NSEI:SURYALAXMI

Stock Analysis Report

Executive Summary

Suryalakshmi Cotton Mills Limited manufactures and sells cotton and blended yarns, denim fabrics, and garments in India.


Snowflake Analysis

Fair value with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

1.1%

SURYALAXMI

-0.5%

IN Luxury

-1.5%

IN Market


1 Year Return

-35.5%

SURYALAXMI

18.2%

IN Luxury

10.7%

IN Market

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

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


Shareholder returns

SURYALAXMIIndustryMarket
7 Day1.1%-0.5%-1.5%
30 Day-16.0%3.0%-2.7%
90 Day5.1%9.2%1.3%
1 Year-35.5%-35.5%19.0%18.2%12.7%10.7%
3 Year-83.8%-83.9%52.2%48.8%22.0%15.1%
5 Year-79.4%-80.1%106.9%100.1%34.5%22.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Suryalakshmi Cotton Mills 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: SURYALAXMI (₹18.7) is trading below our estimate of fair value (₹439.18)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: SURYALAXMI is good value based on its PB Ratio (0.1x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

How is Suryalakshmi Cotton Mills 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 Suryalakshmi Cotton Mills 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 Suryalakshmi Cotton Mills performed over the past 5 years?

-51.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SURYALAXMI is currently unprofitable.

Growing Profit Margin: SURYALAXMI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SURYALAXMI is unprofitable, and losses have increased over the past 5 years at a rate of -51.7% per year.

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

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


Return on Equity

High ROE: SURYALAXMI has a negative Return on Equity (-7.6%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Suryalakshmi Cotton Mills's financial position?


Financial Position Analysis

Short Term Liabilities: SURYALAXMI's short term assets (₹3.9B) exceed its short term liabilities (₹3.6B).

Long Term Liabilities: SURYALAXMI's short term assets (₹3.9B) exceed its long term liabilities (₹1.5B).


Debt to Equity History and Analysis

Debt Level: SURYALAXMI's debt to equity ratio (110.7%) is considered high.

Reducing Debt: SURYALAXMI's debt to equity ratio has increased from 73.3% to 110.7% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: SURYALAXMI's debt is covered by short term assets (assets are 1.4x 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: SURYALAXMI has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: SURYALAXMI has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

5.8yrs

Average board tenure


CEO

Lakshmi Agarwal (86yo)

₹8,020,000

Compensation

Mr. Lakshmi Narayan Agarwal founded Suryalakshmi Cotton Mills Ltd., in 1962 and serves as its Chairman and Managing Director. Mr. Agarwal has 48 years of experience in all facets of cotton & synthetic text ...


CEO Compensation Analysis

Compensation vs Market: Lakshmi's total compensation ($USD112.07K) is above average for companies of similar size in the Indian market ($USD50.34K).

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


Board Members

NamePositionTenureCompensationOwnership
Lakshmi Agarwal
Chairman & MD0yrs₹8.02m30.95% 103.2m
Paritosh Agarwal
MD & Executive Director14.7yrs₹7.04m19.17% 63.9m
Padmini Agarwal
Whole-time Director5.8yrs₹4.68m5.83% 19.4m
Radhey Shyam Agarwal
Independent Non-Executive Director0yrs₹30.00k0.0024% 7.9k
Navrang Tibrewal
Independent Non-Executive Director0yrs₹30.00kno data
Ramasahayam Reddy
Independent Non-Executive Director5.8yrs₹30.00k0.17% 560.0k
Vedantham Venkata Ravindra
Nominee Director1.3yrs₹15.00kno data
Dhruv Singh
Non Executive Independent Director4.8yrs₹20.00kno data

5.8yrs

Average Tenure

65yo

Average Age

Experienced Board: SURYALAXMI's board of directors are considered experienced (5.8 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

Suryalakshmi Cotton Mills Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Suryalakshmi Cotton Mills Limited
  • Ticker: SURYALAXMI
  • Exchange: NSEI
  • Founded: 1962
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹333.446m
  • Shares outstanding: 16.67m
  • Website: https://www.suryalakshmi.com

Number of Employees


Location

  • Suryalakshmi Cotton Mills Limited
  • Surya Towers
  • 6th Floor
  • Secunderabad
  • Andhra Pradesh
  • 500003
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
521200BSE (Mumbai Stock Exchange)YesEquity SharesININRMar 2005
SURYALAXMINSEI (National Stock Exchange of India)YesEquity SharesININRMar 2005

Biography

Suryalakshmi Cotton Mills Limited manufactures and sells cotton and blended yarns, denim fabrics, and garments in India. The company provides spun polyester, polyester cotton combed/carded blend, polyester viscose blend, cotton OE and ring spun, slub and fancy, core spun elastane, 2 fold, eli-twisted, and compact yarns. The company also offers mercerized, coated, normal finish, cotton/polyester, yarn dyed/over dyed, and mill washed stretch and rigid denims. It serves private labels, fashion brands, and retail chains in 31 countries worldwide. Suryalakshmi Cotton Mills Limited was founded in 1962 and is based in Secunderabad, 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 13:19
End of Day Share Price2020/02/19 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.