NSEI:SELMCL

Stock Analysis Report

Executive Summary

SEL Manufacturing Company Limited, an integrated textile company, engages in the spinning, knitting, and processing of yarns and fabrics in India and internationally.


Snowflake Analysis

Slightly overvalued with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-7.1%

SELMCL

-0.5%

IN Luxury

-1.5%

IN Market


1 Year Return

-38.1%

SELMCL

18.2%

IN Luxury

10.7%

IN Market

Return vs Industry: SELMCL underperformed the Indian Luxury industry which returned 18.2% over the past year.

Return vs Market: SELMCL underperformed the Indian Market which returned 10.7% over the past year.


Shareholder returns

SELMCLIndustryMarket
7 Day-7.1%-0.5%-1.5%
30 Day-13.3%3.0%-2.7%
90 Day0%9.2%1.3%
1 Year-38.1%-38.1%19.0%18.2%12.7%10.7%
3 Year-78.7%-78.7%52.2%48.8%22.0%15.1%
5 Year-83.5%-83.5%106.9%100.1%34.5%22.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is SEL Manufacturing 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: SELMCL (₹0.65) is trading below our estimate of fair value (₹118.81)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: SELMCL has negative assets, so we can't compare its PB Ratio to the IN Luxury industry average.


Next Steps

Future Growth

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

19.9%

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 SEL Manufacturing 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 SEL Manufacturing performed over the past 5 years?

-35.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SELMCL is currently unprofitable.

Growing Profit Margin: SELMCL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SELMCL is unprofitable, and losses have increased over the past 5 years at a rate of -35.1% per year.

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

Earnings vs Industry: SELMCL is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (5.6%).


Return on Equity

High ROE: SELMCL's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is SEL Manufacturing's financial position?


Financial Position Analysis

Short Term Liabilities: SELMCL has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: SELMCL has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: SELMCL has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: SELMCL's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

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

Debt Coverage by Assets: SELMCL has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


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: Insufficient data to determine if SELMCL has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if SELMCL has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

12.6yrs

Average board tenure


CEO

Vinod Goyal (60yo)

₹7,800,000

Compensation

Mr. Vinod Kumar Goyal, MBA, serves as the Chief Executive Officer of SEL Manufacturing Co., Ltd. and has been its Executive Director since July 13, 2010. 


CEO Compensation Analysis

Compensation vs Market: Vinod's total compensation ($USD109.00K) is above average for companies of similar size in the Indian market ($USD50.34K).

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


Board Members

NamePositionTenureCompensationOwnership
Vinod Goyal
CEO & Executive Director0yrs₹7.80mno data
Neeraj Saluja
COO, MD & Director13.9yrs₹12.00m4.37% 9.4m
Navneet Gupta
CFO, Compliance Officer & Executive Director0yrs₹3.60m0.00018% 387.7
Dhiraj Saluja
Chief Marketing Officer19.3yrs₹7.20m2.53% 5.4m
Ram Saluja
Chairman0yrsno data1.39% 3.0m
Ranjan Madaan
Independent Director11.3yrs₹136.00kno data

12.6yrs

Average Tenure

50.5yo

Average Age

Experienced Board: SELMCL's board of directors are seasoned and experienced ( 12.6 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.


Ownership Breakdown

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


Top Shareholders

Company Information

SEL Manufacturing Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SEL Manufacturing Company Limited
  • Ticker: SELMCL
  • Exchange: NSEI
  • Founded: 1969
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹215.376m
  • Shares outstanding: 331.35m
  • Website: https://www.selindia.in

Location

  • SEL Manufacturing Company Limited
  • 274, Dhandari Khurd
  • G.T. Road
  • Ludhiana
  • Punjab
  • 141014
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SELMCLNSEI (National Stock Exchange of India)YesEquity SharesININRAug 2007
532886BSE (Mumbai Stock Exchange)YesEquity SharesININRAug 2007
SEL10BDL (Bourse de Luxembourg)SPON GDR REP10LUUSDMay 2010
SELM1BDL (Bourse de Luxembourg)SPONSORED GDRLUUSDJun 2011

Biography

SEL Manufacturing Company Limited, an integrated textile company, engages in the spinning, knitting, and processing of yarns and fabrics in India and internationally. The company offers cotton combed/carded knitting yarns, slub yarns, organic cotton yarns, poly/cotton blends, TFO double yarns, elitwist yarns, compact yarns, polyester/viscose blended yarns, cotton/modal blends, cotton bamboo blends, zero twist yarns, and melange yarns. It also provides terry towels, including beach, bath, kitchen, Christmas, and embroidered/embellished towels, as well as terry made ups; and readymade garments, such as T-shirts, tops, inner wears, night suits, boxers, sweaters, etc. for men and boys, and women and girls, as well as infants, toddlers, and kids. In addition, the company offers knitted fabrics consisting of single jersey, pique, sheer jersey, interlock, waffle, ottoman, flat back rib, yarn dyed striper, mini-jacquard, electronic jacquard, velour, pointel, suede, rib, variegated rib, cotton fleece, and polyester fleece fabrics, as well as knitted garments, processed fabrics, and various kinds of yarn. SEL Manufacturing Company Limited was founded in 1969 and is based in Ludhiana, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 12:57
End of Day Share Price2020/02/19 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.