Celebrity Fashions Analysis

dividend

Pros

Cons

• Unable to evaluate Celebrity Fashions's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
• Unable to evaluate Celebrity Fashions's dividend against the top 25% market benchmark as the company has not reported any payouts.

health

Pros

• Celebrity Fashions is profitable, therefore cash runway is not a concern.
• Celebrity Fashions is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (78%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 1.2x debt.
• Celebrity Fashions's cash and other short term assets cover its long term commitments.
• The level of debt compared to net worth has been reduced over the past 5 years (7158.9% vs 628.8% today).

Cons

• Celebrity Fashions's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
• Interest payments on debt are not well covered by earnings (EBIT is 1.6x annual interest expense, ideally 3x coverage).
• Celebrity Fashions's level of debt (628.8%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

• The average tenure for the Celebrity Fashions board of directors is over 10 years, this suggests they are a seasoned and experienced board.
• Vidyuth's remuneration is about average for companies of similar size in India.
• Vidyuth's compensation has been consistent with company performance over the past year, both up more than 20%.
• The tenure for the Celebrity Fashions management team is about average.

Cons

misc

Pros

Cons

• Celebrity Fashions is not covered by any analysts.
• Celebrity Fashions has significant price volatility in the past 3 months.

past

Pros

• Celebrity Fashions's 1-year earnings growth exceeds its 5-year average (204.1% vs 18.1%)
• Celebrity Fashions's year on year earnings growth rate has been positive over the past 5 years.
• Celebrity Fashions used its assets more efficiently than the IN Luxury industry average last year based on Return on Assets.
• Celebrity Fashions has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
• Celebrity Fashions's earnings growth has exceeded the IN Luxury industry average in the past year (204.1% vs 8.3%).

Cons

• Whilst Celebrity Fashions made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.

value

Pros

• Celebrity Fashions's share price is below the future cash flow value, and at a moderate discount (> 20%).
• Celebrity Fashions's share price is below the future cash flow value, and at a substantial discount (> 40%).
• Celebrity Fashions is good value based on earnings compared to the IN Luxury industry average.
• Celebrity Fashions is good value based on earnings compared to the India market.
• CELEBRITY outperformed the Luxury industry which returned -22.1% over the past year.
• CELEBRITY matched the India Market (-14.5%) over the past year.
• NSEI:CELEBRITY is up 32.9% outperforming the Luxury industry which returned 9.8% over the past month.
• NSEI:CELEBRITY is up 32.9% outperforming the market in India which returned 8% over the past month.

Cons

• Celebrity Fashions is overvalued based on assets compared to the IN Luxury industry average.