Mittal Life Style (NSEI:MITTAL) - Share price, News & Analysis

Q: What is the Fair Price of MITTAL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

MITTAL (₹10.85) is trading below our estimate of [[fair value]] (₹410.32)

MITTAL fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	0/6
Past Performance	1/6
Financial Health	6/6
Dividends	0/6

MITTAL Stock Overview

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

Rewards

Trading at 97.4% below our estimate of its fair value

Risk Analysis

Earnings have declined by 22.5% per year over past 5 years

Does not have a meaningful market cap (₹162M)

Volatile share price over the past 3 months

Profit margins (0.3%) are lower than last year (0.5%)

+ 1 more risk

Mittal Life Style Competitors

Svaraj Trading and Agencies

BSE:503624

₹136.1m

Arman Holdings

BSE:538556

₹153.4m

Osiajee Texfab

BSE:540198

₹251.6m

Scarnose International

BSE:543537

₹180.0m

Price History & Performance

Summary of all time highs, changes and price drops for Mittal Life Style
Historical stock prices
Current Share Price	₹10.85
52 Week High	₹31.55
52 Week Low	₹8.14
Beta	0.97
1 Month Change	0.93%
3 Month Change	-24.39%
1 Year Change	0.29%
3 Year Change	-88.23%
5 Year Change	n/a
Change since IPO	-5.28%

Shareholder Returns

	MITTAL	IN Retail Distributors	IN Market
7D	-13.2%	1.5%	1.8%
1Y	0.3%	18.7%	0.6%

Return vs Industry: MITTAL underperformed the Indian Retail Distributors industry which returned 18.9% over the past year.

Return vs Market: MITTAL matched the Indian Market which returned -0% over the past year.

Price Volatility

Is MITTAL's price volatile compared to industry and market?
MITTAL volatility
MITTAL Average Weekly Movement	9.9%
Retail Distributors Industry Average Movement	7.8%
Market Average Movement	7.0%
10% most volatile stocks in IN Market	9.9%
10% least volatile stocks in IN Market	4.5%

Stable Share Price: MITTAL is more volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: MITTAL's weekly volatility (10%) has been stable over the past year, but is still higher than 75% of Indian stocks.

About the Company

Founded	Employees	CEO	Website
2005	13	Brijeshkumar Mittal	https://www.mittallifestyle.in

Mittal Life Style Limited primarily 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 the textile industry. Mittal Life Style Limited was incorporated in 2005 and is based in Mumbai, India.

Mittal Life Style Fundamentals Summary

How do Mittal Life Style's earnings and revenue compare to its market cap?
MITTAL fundamental statistics
Market Cap	₹162.04m
Earnings (TTM)	₹1.79m
Revenue (TTM)	₹518.17m

90.4x

P/E Ratio

0.3x

P/S Ratio

Is MITTAL overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
MITTAL income statement (TTM)
Revenue	₹518.17m
Cost of Revenue	₹514.03m
Gross Profit	₹4.14m
Other Expenses	₹2.35m
Earnings	₹1.79m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.12
Gross Margin	0.80%
Net Profit Margin	0.35%
Debt/Equity Ratio	4.7%

How did MITTAL perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is MITTAL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MITTAL?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for MITTAL. This is calculated by dividing MITTAL's market cap by their current preferred multiple.
What is MITTAL's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₹162.04m

MITTAL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.2x
Enterprise Value/EBITDA	27.9x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does MITTAL's PE Ratio compare to its peers?

MITTAL PE Ratio vs Peers

The above table shows the PE ratio for MITTAL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	192.6x
503624 Svaraj Trading and Agencies	26x	n/a	₹136.1m
538556 Arman Holdings	629x	n/a	₹153.4m
540198 Osiajee Texfab	35.5x	n/a	₹251.6m
543537 Scarnose International	80x	n/a	₹180.0m
MITTAL Mittal Life Style	90.4x	n/a	₹162.0m

Forward PE

Price-To-Earnings vs Peers: MITTAL is good value based on its Price-To-Earnings Ratio (90.4x) compared to the peer average (192.6x).

Price to Earnings Ratio vs Industry

How does MITTAL's PE Ratio compare vs other companies in the IN Retail Distributors Industry?

Price-To-Earnings vs Industry: MITTAL is expensive based on its Price-To-Earnings Ratio (90.4x) compared to the Indian Retail Distributors industry average (48.3x)

Price to Earnings Ratio vs Fair Ratio

What is MITTAL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MITTAL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	90.4x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate MITTAL's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of MITTAL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MITTAL (₹10.85) is trading below our estimate of fair value (₹410.32)

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

Price to Earnings Growth Ratio

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

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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-1.5%

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.

Discover growth companies

Examine whether Mittal Life Style is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
Mittal Life Style competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Mittal Life Style performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-22.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MITTAL has high quality earnings.

Growing Profit Margin: MITTAL's current net profit margins (0.3%) are lower than last year (0.5%).

Past Earnings Growth Analysis

Earnings Trend: MITTAL's earnings have declined by 22.5% 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 (-31.4%) over the past year, making it difficult to compare to the Retail Distributors industry average (25.7%).

Return on Equity

High ROE: MITTAL's Return on Equity (1.1%) is considered low.

Discover strong past performing companies

Financial Health

How is Mittal Life Style's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: MITTAL's short term assets (₹194.8M) exceed its short term liabilities (₹35.9M).

Long Term Liabilities: MITTAL has no long term liabilities.

Debt to Equity History and Analysis

Debt Level: MITTAL has more cash than its total debt.

Reducing Debt: MITTAL's debt to equity ratio has reduced from 135.7% to 4.7% over the past 5 years.

Debt Coverage: MITTAL's debt is well covered by operating cash flow (649.1%).

Interest Coverage: MITTAL's interest payments on its debt are well covered by EBIT (6.4x coverage).

Balance Sheet

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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

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

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

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

Earnings Payout to Shareholders

Earnings Coverage: MITTAL is not paying a notable dividend for the Indian market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as MITTAL has not reported any payouts.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

4.7yrs

Average management tenure

CEO

Brijeshkumar Mittal (61 yo)

4.67yrs

Tenure

₹300,000

Compensation

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

CEO Compensation Analysis

Compensation vs Market: Brijeshkumar's total compensation ($USD3.83K) is below average for companies of similar size in the Indian market ($USD38.33K).

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

Leadership Team

Experienced Management: MITTAL's management team is considered experienced (4.7 years average tenure).

Board Members

Experienced Board: MITTAL's board of directors are considered experienced (4.8 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.

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 15.5%.

Data	Last Updated (UTC time)
Company Analysis	2022/06/28 00:00
End of Day Share Price	2022/06/28 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31