvardhan Piramal
Executive Vice Chairman12.6yrs₹15.53m0.046% 236.3k
Mahesh Gupta
Non-Executive Non-Independent Director14.1yrs₹200.00kno data
Urvi Piramal
Non-Executive Chairperson13.7yrs₹230.00k0.23% 1.2m
Alpana Chinai
Additional Independent Director0.2yrsno datano data
A. Singh
Independent Director3yrs₹320.00kno data
Archit Jayakar
Independent Director0.08yrsno datano data

10.0yrs

Average Tenure

63yo

Average Age

Experienced Board: MORARJEE's board of directors are seasoned and experienced ( 10 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Morarjee Textiles Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Morarjee Textiles Limited
  • Ticker: MORARJEE
  • Exchange: NSEI
  • Founded: 1871
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹519.022m
  • Shares outstanding: 36.30m
  • Website: https://www.morarjee.com

Location

  • Morarjee Textiles Limited
  • Peninsula Spenta
  • Mathuradas Mills Compound
  • Mumbai
  • Maharashtra
  • 400013
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532621BSE (Mumbai Stock Exchange)YesEquity SharesININRMar 2005
MORARJEENSEI (National Stock Exchange of India)YesEquity SharesININRMar 2005

Biography

Morarjee Textiles Limited manufactures and sells yarns and fabrics in India and internationally. The company primarily offers color woven premium shirting with fine yarn. It also provides printed fabrics, including satin, cambric, poplin, lawn, and silk; and voiles and guthra. The company was founded in 1871 and is based in Mumbai, India. Morarjee Textiles Limited is a subsidiary of Ashok Piramal Group Textiles Trust. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 13:20
End of Day Share Price2020/02/27 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.