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Kwality Ltd Stock Analysis

Small Cap
Evaluated by 2438 users | BSE: 531882 | NSE: KWALITY |
Consumer Food
Kwality Dairy (India) (KDIL) India’s premier dairy foods company, focuses on building leadership positions in branded and added value markets across the dairy sector. KDIL specializes in the storage of milk and related products.KDIL is ideally situated in the city of Faridabad, in the...

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.
Kwality 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 18.4%20.06%16.34%15.69%14.68%11.64%12.04%8.8%-194.5%248.84%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 1,6082,3953,6924,5785,2695,6586,1316,7252,089151
Y-o-Y Gr. Rt.-48.9%54.2%24%15.1%7.4%8.4%9.7%-68.9%-92.8%
Adjusted EPS (Rs.) 2.264.484.846.226.295.176.622.89-119.45-5.28
Y-o-Y Gr. Rt.-98.2%8%28.5%1.1%-17.8%28.1%-56.3%-4233.2%NA
Book Value per Share (Rs.) 4.488.8413.4819.5926.9133.1141.5545.58-76-80.87
Adjusted Net Profit 469198.412613811615769.7-2,883-127
Net Op. Cash Flow (Rs. Cr.) -139-135-71.418.91928.723855.5-1471.4
Debt to Cash Flow from Ops -3.04-4.93-12.3456.895.7153.316.3330.64-12.431,323.09
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.
Kwality Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales -23.1%-50.9%-70.9%-92.8%
Adjusted EPS -209.9%-196.6%-192.7%NA
Book Value per Share -237.9-224.6-224.90
Share Price -27.1% -55.1% -67% 20.9%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 66.3367.243.437.627.3816.9117.846.59823.316.78
Operating Profit Margin (%) 6.286.95.795.966.086.176.757.32-121.59-61.62
Net Profit Margin (%) 2.863.82.672.762.612.052.561.04-137.99-84.65
Debt to Equity 4.663.713.222.691.861.81.531.54-1-0.94
Working Capital Days 9610296102106114124132238191
Cash Conversion Cycle 8091859193939291160-22
Entity Percentage Holding
Promoters 24.01%
Institutions 0.08%
Non-Institutions 75.90%
Pledged *91.18100.00100.00100.00100.00100.00100.00100.00100.00100.00
* Pledged shares as % of Promoter's holding (%)

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

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

The 5-year analysis of Kwality Ltd's performance infers:

Kwality Ltd earnings have declined by -196.6%, whereas share price has depreciated -55.1% 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 Kwality Ltd share prices over the last 10 years. Here is what we found out:

Kwality Ltd share price has depreciated -34.5% annually over the past ten years.

Kwality Dairy (India) (KDIL) India’s premier dairy foods company, focuses on building leadership positions in branded and added value markets across the dairy sector. KDIL specializes in the storage of milk and related products.

KDIL is ideally situated in the city of Faridabad, in the state of Haryana in Northern India. With a distance of around an hours drive from Delhi, KDIL operates from six and half acres of complex. Located in a milk rich belt of India, the company follows a

Kwality Dairy (India) (KDIL) India’s premier dairy foods company, focuses on building leadership positions in branded and added value markets across the dairy sector. KDIL specializes in the storage of milk and related products.

KDIL is ideally situated in the city of Faridabad, in the state of Haryana in Northern India. With a distance of around an hours drive from Delhi, KDIL operates from six and half acres of complex. Located in a milk rich belt of India, the company follows a well-formulated and comprehensive strategy for the procurement of milk on a daily basis.

It has the most ultra modern State of the Art Dairy Machinery and have incorporated the latest technology to provide its customers the best in India and abroad .To ensure the best quality KDIL has procured dairy design and key equipment from Alfa Laval India Ltd (Tetra Pack Group) with design back up from APV Anhydro Pasilac AS Denmark.

The plant has a capacity of processing 4,50,000 litres of milk per day and with its ongoing expansion programme is soon going to be increased by another 4,00,000 litres per day. The plant has a ghee  capacity of 1000 Mt per month. The people at KDIL are clearly focused on quality, efficiency and continual improvement. Each function has been designed with our customers' interests in mind. By improving our own processes, services and products we transfer advantages to the people who use our products. 

KDIL specializes in the storage of milk and related products. The temperature in the warehouse remains at -1°or below, which is ideal for its storage. An identifying number is assigned to each load as it arrives at our dock. As it is moved to a specific location for storage, it is assigned a locator or row number.

It has supplied its goods and won appreciation from renowned companies like Nestle India Ltd, Hindustan Lever and Mother Dairy, Vadilal Industries Ltd and Smith Kline Beecham to name a few. The company also exports its products to various countries. With quality, integrity and technology being the hallmark of its growth the company is today perfectly poised to face all challenges and obstacles and strive for greater success in the years to come.

Their business philosophy is simple: Serve the needs of the customer by providing them Kwality products.

In 2010 KDIL launched 'Dairy Best Ghee'
In 2012 Kwality Dairy Launched new dairy products - Paneer, Curd & Milk.

Product range of the company includes:

  • Skimmed milk powder 
  • Whole milk powder 
  • Dairy whitener 
  • Dairy mix 
  • Ice cream mix 
  • Ghee

Achievements/ recognition:

ISO 9001-2000 and HACCP certified company

Clientele:

  • Nestle India Ltd.
  • Hindustan Lever Ltd.
  • Metro Dairy (Kolkata)
  • Mother Dairy (Kolkata)
  • Vadilal
  • Cadbury's
  • Mother Dairy (Delhi)
  • Parle Products Pvt. Ltd
  • Britannia

Future plans:

The company is soon going to launch

  • Rasgula Tin (400 gm) (Sugar Free)
  • Gulab Jamun Tin (400 gm) (Sugar Free)
  • Fresh Paneer (200 gm & 400 gm)
  • Fresh pasteurized milk in poly packs
  • Flavored milk
  • Malted foods
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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