Damodar Industries Ltd Stock Analysis

BSE: 521220 | NSE: DAMODARIND | Textile - Spinning | Small Cap

BSE Share Price 02-Dec-2022 18:01
54.10 -0.40 (-0.73%)

DeciZen - Make an Informed Decision on Damodar Inds.

Overall Rating
M-Cap below 500cr. High Risk from low Liquidity

1. Quality

2. Valuation

Somewhat overvalued

3. Price Trend

Damodar Inds. Price Chart

P/E Ratio (SA) :
9.23
Market Cap :
126.1 Cr.
52-wk low :
36.5
52-wk high :
78.8
Bole Toh?

1. Is Damodar Industries Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Damodar Industries Ltd is a average quality company.

2. Is Damodar Industries Ltd undervalued or overvalued?

The key valuation ratios of Damodar Industries Ltd's currently when compared to its past seem to suggest it is in the Somewhat overvalued zone.

3. Is Damodar Industries Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Damodar Industries Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Damodar Inds.:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

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.
Damodar Industries Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 15%15.5%12.5%10.2%9.5%7.5%4.7%3.6%2.8%8.6%-
Value Creation Index 0.10.1-0.1-0.3-0.3-0.5-0.7-0.7-0.8-0.4-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 582735593621704650771768568909839
YoY Gr. Rt. %-26.2%-19.3%4.7%13.4%-7.7%18.7%-0.5%-26.1%60.1%-
Adj EPS 5.26.75.44.64.44.62.6-3.3-47.15.9
YoY Gr. Rt. %-28.4%-19.6%-13.5%-6.1%6%-42.7%-224.6%NANA-
BVPS (₹) 27.232.736.839.844.247.449.542.141.649.549.3
Adj Net Profit 11.514.811.910.39.710.35.9-7.7-9.416.614
Cash Flow from Ops. 20.727.753.728.512.818.410.225.64745.5-
Debt/CF from Ops. 6.452.13.48.39.332.413.97.16.9-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 5.1%5.2%5.6%60.1%
Adj EPS 3.6%10.3%39.1%NA
BVPS 6.92.3019.2
Share Price 11.3% -2.5% 23.2% 17.2%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 20.822.215.412.110.410.15.5-7.4-9.615.611.9
Op. Profit Mgn % 8.37.88.46.65.35.34.75.66.98.78.4
Net Profit Mgn % 2221.71.41.60.8-1-1.71.81.6
Debt to Equity 2.21.91.41.11.11.633.63.42.71.4
Working Cap Days 6864837672919210614288105
Cash Conv. Cycle 5653686564746471986538

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 11.90%

Net Profit is growing at healthy rate in last 3 years 39.07%

Debt to equity has declined versus last 3 years average to 2.73

Sales growth has been subdued in last 3 years 5.61%

Sales growth is not so good in last 4 quarters at 7.85%

Latest Financials - Damodar Industries Ltd.

Standalone Consolidated
TTM EPS (₹) 5.9 -
TTM Sales (₹ Cr.) 839 -
BVPS (₹.) 49.3 -
Reserves (₹ Cr.) 103 -
P/BV 1.10 -
PE 9.23 -
From the Market
52 Week Low / High (₹) 36.50 / 78.75
All Time Low / High (₹) 0.55 / 81.17
Market Cap (₹ Cr.) 126
Equity (₹ Cr.) 11.7
Face Value (₹) 5
Industry PE 11.5

Management X-Ray of Damodar Inds. :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.0030.0230.0230.0230.0230.0230.02
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Damodar Inds.

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

Damodar Industries Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Damodar Inds. on 02-Dec-2022 18:01 is : 54.10.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 02-Dec-2022 18:01 the market cap of Damodar Inds. stood at ₹ 126.0.
The latest PE ratio of Damodar Inds. as of 02-Dec-2022 18:01 is 9.23.
The latest PB ratio of Damodar Inds. as of 02-Dec-2022 18:01 is 1.10
The 52-week high of Damodar Inds. is ₹ 78.75 and the 52-week low is ₹ 36.50.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue / sales of Damodar Inds. is ₹ 838.7 ( Cr.) .

