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

Pasupati Spinng.

Anjani Synth.

Spenta Intl.

Swasti Vinayaka

Super Spinning

H P Cotton Tex

Gokak Textiles

Suryaamba Spinni

K G Denim

Sh. Rajas. Synt.

Surbhi Industrie

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 -42.09% and Operating profit at -184.63% over the last 5 years
The company has a negative book value of Rs 10.01 crore
The company has been able to generate a Return on Equity (avg) of 1.85% signifying low profitability per unit of shareholders funds

Flat results in Jun 26

NET SALES(Latest six months) At Rs 16.56 cr has Grown at -21.29%
INVENTORY TURNOVER RATIO(HY) Lowest at 0.22 times
DEBTORS TURNOVER RATIO(HY) Lowest at 0.30 times

Risky - Negative Book Value

The company has a negative book value of Rs. -10.01 cr
Over the past year, while the stock has generated a return of -34.36%, its profits have risen by 131.5% ; the PEG ratio of the company is 0
The stock is trading risky as compared to its average historical valuations

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -34.36% 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

-34.36%

-0.81

42.36%

Sensex

-10.5%

-0.78

13.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-42.09%

EBIT Growth (5y)

-39.49%

EBIT to Interest (avg)

0.25

Debt to EBITDA (avg)

8.48

Net Debt to Equity (avg)

-26.24

Sales to Capital Employed (avg)

0.23

Tax Ratio

25.02%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

-9.97%

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

Industry P/E

Price to Book Value

-3.59

EV to EBIT

298.55

EV to EBITDA

33.62

EV to Capital Employed

1.18

EV to Sales

9.01

PEG Ratio

0.02

Dividend Yield

ROCE (Latest)

1.27%

ROE (Latest)

Negative BV

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

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

18What is working for the Company

ROCE(HY)

Highest at 8.88%

PAT(Q)

Highest at Rs 8.60 cr.

EPS(Q)

Highest at Rs 3.35

-20What is not working for the Company

NET SALES(Latest six months)

At Rs 16.56 cr has Grown at -21.29%

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.22 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.30 times

INTEREST(Q)

At Rs 8.09 cr has Grown at 148.92%

OPERATING PROFIT TO INTEREST (Q)

Lowest at -0.52 times

DEBT-EQUITY RATIO(HY)

Highest at 73.32 times

PBDIT(Q)

Lowest at Rs -4.19 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 0.00%

PBT LESS OI(Q)

Lowest at Rs -14.33 cr.

NON-OPERATING INCOME(Q)

is 273.91 % of Profit Before Tax (PBT

Loading Valuation Snapshot...

Here's what is working for K G Denim

Profit After Tax (PAT) - Quarterly

At Rs 8.60 cr has Grown at 6715.4% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs -0.13 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 8.60 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 3.35

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Here's what is not working for K G Denim

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs -14.33 cr has Fallen at -189.3% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs -4.95 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Interest - Quarterly

At Rs 8.09 cr has Grown at 148.92%

Quarter on Quarter (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Operating Profit to Interest - Quarterly

Lowest at -0.52 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales - Latest six months

At Rs 16.56 cr has Grown at -21.29%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Inventory Turnover Ratio- Half Yearly

Lowest at 0.22 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 0.30 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

Operating Profit (PBDIT) - Quarterly

Lowest at Rs -4.19 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at 0.00%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs -14.33 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Non Operating Income - Quarterly

is 273.91 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT

Debt-Equity Ratio - Half Yearly

Highest at 73.32 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

Non Operating Income - Quarterly

Highest at Rs 22.57 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income