NSEI:ZENITHEXPO

Stock Analysis Report

Executive Summary

Zenith Exports Limited designs, manufactures, and sells fabrics to furnishing and fashion trades, editors, and jobbers in India.

Risk Analysis

Earnings have declined by -52.51% per year over past 5 years

Does not have a meaningful market cap (₹278M)

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

Highly volatile share price over past 3 months



Snowflake Analysis

Flawless balance sheet and overvalued.

Share Price & News

How has Zenith Exports's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.5%

ZENITHEXPO

3.3%

IN Luxury

2.0%

IN Market


1 Year Return

10.5%

ZENITHEXPO

11.3%

IN Luxury

7.3%

IN Market

Return vs Industry: ZENITHEXPO matched the Indian Luxury industry which returned 11.3% over the past year.

Return vs Market: ZENITHEXPO exceeded the Indian Market which returned 6.7% over the past year.


Shareholder returns

ZENITHEXPOIndustryMarket
7 Day-0.5%3.3%2.0%
30 Day-2.0%5.5%3.7%
90 Day18.0%2.4%6.3%
1 Year10.5%10.5%12.1%11.3%9.3%7.3%
3 Yearn/a56.1%54.3%33.1%26.2%
5 Year-21.8%-21.8%97.5%94.1%36.8%24.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Zenith Exports undervalued compared to its fair value and its price relative to the market?

0.34x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: ZENITHEXPO (₹50) is trading above our estimate of fair value (₹13.74)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: ZENITHEXPO is good value based on its PB Ratio (0.4x) compared to the IN Luxury industry average (0.6x).


Next Steps

Future Growth

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

20.1%

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 Zenith Exports 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 Zenith Exports performed over the past 5 years?

-52.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ZENITHEXPO is currently unprofitable.

Growing Profit Margin: ZENITHEXPO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ZENITHEXPO is unprofitable, and losses have increased over the past 5 years at a rate of -52.5% per year.

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

Earnings vs Industry: ZENITHEXPO is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (1.2%).


Return on Equity

High ROE: ZENITHEXPO has a negative Return on Equity (-4.06%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Zenith Exports's financial position?


Financial Position Analysis

Short Term Liabilities: ZENITHEXPO's short term assets (₹669.6M) exceed its short term liabilities (₹149.5M).

Long Term Liabilities: ZENITHEXPO's short term assets (₹669.6M) exceed its long term liabilities (₹27.0M).


Debt to Equity History and Analysis

Debt Level: ZENITHEXPO's debt to equity ratio (8.9%) is considered satisfactory.

Reducing Debt: ZENITHEXPO's debt to equity ratio has reduced from 30.2% to 8.9% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: ZENITHEXPO's debt is covered by short term assets (assets are 9.6x 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: Whilst unprofitable ZENITHEXPO has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: ZENITHEXPO is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -76.7% per year.


Next Steps

Dividend

What is Zenith Exports's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%0.6%markettop25%2.3%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

3.2yrs

Average management tenure


CEO

Raj Loyalka (75yo)

3.2yrs

Tenure

₹2,908,167

Compensation

Mr. Raj Kumar Loyalka, B.E.E., has been Chief Executive Officer of Zenith Exports Limited since November 14, 2016. Mr. Loyalka served as a Joint Managing Director of Zenith Exports Limited until September  ...


CEO Compensation Analysis

Compensation vs Market: Raj's total compensation ($USD41.04K) is about average for companies of similar size in the Indian market ($USD50.75K).

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


Management Age and Tenure

3.2yrs

Average Tenure

51yo

Average Age

Experienced Management: ZENITHEXPO's management team is considered experienced (3.2 years average tenure).


Board Age and Tenure

1.2yrs

Average Tenure

59yo

Average Age

Experienced Board: ZENITHEXPO'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 not been meaningfully diluted in the past year.


Management Team

  • Surendra Loyalka (69yo)

    Chairman of the Board & MD

    • Compensation: ₹4.05m
  • Raj Loyalka (75yo)

    Chief Executive Officer

    • Tenure: 3.2yrs
    • Compensation: ₹2.91m
  • Sushil Kasera

    Chief Financial Officer

    • Compensation: ₹382.08k
  • Vikram Mishra (33yo)

    Company Secretary & Compliance Officer

    • Tenure: 1.2yrs
    • Compensation: ₹502.04k
  • Varun Loyalka (27yo)

    Joint MD & Additional Executive Director

    • Tenure: 1.7yrs
    • Compensation: ₹1.27m

Board Members

  • Surendra Loyalka (69yo)

    Chairman of the Board & MD

    • Compensation: ₹4.05m
  • Surendra Bafna (70yo)

    Additional Non-Executive Independent Director

    • Tenure: 1.2yrs
    • Compensation: ₹13.00k
  • Urmila Loyalka (61yo)

    Non-Independent Non-Executive Director

    • Tenure: 4.9yrs
  • Varun Loyalka (27yo)

    Joint MD & Additional Executive Director

    • Tenure: 1.7yrs
    • Compensation: ₹1.27m
  • Rabindra Sarawgee (49yo)

    Additional Non-Executive Independent Director

    • Tenure: 1.2yrs
    • Compensation: ₹13.00k
  • Kamal Jain (59yo)

    Additional Non-Executive Independent Director

    • Tenure: 0.9yrs
  • Sanjay Shaw (45yo)

    Additional Non-Executive Independent Director

    • Tenure: 0.4yrs

Company Information

Zenith Exports Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Zenith Exports Limited
  • Ticker: ZENITHEXPO
  • Exchange: NSEI
  • Founded: 1969
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: ₹278.447m
  • Shares outstanding: 5.40m
  • Website: https://www.zenithexportslimited.com

Number of Employees


Location

  • Zenith Exports Limited
  • 19, Rajendra Nath Mukherjee Road
  • First Floor
  • Kolkata
  • West Bengal
  • 700001
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
512553BSE (Mumbai Stock Exchange)YesEquity SharesININRJul 1996
ZENITHEXPONSEI (National Stock Exchange of India)YesEquity SharesININRJul 1996

Biography

Zenith Exports Limited designs, manufactures, and sells fabrics to furnishing and fashion trades, editors, and jobbers in India. The company offers a range of silk, velvet, damask, embroidery, weave, and sheer fabrics. It also provides industrial leather hand gloves, cotton fabrics, and made-ups. The company also exports its products. Zenith Exports Limited was founded in 1969 and is headquartered in Kolkata, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/17 12:44
End of Day Share Price2020/01/16 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.