NSEI:RUBYMILLS

Stock Analysis Report

Executive Summary

The Ruby Mills Limited manufactures and markets textile products in India.

Snowflake

Fundamentals

Second-rate dividend payer with imperfect balance sheet.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-11.2%

RUBYMILLS

-0.5%

IN Luxury

0.5%

IN Market


1 Year Return

-32.2%

RUBYMILLS

8.3%

IN Luxury

0.9%

IN Market

Return vs Industry: RUBYMILLS underperformed the Indian Luxury industry which returned 8.3% over the past year.

Return vs Market: RUBYMILLS underperformed the Indian Market which returned 0.9% over the past year.


Share holder returns

RUBYMILLSIndustryMarket
7 Day-11.2%-0.5%0.5%
30 Day-30.9%5.3%1.0%
90 Day-9.2%4.4%-3.2%
1 Year-31.7%-32.2%9.1%8.3%2.8%0.9%
3 Year-64.2%-64.8%49.5%47.7%20.3%14.3%
5 Year26.1%22.5%108.9%104.8%43.1%29.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Ruby Mills undervalued based on future cash flows and its price relative to the stock market?

21.13x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: RUBYMILLS (₹166.85) is trading above our estimate of fair value (₹22.08)

Significantly Undervalued: RUBYMILLS is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: RUBYMILLS is poor value based on its PE Ratio (21.1x) compared to the Luxury industry average (10.2x).

PE vs Market: RUBYMILLS is poor value based on its PE Ratio (21.1x) compared to the Indian market (13.1x).


Price Based on Expected Growth

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


Price Based on Value of Assets

PB vs Industry: RUBYMILLS is overvalued based on its PB Ratio (0.6x) compared to the IN Luxury industry average (0.6x).


Next Steps

Future Growth

How is Ruby Mills expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

14.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: RUBYMILLS's forecast earnings growth (14.3% per year) is above the savings rate (7.6%).

Earnings vs Market: RUBYMILLS's earnings (14.3% per year) are forecast to grow slower than the Indian market (18.3% per year).

High Growth Earnings: RUBYMILLS's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if RUBYMILLS's revenue is forecast to grow faster than the Indian market.

High Growth Revenue: Insufficient data to determine if RUBYMILLS's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: Insufficient data to determine if RUBYMILLS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Ruby Mills performed over the past 5 years?

-19.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: RUBYMILLS's earnings have declined by -19.9% per year over the past 5 years.

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

Earnings vs Industry: RUBYMILLS had negative earnings growth (-62%) over the past year, making it difficult to compare to the Luxury industry average (7.8%).


Return on Equity

High ROE: RUBYMILLS's Return on Equity (2.9%) is considered low.


Return on Assets

ROA vs Industry: RUBYMILLS's Return on Assets is below or equal to the Luxury industry average last year.


Return on Capital Employed

ROCE Improving: RUBYMILLS's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Ruby Mills's financial position?


Financial Position Analysis

Short Term Liabilities: RUBYMILLS's short term assets (₹2.0B) exceeds its short term liabilities (₹1.8B)

Long Term Liabilities: RUBYMILLS's short term assets (2.0B) do not cover its long term liabilities (3.6B)


Debt to Equity History and Analysis

Debt Level: RUBYMILLS's debt to equity ratio (86.3%) is considered high

Reducing Debt: RUBYMILLS's debt to equity ratio has reduced from 128.5% to 86.3% over the past 5 years.

Debt Coverage: RUBYMILLS's debt is not well covered by operating cash flow (1.6%).

Interest Coverage: RUBYMILLS's interest payments on its debt are not well covered by EBIT (2.4x coverage).


Balance Sheet

Inventory Level: RUBYMILLS has a low level of unsold assets or inventory.

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


Next Steps

Dividend

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

1.06%

Current Dividend Yield


Dividend Yield vs Market

company1.1%marketbottom25%0.6%markettop25%2.5%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: RUBYMILLS's dividend (1.06%) is higher than the bottom 25% of dividend payers in the Indian market (0.61%).

High Dividend: RUBYMILLS's dividend (1.06%) is low compared to the top 25% of dividend payers in the Indian market (2.46%).

