Nandan Denim Ltd (NDL) 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

Thomas Scott

Manomay Tex Indi

Brand Concepts

Orbit Exports

Trident Texofab

Banswara Syntex

Precot

Raghuvir Synth

Nahar Indl. Ent.

Nandan Denim

Logica Infoway

Why is Nandan Denim Ltd ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 8.35%

Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.02 times
OPERATING CF(Y) Lowest at Rs 95.07 Cr
PAT(9M) At Rs 31.26 cr has Grown at -27.94%
NET SALES(Q) At Rs 784.69 cr has Fallen at -19.0% (vs previous 4Q average)

Falling Participation by Institutional Investors

Institutional investors have decreased their stake by -0.66% over the previous quarter and collectively hold 2% of the company
These investors have better capability and resources to analyse fundamentals of companies than most retail investors

Below par performance in long term as well as near term

Along with generating -40.93% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months

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 Nandan Denim for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nandan Denim

-40.93%

-0.96

42.70%

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)

28.65%

EBIT Growth (5y)

27.48%

EBIT to Interest (avg)

1.85

Debt to EBITDA (avg)

5.64

Net Debt to Equity (avg)

0.30

Sales to Capital Employed (avg)

2.33

Tax Ratio

18.23%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

2.00%

ROCE (avg)

5.02%

ROE (avg)

6.77%

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

0.69

EV to EBIT

8.92

EV to EBITDA

5.35

EV to Capital Employed

0.77

EV to Sales

0.17

PEG Ratio

Dividend Yield

ROCE (Latest)

8.58%

ROE (Latest)

5.92%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

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

7What is working for the Company

NET SALES(9M)

At Rs 2,881.02 cr has Grown at 33.94%

PAT(Latest six months)

At Rs 20.65 cr has Grown at 26.92%

INVENTORY TURNOVER RATIO(HY)

Highest at 30.28 times

DEBTORS TURNOVER RATIO(HY)

Highest at 6.95 times

-13What is not working for the Company

OPERATING CF(Y)

Lowest at Rs 95.07 Cr

PAT(9M)

At Rs 31.26 cr has Grown at -27.94%

NET SALES(Q)

At Rs 784.69 cr has Fallen at -19.0% (vs previous 4Q average

PBDIT(Q)

Lowest at Rs 23.44 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 2.99%

PBT LESS OI(Q)

Lowest at Rs 6.49 cr.

Loading Valuation Snapshot...

Here's what is working for Nandan Denim

Profit After Tax (PAT) - Latest six months

At Rs 20.65 cr has Grown at 26.92%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Inventory Turnover Ratio- Half Yearly

Highest at 30.28 times and Grown

each half year in the last five half yearly periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio- Half Yearly

Highest at 6.95 times

in the last five half yearly periods

MOJO Watch

Company has been able to settle its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Nandan Denim

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 6.49 cr has Fallen at -38.8% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 10.61 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Net Sales - Quarterly

At Rs 784.69 cr has Fallen at -19.0% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 968.18 Cr

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Operating Cash Flow - Annually

Lowest at Rs 95.07 Cr

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (Rs Cr)

Net Sales - Quarterly

Lowest at Rs 784.69 cr

in the last five quarters

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 23.44 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 2.99%

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 6.49 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)