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Banswara Syntex Ltd. Stock Analysis

Small Cap
Evaluated by 248 users | BSE: 503722 | NSE: BANSWRAS |
Textile - Manmade Fibres
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...

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.
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 11.81%9.09%8.04%9.77%6.48%8.7%7.11%5.05%7.73%11.52%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 8099241,0961,2121,2261,2651,2441,2921,3511,290
Y-o-Y Gr. Rt.-14.3%18.7%10.6%1.2%3.1%-1.6%3.8%4.6%-4.6%
Adjusted EPS (Rs.) 31.6813.497.9919.250.4213.878.16-0.1712.4428.17
Y-o-Y Gr. Rt.--57.4%-40.8%140.9%-97.8%3202.4%-41.2%-102.1%NA126.5%
Book Value per Share (Rs.) 108.49117.74126.8136.27135.7147.19153.28157.31172.03199.73
Adjusted Net Profit 46.819.911.829.90.723.514-0.321.348.2
Net Op. Cash Flow (Rs. Cr.) 60.263.1151134179174140106137208
Debt to Cash Flow from Ops 9.5410.864.495.183.523.233.995.063.441.54
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Banswara Syntex Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 5.3%1%1.2%-4.6%
Adjusted EPS -1.3%131.9%51.1%126.5%
Book Value per Share 789.216.1
Share Price -1.7% -0.2% -17.2% 13.5%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 33.4611.826.4814.830.329.935.46-0.117.5515.16
Operating Profit Margin (%) 16.6414.9313.4715.0111.2412.6910.748.68.911.19
Net Profit Margin (%) 5.782.161.082.470.061.861.12-0.021.583.74
Debt to Equity 3.553.913.593.272.832.252.131.991.60.94
Working Capital Days 159175164160162155159165158150
Cash Conversion Cycle 941131151091119893918380
Entity Percentage Holding
Promoters 58.87%
Institutions 4.30%
Non-Institutions 36.83%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Banswara Syntex Ltd.'s performance infers:

Banswara Syntex Ltd. earnings have grown by 131.9%, whereas share price has depreciated -0.2% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Banswara Syntex Ltd. share prices over the last 10 years. Here is what we found out:

Banswara Syntex Ltd. share price has depreciated -5.4% annually over the past ten years.

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

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.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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