NSEI:SPLIL

Stock Analysis Report

Executive Summary

SPL Industries Limited designs, manufactures, and sells cotton knitted garments and fabrics in India.

Rewards

Trading at 41.9% below its fair value

Earnings grew by 2.5% over the past year

Risk Analysis

High level of non-cash earnings

Does not have a meaningful market cap (₹1B)



Snowflake Analysis

Excellent balance sheet and good value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SPLIL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

7.2%

SPLIL

3.9%

IN Luxury

1.9%

IN Market


1 Year Return

-47.7%

SPLIL

12.4%

IN Luxury

8.1%

IN Market

Return vs Industry: SPLIL underperformed the Indian Luxury industry which returned 8.4% over the past year.

Return vs Market: SPLIL underperformed the Indian Market which returned 6.7% over the past year.


Shareholder returns

SPLILIndustryMarket
7 Day7.2%3.9%1.9%
30 Day-1.8%6.2%3.3%
90 Day15.1%3.0%6.5%
1 Year-47.7%-47.7%13.2%12.4%10.1%8.1%
3 Year28.2%28.2%59.8%57.8%35.1%28.0%
5 Year253.7%253.7%99.0%95.6%36.6%24.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is SPL Industries undervalued compared to its fair value and its price relative to the market?

41.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SPLIL (₹34.5) is trading below our estimate of fair value (₹59.41)

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


Price To Earnings Ratio

PE vs Industry: SPLIL is good value based on its PE Ratio (3.4x) compared to the Luxury industry average (11.2x).

PE vs Market: SPLIL is good value based on its PE Ratio (3.4x) compared to the Indian market (13.8x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SPLIL is overvalued based on its PB Ratio (0.9x) compared to the IN Luxury industry average (0.6x).


Next Steps

Future Growth

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

20.2%

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 SPL Industries 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 SPL Industries performed over the past 5 years?

51.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SPLIL has a high level of non-cash earnings.

Growing Profit Margin: SPLIL's current net profit margins (15.3%) are lower than last year (20.8%).


Past Earnings Growth Analysis

Earnings Trend: SPLIL has become profitable over the past 5 years, growing earnings by 51.6% per year.

Accelerating Growth: SPLIL's earnings growth over the past year (2.5%) is below its 5-year average (51.6% per year).

Earnings vs Industry: SPLIL earnings growth over the past year (2.5%) exceeded the Luxury industry 1.2%.


Return on Equity

High ROE: SPLIL's Return on Equity (25.5%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is SPL Industries's financial position?


Financial Position Analysis

Short Term Liabilities: SPLIL's short term assets (₹816.5M) exceed its short term liabilities (₹238.9M).

Long Term Liabilities: SPLIL's short term assets (₹816.5M) exceed its long term liabilities (₹6.2M).


Debt to Equity History and Analysis

Debt Level: SPLIL's debt to equity ratio (7.9%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if SPLIL's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: SPLIL's debt is well covered by operating cash flow (174.1%).

Interest Coverage: SPLIL's interest payments on its debt are well covered by EBIT (45x coverage).


Balance Sheet

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

Debt Coverage by Assets: SPLIL's debt is covered by short term assets (assets are 9x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%0.6%markettop25%2.2%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if SPLIL'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 SPLIL'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 SPL Industries's salary, the management and board of directors tenure and is there insider trading?

8.6yrs

Average board tenure


CEO

Mukesh Aggarwal (54yo)

0yrs

Tenure

₹6,000,000

Compensation

Mr. Mukesh Kumar Aggarwal serves as the Chairman of the Board and Managing Director/Chief Executive Officer of SPL Industries Limited. Mr. Aggarwal has very vast experience in managing the affairs of garme ...


CEO Compensation Analysis

Compensation vs Market: Mukesh's total compensation ($USD84.67K) is above average for companies of similar size in the Indian market ($USD50.75K).

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


Board Age and Tenure

8.6yrs

Average Tenure

55yo

Average Age

Experienced Board: SPLIL's board of directors are considered experienced (8.6 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

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


Management Team

  • Mukesh Aggarwal (54yo)

    MD, CEO & Chairman of the Board

    • Compensation: ₹6.00m
  • Sanjay Gupta

    Chief Financial Officer

    • Tenure: 4.7yrs
    • Compensation: ₹868.15k
  • Ashish Yadav

    Compliance Officer & Company Secretary

    • Tenure: 3.1yrs
    • Compensation: ₹565.69k

Board Members

  • Vijay Jindal (62yo)

    Non-Executive Director

    • Tenure: 16yrs
  • Mukesh Aggarwal (54yo)

    MD, CEO & Chairman of the Board

    • Compensation: ₹6.00m
  • Shashi Aggarwal (56yo)

    Woman Non-Executive Director

    • Tenure: 6.3yrs
  • Rajesh Goyal (51yo)

    Non-Executive Independent Director

    • Tenure: 8.6yrs
  • Arun Kumar (51yo)

    Non-Executive Independent Director

    • Tenure: 8.6yrs
  • Chanderjeet Bhatia (62yo)

    Non-Executive Independent Director

    • Tenure: 8.6yrs

Company Information

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


Key Information

  • Name: SPL Industries Limited
  • Ticker: SPLIL
  • Exchange: NSEI
  • Founded: 1991
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: ₹1.037b
  • Shares outstanding: 29.00m
  • Website: https://www.spllimited.com

Number of Employees


Location

  • SPL Industries Limited
  • Plot No. 21
  • Sector - 6
  • Faridabad
  • Haryana
  • 121006
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532651BSE (Mumbai Stock Exchange)YesEquity SharesININRJul 2005
SPLILNSEI (National Stock Exchange of India)YesEquity SharesININRJul 2005

Biography

SPL Industries Limited designs, manufactures, and sells cotton knitted garments and fabrics in India. The company operates through two segments, Manufacturing and Trading. It offers made ups; and outer wear, such as T-shirts, sweat shirts, polo shirts, etc. The company also trades in garments; and exports its products. The company was formerly known as Shivalik Prints Private Limited and changed its name to SPL Industries Limited in 1994. SPL Industries Limited was incorporated in 1991 and is based in Faridabad, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/19 12:47
End of Day Share Price2020/01/17 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.