K G Denim Ltd (KGDENIM) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Suryaamba Spinni

Mohit Industries

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Gem Spinners

PBM Polytex

K G Denim

Marc Loire

Vera Synthetic

Jet Knitwears

Why is K G Denim Ltd ?

With a Negative Book Value, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of -37.73% and Operating profit at -184.63% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at 2.77 times
The company has been able to generate a Return on Equity (avg) of 1.85% signifying low profitability per unit of shareholders funds

The company has declared Negative results for the last 14 consecutive quarters

NET SALES(Latest six months) At Rs 16.57 cr has Grown at -40.72%
PAT(Latest six months) At Rs -2.38 cr has Grown at -40.72%
INVENTORY TURNOVER RATIO(HY) Lowest at 0.81 times

Risky - Negative Book Value

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -19.14%, its profits have risen by 70.9%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -19.14% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Garments & Apparels)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is K G Denim for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

K G Denim

-19.14%

-0.35

54.99%

Sensex

-2.38%

-0.19

12.70%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-37.73%

EBIT Growth (5y)

-6.04%

EBIT to Interest (avg)

0.25

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-26.20

Sales to Capital Employed (avg)

0.30

Tax Ratio

25.02%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

-21.21%

ROE (avg)

1.85%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

-4.27

EV to EBIT

63.73

EV to EBITDA

23.38

EV to Capital Employed

1.21

EV to Sales

6.81

PEG Ratio

Dividend Yield

ROCE (Latest)

-21.21%

ROE (Latest)

Negative BV

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-19What is not working for the Company

NET SALES(Latest six months)

At Rs 16.57 cr has Grown at -40.72%

PAT(Latest six months)

At Rs -2.38 cr has Grown at -40.72%

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.81 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.78 times

DEBT-EQUITY RATIO(HY)

Highest at 53.91 times

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Here's what is not working for K G Denim

Profit After Tax (PAT) - Latest six months

At Rs -2.38 cr has Grown at -40.72%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Net Sales - Quarterly

At Rs 8.53 cr has Fallen at -18.7% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 10.50 Cr

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Inventory Turnover Ratio- Half Yearly

Lowest at 0.81 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio- Half Yearly

Lowest at 0.78 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio

Debt-Equity Ratio - Half Yearly

Highest at 53.91 times

in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio