BSE:526739

Stock Analysis Report

Narmada Gelatines

Executive Summary

Narmada Gelatines Limited manufactures and sells ossein, gelatine, and di-calcium phosphate in India.

Rewards

PE ratio (6.7x) is below the Indian market (13.8x)

Earnings grew by 119.5% over the past year

Pays a high and reliable dividend of 5.76%

Risk Analysis

Earnings have declined by -8.14% per year over past 5 years

Large one-off items impacting financial results

Does not have a meaningful market cap (₹1B)



Snowflake Analysis

Excellent balance sheet established dividend payer.

Share Price & News

How has Narmada Gelatines's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 526739 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.8%

526739

-0.2%

IN Chemicals

-1.1%

IN Market


1 Year Return

46.8%

526739

15.3%

IN Chemicals

7.3%

IN Market

Return vs Industry: 526739 exceeded the Indian Chemicals industry which returned 11.7% over the past year.

Return vs Market: 526739 exceeded the Indian Market which returned 6.7% over the past year.


Shareholder returns

526739IndustryMarket
7 Day-0.8%-0.2%-1.1%
30 Day11.0%5.1%1.5%
90 Day14.1%4.9%5.1%
1 Year55.9%46.8%17.9%15.3%9.3%7.3%
3 Year44.1%28.6%51.8%46.0%28.9%22.0%
5 Year13.1%-4.2%105.9%91.6%33.1%21.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Narmada Gelatines undervalued compared to its fair value and its price relative to the market?

6.62x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 526739 (₹173.7) is trading above our estimate of fair value (₹85.53)

Significantly Below Fair Value: 526739 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 526739 is good value based on its PE Ratio (6.7x) compared to the Chemicals industry average (11.8x).

PE vs Market: 526739 is good value based on its PE Ratio (6.7x) compared to the Indian market (13.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 526739's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 526739 is good value based on its PB Ratio (0.8x) compared to the IN Chemicals industry average (1.2x).


Next Steps

Future Growth

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

16.8%

Forecasted Materials 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 Narmada Gelatines 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 Narmada Gelatines performed over the past 5 years?

-8.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 526739 has a large one-off gain of ₹42.9M impacting its September 30 2019 financial results.

Growing Profit Margin: 526739's current net profit margins (11.6%) are higher than last year (6.1%).


Past Earnings Growth Analysis

Earnings Trend: 526739's earnings have declined by -8.1% per year over the past 5 years.

Accelerating Growth: 526739's earnings growth over the past year (119.5%) exceeds its 5-year average (-8.1% per year).

Earnings vs Industry: 526739 earnings growth over the past year (119.5%) exceeded the Chemicals industry 10.4%.


Return on Equity

High ROE: 526739's Return on Equity (12%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Narmada Gelatines's financial position?


Financial Position Analysis

Short Term Liabilities: 526739's short term assets (₹610.2M) exceed its short term liabilities (₹138.4M).

Long Term Liabilities: 526739's short term assets (₹610.2M) exceed its long term liabilities (₹61.7M).


Debt to Equity History and Analysis

Debt Level: 526739's debt to equity ratio (0.1%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 526739's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 526739's debt is well covered by operating cash flow (3685.5%).

Interest Coverage: 526739 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 526739 has a high level of physical assets or inventory.

Debt Coverage by Assets: 526739's debt is covered by short term assets (assets are 358.9x debt).


Next Steps

Dividend

What is Narmada Gelatines's current dividend yield, its reliability and sustainability?

5.81%

Current Dividend Yield


Dividend Yield vs Market

company5.8%marketbottom25%0.6%markettop25%2.3%industryaverage0.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 526739's dividend (5.76%) is higher than the bottom 25% of dividend payers in the Indian market (0.56%).

High Dividend: 526739's dividend (5.76%) is in the top 25% of dividend payers in the Indian market (2.31%)


Stability and Growth of Payments

Stable Dividend: 526739's dividends per share have been stable in the past 10 years.

Growing Dividend: 526739's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.5%), 526739's dividend payments are well 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 Narmada Gelatines's salary, the management and board of directors tenure and is there insider trading?

13.3yrs

Average board tenure


CEO

Ashok Kapur (72yo)

0yrs

Tenure

₹3,544,000

Compensation

Mr. Ashok K. Kapur, B.E. has been the Chief Executive Officer and Whole Time Director of Narmada Gelatines Ltd., since June 1, 2006. 


CEO Compensation Analysis

Compensation vs Market: Ashok's total compensation ($USD50.01K) is about average for companies of similar size in the Indian market ($USD50.75K).

Compensation vs Earnings: Ashok's compensation has been consistent with company performance over the past year.


Board Age and Tenure

13.3yrs

Average Tenure

69.5yo

Average Age

Experienced Board: 526739's board of directors are seasoned and experienced ( 13.3 years average tenure).


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

  • Mahesh Verma

    Head of Finance

    • Compensation: ₹1.29m
  • Ashok Kapur (72yo)

    CEO & Whole Time Director

    • Compensation: ₹3.54m
  • S. Bhattacharya

    General Manager of Operations

    • Garvita Asati

      Chief Financial Officer

      • Tenure: 2.4yrs
      • Compensation: ₹489.00k

    Board Members

    • Ravindra Raje (64yo)

      Non-Executive Independent Director

      • Tenure: 13.3yrs
      • Compensation: ₹47.00k
    • Ashok Kapur (72yo)

      CEO & Whole Time Director

      • Compensation: ₹3.54m
    • Gulab Gupta (86yo)

      Non-Executive Independent Director

      • Tenure: 13.3yrs
      • Compensation: ₹81.00k
    • Mohan Pant (80yo)

      Non-Executive Independent Director

      • Tenure: 13.3yrs
      • Compensation: ₹79.00k
    • Deepak Chaudhuri (67yo)

      Non-Executive Independent Director

      • Tenure: 16.3yrs
      • Compensation: ₹81.00k
    • Drushti Desai (46yo)

      Non-Executive Non-Independent Director

      • Tenure: 5.3yrs
      • Compensation: ₹15.00k

    Company Information

    Narmada Gelatines Limited's company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Narmada Gelatines Limited
    • Ticker: 526739
    • Exchange: BSE
    • Founded: 1961
    • Industry: Specialty Chemicals
    • Sector: Materials
    • Market Cap: ₹1.085b
    • Shares outstanding: 6.05m
    • Website: https://www.narmadagelatines.com

    Number of Employees


    Location

    • Narmada Gelatines Limited
    • Caravs
    • Room No 27/28, 1st Floor
    • Jabalpur
    • Madhya Pradesh
    • 482001
    • India

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    526739BSE (Mumbai Stock Exchange)YesEquity SharesININRAug 2004

    Biography

    Narmada Gelatines Limited manufactures and sells ossein, gelatine, and di-calcium phosphate in India. It also exports its products. The company was formerly known as Shaw Wallace Gelatines Ltd. and changed its name to Narmada Gelatines Limited in 2002. Narmada Gelatines Limited was founded in 1961 and is based in Jabalpur, India. Narmada Gelatines Limited is a subsidiary of Alfamont (Mauritius) Limited. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/22 12:33
    End of Day Share Price2020/01/22 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.