BSE:519566

Stock Analysis Report

Executive Summary

Simran Farms Limited engages in the integrated poultry and poultry farming activities primarily in India.

Snowflake

Fundamentals

Undervalued with adequate balance sheet.

Risks

  • Simran Farms has significant price volatility in the past 3 months.
  • Simran Farms is not covered by any analysts.

Share Price & News

How has Simran Farms's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-5.5%

BSE:519566

-0.4%

IN Food

-0.7%

IN Market


1 Year Return

-18.7%

BSE:519566

-3.2%

IN Food

-1.6%

IN Market

519566 underperformed the Food industry which returned -3.2% over the past year.

519566 underperformed the Market in India which returned -1.6% over the past year.


Share holder returns

519566IndustryMarket
7 Day-5.5%-0.4%-0.7%
30 Day-22.6%5.8%3.6%
90 Day-16.1%1.0%0.5%
1 Year-18.7%-18.7%-2.5%-3.2%0.3%-1.6%
3 Year123.5%123.5%65.1%61.1%40.0%32.8%
5 Year149.1%149.1%151.8%139.8%56.4%41.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Simran Farms undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Simran Farms's share price is below the future cash flow value, and at a moderate discount (> 20%).

Simran Farms's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Simran Farms is good value based on earnings compared to the IN Food industry average.

Simran Farms is good value based on earnings compared to the India market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Simran Farms, we can't assess if its growth is good value.


Price Based on Value of Assets

Simran Farms is good value based on assets compared to the IN Food industry average.


Next Steps

Future Growth

How is Simran Farms expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

-3.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Simran Farms is high growth as no revenue estimate data is available.

Simran Farms's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Unable to compare Simran Farms's revenue growth to the India market average as no estimate data is available.

Simran Farms's earnings are expected to decrease over the next 1-3 years, this is below the India market average.

Simran Farms's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Simran Farms will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Simran Farms performed over the past 5 years?

39.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Simran Farms has delivered over 20% year on year earnings growth in the past 5 years.

Simran Farms's 1-year earnings growth is less than its 5-year average (1.2% vs 39%)

Simran Farms's earnings growth has not exceeded the IN Food industry average in the past year (1.2% vs 15.3%).


Return on Equity

Simran Farms has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Simran Farms used its assets less efficiently than the IN Food industry average last year based on Return on Assets.


Return on Capital Employed

Simran Farms has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Simran Farms's financial position?


Financial Position Analysis

Simran Farms is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Simran Farms's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Simran Farms's level of debt (110.6%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (77.5% vs 110.6% today).

Debt is well covered by operating cash flow (32.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 4.3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.8x debt.


Next Steps

Dividend

What is Simran Farms's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Simran Farms's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Simran Farms's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Simran Farms has not reported any payouts.

Unable to verify if Simran Farms's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Simran Farms has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

4.8yrs

Average management tenure


CEO

Harender Bhatia (66yo)

₹3,000,000

Compensation

Mr. Harender Singh Bhatia serves as the Chairman, Chief Executive Officer and Managing Director of Simran Farms Ltd. and served as Compliance Officer. He has 37 years rich experience in Poultry Industry. H ...


CEO Compensation Analysis

Harender's remuneration is higher than average for companies of similar size in India.

Harender's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.8yrs

Average Tenure

53yo

Average Age

The tenure for the Simran Farms management team is about average.


Board Age and Tenure

17.2yrs

Average Tenure

62yo

Average Age

The average tenure for the Simran Farms board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month insider trading information.


Recent Insider Transactions

Buy₹219,65015 Feb 19
Amarjeet Bhatia
EntityIndividual
Shares4,393
Max Price₹50.00

Ownership Breakdown


Management Team

  • Harender Bhatia (66yo)

    Chairman

    • Compensation: ₹3.00m
  • Kawaljeet Bhatia (45yo)

    Whole Time Director

    • Compensation: ₹2.70m
  • Gurmeet Bhatia (42yo)

    Vice President of Marketing

  • Avneet Bhatia (33yo)

    Vice President of Operations

    • Tenure: 6.2yrs
  • Amarjeet Bhatia (71yo)

    Vice President of Production

  • Mahesh Patidar

    Chief Finance Officer

    • Tenure: 4.8yrs
    • Compensation: ₹719.00k
  • Tanu Parmar

    Company Secretary & Compliance Officer

    • Tenure: 4.3yrs
    • Compensation: ₹264.00k
  • Munikant Rawat (61yo)

    Chief Production Manager

    • Compensation: ₹1.17m

Board Members

  • Harender Bhatia (66yo)

    Chairman

    • Compensation: ₹3.00m
  • Kawaljeet Bhatia (45yo)

    Whole Time Director

    • Tenure: 17.2yrs
    • Compensation: ₹2.70m
  • Gurdeep Bhatia (69yo)

    Non-Executive Non-Independent Director

    • Tenure: 30.6yrs
  • Surjit Kohli (58yo)

    Additional Independent Director

    • Tenure: 0.9yrs
  • Surendra Singh (78yo)

    Independent Non-Executive Director

    • Tenure: 25.2yrs
  • Jasmeet Bhatia (46yo)

    Independent Non-Executive Director

    • Tenure: 4.8yrs

Company Information

Simran Farms Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Simran Farms Limited
  • Ticker: 519566
  • Exchange: BSE
  • Founded: 1984
  • Industry: packaged foods and meats
  • Sector: food, beverage & tobacco
  • Market Cap: ₹222.004m
  • Shares outstanding: 3.79m
  • Website: Click here

Location

  • Simran Farms Limited
  • 1-B, Vikas Rekha Complex
  • Tower Square
  • Indore
  • Madhya Pradesh
  • 452001
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
519566BSE (Mumbai Stock Exchange)YesEquity SharesININRJan 1970

Biography

Simran Farms Limited engages in the integrated poultry and poultry farming activities primarily in India. It offers broilers. The company was incorporated in 1984 and is based in Indore, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/06/17 12:40
End of Day Share Price2019/06/14 00:00
Earnings2019/03/31
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.