BSE:531982

Stock Analysis Report

Executive Summary

Spectrum Foods Ltd. manufactures and sells spices, and industrial and edible salt in India.

Snowflake

Fundamentals

Mediocre balance sheet and overvalued.

Share Price & News

How has Spectrum Foods's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-4.9%

531982

4.9%

IN Food

3.9%

IN Market


1 Year Return

n/a

531982

17.9%

IN Food

6.0%

IN Market

Return vs Industry: Insufficient data to determine how 531982 performed against the Indian Food industry.

Return vs Market: Insufficient data to determine how 531982 performed against the Indian Market.


Shareholder returns

531982IndustryMarket
7 Day-4.9%4.9%3.9%
30 Day-4.9%13.1%7.8%
90 Dayn/a16.6%2.5%
1 Yearn/a19.5%17.9%8.2%6.0%
3 Year-1.4%-1.4%69.8%64.8%23.0%16.7%
5 Year325.9%325.9%141.3%129.3%43.5%30.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Spectrum Foods undervalued compared to its fair value and its price relative to the market?

2.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 531982 (₹37.95) is trading below our estimate of fair value (₹38.86)

Significantly Undervalued: 531982 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 531982 is unprofitable, so we can't compare its PE Ratio to the Food industry average.

PE vs Market: 531982 is unprofitable, so we can't compare its PE Ratio to the Indian market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate 531982's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 531982 is overvalued based on its PB Ratio (11.4x) compared to the IN Food industry average (0.9x).


Next Steps

Future Growth

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

16.5%

Forecasted Food, Beverage & Tobacco 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 Spectrum Foods 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

  • Take a look at our analysis of 531982’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • Spectrum Foods competitive advantages and company strategy can generally be found in its financial reports archived here.
  • Explore growth companies in the Food, Beverage & Tobacco industry.

Past Performance

How has Spectrum Foods performed over the past 5 years?

-21.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 531982 is unprofitable, and losses have increased over the past 5 years at a rate of -21.4% per year.

Accelerating Growth: Unable to compare 531982's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 531982 is unprofitable, making it difficult to compare its past year earnings growth to the Food industry (15.6%).


Return on Equity

High ROE: 531982 has a negative Return on Equity (-86.1%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: 531982 is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: 531982 is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Spectrum Foods's financial position?


Financial Position Analysis

Short Term Liabilities: 531982's short term assets (₹81.8M) exceeds its short term liabilities (₹47.7M)

Long Term Liabilities: 531982's short term assets (81.8M) do not cover its long term liabilities (157.7M)


Debt to Equity History and Analysis

Debt Level: 531982's debt to equity ratio (1394.7%) is considered high

Reducing Debt: 531982's debt to equity ratio has increased from 128.4% to 1394.7% over the past 5 years.


Balance Sheet

Inventory Level: 531982 has a high level of physical assets or inventory.

Debt Coverage by Assets: 531982's debt is not covered by short term assets (assets are 0.5x 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 531982 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 531982 is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -32% per year.


Next Steps

Dividend

What is Spectrum Foods's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%0.6%markettop25%2.4%industryaverage0.8%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 531982's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 531982's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if 531982's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 531982'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 531982'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 Spectrum Foods's salary, the management and board of directors tenure and is there insider trading?

1.2yrs

Average board tenure


CEO

Girdhar Saboo (52yo)

0yrs

Tenure

0

Mr. Girdhar Gopal Saboo Chief Executive Officer and Chairman at Spectrum Foods Ltd. Mr. Saboo serves as Managing Director of Saboo Sodium Chloro Ltd and serves as its Chief Executive Officer and Executive ...


Board Age and Tenure

1.2yrs

Average Tenure

54.5yo

Average Age

Experienced Board: 531982'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


Management Team

  • Girdhar Saboo (52yo)

    Chairman

    • Tenure: 0yrs
  • Kailash Sharma

    Chief Financial Officer

    • Tenure: 4.7yrs
  • Shweta Gupta

    Company Secretary & Compliance Officer

    • Tenure: 0.3yrs
  • Rakesh Godha (51yo)

    Whole-Time Director

    • Tenure: 0.2yrs

Board Members

  • Girdhar Saboo (52yo)

    Chairman

    • Tenure: 0yrs
  • Neeraj Agarwal (61yo)

    Non-Executive Independent Director

    • Tenure: 1.2yrs
  • Sanjay Sarna (44yo)

    Non-Executive & Independent Director

    • Tenure: 4.8yrs
  • Kunj Sharma (65yo)

    Non-Executive Independent Director

    • Tenure: 1.2yrs
  • Bindu Saboo (57yo)

    Non-Executive Non-Independent Woman Director

    • Tenure: 1.1yrs
  • Rakesh Godha (51yo)

    Whole-Time Director

    • Tenure: 0.2yrs

Company Information

Spectrum Foods Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Spectrum Foods Ltd.
  • Ticker: 531982
  • Exchange: BSE
  • Founded: 1994
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: ₹221.946m
  • Shares outstanding: 5.85m
  • Website: https://www.spectrumfoods.co.in

Location

  • Spectrum Foods Ltd.
  • L-5, B - II, Krishna Marg
  • C-Scheme
  • Jaipur
  • Rajasthan
  • 302001
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
531982BSE (Mumbai Stock Exchange)YesEquity SharesININRApr 2010

Biography

Spectrum Foods Ltd. manufactures and sells spices, and industrial and edible salt in India. It also generates and sells electricity using wind power project located in Ratlam District, Madhya Pradesh. The  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 12:31
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
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.