BSE:539450

Stock Analysis Report

Executive Summary

S H Kelkar and Company Limited, together with its subsidiaries, manufactures and supplies fragrances, flavors, and aroma ingredients in India.


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has S H Kelkar's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 539450's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.4%

539450

-6.0%

IN Chemicals

-2.9%

IN Market


1 Year Return

-50.1%

539450

-14.8%

IN Chemicals

-29.3%

IN Market

Return vs Industry: 539450 underperformed the Indian Chemicals industry which returned -14.8% over the past year.

Return vs Market: 539450 underperformed the Indian Market which returned -29.3% over the past year.


Shareholder returns

539450IndustryMarket
7 Day7.4%-6.0%-2.9%
30 Day-24.5%-22.4%-23.7%
90 Day-31.5%-19.1%-28.6%
1 Year-49.4%-50.1%-11.2%-14.8%-27.9%-29.3%
3 Year-74.0%-74.8%12.2%5.3%-15.4%-20.0%
5 Yearn/a67.6%53.0%-3.3%-8.3%

Price Volatility Vs. Market

How volatile is S H Kelkar's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is S H Kelkar undervalued compared to its fair value and its price relative to the market?

6.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 539450 (₹75.55) is trading below our estimate of fair value (₹80.49)

Significantly Below Fair Value: 539450 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 539450 is poor value based on its PE Ratio (25x) compared to the Chemicals industry average (7.7x).

PE vs Market: 539450 is poor value based on its PE Ratio (25x) compared to the Indian market (9.2x).


Price to Earnings Growth Ratio

PEG Ratio: 539450 is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: 539450 is overvalued based on its PB Ratio (1.3x) compared to the IN Chemicals industry average (0.8x).


Next Steps

Future Growth

How is S H Kelkar forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

40.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 539450's forecast earnings growth (40.8% per year) is above the savings rate (6.5%).

Earnings vs Market: 539450's earnings (40.8% per year) are forecast to grow faster than the Indian market (19.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 539450's revenue (12.5% per year) is forecast to grow faster than the Indian market (8.9% per year).

High Growth Revenue: 539450's revenue (12.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 539450's Return on Equity is forecast to be low in 3 years time (12.6%).


Next Steps

Past Performance

How has S H Kelkar performed over the past 5 years?

1.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 539450 has a large one-off loss of ₹524.1M impacting its December 31 2019 financial results.

Growing Profit Margin: 539450's current net profit margins (3.8%) are lower than last year (8.5%).


Past Earnings Growth Analysis

Earnings Trend: 539450's earnings have grown by 1% per year over the past 5 years.

Accelerating Growth: 539450's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 539450 had negative earnings growth (-52.8%) over the past year, making it difficult to compare to the Chemicals industry average (10%).


Return on Equity

High ROE: 539450's Return on Equity (5%) is considered low.


Next Steps

Financial Health

How is S H Kelkar's financial position?


Financial Position Analysis

Short Term Liabilities: 539450's short term assets (₹7.7B) exceed its short term liabilities (₹5.6B).

Long Term Liabilities: 539450's short term assets (₹7.7B) exceed its long term liabilities (₹707.2M).


Debt to Equity History and Analysis

Debt Level: 539450's debt to equity ratio (50.4%) is considered high.

Reducing Debt: 539450's debt to equity ratio has increased from 45.4% to 50.4% over the past 5 years.

Debt Coverage: 539450's debt is not well covered by operating cash flow (15.8%).

Interest Coverage: 539450's interest payments on its debt are well covered by EBIT (5.2x coverage).


Balance Sheet

Inventory Level: 539450 has a high level of physical assets or inventory.

Debt Coverage by Assets: 539450's debt is covered by short term assets (assets are 1.8x debt).


Next Steps

Dividend

What is S H Kelkar's current dividend yield, its reliability and sustainability?

2.51%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 539450's dividend (2.51%) is higher than the bottom 25% of dividend payers in the Indian market (0.95%).

High Dividend: 539450's dividend (2.51%) is low compared to the top 25% of dividend payers in the Indian market (4.16%).


