Banswara Syntex Ltd Stock Analysis

BSE: 503722 | NSE: BANSWRAS | Textile - Manmade Fibres | Small Cap

BSE Share Price May 23, 18:01
224.35 -12.40 (-5.24%)

DeciZen - Make an Informed Decision on Banswara Syntex

Overall Rating
M-Cap below 500cr. High Risk from low Liquidity

1. Quality

2. Valuation

Somewhat overvalued

3. Price Trend

Semi Strong

FAQs

1. Is Banswara Syntex Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Banswara Syntex Ltd is a average quality company.

2. Is Banswara Syntex Ltd undervalued or overvalued?

The key valuation ratios of Banswara Syntex Ltd's currently when compared to its past seem to suggest it is in the Somewhat overvalued zone.

3. Is Banswara Syntex Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Banswara Syntex Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Banswara Syntex:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Banswara Syntex Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
ROCE % 9.1%8%9.8%6.5%8.7%7.1%5.1%7.7%11.5%4.7%-
Value Creation Index -0.4-0.4-0.3-0.5-0.4-0.5-0.6-0.5-0.2-0.7-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 9241,0961,2121,2261,2651,2441,2921,3511,2907871,172
YoY Gr. Rt. %-18.7%10.6%1.2%3.1%-1.6%3.8%4.6%-4.6%-39%-
Adj EPS 13.5819.30.413.98.2-0.212.428.23.727.3
YoY Gr. Rt. %--40.8%140.9%-97.8%3202.4%-41.2%-102.1%NA126.5%-87%-
BVPS (₹) 117.7126.8136.3135.7147.2153.3157.3172199.7208.8233.8
Adj Net Profit 19.911.829.90.723.514-0.321.348.26.347
Cash Flow from Ops. 63.1151134179174140106137205132-
Debt/CF from Ops. 10.94.55.23.53.245.13.41.61.7-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales -1.8%-9.1%-15.3%-39%
Adj EPS -13.5%-23.4%NA-87%
BVPS 6.67.29.94.5
Share Price 12.7% 2.6% 46.2% 64.7%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity % 11.86.514.80.39.95.5-0.17.615.21.812.3
Op. Profit Mgn % 14.913.51511.212.710.78.68.911.29.610.2
Net Profit Mgn % 2.21.12.50.11.91.1-01.63.70.84
Debt to Equity 3.93.63.32.82.32.121.60.90.60.3
Working Cap Days 175164160162155159165158150215126
Cash Conv. Cycle 113115109111989391838011142

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 12.30%

Debt to equity has declined versus last 3 years average to 0.64

Sales growth is good in last 4 quarters at 64.16%

Sales growth has been subdued in last 3 years -15.25%

Net Profit has been subdued in last 3 years 0.00%

Latest Financials - Banswara Syntex Ltd.

Standalone Consolidated
TTM EPS (₹) 27.3 26.7
TTM Sales (₹ Cr.) 1,172 1,172
BVPS (₹.) 233.8 233
Reserves (₹ Cr.) 383 382
P/BV 1.01 1.02
PE 8.67 8.90
From the Market
52 Week Low / High (₹) 120.00 / 318.00
All Time Low / High (₹) 0.67 / 318.00
Market Cap (₹ Cr.) 405
Equity (₹ Cr.) 17.1
Face Value (₹) 10
Industry PE 4.7

Management X-Ray of Banswara Syntex :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

Analyst's Notes

News

About Banswara Syntex Ltd

Banswara Syntex was incorporated in 1976 as a joint sector company with RIICO, a government of Rajasthan undertaking and R.L.Toshniwal. Initially it started as a spinning mill with a capacity of 12500 spindles.

Later in 1982, R.L.Toshniwal purchased the entire shares of RIICO. Besides increasing the spinning capacity to 119188 spindles, company also started production of fabric in 1993. The same year, it commenced cloth weaving activity by setting up a state-of-art weaving plant to manufacture quality fabrics in the brand name of ‘BANTEX’ mainly for domestic market.

In the year 2004, Banswara Syntex started manufacturing of readymade garments and cotton spinning. For readymade garments, a separate unit was set up at Daman to manufacture trousers in the brand name of ‘INTEGRATION’. Second garmenting unit was set up in SEZ at Surat.

One year later in 2005 Banswara Textile Mills, an associate firm engaged in fabric finishing activity was amalgamated with the company. The company is also introducing technical fabric and has setup coating unit for the same.

In 2006, company entered into joint venture with French company Carreman. It started production of made-up's and worsted spinning in 2008.

Presently it is a public limited company with the promoters holding  59.44% of equity share capital.

Company’s present installed capacity is 133588 ring spindles which includes 14400 spindles for worsted yarn spinning, 576 air jet spindles, 194 shuttles-less looms, 12-Air jet jacquard looms, 6 stenters with processing capacity of 4 million meters per month, besides this ready-made garment production capacity for trousers 2.25 lakh pieces and 10000 pieces jackets per month at Daman and Surat. For manufacturing fabrics, it purchases Lycra from international brand, Dupont.

In the domestic market, company caters to major customers includes Raymonds, Reliance Industries, Grasim Industries, Siyaram Silk Mills, Rajasthan Spg. & Wvg. Mills, Donear Suitings, Arviva, Bombay Dyeing & Manufacturing Mills, Indian Rayon, Life Style International etc.

Product range of the company includes:

  • Yarn
  • Fabrics
  • Readymade Garments
  • Fire Retardant Fabric

Exports - Banswara Syntex exports its products to more than 50 countries including US, UK, Canada, Spain, Germany, Italy, France, Philippines, Turkey and GCC countries.

Awards/recognition

  • Banswara Syntex is a government recognized two star export house.
  • The company has also received IS/ISO 9001:2000 certification by the Bureau of Indian Standards.
  • In the year 2007-08, company bagged award for highest export performance in the category of man made fibre blended fabrics.
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