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Kesoram Industries Ltd. Stock Analysis

Small Cap
Evaluated by 972 users | BSE: 502937 | NSE: KESORAMIND |
Diversified
Kesoram Industries (KIL) was incorporated in October 1919 as Kesoram Cotton Mills. The name was changed to Kesoram Industries & Cotton Mills in the year 1961. Later, in the year 1986, the name was changed once again to the present one. KIL is a diversified conglomerate belonging to the BK...

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.
Kesoram Industries Ltd. has not performed well majority of the past ten years indicating its past ten year financial track record is not good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed -1.49%-1.55%0.89%-1.56%-3.29%-3.08%-0.79%-2.79%1.57%0.24%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 5,4385,9215,7115,0814,8734,3873,6773,5873,8792,330
Y-o-Y Gr. Rt.-8.9%-3.6%-11%-4.1%-10%-16.2%-2.4%8.1%-39.9%
Adjusted EPS (Rs.) -44.92-64.22-53.53-44.38-59.39-54.81-20.14-29.94-17.27-15.01
Y-o-Y Gr. Rt.-NANANANANANANANANA
Book Value per Share (Rs.) 224.14157.6299.8142.677.7426.372.1650.3137.181.92
Adjusted Net Profit -260-372-310-487-652-643-236-411-246-214
Net Op. Cash Flow (Rs. Cr.) 172246449428519210119215756759
Debt to Cash Flow from Ops 23.0719.3611.3211.451025.1227.5316.123.92.61
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.
Kesoram Industries Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales -9%-13.7%-14.1%-39.9%
Adjusted EPS NANANANA
Book Value per Share -41.1-24.3-70.2-94.8
Share Price -5% -12.6% -25.6% -14.5%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) -18.31-33.56-41.44-92.7-233.6-262.12-37.82-50.76-37.77-76.78
Operating Profit Margin (%) 4.83-0.775.976.532.45-6.660.84-1.945.349.84
Net Profit Margin (%) -4.78-6.28-5.43-9.59-13.38-14.65-6.43-11.46-6.35-9.19
Debt to Equity 3.065.218.7910.4861.1116.663.865.015.5672.27
Working Capital Days 152152161178206271267206160182
Cash Conversion Cycle 6766677464452424-7-73
Entity Percentage Holding
Promoters 53.13%
Institutions 3.80%
Non-Institutions 38.13%
Others 4.94%
Pledged *21.2821.2821.2831.2844.8244.8244.8244.8244.8244.82
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Kesoram Industries Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Kesoram Industries Ltd. is a below average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Kesoram Industries Ltd.'s performance infers:

Kesoram Industries Ltd. earnings have grown by 0%, whereas share price has depreciated -12.6% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Kesoram Industries Ltd. share prices over the last 10 years. Here is what we found out:

Kesoram Industries Ltd. share price has depreciated -12.8% annually over the past ten years.

Kesoram Industries (KIL) was incorporated in October 1919 as Kesoram Cotton Mills. The name was changed to Kesoram Industries & Cotton Mills in the year 1961. Later, in the year 1986, the name was changed once again to the present one. KIL is a diversified conglomerate belonging to the BK Birla Group.

The company is engaged in the manufacture of cement, tyres, tubes, rayon, paper, heavy chemicals and spun pipes. KIL is also listed on Societe de la Bourse de Read More

Kesoram Industries (KIL) was incorporated in October 1919 as Kesoram Cotton Mills. The name was changed to Kesoram Industries & Cotton Mills in the year 1961. Later, in the year 1986, the name was changed once again to the present one. KIL is a diversified conglomerate belonging to the BK Birla Group.

The company is engaged in the manufacture of cement, tyres, tubes, rayon, paper, heavy chemicals and spun pipes. KIL is also listed on Societe de la Bourse de Luxembourg stock exchange.

Manufacturing facilities

The company set up its rayon yarn manufacturing unit in West Bengal. This unit earlier had an installed capacity of 4,635 metric tonnes per annum, which was later increased to 6,500 metric tonnes per annum.

KIL’s transparent paper unit is located in West Bengal with a manufacturing capacity of 3,600 metric tonnes per annum.

The company’s cast iron spun pipes unit has a production capacity 45,000 metric tonnes per annum.

KIL has two cement manufacturing facilities located at Andhra Pradesh with a production capacity of 1.2 million metric tonnes and 4.1 million metric tonnes.

The company has set up automotive tyres and tubes unit in collaboration with Pirelli in Orissa. The unit has an annual production of 2.1 million tyres, 1.4 million tubes and 1.1 million flaps.

Its heavy chemicals plant produces 12,410 mtpa of caustic soda lye, 5,045 mtpa liquid chlorine, 6,205 mtpa of sodium hypochlorite, 8,200 mtpa of hydrochloric acid, 3,200 mtpa of ferric alum, 18,700 mtpa of sulphuric acid and 16,20,000 m3pa of purified hydrogen gas.

Awards

KIL has won FAPCCI Award for Excellence in Industrial Productivity in 2007.

The company was awarded “Best Management Award 2007” by government of Andhra Pradesh.

2010 - Award for "Excellence in workers' welfare" from the Federation of Andhra Pradesh Chambers of Commerce, Andhra Pradesh.
2012 - Kesoram Industries had entered into a joint venture with Maharashtra Seamless Limited and Dhariwal Infrastructure Private Limited for working a coal block allocated to it by the Central Government in the State of Maharashtra.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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