NSEI:PENIND

Stock Analysis Report

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Executive Summary

Pennar Industries Limited operates as an engineering company in India and internationally. More Details


Snowflake Analysis

Mediocre balance sheet and slightly overvalued.

Share Price & News

How has Pennar Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

3.2%

PENIND

4.2%

IN Metals and Mining

0.9%

IN Market


1 Year Return

-38.2%

PENIND

5.8%

IN Metals and Mining

1.9%

IN Market

Return vs Industry: PENIND underperformed the Indian Metals and Mining industry which returned 5.8% over the past year.

Return vs Market: PENIND underperformed the Indian Market which returned 1.9% over the past year.


Shareholder returns

PENINDIndustryMarket
7 Day3.2%4.2%0.9%
30 Day-4.7%-6.2%-3.1%
90 Day-9.6%19.8%8.8%
1 Year-38.2%-38.2%9.6%5.8%3.8%1.9%
3 Year-72.2%-72.2%-24.6%-32.4%2.5%-2.4%
5 Year-67.5%-67.5%80.9%50.4%36.9%26.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Pennar Industries undervalued compared to its fair value and its price relative to the market?

10.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PENIND (₹16.05) is trading below our estimate of fair value (₹17.97)

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


Price To Earnings Ratio

PE vs Industry: PENIND is poor value based on its PE Ratio (98.2x) compared to the IN Metals and Mining industry average (13.2x).

PE vs Market: PENIND is poor value based on its PE Ratio (98.2x) compared to the Indian market (16.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PENIND is good value based on its PB Ratio (0.4x) compared to the IN Metals and Mining industry average (0.7x).


Next Steps

Future Growth

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

69.4%

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 Pennar Industries 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 Pennar Industries performed over the past 5 years?

7.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PENIND has high quality earnings.

Growing Profit Margin: PENIND's current net profit margins (0.1%) are lower than last year (3.2%).


Past Earnings Growth Analysis

Earnings Trend: PENIND's earnings have grown by 7.9% per year over the past 5 years.

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

Earnings vs Industry: PENIND had negative earnings growth (-96.5%) over the past year, making it difficult to compare to the Metals and Mining industry average (-36%).


Return on Equity

High ROE: PENIND's Return on Equity (0.4%) is considered low.


Next Steps

Financial Health

How is Pennar Industries's financial position?


Financial Position Analysis

Short Term Liabilities: PENIND's short term assets (₹11.0B) exceed its short term liabilities (₹9.8B).

Long Term Liabilities: PENIND's short term assets (₹11.0B) exceed its long term liabilities (₹1.8B).


Debt to Equity History and Analysis

Debt Level: PENIND's debt to equity ratio (57.1%) is considered high.

Reducing Debt: PENIND's debt to equity ratio has increased from 43.3% to 57.1% over the past 5 years.

Debt Coverage: PENIND's debt is well covered by operating cash flow (47.8%).

Interest Coverage: PENIND's interest payments on its debt are not well covered by EBIT (0.7x coverage).


Balance Sheet


Next Steps

Dividend

What is Pennar Industries's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate PENIND'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 PENIND's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PENIND'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?

4.4yrs

Average management tenure


CEO

Aditya Rao (39 yo)

6.5yrs

Tenure

₹11,701,228

Compensation

Mr. Aditya Narsing Rao, B.S., M. Eng., has been Managing Director of Pennar Industries Limited since February 2014 and serves as its Vice Chairman. He has worked on new product development and the developm ...


CEO Compensation Analysis

Compensation vs Market: Aditya's total compensation ($USD158.62K) is above average for companies of similar size in the Indian market ($USD48.76K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Joginapally Venkata Rao
Executive Chairman11.67yrs₹16.68m11.26%
₹ 256.0m
Aditya Rao
Vice Chairman & MD6.5yrs₹11.70m5.93%
₹ 134.8m
Potluri Rao
Joint MD & Director4.5yrs₹15.17m0.38%
₹ 8.6m
Yalamanchili Rao
Presidentno data₹6.60mno data
Jammulamadaka Srinivasa Prasad
Chief Financial Officerno data₹2.60mno data
I.V. Raju
Chief Operating Officerno data₹5.76mno data
Mirza Mohammed Baig
Compliance Officer & Company Secretary6.75yrs₹1.30mno data
Dayasagar Neelagiri
Executive Vice Presidentno data₹6.11mno data
Lavanya Kumar Kondapally
Executive Director6.33yrs₹7.98m0.22%
₹ 5.1m
M. Reddy
Executive Vice Presidentno data₹6.77mno data
Rajat Narain
Executive Vice Presidentno data₹9.39mno data
Altaeur Rahman
Executive Vice President of Engineeringno data₹8.86mno data

4.4yrs

Average Tenure

54.5yo

Average Age

Experienced Management: PENIND's management team is considered experienced (4.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Joginapally Venkata Rao
Executive Chairman11.67yrs₹16.68m11.26%
₹ 256.0m
Aditya Rao
Vice Chairman & MD6.5yrs₹11.70m5.93%
₹ 134.8m
Potluri Rao
Joint MD & Director4.5yrs₹15.17m0.38%
₹ 8.6m
Lavanya Kumar Kondapally
Executive Director6.33yrs₹7.98m0.22%
₹ 5.1m
Eric James Brown
Non-Executive & Non-Independent Director2.83yrsno datano data
Bharati Jacob
Non-Executive Independent Director1.33yrs₹300.00kno data
Manish Sabharwal
Non-Executive Independent Director9.42yrs₹400.00kno data
Vishal Sood
Non-Executive & Non-Independent Director8.67yrsno datano data
Bandari Rao
Non-Executive Independent Director11.67yrs₹570.00kno data
Varun Chawla
Non-Executive Independent Director7.83yrs₹325.00kno data
Chandrasekhar Sripada
Non-Executive Independent Director1.5yrs₹520.00kno data

7.1yrs

Average Tenure

61yo

Average Age

Experienced Board: PENIND's board of directors are considered experienced (7.1 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

Pennar Industries Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Pennar Industries Limited
  • Ticker: PENIND
  • Exchange: NSEI
  • Founded: 1975
  • Industry: Steel
  • Sector: Materials
  • Market Cap: ₹2.275b
  • Shares outstanding: 142.16m
  • Website: https://www.pennarindia.com

Number of Employees


Location

  • Pennar Industries Limited
  • DHFLVC Silicon Towers
  • 3rd Floor
  • Hyderabad
  • 500084
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
513228BSE (Mumbai Stock Exchange)YesEquity SharesININROct 2004
PENINDNSEI (National Stock Exchange of India)YesEquity SharesININROct 2004

Biography

Pennar Industries Limited operates as an engineering company in India and internationally. The company offers cold rolled steel strips; electrostatic precipitator electrodes; building components, such as p ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/30 12:55
End of Day Share Price2020/09/29 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


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.