NSEI:SKSTEXTILE

Stock Analysis Report

Executive Summary

S K S Textiles Limited manufactures and trades in textile products in India.

Rewards

PE ratio (4.8x) is below the Indian market (12.9x)

Earnings grew by 17.1% over the past year

Risk Analysis

Interest payments are not well covered by earnings

Shares are highly illiquid

Does not have a meaningful market cap (₹114M)

Shareholders have been diluted in the past year



Snowflake Analysis

Solid track record and fair value.


Similar Companies

Donear Industries

BSE:512519

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

6.5%

SKSTEXTILE

0.3%

IN Luxury

-1.8%

IN Market


1 Year Return

-11.8%

SKSTEXTILE

8.6%

IN Luxury

5.2%

IN Market

Return vs Industry: SKSTEXTILE underperformed the Indian Luxury industry which returned 8.6% over the past year.

Return vs Market: SKSTEXTILE underperformed the Indian Market which returned 5.2% over the past year.


Shareholder returns

SKSTEXTILEIndustryMarket
7 Day6.5%0.3%-1.8%
30 Day3.5%-0.1%-0.9%
90 Day37.9%8.9%8.3%
1 Year-11.8%-11.8%9.4%8.6%7.2%5.2%
3 Yearn/a58.9%56.8%30.3%23.4%
5 Yearn/a101.1%97.2%39.3%26.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is S K S Textiles undervalued compared to its fair value and its price relative to the market?

4.77x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

PE vs Industry: SKSTEXTILE is good value based on its PE Ratio (4.8x) compared to the Luxury industry average (10.4x).

PE vs Market: SKSTEXTILE is good value based on its PE Ratio (4.8x) compared to the Indian market (12.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SKSTEXTILE 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 S K S Textiles forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

20.7%

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 S K S 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 S K S Textiles performed over the past 5 years?

16.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SKSTEXTILE has high quality earnings.

Growing Profit Margin: SKSTEXTILE's current net profit margins (1.5%) are higher than last year (1.3%).


Past Earnings Growth Analysis

Earnings Trend: SKSTEXTILE's earnings have grown by 16.4% per year over the past 5 years.

Accelerating Growth: SKSTEXTILE's earnings growth over the past year (17.1%) exceeds its 5-year average (16.4% per year).

Earnings vs Industry: SKSTEXTILE earnings growth over the past year (17.1%) exceeded the Luxury industry 1%.


Return on Equity

High ROE: SKSTEXTILE's Return on Equity (6.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is S K S Textiles's financial position?


Financial Position Analysis

Short Term Liabilities: SKSTEXTILE's short term assets (₹1.1B) exceed its short term liabilities (₹816.3M).

Long Term Liabilities: SKSTEXTILE's short term assets (₹1.1B) exceed its long term liabilities (₹43.9M).


Debt to Equity History and Analysis

Debt Level: SKSTEXTILE's debt to equity ratio (120.4%) is considered high.

Reducing Debt: SKSTEXTILE's debt to equity ratio has reduced from 149.2% to 120.4% over the past 5 years.

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

Interest Coverage: SKSTEXTILE's interest payments on its debt are not well covered by EBIT (1.7x coverage).


Balance Sheet

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

Debt Coverage by Assets: SKSTEXTILE's debt is covered by short term assets (assets are 2.3x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%0.6%markettop25%2.5%industryaverage0.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if SKSTEXTILE'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 SKSTEXTILE's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

What is the CEO of S K S Textiles's salary, the management and board of directors tenure and is there insider trading?

5.1yrs

Average management tenure


CEO

Vicky Shah (43yo)

5.7yrs

Tenure

₹943,859

Compensation

Mr. Vicky Sukanraj Shah has been Managing Director of S K S Textiles Limited since April 01, 2014 and serves as its Chief Financial Officer. Mr. Shah along with his father Mr. Sukanraj Shah is the founder  ...


CEO Compensation Analysis

Compensation vs Market: Vicky's total compensation ($USD13.20K) is below average for companies of similar size in the Indian market ($USD33.57K).

Compensation vs Earnings: Insufficient data to compare Vicky's compensation with company performance.


Management Age and Tenure

5.1yrs

Average Tenure

Experienced Management: SKSTEXTILE's management team is seasoned and experienced (5.1 years average tenure).


Board Age and Tenure

2.4yrs

Average Tenure

44yo

Average Age

Experienced Board: SKSTEXTILE's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


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

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.3%.


Management Team

  • Sukanraj Shah (66yo)

    Chairman & Whole Time Director

    • Tenure: 0yrs
    • Compensation: ₹943.86k
  • Vicky Shah (43yo)

    MD, CFO & Director

    • Tenure: 5.7yrs
    • Compensation: ₹943.86k
  • Sahil Shah

    Whole-Time Director

    • Tenure: 8yrs
    • Compensation: ₹930.36k
  • Ajay Jethwa

    Finance Head

    • Tenure: 4.7yrs
  • Sheetal Khabia

    Admin Head

    • Tenure: 4.7yrs
  • Nitin Shishodia

    Factory Head

    • Tenure: 5.6yrs

Board Members

  • Mihir Manek (54yo)

    Non-Executive Independent Director

    • Tenure: 2.4yrs
    • Compensation: ₹45.00k
  • Sukanraj Shah (66yo)

    Chairman & Whole Time Director

    • Tenure: 0yrs
    • Compensation: ₹943.86k
  • Vicky Shah (43yo)

    MD, CFO & Director

    • Tenure: 5.7yrs
    • Compensation: ₹943.86k
  • Sahil Shah

    Whole-Time Director

    • Tenure: 8yrs
    • Compensation: ₹930.36k
  • Sapna Shah (42yo)

    Non-Executive Non-Independent Director

    • Tenure: 2.4yrs
    • Compensation: ₹146.35k
  • Satish Sharma (44yo)

    Non-Executive Independent Director

    • Tenure: 2.4yrs
    • Compensation: ₹15.00k

Company Information

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


Key Information

  • Name: S K S Textiles Limited
  • Ticker: SKSTEXTILE
  • Exchange: NSEI
  • Founded: 1982
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹114.243m
  • Shares outstanding: 3.26m
  • Website: https://www.groupsks.com

Number of Employees


Location

  • S K S Textiles Limited
  • 431-B, Kewal Industrial Estate
  • 4th Floor
  • Mumbai
  • Maharashtra
  • 400013
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SKSTEXTILENSEI (National Stock Exchange of India)YesEquity SharesININRJan 2018

Biography

S K S Textiles Limited manufactures and trades in textile products in India. It offers grey and finished fabrics, including cotton–lycra and non-lycra, blended cotton suiting–chief value cotton, polyester  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/06 13:02
End of Day Share Price2019/12/05 00:00
Earnings2019/09/30
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.