NSEI:MITTAL

Stock Analysis Report

Mittal Life Style

Executive Summary

Mittal Life Style Limited supplies bottom weight fabrics and denims in India.


Snowflake Analysis

Flawless balance sheet with questionable track record.

Share Price & News

How has Mittal Life Style's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0.9%

MITTAL

0.4%

IN Retail Distributors

1.9%

IN Market


1 Year Return

99.5%

MITTAL

-29.3%

IN Retail Distributors

8.1%

IN Market

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

Return vs Market: MITTAL exceeded the Indian Market which returned 6.7% over the past year.


Shareholder returns

MITTALIndustryMarket
7 Day0.9%0.4%1.9%
30 Day1.2%-1.4%3.1%
90 Day15.8%-11.7%6.5%
1 Year99.5%99.5%-29.0%-29.3%10.1%8.1%
3 Yearn/a-11.9%-13.1%35.1%28.0%
5 Yearn/a-66.5%-66.8%36.6%24.2%

Price Volatility Vs. Market

How volatile is Mittal Life Style's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Mittal Life Style undervalued compared to its fair value and its price relative to the market?

8.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MITTAL (₹103.15) is trading below our estimate of fair value (₹112.7)

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


Price To Earnings Ratio

PE vs Industry: MITTAL is poor value based on its PE Ratio (88.3x) compared to the Retail Distributors industry average (55.7x).

PE vs Market: MITTAL is poor value based on its PE Ratio (88.3x) compared to the Indian market (13.8x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: MITTAL is overvalued based on its PB Ratio (9.8x) compared to the IN Retail Distributors industry average (0.8x).


Next Steps

Future Growth

How is Mittal Life Style forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

10.5%

Forecasted Retail 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 Mittal Life Style 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 Mittal Life Style performed over the past 5 years?

39.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MITTAL has high quality earnings.

Growing Profit Margin: MITTAL's current net profit margins (1.5%) are lower than last year (1.9%).


Past Earnings Growth Analysis

Earnings Trend: MITTAL's earnings have grown significantly by 39.4% per year over the past 5 years.

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

Earnings vs Industry: MITTAL had negative earnings growth (-10.3%) over the past year, making it difficult to compare to the Retail Distributors industry average (5.8%).


Return on Equity

High ROE: MITTAL's Return on Equity (11.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Mittal Life Style's financial position?


Financial Position Analysis

Short Term Liabilities: MITTAL's short term assets (₹277.2M) exceed its short term liabilities (₹140.3M).

Long Term Liabilities: MITTAL's short term assets (₹277.2M) exceed its long term liabilities (₹16.2M).


Debt to Equity History and Analysis

Debt Level: MITTAL's debt to equity ratio (38.2%) is considered satisfactory.

Reducing Debt: MITTAL's debt to equity ratio has reduced from 106.5% to 38.2% over the past 5 years.

Debt Coverage: MITTAL's debt is well covered by operating cash flow (70.6%).

Interest Coverage: MITTAL's interest payments on its debt are well covered by EBIT (4.1x coverage).


Balance Sheet

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

Debt Coverage by Assets: MITTAL's debt is covered by short term assets (assets are 5.9x debt).


Next Steps

Dividend

What is Mittal Life Style's current dividend yield, its reliability and sustainability?

0.29%

Current Dividend Yield


Dividend Yield vs Market

company0.3%marketbottom25%0.6%markettop25%2.2%industryaverage1.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: MITTAL's dividend (0.29%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.56%).

High Dividend: MITTAL's dividend (0.29%) is low compared to the top 25% of dividend payers in the Indian market (2.31%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether MITTAL's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if MITTAL's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (25.7%), MITTAL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Mittal Life Style's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

Brijeshkumar Mittal (59yo)

2.3yrs

Tenure

₹1,200,000

Compensation

Mr. Brijeshkumar Jagdishkumar Mittal serves as Chairman of Mittal Life Style Limited and serves as its Managing Director since October 3, 2017. Mr. Mittal has experience in the field of textile, whose ind ...


CEO Compensation Analysis

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

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


Management Age and Tenure

2.3yrs

Average Tenure

Experienced Management: MITTAL's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

2.3yrs

Average Tenure

58yo

Average Age

Experienced Board: MITTAL's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


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

  • Pratik Mittal (30yo)

    CFO & Director

    • Tenure: 5.3yrs
    • Compensation: ₹1.20m
  • Brijeshkumar Mittal (59yo)

    Chairman & MD

    • Tenure: 2.3yrs
    • Compensation: ₹1.20m
  • Jalpa Purohit

    Company Secretary & Compliance Officer

    • Tenure: 2.4yrs
    • Compensation: ₹208.50k

Board Members

  • Pratik Mittal (30yo)

    CFO & Director

    • Tenure: 5.3yrs
    • Compensation: ₹1.20m
  • Brijeshkumar Mittal (59yo)

    Chairman & MD

    • Tenure: 2.3yrs
    • Compensation: ₹1.20m
  • Sudha Mittal (58yo)

    Non Executive Woman Director

    • Praful Shah

      Independent Director

      • Tenure: 2.3yrs
    • Prasun Modi

      Independent Director

      • Tenure: 2.3yrs

    Company Information

    Mittal Life Style Limited's company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Mittal Life Style Limited
    • Ticker: MITTAL
    • Exchange: NSEI
    • Founded: 2005
    • Industry: Distributors
    • Sector: Retail
    • Market Cap: ₹1.213b
    • Shares outstanding: 11.75m
    • Website: https://www.mittallifestyle.in

    Number of Employees


    Location

    • Mittal Life Style Limited
    • Unit No. 8/9, Ravikiran
    • Ground Floor
    • Mumbai
    • Maharashtra
    • 400053
    • India

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    MITTALNSEI (National Stock Exchange of India)YesEquity SharesININRApr 2018

    Biography

    Mittal Life Style Limited supplies bottom weight fabrics and denims in India. It offers fashion fabrics, cotton canvas denims, dupion bottom fabrics, polyester fabrics, cotton fabrics, knit fabrics, etc. to textile industry. The company was founded in 2005 and is based in Mumbai, India. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/20 13:07
    End of Day Share Price2020/01/16 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.