About Damodar Industries Ltd

Damodar Threads Ltd.(DTL) a Damodar Group company was incorporated on December 11,1987 as a private limited company and started commercial production in September 1988. The company was converted into public limited company on March 20, 1992. It was established with the main object to set up a unit at Daman for twisting and doubling of synthetic yarn.

The profound Damodar Group boasts of having a completely integrated and advanced production line for manufacturing fancy and speciality yarns.

DTL is the largest fancy yarn manufacturing brand. Since beginning Damodar’s philosophy was to provide a quality product at an affordable price. Passion for yarn has made the company a trendsetter in the industry.

Damodar was one of the first to offer blended-fiber and novelty yarns at popular prices.The company constantly looks all over the world to find ideas for new yarns,colours and designs. Each Damodar yarn has its own personality and is designed in variety of combinations that is appropriate to its texture and its use. Damodar Threads is continuously striving to improve efficiency in operations by improving the quality of human resources and increasing the strength of human resources. The company is continuously improving its IT infrastructure which is the need of the day to reduce operating costs of the company. The company at the same time is opening offices in various textile markets of the country to improve business.

The company has been synonymous with creativity in Indian textile Industry for more than two decades.The company is engaged in spinning, draw-texturising, air-texturising, fancy doubling and yarn dyeing. The company has in-house manufacturing operations, which are essential building bricks of fashion. Its ring spinning plant produces high quality yarns enriching the aesthetic value through slubs, neps, injected slubs, multicolour effects and grindle effects. The unit is designed with utmost flexibility and equipped with mechanical and electronic attachments at all stages of spinning for imparting special effects in the yarns. Value addition does not end at spinning stage, it is further enhanced in the post spinning processes as well.

The company is equipped with not only TFOs, but also fancy doubling, hollow doubling, covering machines, boucle machines and attachments to manufacture fantasy yarns.

The company currently employs job work to manufacture fancy yarns which is done by outsourcing the yarns.This entails a risk of the company supplying the know-how and the design to the manufacturer. With the increasing demand which leads to an increase in production as well as greater risk by the infringement of intellectual property as the company does not have any intellectual property rights; the job work mode of manufacturing is getting more costly.

Along with fancy yarns, the company started manufacturing cotton yarns. The company has undertaken wide expansion programme by installing spinning mill of 36480 spindles, 58 TFO units at Silvassa. The total capital cost of the project is Rs.9000 Lakh out of which the bank finance is Rs.6000Lakh. Bank of Baroda, Mumbai Main Office (MMO) and State Bank of India, Industrial Finance branch, Mumbai has sanctioned the term loan of Rs.3000 Lakhs each and total working capital facilities of Rs.1000 lakh (Increase from existing limit of Rs.450 lakh). The company has completed the remaining part of its expansion programme by unsecured loans of Rs.1733 Lakh and internal accruals of Rs.1267 Lakh. New plant in Silvassa has a capacity of producing 15 tonnes daily with 32,908 spindles.

The company has also installed 58 TFO’s two for one twist, for doubled/twisted yarns. The company due to expansion of its spinning unit, it has shifted its plant (Damodar Plants Limited) from Daman to Dadra. Further since full plant operation was not possible in existing spaces, the company had no option, except to shift their plant to Dadra. Cotton yarn has enabled the company to penetrate special markets in India as well as export. The company has also started merchant export of cotton yarn. The company is already exporting its products in various countries across the globe like Turkey, Egypt, Indonesia, Thailand, Vietnam, Argentine and Brazil.

Product range of the company includes:

  • Cotton Yarn
  • Fancy Yarn
  • Blended Fancy Yarn
  • Product Enquiry
  • Spun yarn in polyester/viscose,100% polyester,100% viscose,100% cotton and silk/polyester in various counts

Milestones:

  • 1987- Incorporated as a Pvt.Ltd.Co. with objective to manufacture fancy yarn.
  • 1988 -Commercial production started at its factory at Daman
  • 1992- Converted into public limited company
  • 1993-Commencement of implementation/production of multicolored yarn project at Vapi (Gujarat)
  • 1994 -Commencement of fancy yarn project at Daman
  • 1995-Successful completion of IPO (oversubscribed by 7 times)
  • 2006-07 -Commencement of implementation of expansion project by installing spinning mills of 36480  spindles, 58 TFO units on 30000 sq.metres NA land already purchased at Silvassa at a  projected cost of Rs.9000 Lakh.
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