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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

H P Cotton Tex

MKP Mobility

Akshar Spintex

Sambandam Spg.

K G Denim

Swasti Vinayaka

Sh. Rajas. Synt.

Anirit Ventures

Gokak Textiles

Southern Latex

Signoria Creatio

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 -36.46% 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 13 consecutive quarters

OPERATING CF(Y) Lowest at Rs -1.76 Cr
PAT(Latest six months) At Rs -1.43 cr has Grown at -51.83%
NET SALES(Q) At Rs 8.04 cr has Fallen at -34.4% (vs previous 4Q average)

Risky - Negative Operating Profits

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -32.22%, its profits have risen by 54.6%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -32.22% 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

-32.22%

-0.57

56.65%

Sensex

4.83%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-36.46%

EBIT Growth (5y)

-230.95%

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

-5.45

EV to EBIT

-67.90

EV to EBITDA

119.89

EV to Capital Employed

1.26

EV to Sales

6.34

PEG Ratio

Dividend Yield

ROCE (Latest)

-21.21%

ROE (Latest)

Negative BV

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

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

13What is working for the Company

PBT LESS OI(Q)

At Rs 2.13 cr has Grown at 114.2% (vs previous 4Q average

OPERATING PROFIT TO INTEREST(Q)

Highest at 1.53 times

PBDIT(Q)

Highest at Rs 12.56 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 156.22%

PAT(Q)

Highest at Rs 1.82 cr.

EPS(Q)

Highest at Rs 0.71

-29What is not working for the Company

OPERATING CF(Y)

Lowest at Rs -1.76 Cr

PAT(Latest six months)

At Rs -1.43 cr has Grown at -51.83%

NET SALES(Q)

At Rs 8.04 cr has Fallen at -34.4% (vs previous 4Q average

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.81 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.78 times

INTEREST(Q)

At Rs 8.19 cr has Grown at 68.52%

DEBT-EQUITY RATIO(HY)

Highest at 53.91 times

Loading Valuation Snapshot...

Here's what is working for K G Denim

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 2.13 cr has Grown at 114.2% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs -14.98 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 1.82 cr has Grown at 120.2% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs -9.01 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Operating Profit to Interest - Quarterly

Highest at 1.53 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit (PBDIT) - Quarterly

Highest at Rs 12.56 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 156.22%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 2.13 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 1.82 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 0.71

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

Net Sales - Quarterly

At Rs 8.04 cr has Fallen at -34.4% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 12.25 Cr

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Operating Cash Flow - Annually

Lowest at Rs -1.76 Cr and Fallen

each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (Rs Cr)

Interest - Quarterly

At Rs 8.19 cr has Grown at 68.52%

Quarter on Quarter (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (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