Stability and Growth of Payments

Stable Dividend: 539450 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 539450's dividend payments have increased, but the company has only paid a dividend for 4 years.


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: 539450's dividends in 3 years are forecast to be well covered by earnings (31.7% payout ratio).


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Kedar Vaze (45yo)

5.5s

Tenure

₹16,800,000

Compensation

Mr. Kedar Ramesh Vaze has been Group Chief Executive Officer and Whole-Time Director of S H Kelkar and Company Limited since September 18, 2014 and September 04, 2010 respectively. Mr. Vaze has a many year ...


CEO Compensation Analysis

Compensation vs Market: Kedar's total compensation ($USD222.89K) is above average for companies of similar size in the Indian market ($USD48.15K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Kedar Vaze
Group CEO & Whole-Time Director5.5yrs₹16.80m12.01% 1.3b
Shrikant Mate
Executive VP & Group CFO1.25yrsno datano data
Deepti Chandratre
Compliance Officerno data₹1.08mno data
Indrajit Chatterjee
Executive VP & Group Chief Human Resources Officer 6.67yrs₹7.47mno data
Makarand Patwardhan
Senior Vice President - Fragrance Operations & Business Solutions2.17yrs₹4.70mno data
Anuradha Sansar
Executive Vice President of Business Developmentno datano datano data
Amit Gulati
Executive Vice President of AID0.67yrno datano data

2.2yrs

Average Tenure

Experienced Management: 539450's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kedar Vaze
Group CEO & Whole-Time Director5.5yrs₹16.80m12.01% 1.3b
Dalip Sehgal
Non-Executive Independent Director5.25yrs₹1.30mno data
Amit Dalmia
Non-Independent Non-Executive Director7.58yrsno datano data
Jairaj Purandare
Non-Executive Independent Director5yrs₹1.10mno data
Sangeeta Singh
Non-Executive Independent Director5yrs₹1.60mno data
Ramesh Vaze
Non-Executive Chairman0.50yr₹25.70m19.76% 2.1b
Prabha Vaze
Non-Executive Non-Independent Director39.42yrs₹600.00k3.56% 371.3m
Alpana Shah
Non-Executive Independent Director5.25yrs₹1.40mno data
Shrikant Oka
Additional Non-Executive Independent Director1.83yrs₹1.00mno data
Mark Elliott
Independent Director0.25yrno datano data

5.1yrs

Average Tenure

58.5yo

Average Age

Experienced Board: 539450's board of directors are considered experienced (5.1 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

S H Kelkar and Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: S H Kelkar and Company Limited
  • Ticker: 539450
  • Exchange: BSE
  • Founded: 1922
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: ₹10.422b
  • Shares outstanding: 137.95m
  • Website: https://www.keva.co.in

Number of Employees


Location

  • S H Kelkar and Company Limited
  • Lal Bahadur Shastri Marg
  • Near Balrajeshwar Temple
  • Mumbai
  • Maharashtra
  • 400080
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
539450BSE (Mumbai Stock Exchange)YesEquity SharesININRNov 2015
SHKNSEI (National Stock Exchange of India)YesEquity SharesININRNov 2015

Biography

S H Kelkar and Company Limited, together with its subsidiaries, manufactures and supplies fragrances, flavors, and aroma ingredients in India. Its fragrances are used in personal care, hair care, skin care and cosmetic, fabric care, and household products, as well as in fine fragrances; and flavors are used in dairy, beverage, confectionery, bakery, pharmaceutical, and savory products. The company markets its products under the SHK, Cobra, Keva, and Auris brand names to national and multi-national FMCG companies, blenders of fragrances and flavors, and fragrance and flavor producers. It also exports its products to approximately 50 countries worldwide through a distributor model. The company was formerly known as S H Kelkar And Company Private Limited and changed its name to S H Kelkar and Company Limited in March 2015. S H Kelkar and Company Limited was founded in 1922 and is based in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 13:29
End of Day Share Price2020/03/30 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.