NSEI:PENIND

Stock Analysis Report

Executive Summary

Pennar Industries Limited manufactures and sells steel products in India and internationally.

Snowflake

Fundamentals

Fair value with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

2.9%

PENIND

4.3%

IN Metals and Mining

3.1%

IN Market


1 Year Return

-32.8%

PENIND

-28.6%

IN Metals and Mining

3.7%

IN Market

Return vs Industry: PENIND underperformed the Indian Metals and Mining industry which returned -28.6% over the past year.

Return vs Market: PENIND underperformed the Indian Market which returned 3.7% over the past year.


Shareholder returns

PENINDIndustryMarket
7 Day2.9%4.3%3.1%
30 Day-3.8%1.3%5.7%
90 Day-13.7%-10.7%1.4%
1 Year-32.8%-32.8%-25.6%-28.6%5.9%3.7%
3 Year-47.8%-47.8%-1.0%-12.2%22.3%16.0%
5 Year-51.5%-51.5%1.8%-15.0%42.5%28.9%

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?

5.87x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: PENIND (₹26.25) is trading above our estimate of fair value (₹15.13)

Significantly Undervalued: PENIND is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PENIND is good value based on its PE Ratio (5.9x) compared to the Metals and Mining industry average (8.3x).

PE vs Market: PENIND is good value based on its PE Ratio (5.9x) compared to the Indian market (13.2x).


Price to Earnings Growth Ratio

Low 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 (0.6x) compared to the IN Metals and Mining industry average (0.8x).


Next Steps

Future Growth

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

9.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PENIND's forecast earnings growth (9.8% per year) is above the savings rate (7.6%).

Earnings vs Market: PENIND's earnings (9.8% per year) are forecast to grow slower than the Indian market (18.2% per year).

High Growth Earnings: PENIND's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if PENIND's revenue is forecast to grow faster than the Indian market.

High Growth Revenue: Insufficient data to determine if PENIND's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if PENIND's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Pennar Industries performed over the past 5 years?

20.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PENIND's earnings have grown significantly by 20.4% 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 (-4%) over the past year, making it difficult to compare to the Metals and Mining industry average (14.3%).


Return on Equity

High ROE: PENIND's Return on Equity (10.3%) is considered low.


Return on Assets

ROA vs Industry: PENIND has a higher Return on Assets than the Metals and Mining industry average last year.


Return on Capital Employed

ROCE Improving: PENIND's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Pennar Industries's financial position?


Financial Position Analysis

Short Term Liabilities: PENIND's short term assets (₹11.3B) exceeds its short term liabilities (₹9.3B)

Long Term Liabilities: PENIND's short term assets (11.3B) exceeds its long term liabilities (1.5B)


Debt to Equity History and Analysis

Debt Level: PENIND's debt to equity ratio (70.4%) is considered high

Reducing Debt: PENIND's debt to equity ratio has increased from 36.3% to 70.4% over the past 5 years.

Debt Coverage: PENIND's debt is well covered by operating cash flow (37%).

Interest Coverage: PENIND's interest payments on its debt are not well covered by EBIT (1.9x coverage).


Balance Sheet

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

Debt Coverage by Assets: PENIND's debt is covered by short term assets (assets are 2.407660x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%0.6%markettop25%2.5%industryaverage4.4%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

What is the CEO of Pennar Industries's salary, the management and board of directors tenure and is there insider trading?

3.5yrs

Average management tenure


CEO

Aditya Rao (38yo)

5.7yrs

Tenure

₹11,916,000

Compensation

Mr. Aditya Narsing Rao, B.S., M. Eng. has been Managing Director of Pennar Industries Limited since February 2014. Mr. Rao served as Director of Projects at Pennar Industries Limited from January 30, 2008  ...


CEO Compensation Analysis

Compensation vs. Market: Aditya's total compensation ($USD167.60K) is about average for companies of similar size in the Indian market ($USD28.94K).

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


Management Age and Tenure

3.5yrs

Average Tenure

60yo

Average Age

Experienced Management: PENIND's management team is considered experienced (3.5 years average tenure).


Board Age and Tenure

6.9yrs

Average Tenure

60yo

Average Age

Experienced Board: PENIND's board of directors are considered experienced (6.9 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.


Recent Insider Transactions

Buy₹421,78528 Jan 19
Indukuri Venkata Raju
EntityIndividual
Shares11,700
Max Price₹36.05
Buy₹140,79023 Jan 19
Indukuri Venkata Raju
EntityIndividual
Shares3,800
Max Price₹37.05

Ownership Breakdown


Management Team

  • Joginapally Venkata Rao (74yo)

    Executive Chairman

    • Tenure: 10.8yrs
    • Compensation: ₹16.68m
  • Aditya Rao (38yo)

    Vice Chairman & MD

    • Tenure: 5.7yrs
    • Compensation: ₹11.92m
  • B. Reddy

    Head of Learning & Development

    • Tenure: 0yrs
  • Dayasagar Neelagiri

    Operations

    • Tenure: 0yrs
  • Potluri Rao (60yo)

    Joint MD & Director

    • Tenure: 3.6yrs
  • Kondapally Lavanya Rao (60yo)

    Executive Director

    • Tenure: 5.4yrs
    • Compensation: ₹7.20m
  • M. Reddy

    Business Head of Tubes

    • Tenure: 0yrs
  • Jammulamadaka Srinivasa Prasad

    Chief Financial Officer

    • Tenure: 0yrs
    • Compensation: ₹4.80m
  • T. Mahender

    Deputy General Manager of Human Resources

    • Tenure: 0yrs
  • Mirza Mohammed Baig

    Compliance Officer & Company Secretary

    • Tenure: 5.8yrs
    • Compensation: ₹1.30m

Board Members

  • Eric James Brown (62yo)

    Non-Executive & Non-Independent Director

    • Tenure: 1.9yrs
  • Comandur Parthasarathy (64yo)

    Independent Non-Executive Director

    • Tenure: 3.9yrs
    • Compensation: ₹160.00k
  • Manish Sabharwal (50yo)

    Independent Non-Executive Director

    • Tenure: 8.5yrs
  • Joginapally Venkata Rao (74yo)

    Executive Chairman

    • Tenure: 10.8yrs
    • Compensation: ₹16.68m
  • Aditya Rao (38yo)

    Vice Chairman & MD

    • Tenure: 5.7yrs
    • Compensation: ₹11.92m
  • Vishal Sood (47yo)

    Non-Executive Director

    • Tenure: 7.8yrs
  • Bandari Rao (70yo)

    Independent Non-Executive Director

    • Tenure: 10.8yrs
    • Compensation: ₹140.00k
  • Potluri Rao (60yo)

    Joint MD & Director

    • Tenure: 3.6yrs
  • Kondapally Lavanya Rao (60yo)

    Executive Director

    • Tenure: 5.4yrs
    • Compensation: ₹7.20m
  • Varun Chawla (38yo)

    Independent Non-Executive Director

    • Tenure: 6.9yrs
    • Compensation: ₹140.00k

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: ₹4.007b
  • Shares outstanding: 152.36m
  • Website: https://www.pennarindia.com

Number of Employees


Location

  • Pennar Industries Limited
  • DHFLVC Silicon Towers
  • 3rd Floor
  • Hyderabad
  • Andhra Pradesh
  • 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 manufactures and sells steel products in India and internationally. The company offers cold rolled steel strips; electrostatic precipitator electrodes; building components, such a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 12:47
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
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.