NSEI:SUMEETINDS

Stock Analysis Report

Executive Summary

Sumeet Industries Limited manufactures and sells yarns in India.

Risk Analysis

Earnings have declined by -63.45% per year over past 5 years

Does not have a meaningful market cap (₹166M)

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months



Snowflake Analysis

Overvalued with worrying balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-8.8%

SUMEETINDS

0.2%

IN Luxury

-0.4%

IN Market


1 Year Return

-56.3%

SUMEETINDS

16.6%

IN Luxury

11.1%

IN Market

Return vs Industry: SUMEETINDS underperformed the Indian Luxury industry which returned 16.6% over the past year.

Return vs Market: SUMEETINDS underperformed the Indian Market which returned 11.1% over the past year.


Shareholder returns

SUMEETINDSIndustryMarket
7 Day-8.8%0.2%-0.4%
30 Day-13.9%2.6%-1.5%
90 Day-32.6%8.7%3.3%
1 Year-56.3%-56.3%17.3%16.6%13.0%11.1%
3 Year-94.0%-94.4%53.8%52.0%25.3%18.6%
5 Year-87.2%-88.2%103.0%96.4%35.4%23.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.21x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: SUMEETINDS is good value based on its PB Ratio (0.2x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

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

19.8%

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 Sumeet 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 Sumeet Industries performed over the past 5 years?

-63.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SUMEETINDS is currently unprofitable.

Growing Profit Margin: SUMEETINDS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SUMEETINDS is unprofitable, and losses have increased over the past 5 years at a rate of -63.4% per year.

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

Earnings vs Industry: SUMEETINDS is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (2.7%).


Return on Equity

High ROE: SUMEETINDS has a negative Return on Equity (-125.47%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sumeet Industries's financial position?


Financial Position Analysis

Short Term Liabilities: SUMEETINDS's short term assets (₹4.4B) do not cover its short term liabilities (₹4.7B).

Long Term Liabilities: SUMEETINDS's short term assets (₹4.4B) exceed its long term liabilities (₹2.3B).


Debt to Equity History and Analysis

Debt Level: SUMEETINDS's debt to equity ratio (754.8%) is considered high.

Reducing Debt: SUMEETINDS's debt to equity ratio has increased from 212.5% to 754.8% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: SUMEETINDS's debt is not covered by short term assets (assets are 0.8x 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: Insufficient data to determine if SUMEETINDS has enough cash runway based on its current free cash flow.

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


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%0.6%markettop25%2.5%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

2.8yrs

Average management tenure


CEO

Sumeet Kumar Somani (39yo)

2.8yrs

Tenure

0

Mr. Sumeet Kumar Shankarlal Somani serves as the Managing Director of Sumeet Industries Limited and served as its Chief Financial Officer. Mr. Somani served as Director of Administration at Sumeet Industr ...


CEO Compensation Analysis

Compensation vs Market: Sumeet Kumar's total compensation ($USD0.00) is below average for companies of similar size in the Indian market ($USD50.14K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Shankarlal Somani
Executive Chairman7.5yrs₹1.80m6.2% 10.3m
Sumeet Kumar Somani
MD & Executive Director2.8yrsno data2.37% 3.9m
Abhishek Prasad
Chief Financial Officer2.8yrs₹877.00kno data
Anil Jain
Company Secretary & Compliance Officer12.1yrs₹1.08mno data
Naresh Joshi
Personnel & Administration Officer0yrsno datano data

2.8yrs

Average Tenure

51.5yo

Average Age

Experienced Management: SUMEETINDS's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Shankarlal Somani
Executive Chairman7.5yrs₹1.80m6.2% 10.3m
Sumeet Kumar Somani
MD & Executive Director2.8yrsno data2.37% 3.9m
Atma Ram Sarda
Non-Executive Director6.4yrs₹1.07mno data
Manojkumar Jain
Independent & Non-Executive Director2.7yrs₹180.00kno data
Zeel Modi
Independent & Non-Executive Director1.3yrs₹30.00kno data

6.4yrs

Average Tenure

39yo

Average Age

Experienced Board: SUMEETINDS's board of directors are considered experienced (6.4 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

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


Key Information

  • Name: Sumeet Industries Limited
  • Ticker: SUMEETINDS
  • Exchange: NSEI
  • Founded: 1988
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹165.828m
  • Shares outstanding: 103.64m
  • Website: https://www.sumeetindustries.com

Number of Employees


Location

  • Sumeet Industries Limited
  • 504, Trividh Chamber
  • 5th Floor
  • Surat
  • Gujarat
  • 395002
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
514211BSE (Mumbai Stock Exchange)YesEquity SharesININRFeb 2005
SUMEETINDSNSEI (National Stock Exchange of India)YesEquity SharesININRFeb 2005

Biography

Sumeet Industries Limited manufactures and sells yarns in India. The company offers polyester chips, partially oriented yarns, fully draw yarns, polyester texturized yarns, and carpet yarns. It also exports its products to Egypt, Saudi Arabia, China, Argentina, Poland, Portugal, Morocco, Columbia, Bangladesh, Russia, Ethiopia, Mexico, Nepal, Brazil, Peru, Algeria, Thailand, the United States, Singapore, Turkey, etc. The company was formerly known as Sumeet Synthetics Limited and changed its name to Sumeet Industries Limited in 1996. Sumeet Industries Limited was incorporated in 1988 and is based in Surat, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 13:00
End of Day Share Price2020/02/14 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.