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

Sri Ramakr. Mill

Gem Spinners

K G Denim

Arex Industries

GTN Industries

PBM Polytex

H P Cotton Tex

Dhanlaxmi Fabric

Gokak Textiles

Jet Knitwears

Subhash Silk

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 -37.36% 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

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 -9.54%, its profits have risen by 99.1%
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 -9.54% 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, Medium Return

Absolute

Risk Adjusted

Volatility

K G Denim

-9.54%

-0.18

54.30%

Sensex

-10.34%

-0.79

13.08%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-37.36%

EBIT Growth (5y)

-18.12%

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

NA (Loss Making)

Industry P/E

Price to Book Value

-4.09

EV to EBIT

94.58

EV to EBITDA

26.63

EV to Capital Employed

1.20

EV to Sales

7.22

PEG Ratio

Dividend Yield

ROCE (Latest)

1.27%

ROE (Latest)

Negative BV

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Dow Theory

Mildly Bullish

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

15What is working for the Company

PAT(9M)

At Rs 2.73 cr has Grown at 108.33%

ROCE(HY)

Highest at 8.88%

NET SALES(Q)

At Rs 11.70 cr has Grown at 24.4% (vs previous 4Q average

EPS(Q)

Highest at Rs 1.99

-6What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.22 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.30 times

DEBT-EQUITY RATIO(HY)

Highest at 73.32 times

NON-OPERATING INCOME(Q)

is 132.82 % of Profit Before Tax (PBT

Loading Valuation Snapshot...

Here's what is working for K G Denim

Profit After Tax (PAT) - Quarterly

At Rs 5.11 cr has Grown at 224.7% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs -4.10 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Net Sales - Quarterly

At Rs 11.70 cr has Grown at 24.4% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 9.40 Cr

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 5.11 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 1.99

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

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

Non Operating Income - Quarterly

is 132.82 % 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 11.13 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income