BSE:530369

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Vamshi Rubber Limited manufactures and sells tire retreading materials in India.


Snowflake Analysis

Imperfect balance sheet and overvalued.

Share Price & News

How has Vamshi Rubber's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 530369's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.5%

530369

3.1%

IN Chemicals

6.4%

IN Market


1 Year Return

-23.9%

530369

1.2%

IN Chemicals

-14.8%

IN Market

Return vs Industry: 530369 underperformed the Indian Chemicals industry which returned 1.2% over the past year.

Return vs Market: 530369 underperformed the Indian Market which returned -14.8% over the past year.


Shareholder returns

530369IndustryMarket
7 Day5.5%3.1%6.4%
30 Day15.9%6.1%9.5%
90 Day4.0%-7.0%-7.4%
1 Year-23.9%-23.9%5.4%1.2%-13.1%-14.8%
3 Year-68.1%-68.1%22.3%15.0%-3.7%-8.8%
5 Year-35.5%-38.8%112.4%94.3%23.7%12.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Vamshi Rubber undervalued compared to its fair value and its price relative to the market?

30.2x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 530369 (₹16.75) is trading above our estimate of fair value (₹0.9)

Significantly Below Fair Value: 530369 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 530369 is poor value based on its PE Ratio (30.2x) compared to the Chemicals industry average (9.8x).

PE vs Market: 530369 is poor value based on its PE Ratio (30.2x) compared to the Indian market (10.6x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 530369's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 530369 is good value based on its PB Ratio (0.5x) compared to the IN Chemicals industry average (1x).


Next Steps

Future Growth

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

13.6%

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 Vamshi Rubber 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 Vamshi Rubber performed over the past 5 years?

-16.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 530369 has high quality earnings.

Growing Profit Margin: 530369's current net profit margins (0.4%) are lower than last year (1.4%).


Past Earnings Growth Analysis

Earnings Trend: 530369's earnings have declined by -16.6% per year over the past 5 years.

Accelerating Growth: 530369's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 530369 had negative earnings growth (-80.9%) over the past year, making it difficult to compare to the Chemicals industry average (11.6%).


Return on Equity

High ROE: 530369's Return on Equity (1.5%) is considered low.


Next Steps

Financial Health

How is Vamshi Rubber's financial position?


Financial Position Analysis

Short Term Liabilities: 530369's short term assets (₹365.4M) exceed its short term liabilities (₹309.9M).

Long Term Liabilities: 530369's short term assets (₹365.4M) exceed its long term liabilities (₹73.1M).


Debt to Equity History and Analysis

Debt Level: 530369's debt to equity ratio (142.8%) is considered high.

Reducing Debt: 530369's debt to equity ratio has increased from 126.5% to 142.8% over the past 5 years.

Debt Coverage: 530369's debt is not well covered by operating cash flow (6.8%).

Interest Coverage: 530369's interest payments on its debt are not well covered by EBIT (0.8x coverage).


Balance Sheet


Next Steps

Dividend

What is Vamshi Rubber's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 530369's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 530369's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 530369's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 530369's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 530369 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 530369's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Surendra Rachervu (60yo)

3.83yrs

Tenure

₹4,800,000

Compensation

Mr. Surendra Reddy Rachervu, B.Tech has been Managing Director of Vamshi Rubber Ltd., since July 2005 and has been its Executive Director since November 24, 1993. Mr. Rachervu has been Chief Executive Offi ...


CEO Compensation Analysis

Compensation vs Market: Surendra's total compensation ($USD63.52K) is about average for companies of similar size in the Indian market ($USD49.97K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Mereddy Reddy
CFO & Executive Chairman8.92yrs₹5.02m14.26% 10.0m
Surendra Rachervu
MD, CEO & Executive Director3.83yrs₹4.80m8.38% 5.9m
Venkateswara Kuchibhotla
Director of Operations & Whole-Time Director22.17yrs₹4.80m10.33% 7.3m
Varun Pasham
Whole-Time Director26.58yrs₹4.80m8.26% 5.8m
Rasika Jhawar
Company Secretary & Compliance Officer1.08yrsno datano data

3.8yrs

Average Tenure

59yo

Average Age

Experienced Management: 530369's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mereddy Reddy
CFO & Executive Chairman8.92yrs₹5.02m14.26% 10.0m
Surendra Rachervu
MD, CEO & Executive Director3.83yrs₹4.80m8.38% 5.9m
Venkateswara Kuchibhotla
Director of Operations & Whole-Time Director22.17yrs₹4.80m10.33% 7.3m
Varun Pasham
Whole-Time Director26.58yrs₹4.80m8.26% 5.8m
Vamsheedhar Arrabothu
Independent & Non-Executive Director17.25yrs₹5.00kno data
Arolla Reddy
Independent & Non-Executive Director17.25yrs₹15.00kno data
Neerudu Sandeep Reddy
Independent & Non-Executive Director8.92yrs₹20.00kno data
Akhila Sundari
Independent Non-Executive Director5.25yrs₹10.00kno data

17.3yrs

Average Tenure

53.5yo

Average Age

Experienced Board: 530369's board of directors are seasoned and experienced ( 17.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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.


Top Shareholders

Company Information

Vamshi Rubber Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Vamshi Rubber Limited
  • Ticker: 530369
  • Exchange: BSE
  • Founded: 1993
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: ₹70.464m
  • Shares outstanding: 4.21m
  • Website: https://www.vamshirubber.org

Number of Employees


Location

  • Vamshi Rubber Limited
  • Vamshi House
  • Plot No. 41
  • Hyderabad
  • Andhra Pradesh
  • 500032
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
530369BSE (Mumbai Stock Exchange)YesEquity SharesININRJan 2005

Biography

Vamshi Rubber Limited manufactures and sells tire retreading materials in India. The company provides precured tread rubber, cushion gum, CBTR, and cushion gum ropes. It also offers bias and radial ply tires, curing envelopes, and vulcanizing solutions. The company also exports its products. Vamshi Rubber Limited was incorporated in 1993 and is based in Hyderabad, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 12:31
End of Day Share Price2020/06/05 00:00
Earnings2019/12/31
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.