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.

Risks

  • Pennar Industries is not covered by any analysts.

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

4.3%

PENIND

1.6%

IN Metals and Mining

2.0%

IN Market


1 Year Return

-29.1%

PENIND

-33.5%

IN Metals and Mining

-6.2%

IN Market

PENIND outperformed the Metals and Mining industry which returned -33.5% over the past year.

PENIND underperformed the Market in India which returned -6.2% over the past year.


Share holder returns

PENINDIndustryMarket
7 Day4.3%1.6%2.0%
30 Day15.3%9.9%5.2%
90 Day-10.6%-10.5%-3.7%
1 Year-29.1%-29.1%-30.7%-33.5%-4.3%-6.2%
3 Year-35.5%-35.5%12.5%0.3%20.7%14.6%
5 Year-46.4%-46.4%3.5%-13.7%41.3%28.0%

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 based on future cash flows and its price relative to the stock market?

6.4x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Pennar Industries's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Pennar Industries's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Pennar Industries is good value based on earnings compared to the IN Metals and Mining industry average.

Pennar Industries is good value based on earnings compared to the India market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Pennar Industries, we can't assess if its growth is good value.


Price Based on Value of Assets

Pennar Industries is good value based on assets compared to the IN Metals and Mining industry average.


Next Steps

Future Growth

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

9.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Pennar Industries is high growth as no revenue estimate data is available.

Pennar Industries's earnings are expected to grow by 9.7% yearly, however this is not considered high growth (20% yearly).

Unable to compare Pennar Industries's revenue growth to the India market average as no estimate data is available.

Pennar Industries's earnings growth is positive but not above the India market average.

Pennar Industries's earnings growth is expected to exceed the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Pennar Industries will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


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

Pennar Industries has delivered over 20% year on year earnings growth in the past 5 years.

Pennar Industries's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Pennar Industries's 1-year earnings growth is negative, it can't be compared to the IN Metals and Mining industry average.


Return on Equity

Pennar Industries has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Pennar Industries used its assets more efficiently than the IN Metals and Mining industry average last year based on Return on Assets.


Return on Capital Employed

Pennar Industries's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Pennar Industries's financial position?


Financial Position Analysis

Pennar Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Pennar Industries's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Pennar Industries's level of debt (70.4%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (36.3% vs 70.4% today).

Debt is well covered by operating cash flow (37%, greater than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 1.9x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.4x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Pennar Industries's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Pennar Industries's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Pennar Industries has not reported any payouts.

Unable to verify if Pennar Industries's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Pennar Industries has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

5.6yrs

Average management tenure


CEO

Aditya Rao (38yo)

5.6yrs

Tenure

₹18,810,182

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

Aditya's remuneration is higher than average for companies of similar size in India.

Aditya's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

5.6yrs

Average Tenure

60yo

Average Age

The average tenure for the Pennar Industries management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

6.8yrs

Average Tenure

60yo

Average Age

The tenure for the Pennar Industries board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


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: 10.7yrs
    • Compensation: ₹23.78m
  • Aditya Rao (38yo)

    Vice Chairman & MD

    • Tenure: 5.6yrs
    • Compensation: ₹18.81m
  • B. Reddy

    Head of Learning & Development

    • Tenure: 0yrs
  • Dayasagar Neelagiri

    Operations

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

    Joint MD & Director

    • Tenure: 3.5yrs
  • Kondapally Lavanya Rao (60yo)

    Executive Director

    • Tenure: 5.3yrs
    • Compensation: ₹5.92m
  • M. Reddy

    Business Head of Tubes

    • Tenure: 0yrs
  • J. Prasad

    Chief Financial Officer

    • Tenure: 0yrs
    • Compensation: ₹4.10m
  • T. Mahender

    Deputy General Manager of Human Resources

    • Tenure: 0yrs
  • Mirza Baig

    Compliance Officer & Company Secretary

    • Tenure: 5.8yrs
    • Compensation: ₹1.00m

Board Members

  • Eric James Brown (62yo)

    Non-Executive & Non-Independent Director

    • Tenure: 1.8yrs
  • C. Parthasarathy (64yo)

    Independent Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: ₹40.00k
  • Manish Sabharwal (49yo)

    Independent Non-Executive Director

    • Tenure: 8.4yrs
  • Joginapally Venkata Rao (74yo)

    Executive Chairman

    • Tenure: 10.7yrs
    • Compensation: ₹23.78m
  • Aditya Rao (38yo)

    Vice Chairman & MD

    • Tenure: 5.6yrs
    • Compensation: ₹18.81m
  • Vishal Sood (47yo)

    Non-Executive Director

    • Tenure: 7.7yrs
  • Kamalakar Bandari (70yo)

    Independent Non-Executive Director

    • Tenure: 10.7yrs
    • Compensation: ₹105.00k
  • Potluri Rao (60yo)

    Joint MD & Director

    • Tenure: 3.5yrs
  • Kondapally Lavanya Rao (60yo)

    Executive Director

    • Tenure: 5.3yrs
    • Compensation: ₹5.92m
  • Varun Chawla (38yo)

    Independent Non-Executive Director

    • Tenure: 6.8yrs
    • Compensation: ₹35.00k

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: ₹4.251b
  • 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. It offers cold rolled steel strips; electrostatic precipitator electrodes; building components, such as purlins ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/23 12:49
End of Day Share Price2019/09/23 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.