NSEI:GRETEX

Stock Analysis Report

Gretex Industries

Executive Summary

Gretex Industries Limited engages in trading musical instruments in India.

Rewards

Trading at 91% below its fair value

Earnings are forecast to grow 22.18% per year

Risk Analysis

Does not have a meaningful market cap (₹22M)

Profit margins (0.2%) are lower than last year (0.8%)

Does not have meaningful revenue (₹142M)



Snowflake Analysis

Excellent balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

GRETEX

0.5%

IN Retail Distributors

1.8%

IN Market


1 Year Return

-65.7%

GRETEX

-29.3%

IN Retail Distributors

8.0%

IN Market

Return vs Industry: GRETEX underperformed the Indian Retail Distributors industry which returned -32.9% over the past year.

Return vs Market: GRETEX underperformed the Indian Market which returned 6.7% over the past year.


Shareholder returns

GRETEXIndustryMarket
7 Day0%0.5%1.8%
30 Day0%-1.3%3.6%
90 Day-4.6%-11.3%6.5%
1 Year-65.7%-65.7%-29.0%-29.3%10.0%8.0%
3 Yearn/a-12.6%-13.8%35.0%27.9%
5 Yearn/a-66.9%-67.1%36.5%24.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GRETEX (₹5.2) is trading below our estimate of fair value (₹58.02)

Significantly Below Fair Value: GRETEX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GRETEX is poor value based on its PE Ratio (100.8x) compared to the Retail Distributors industry average (55.7x).

PE vs Market: GRETEX is poor value based on its PE Ratio (100.8x) compared to the Indian market (13.8x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GRETEX is good value based on its PB Ratio (0.5x) compared to the IN Retail Distributors industry average (0.8x).


Next Steps

Future Growth

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

22.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GRETEX's forecast earnings growth (22.2% per year) is above the savings rate (7.6%).

Earnings vs Market: GRETEX's earnings (22.2% 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: Insufficient data to determine if GRETEX's revenue is forecast to grow faster than the Indian market.

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


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Gretex Industries performed over the past 5 years?

-19.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GRETEX has high quality earnings.

Growing Profit Margin: GRETEX's current net profit margins (0.2%) are lower than last year (0.8%).


Past Earnings Growth Analysis

Earnings Trend: GRETEX has become profitable over the past 5 years, growing earnings by -19.5% per year.

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

Earnings vs Industry: GRETEX had negative earnings growth (-66.4%) over the past year, making it difficult to compare to the Retail Distributors industry average (5.8%).


Return on Equity

High ROE: GRETEX's Return on Equity (0.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Gretex Industries's financial position?


Financial Position Analysis

Short Term Liabilities: GRETEX's short term assets (₹43.3M) exceed its short term liabilities (₹10.1M).

Long Term Liabilities: GRETEX's short term assets (₹43.3M) exceed its long term liabilities (₹4.9M).


Debt to Equity History and Analysis

Debt Level: GRETEX's debt to equity ratio (22%) is considered satisfactory.

Reducing Debt: GRETEX's debt to equity ratio has reduced from 163.4% to 22% over the past 5 years.

Debt Coverage: GRETEX's debt is well covered by operating cash flow (35.6%).

Interest Coverage: GRETEX's interest payments on its debt are not well covered by EBIT (1.5x coverage).


Balance Sheet

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

Debt Coverage by Assets: GRETEX's debt is covered by short term assets (assets are 4.9x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%0.6%markettop25%2.2%industryaverage1.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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


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: No need to calculate the sustainability of GRETEX'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 Gretex Industries's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average board tenure


CEO

Arvind Harlalka (44yo)

0yrs

Tenure

₹1,200,000

Compensation

Mr. Arvind Harlalka serves as Chairperson and Managing Director of Gretex Industries Limited and has been its Non Independent Executive Director since February 24, 2010. Mr. Harlalka has wide experience in ...


CEO Compensation Analysis

Compensation vs Market: Arvind's total compensation ($USD16.93K) is below average for companies of similar size in the Indian market ($USD50.75K).

Compensation vs Earnings: Arvind's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Age and Tenure

3.3yrs

Average Tenure

Experienced Board: GRETEX's board of directors are considered experienced (3.3 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.


Ownership Breakdown

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


Management Team

  • Arvind Harlalka (44yo)

    Chairperson & MD

    • Compensation: ₹1.20m
  • Pradeep Mertia

    Chief Financial Officer

    • Tenure: 2.2yrs
    • Compensation: ₹966.96k
  • Dipika Singhania

    Company Secretary & Compliance Officer

    • Tenure: 2yrs
    • Compensation: ₹497.96k

Board Members

  • Arvind Harlalka (44yo)

    Chairperson & MD

    • Compensation: ₹1.20m
  • Alok Harlalka

    Non Independent Non Executive Director

    • Tenure: 2.3yrs
  • Rahul Kumar

    Independent Non Executive Director

    • Tenure: 3.3yrs
  • Soma Nath

    Independent Non Executive Director

    • Tenure: 3.3yrs

Company Information

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


Key Information

  • Name: Gretex Industries Limited
  • Ticker: GRETEX
  • Exchange: NSEI
  • Founded: 2009
  • Industry: Distributors
  • Sector: Retail
  • Market Cap: ₹21.900m
  • Shares outstanding: 4.21m
  • Website: https://www.gretexindustries.com

Location

  • Gretex Industries Limited
  • Nanda Tower
  • 5th Floor
  • Kolkata
  • West Bengal
  • 700012
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GRETEXNSEI (National Stock Exchange of India)YesEquity SharesININROct 2016

Biography

Gretex Industries Limited engages in trading musical instruments in India. It offers digital pianos, digital precussions, guitars, portable keyboards, and synthesizer-refaces, as well as guitar strings, instrument cables, clarinets, and drum sticks. The company also manufactures and sells hosiery garments, including wooly coats, thermal inner wears, leggings, etc. under the Lekme brand name, as well as undertakes job works for various brands, such as Rupa, Dollar, TT, and other brands. In addition, it operates an online shop for hosiery products. Gretex Industries Limited was incorporated in 2009 and is based in Kolkata, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 12:50
End of Day Share Price2019/07/25 00:00
Earnings2019/03/31
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.