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Carnation Industries Ltd. Stock Analysis

Small Cap
Evaluated by 129 users | BSE: 530609 | NSE: |
Castings/Forgings
Carnation Enterprise Pvt. Ltd. was established in 1982 by the combination of a few dynamic working men all successful in their respective fields, which later in 1995 changed the name to Carnation Industries Limited. The company starting off as a merchant exporter recorded a steady growth...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Value Creation
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Capital Employed 6.03%-0.72%10.48%8.9%11.89%8.81%10.36%7.96%-7.36%-13.96%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 54.665.293.990.397.296.698.481.750.16.9
Y-o-Y Gr. Rt.-19.6%43.9%-3.8%7.6%-0.6%1.9%-17%-38.7%-86.2%
Adjusted EPS (Rs.) 1.79-7.133.010.534.97-0.564.751.6-18.42-18.03
Y-o-Y Gr. Rt.--498.3%NA-82.4%837.7%-111.3%NA-66.3%-1251.3%NA
Book Value per Share (Rs.) 41.4133.1435.1537.7743.7247.0652.9853.7134.3821.22
Adjusted Net Profit 0.6-2.510.21.7-0.21.60.6-6.4-6.2
Net Op. Cash Flow (Rs. Cr.) 2.50.34.36.35.95.82.98.55.44.9
Debt to Cash Flow from Ops 9.9594.887.995.265.665.9612.473.956.025.59
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Carnation Industries Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales -20.5%-41.1%-58.7%-86.2%
Adjusted EPS -229.3%-229.4%-256%NA
Book Value per Share -7.2-13.5-26.3-38.3
Share Price -8.7% -29% -52.4% -37.1%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Equity (%) 4.38-19.138.811.4612.2-1.249.53-41.82-64.85
Operating Profit Margin (%) 0.513.178.848.49.327.588.914.27-9.41-72.63
Net Profit Margin (%) 1.14-3.781.110.21.77-0.21.670.68-12.71-90.06
Debt to Equity 1.772.662.82.532.222.131.981.822.713.75
Working Capital Days 2622442152642612692693254762,533
Cash Conversion Cycle 1048954476083911321951,324
Entity Percentage Holding
Promoters 43.68%
Non-Institutions 56.32%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Carnation Inds's performance infers:

Carnation Inds earnings have declined by -229.4%, whereas share price has depreciated -29% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Carnation Inds share prices over the last 10 years. Here is what we found out:

Carnation Inds share price has depreciated -13.8% annually over the past ten years.

Carnation Enterprise Pvt. Ltd. was established in 1982 by the combination of a few dynamic working men all successful in their respective fields, which later in 1995 changed the name to Carnation Industries Limited. The company starting off as a merchant exporter recorded a steady growth each year, the company went into manufacturing in the mid-80s and is running two grey iron foundries and ductile iron unit all in West Bengal. Both the grey iron production units and the ductile iron

Carnation Enterprise Pvt. Ltd. was established in 1982 by the combination of a few dynamic working men all successful in their respective fields, which later in 1995 changed the name to Carnation Industries Limited. The company starting off as a merchant exporter recorded a steady growth each year, the company went into manufacturing in the mid-80s and is running two grey iron foundries and ductile iron unit all in West Bengal. Both the grey iron production units and the ductile iron production unit are certified by SGS (India) Ltd. as per BS-EN-124 require for systems approval & specific product approvals.

Carnation is the country's first Conventional Grey Iron foundry to be certified ISO 9002 by KPMG (USA). Currently it holds the BS EN ISO 9001:2000 certificate from BSI (UK). UL Certification from Underwriters Laboratories Inc., USA.

Carnation has a professional set up backed by a group of highly experienced and Technically qualifed shop staff in different departments working under professional managers. They have a work force strength of 40 experienced personnel & a labour strength of over 400 persons.

Product development, technology upgradation and providing more for the value of money are Carnation’s forte.

Carnation has established itself as one of the top exporters of castings from India and it takes the toil and sweat of the whole team ably supported by juniors and the labour force to keep Carnation at top.

Product range of the company includes:

  • Ductile & Grey Iron Sanitary Castings e.g. Manholes, Catch basins Frames, Grates etc.
  • Ductile & Grey Iron valve boxes, meter boxes, surface boxes, Service boxes, Step Iron.
  • Ductile & Grey Iron Gulley Gratings, Syphones, Hydrants.
  • Ductile Iron Railway Castings.
  • Ductile Iron M J Fittings, Push on fittings, related products.
  • Ductile Iron glands, Flanges, anchor flanges, brackets.
  • Accessories for Fittings
  • Ductile Iron Industrial and auto casting.
  • Marine items e.g., mushroom anchors, naval anchors, river anchors, cleats of wide variety.
  • Counter weights for fork lifts.
  • MS, SS Bolts, Rubber gaskets, GRP Plates, Brass fittings, Industrial leather gloves.

Milestones & Achievements:

  • 1985-86 - Export Excellence award in C I Sanitary castings
  • 1986-87 - Highest Export performance award in C I Industrial castings
  • 1987-88 - Highest Export performance in C I panel (ALL INDIA)
  • 1988-89 - Top Exporters Shield (Eastern Region)
  • 1989-90 - Highest Export performance award in C I Sanitary castings
  • 1990-91 - Certificate of Export Excellence : Eastern Region
  • 1991-92 - Certificate of Export Excellence : Eastern Region
  • 1993-94 - Certificate of Export Excellence : Eastern Region
  • 1994-95 - Certificate of Export Excellence : All India
  • 1995-96 - Highest Export Performance in C I Panel (All India)
  • 1996-97 - Certificate of Export Excellence : Eastern RegionAward of Export Excellence : FOSMI, Govt of W. Bengal
  • 1997-98 - Trophy for Highest Exporter in the group : Eastern RegionNational Award to Outstanding Small Scale Entrepreneurs :Ministry of Industry Department of SSI & ARI Small Industries development Organisation, Government of India. 
  • 1998-99 - Award for Export Excellence from EEPC (ER) for highest export performance.
  • 1999-2000 - Excellence Award For Excellence in Productivity, Quality, Innovation & Management by Institute of Economic Studies, New Delhi.
  • 1999-2000 - All India Award for Export Excellence in Engineering Goods.
  • 2001-2002 - Certificate of Export Excellence : Eastern RegionAward of Export Excellence : FOSMI, Govt of W. Bengal
  • 2002-2003 - Certificate of Export Excellence : Eastern RegionAward of Export Excellence : FOSMI, Govt of W. Bengal
  • 2003-2004 - All India Award for Export Excellence in recognition of their outstanding contribution to Engineering Exports during the year 2004 - 2005
  • 2008-2009 - engineering Export Promotion Council Eastern Region award for Export Excellence
  • 2010 - Quality Management System approved ISO 9001:2008 from BSI, LONDON
  • 2011 - Expansion of the Ductile Iron plant at Uluberia
    Approval received from Asphalt Paint NSF ANSI -61 from Underwriter Laboratory, US
  • 2014 - Approval received from Lead Free Paint NSF-372 from Underwriter Laboratory, USA

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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