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KG Denim Ltd. Stock Analysis

Small Cap
Evaluated by 234 users | BSE: 500239 | NSE: KGDENIM |
Textile - Weaving
K G Denim Ltd. (KGDL) was incorporated on June 25, 1992 under the Companies Act, 1956. KGDL has its registered office at Then Thirumalai, Mettupalayam, Coimbatore District, Tamil Nadu. The company was promoted by K. Govindaswamy Naidu  and his sons including KG Baalakrishnan and went...

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 9.32%11.67%15.28%19.97%14.05%9.67%18.39%18.79%8.81%10.14%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 269344400515592592652618635693
Y-o-Y Gr. Rt.-27.7%16.4%28.7%15%-0%10.1%-5.2%2.8%9.1%
Adjusted EPS (Rs.) 0.631.932.865.992.580.056.839.111.594.33
Y-o-Y Gr. Rt.-206.4%48.2%109.4%-56.9%-98.1%13560%33.4%-82.6%172.3%
Book Value per Share (Rs.) 16.6318.3919.4824.6626.3623.8631.1940.5342.0944.6
Adjusted Net Profit 1.657.315.46.60.117.523.44.111.1
Net Op. Cash Flow (Rs. Cr.) 29.526.943.749.748.951.656.367.341.226
Debt to Cash Flow from Ops 3.9842.382.362.562.972.541.723.697.31
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.
KG Denim Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 11.1%3.2%2.1%9.1%
Adjusted EPS 23.9%10.9%-14.1%172.3%
Book Value per Share 11.611.112.76
Share Price 8.9% -12.2% -28.3% -32.8%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Equity (%) 3.7911.0115.1127.1410.10.1824.8225.43.849.98
Operating Profit Margin (%) 11.310.4711.1111.218.218.2312.6312.196.828.07
Net Profit Margin (%) 0.61.441.842.991.120.022.693.780.641.6
Debt to Equity 2.752.282.081.851.852.51.791.111.411.66
Working Capital Days 155135133119118125118129143140
Cash Conversion Cycle 36302822181820344039
Entity Percentage Holding
Promoters 58.63%
Institutions 0.01%
Non-Institutions 41.36%
Pledged *13.3113.3113.3113.310.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of KG Denim's performance infers:

KG Denim earnings have grown by 10.9%, whereas share price has depreciated -12.2% 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 KG Denim share prices over the last 10 years. Here is what we found out:

KG Denim share price has depreciated 3.4% annually over the past ten years.

K G Denim Ltd. (KGDL) was incorporated on June 25, 1992 under the Companies Act, 1956. KGDL has its registered office at Then Thirumalai, Mettupalayam, Coimbatore District, Tamil Nadu. The company was promoted by K. Govindaswamy Naidu  and his sons including KG Baalakrishnan and went public in the year 1993.

KGDL is a premier denim and apparel fabric manufacturer, whose products are supplied to leading jeans wear makers, fashion brands and retailers worldwide. It sells its products

K G Denim Ltd. (KGDL) was incorporated on June 25, 1992 under the Companies Act, 1956. KGDL has its registered office at Then Thirumalai, Mettupalayam, Coimbatore District, Tamil Nadu. The company was promoted by K. Govindaswamy Naidu  and his sons including KG Baalakrishnan and went public in the year 1993.

KGDL is a premier denim and apparel fabric manufacturer, whose products are supplied to leading jeans wear makers, fashion brands and retailers worldwide. It sells its products under the trade mark Indigo Fabrics with various lines like Strength, Pride, Ecstasy, Fortune and Passion and Trigger for readymade jeans. KGDL has recently entered the home textiles market to provide innovative and specialized products for beds, blankets, pillow cases and duvet/ comforter covers.

The company has two wholly owned subsidiaries (a) Trigger Apparels Limited (b) K G Denim (USA) Inc. K G Denim (USA) Inc is yet to commence commercial operations. Trigger Apparels Limited markets Trigger branded garments in the domestic market. It commenced operations in the domestic marketing during 2005-06

The products are well sought after by leading Jeanswear makers, fashion brands and Retailers worldwide. KG Denim sells its products under the trade mark Indigo Fabrics, with various lines like Strength, Pride, Ecstasy, Fortune and Passion.

KG Denim now has entered the home textiles market to provide innovative and specialized products for Beds, Blankets, pillow cases and Duvet/comforter covers.

KG Denim is part of textile group having annual turnover of $150 million and the company currently manufactures

  • 24 million meters of denim fabrics
  • 12 million meters of cotton fabrics
  • 2 million equivalent sheetsets of made-ups
  • 3 milllion jeans & trousers.

KG Denim has spinning equipments from Trutzchler & Lakshmi Rieter to produce some of the most demanding yarns required to weave fashion fabric for various applications.

Product range of the company includes:

  • Denim fabric
  • Apparel fabric
  • Jeanswear
  • Bed & Bath

Trigger, its jeans wear brand is the largest selling brand in the country in its segment.

Achievements/ recognition:

  • ISO 9001:2000 certified
  • ISO 14001:2004 certified.
  • Oeko-Tex-tested for harmful substances
  • Lycra Accredited Mill
  • Organic Certification-GOTS
  • Organic Exchange.
  • The first textile processing company in India to achieve EMS 14001 during the year 1998 towards Environment Management System.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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