NSEI:SUULD

Stock Analysis Report

Executive Summary

Suumaya Lifestyle Limited manufactures, retails, and wholesales fabrics and garments in India.

Rewards

PE ratio (6.8x) is below the Indian market (13.8x)

Earnings grew by 193.2% over the past year

Risk Analysis

High level of non-cash earnings

Does not have a meaningful market cap (₹508M)

Shareholders have been diluted in the past year



Snowflake Analysis

Solid track record with adequate balance sheet.


Similar Companies

Share Price & News

How has Suumaya Lifestyle's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

SUULD

4.0%

IN Luxury

1.9%

IN Market


1 Year Return

-15.4%

SUULD

12.5%

IN Luxury

8.1%

IN Market

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

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


Shareholder returns

SUULDIndustryMarket
7 Day0%4.0%1.9%
30 Day6.3%5.0%3.1%
90 Day15.9%3.1%6.5%
1 Year-15.4%-15.4%13.3%12.5%10.1%8.1%
3 Yearn/a60.0%57.9%35.1%28.0%
5 Yearn/a99.2%95.8%36.6%24.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Suumaya Lifestyle undervalued compared to its fair value and its price relative to the market?

6.8x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SUULD (₹21.15) is trading above our estimate of fair value (₹1.38)

Significantly Below Fair Value: SUULD is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SUULD is good value based on its PE Ratio (6.8x) compared to the Luxury industry average (11.2x).

PE vs Market: SUULD is good value based on its PE Ratio (6.8x) compared to the Indian market (13.8x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SUULD is overvalued based on its PB Ratio (1.4x) compared to the IN Luxury industry average (0.6x).


Next Steps

Future Growth

How is Suumaya Lifestyle 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 Suumaya Lifestyle 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 Suumaya Lifestyle performed over the past 5 years?

85.1%

Historical annual earnings growth


Earnings and Revenue History

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

Growing Profit Margin: SUULD's current net profit margins (4.1%) are higher than last year (0.9%).


Past Earnings Growth Analysis

Earnings Trend: SUULD's earnings have grown significantly by 85.1% per year over the past 5 years.

Accelerating Growth: SUULD's earnings growth over the past year (193.2%) exceeds its 5-year average (85.1% per year).

Earnings vs Industry: SUULD earnings growth over the past year (193.2%) exceeded the Luxury industry 1.2%.


Return on Equity

High ROE: SUULD's Return on Equity (21%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Suumaya Lifestyle's financial position?


Financial Position Analysis

Short Term Liabilities: SUULD's short term assets (₹757.0M) exceed its short term liabilities (₹345.1M).

Long Term Liabilities: SUULD's short term assets (₹757.0M) exceed its long term liabilities (₹86.3M).


Debt to Equity History and Analysis

Debt Level: SUULD's debt to equity ratio (24.1%) is considered satisfactory.

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

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

Interest Coverage: SUULD's interest payments on its debt are well covered by EBIT (65.5x coverage).


Balance Sheet

Inventory Level: SUULD has a low level of unsold assets or inventory.

Debt Coverage by Assets: SUULD's debt is covered by short term assets (assets are 8.8x debt).


Next Steps

Dividend

What is Suumaya Lifestyle's current dividend yield, its reliability and sustainability?

0.47%

Current Dividend Yield


Dividend Yield vs Market

company0.5%marketbottom25%0.6%markettop25%2.2%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: SUULD's dividend (0.47%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.56%).

High Dividend: SUULD's dividend (0.47%) is low compared to the top 25% of dividend payers in the Indian market (2.31%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether SUULD's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if SUULD's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (3.2%), SUULD's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Suumaya Lifestyle's salary, the management and board of directors tenure and is there insider trading?

2.4yrs

Average management tenure


CEO

Ushik Gala (26yo)

2.4yrs

Tenure

0

Mr. Ushik Mahesh Gala has been Chief Executive Officer of Suumaya Lifestyle Limited since August 30, 2017. Mr. Gala holds Bachelors’ Degree in Commerce from Mumbai University. 


CEO Compensation Analysis

Compensation vs Market: Ushik's total compensation ($USD0.00) is below average for companies of similar size in the Indian market ($USD50.75K).

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


Management Age and Tenure

2.4yrs

Average Tenure

26yo

Average Age

Experienced Management: SUULD's management team is considered experienced (2.4 years average tenure).


Board Age and Tenure

1.2yrs

Average Tenure

34.5yo

Average Age

Experienced Board: SUULD's board of directors are not considered experienced ( 1.2 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 5.2%.


Management Team

  • Heena Shah

    Company Secretary & Compliance Officer

    • Tenure: 1yrs
  • Ishita Gala (25yo)

    Chairman & MD

    • Ushik Gala (26yo)

      Chief Executive Officer

      • Tenure: 2.4yrs
    • Karishma Kaku (26yo)

      Chief Financial Officer

      • Tenure: 2.6yrs
    • Mahesh Gala (57yo)

      Founder & COO


      Board Members

      • Ankit Gala (28yo)

        Additional Non-Executive Independent Director

        • Tenure: 1.2yrs
      • Ishita Gala (25yo)

        Chairman & MD

        • Satish Khimawat (41yo)

          Non-Executive Independent Director

          • Tenure: 2.8yrs
        • Sharad Jain (49yo)

          Additional Independent Non-Executive Director

          • Tenure: 1yrs

        Company Information

        Suumaya Lifestyle Limited's company bio, employee growth, exchange listings and data sources


        Key Information

        • Name: Suumaya Lifestyle Limited
        • Ticker: SUULD
        • Exchange: NSEI
        • Founded: 2011
        • Industry: Apparel, Accessories and Luxury Goods
        • Sector: Consumer Durables
        • Market Cap: ₹507.769m
        • Shares outstanding: 24.01m
        • Website: https://www.suumayalifestyle.com

        Number of Employees


        Location

        • Suumaya Lifestyle Limited
        • Malad Industrial Units
        • Gala No. 5 Floor/D
        • Mumbai
        • Maharashtra
        • 400064
        • India

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        SUULDNSEI (National Stock Exchange of India)YesEquity SharesININRMay 2018

        Biography

        Suumaya Lifestyle Limited manufactures, retails, and wholesales fabrics and garments in India. It offers designer wear of women, such as kurtis, ethnic tops, salwar suits, etc. The company markets its products under the Ekka, Ira, and Tag 9 brands. It operates 876 multi-brand outlets and 7 exclusive brand outlets in India and Dubai. Suumaya Lifestyle Limited also distributes its products online. The company was formerly known as Richway International Trade Limited and changed its name to Suumaya Lifestyle Limited in June 2017. Suumaya Lifestyle Limited was incorporated in 2011 and is based in Mumbai, India. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2020/01/20 13:04
        End of Day Share Price2019/12/30 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.