Stable Dividend: RUBYMILLS's dividend payments have been volatile in the past 10 years.

Growing Dividend: RUBYMILLS's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (22.3%), RUBYMILLS'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

What is the CEO of Ruby Mills's salary, the management and board of directors tenure and is there insider trading?

2.2yrs

Average management tenure


CEO

Purav Shah (39yo)

2.9yrs

Tenure

₹6,897,600

Compensation

Mr. Purav Hiren Shah has been Chief Executive Officer of The Ruby Mills Limited since November 10, 2016 and its an Executive Director since September 28, 2018. Mr. Shah served as President of The Ruby Mill ...


CEO Compensation Analysis

Compensation vs. Market: Purav's total compensation ($USD97.24K) is above average for companies of similar size in the Indian market ($USD25.38K).

Compensation vs Earnings: Purav's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

2.2yrs

Average Tenure

59yo

Average Age

Experienced Management: RUBYMILLS's management team is considered experienced (2.2 years average tenure).


Board Age and Tenure

4.4yrs

Average Tenure

64yo

Average Age

Experienced Board: RUBYMILLS's board of directors are considered experienced (4.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Viraj Shah (58yo)

    MD & Executive Director

    • Tenure: 24.9yrs
    • Compensation: ₹12.99m
  • Hiren Shah (65yo)

    Executive Chairman

    • Tenure: 2.9yrs
    • Compensation: ₹12.99m
  • Purav Shah (39yo)

    CEO & Whole time Director Director

    • Tenure: 2.9yrs
    • Compensation: ₹6.90m
  • Bharat Shah (60yo)

    MD & Executive Director

    • Tenure: 24.9yrs
    • Compensation: ₹12.99m
  • Rishabh Shah

    Vice President

    • Tenure: 0yrs
  • Jayaraman Seshadrinathan

    Chief Financial Officer

    • Tenure: 7.7yrs
  • Naina Kanagat

    Company Secretary & Compliance Officer

    • Tenure: 1.4yrs

Board Members

  • Shardul Thacker (72yo)

    Non-Executive Independent Director

    • Tenure: 34.8yrs
    • Compensation: ₹250.00k
  • Viraj Shah (58yo)

    MD & Executive Director

    • Tenure: 24.9yrs
    • Compensation: ₹12.99m
  • Hiren Shah (65yo)

    Executive Chairman

    • Tenure: 2.9yrs
    • Compensation: ₹12.99m
  • Purav Shah (39yo)

    CEO & Whole time Director Director

    • Tenure: 2.9yrs
    • Compensation: ₹6.90m
  • Aruna Shah (83yo)

    Non-Executive Non-Independent Director

    • Tenure: 32.1yrs
    • Compensation: ₹100.00k
  • Bharat Shah (60yo)

    MD & Executive Director

    • Tenure: 24.9yrs
    • Compensation: ₹12.99m
  • Deepak Shah (55yo)

    Non-Executive Independent Director

    • Tenure: 4.9yrs
    • Compensation: ₹242.50k
  • Yogen Lathia

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: ₹202.50k
  • Mehernosh Currawalla (64yo)

    Non-Executive Independent Director

    • Tenure: 1.9yrs
    • Compensation: ₹127.50k
  • Pradip Kapasi (64yo)

    Non-Executive Independent Director

    • Tenure: 1.8yrs
    • Compensation: ₹107.50k

Company Information

The Ruby Mills Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Ruby Mills Limited
  • Ticker: RUBYMILLS
  • Exchange: NSEI
  • Founded: 1917
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹2.909b
  • Shares outstanding: 16.72m
  • Website: https://www.rubymills.com

Number of Employees


Location

  • The Ruby Mills Limited
  • Ruby House
  • J. K. Sawant Marg
  • Mumbai
  • 400028
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
503169BSE (Mumbai Stock Exchange)YesEquity SharesININRMar 1998
RUBYMILLSNSEI (National Stock Exchange of India)YesEquity SharesININRMar 1998

Biography

The Ruby Mills Limited manufactures and markets textile products in India. The company operates through two segments, Textiles and Real Estate. It offers cotton, synthetics yarn, and fabrics; and engages i ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 12:48
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
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.

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