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.

Rewards

Earnings are forecast to grow 20.05% per year

Risk Analysis

Debt is not well covered by operating cash flow

Highly volatile share price over past 3 months



Snowflake Analysis

Moderate 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

-6.5%

539450

-0.7%

IN Chemicals

-1.3%

IN Market


1 Year Return

-40.6%

539450

8.8%

IN Chemicals

5.2%

IN Market

Return vs Industry: 539450 underperformed the Indian Chemicals industry which returned 8.8% over the past year.

Return vs Market: 539450 underperformed the Indian Market which returned 5.2% over the past year.


Shareholder returns

539450IndustryMarket
7 Day-6.5%-0.7%-1.3%
30 Day-16.5%-2.4%-0.2%
90 Day-20.6%6.8%7.6%
1 Year-40.6%-40.6%11.4%8.8%7.2%5.2%
3 Year-64.8%-65.3%48.5%42.7%30.3%23.4%
5 Yearn/a108.6%93.3%39.3%26.8%

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?

19.63x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 539450 (₹103.65) is trading above our estimate of fair value (₹69.17)

Significantly Below Fair Value: 539450 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 539450 is poor value based on its PE Ratio (19.6x) compared to the Chemicals industry average (10.6x).

PE vs Market: 539450 is poor value based on its PE Ratio (19.6x) compared to the Indian market (12.9x).


Price to Earnings Growth Ratio

PEG Ratio: 539450 is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: 539450 is overvalued based on its PB Ratio (1.8x) compared to the IN Chemicals industry average (1x).


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?

20.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 539450's forecast earnings growth (20.1% per year) is above the savings rate (6.5%).

Earnings vs Market: 539450's earnings (20.1% per year) are forecast to grow faster than the Indian market (19.8% per year).

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

Revenue vs Market: 539450's revenue (10.8% per year) is forecast to grow slower than the Indian market (11.5% per year).

High Growth Revenue: 539450's revenue (10.8% 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 (12.8%).


Next Steps

Past Performance

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

4.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 539450 has high quality earnings.

Growing Profit Margin: 539450's current net profit margins (6.9%) are lower than last year (8.8%).


Past Earnings Growth Analysis

Earnings Trend: 539450's earnings have grown by 4.6% 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 (-22.1%) over the past year, making it difficult to compare to the Chemicals industry average (10.4%).


Return on Equity

High ROE: 539450's Return on Equity (8.9%) is considered low.


Return on Assets


Return on Capital Employed


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 44.5% 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 (6.4x 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?

2.12%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%0.6%markettop25%2.5%industryaverage0.9%forecastin3Years2.1%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 539450's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 539450's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 539450's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 539450's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 539450 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 539450'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 S H Kelkar's salary, the management and board of directors tenure and is there insider trading?

1.9yrs

Average management tenure


CEO

Kedar Vaze (45yo)

5.3yrs

Tenure

₹16,800,000

Compensation

Mr. Kedar Ramesh Vaze has been 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 total experienc ...


CEO Compensation Analysis

Compensation vs Market: Kedar's total compensation ($USD235.70K) is about average for companies of similar size in the Indian market ($USD295.45K).

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


Management Age and Tenure

1.9yrs

Average Tenure

Experienced Management: 539450's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Age and Tenure

5.0yrs

Average Tenure

59yo

Average Age

Experienced Board: 539450's board of directors are considered experienced (5 years average tenure).


Insider Trading

Insider Buying: 539450 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy₹6,426,95226 Sep 19
Ramesh Vaze
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares46,012
Max Price₹139.81
Buy₹29,155,04123 Sep 19
Ramesh Vaze
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares214,912
Max Price₹137.45
Buy₹1,978,26718 Sep 19
Ramesh Vaze
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares15,000
Max Price₹131.92
Buy₹659,61117 Sep 19
Ramesh Vaze
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares5,000
Max Price₹131.92
Buy₹1,979,34916 Sep 19
Ramesh Vaze
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares15,000
Max Price₹131.97
Buy₹40,475,07129 Jan 19
Keva Aromatics Private Limited
EntityCompany
Shares250,000
Max Price₹161.90

Ownership Breakdown

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


Management Team

  • Indrajit Chatterjee

    Executive VP & Group Chief Human Resources Officer

    • Tenure: 6.4yrs
    • Compensation: ₹7.47m
  • Kedar Vaze (45yo)

    CEO & Whole-Time Director

    • Tenure: 5.3yrs
    • Compensation: ₹16.80m
  • Deepti Chandratre

    Compliance Officer

    • Tenure: 0yrs
    • Compensation: ₹1.08m
  • Pramod Davray

    • Tenure: 0yrs
    • Compensation: ₹8.56m
  • Makarand Patwardhan

    Senior Vice President - Fragrance Operations & Business Solutions

    • Tenure: 1.9yrs
    • Compensation: ₹4.70m
  • Anuradha Sansar

    Executive Vice President of Business Development

    • Tenure: 0yrs
  • Amit Gulati

    Executive Vice President of AID

    • Tenure: 0.4yrs
  • Shrikant Mate

    Executive VP & Group CFO

    • Tenure: 1yrs

Board Members

  • Dalip Sehgal (61yo)

    Independent Director

    • Tenure: 5yrs
    • Compensation: ₹1.30m
  • Amit Dalmia (44yo)

    Non-Independent Non-Executive Director

    • Tenure: 7.3yrs
  • Jai Purandare (59yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: ₹1.10m
  • Sangeeta Singh (58yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: ₹1.60m
  • Ramesh Vaze (77yo)

    Non-Executive Chairman

    • Tenure: 0.3yrs
    • Compensation: ₹25.70m
  • Prabha Vaze (73yo)

    Non-Executive Director

    • Tenure: 39.2yrs
    • Compensation: ₹600.00k
  • Kedar Vaze (45yo)

    CEO & Whole-Time Director

    • Tenure: 5.3yrs
    • Compensation: ₹16.80m
  • Alpana Shah (56yo)

    Independent Director

    • Tenure: 5yrs
    • Compensation: ₹1.40m
  • Shrikant Oka (61yo)

    Additional Non-Executive Independent Director

    • Tenure: 1.6yrs
    • Compensation: ₹1.00m

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: ₹14.298b
  • 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/09 12:51
End of Day Share Price2019/12/06 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.