NSEI:RSWM

Stock Analysis Report

Executive Summary

RSWM Limited operates as a textile manufacturer in India and internationally.


Snowflake Analysis

Adequate balance sheet and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-14.4%

RSWM

-4.4%

IN Luxury

-3.5%

IN Market


1 Year Return

-42.2%

RSWM

12.8%

IN Luxury

5.2%

IN Market

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

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


Shareholder returns

RSWMIndustryMarket
7 Day-14.4%-4.4%-3.5%
30 Day-0.9%-1.4%-3.9%
90 Day-4.8%6.0%-2.1%
1 Year-42.2%-42.2%13.5%12.8%7.2%5.2%
3 Year-74.7%-75.8%45.8%44.0%18.9%12.4%
5 Year-51.2%-56.1%97.3%93.7%29.4%17.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is RSWM 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: RSWM (₹95.65) is trading below our estimate of fair value (₹661.99)

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


Price To Earnings Ratio

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

PE vs Market: RSWM 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 RSWM's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RSWM is good value based on its PB Ratio (0.3x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

How is RSWM 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 RSWM 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 RSWM performed over the past 5 years?

-49.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RSWM is currently unprofitable.

Growing Profit Margin: RSWM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RSWM is unprofitable, and losses have increased over the past 5 years at a rate of -49.8% per year.

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

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


Return on Equity

High ROE: RSWM has a negative Return on Equity (-5.1%), as it is currently unprofitable.


Next Steps

Financial Health

How is RSWM's financial position?


Financial Position Analysis

Short Term Liabilities: RSWM's short term assets (₹10.0B) exceed its short term liabilities (₹9.1B).

Long Term Liabilities: RSWM's short term assets (₹10.0B) exceed its long term liabilities (₹5.5B).


Debt to Equity History and Analysis

Debt Level: RSWM's debt to equity ratio (128%) is considered high.

Reducing Debt: RSWM's debt to equity ratio has reduced from 303.1% to 128% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: RSWM's debt is covered by short term assets (assets are 1x 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: RSWM has been profitable on average in the past, therefore cash runway is not a concern.

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


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

10.6yrs

Average board tenure


CEO

Riju Jhunjhunwala (40yo)

₹32,300,203

Compensation

Mr. Riju Jhunjhunwala serves as the Managing Director of Bhilwara Energy Limited. Mr. Jhunjhunwala has been a Managing Director of RSWM Limited since February 01, 2015 and served as its a Joint Managing Di ...


CEO Compensation Analysis

Compensation vs Market: Riju's total compensation ($USD449.72K) is above average for companies of similar size in the Indian market ($USD49.94K).

Compensation vs Earnings: Riju's compensation has increased whilst the company is unprofitable.


Board Members

NamePositionTenureCompensationOwnership
Riju Jhunjhunwala
MD, CEO & Executive Director0yrs₹32.30m0.74% 16.8m
Brij Sharma
Joint MD1.5yrs₹14.83mno data
Priya Dasgupta
Independent Non-Executive Director6.6yrs₹150.00kno data
Lakshmi Jhunjhunwala
Chairman Emeritus0yrsno data0.73% 16.6m
Ravi Jhunjhunwala
Chairman0yrs₹225.00k5.9% 133.7m
Kamal Gupta
Independent Non-Executive Director32.2yrs₹1.58mno data
Arun Churiwal
Non-Executive Non-Independent Director16.3yrs₹450.00k0.0068% 154.9k
Shekhar Agarwal
Vice Chairman0yrs₹975.00k0.013% 288.5k
Amar Choudhary
Independent Non-Executive Director10.6yrs₹750.00kno data
Archana Capoor
Independent Non Executive Director2yrs₹375.00kno data

10.6yrs

Average Tenure

65.5yo

Average Age

Experienced Board: RSWM's board of directors are seasoned and experienced ( 10.6 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

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


Key Information

  • Name: RSWM Limited
  • Ticker: RSWM
  • Exchange: NSEI
  • Founded: 1960
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹2.264b
  • Shares outstanding: 23.55m
  • Website: https://www.rswm.in

Number of Employees


Location

  • RSWM Limited
  • Bhilwara Towers, A-12
  • Sector 1
  • Noida
  • Uttar Pradesh
  • 201301
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500350BSE (Mumbai Stock Exchange)YesEquity SharesININRJul 1994
RSWMNSEI (National Stock Exchange of India)YesEquity SharesININRJul 1994

Biography

RSWM Limited operates as a textile manufacturer in India and internationally. The company offers greige yarn for weaving, knitting, sewing, and industrial applications under the ULTIMA brand name; and melange yarn that is used for undergarments, shirts, business suits, socks, and sportswear, as well as bed linen, towels, and other home fabric products. It also provides shirting and suiting fabrics under the Mayur brand; denim fabrics; and various functional yarns under the RSWM EDGE brand name. The company was formerly known as Rajasthan Spinning & Weaving Mills Ltd. RSWM Limited was founded in 1960 and is based in Noida, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 12:47
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.