X

Rainbow Denim Ltd. Stock Analysis

Small Cap
Evaluated by 61 users | BSE: 532441 | NSE: |
Textile - Weaving
Rainbow Denim Limited, a division of Rama Petrochemicals, aims to strengthen India’s present position of third largest producer of denim in the world by becoming a leading player in the industry, both in India and overseas. Set in the state of Punjab, their ultramodern plant uses 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.
Value Creation
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Capital Employed -4.24%23.33%-7.72%-2.01%-18.08%-16.11%-10.1%-4.21%26.55%52.33%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 12815518316212016922218114971
Y-o-Y Gr. Rt.-21%18.2%-11.6%-25.7%40%31.7%-18.3%-17.8%-52.3%
Adjusted EPS (Rs.) -8.812.8-10.65-14.62-21.19-14.74-7.35-6.83-11.07-15.95
Y-o-Y Gr. Rt.-NA-183.2%NANANANANANANA
Book Value per Share (Rs.) -11.181.37-3.89-24.87-30.84-77.84-85.16-91.95-95.83-104.42
Adjusted Net Profit -1623.3-19.4-10.7-28.2-19.6-9.8-9.1-14.7-21.2
Net Op. Cash Flow (Rs. Cr.) -1.53.523.72.60.3-0.139.3-16.34.2
Debt to Cash Flow from Ops -96.9444.675.8156.19508.44-1,330.9356.8110.62-6.9424.71
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.
Rainbow Denim Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales -6.4%-10%-31.6%-52.3%
Adjusted EPS NANANANA
Book Value per Share 0000
Share Price -15.7% -17.7% -27.7% -72.4%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Equity (%) 134.81-261.54-2731.16161.36106.0827.139.027.7111.7915.93
Operating Profit Margin (%) 5.2611.91-0.065.77-7.611.020.53-2.94-9.26-31.54
Net Profit Margin (%) -12.4815.01-10.58-6.57-23.37-11.61-4.4-5-9.87-29.83
Debt to Equity -6.9863.13-19.42-7.93-3.49-1.46-1.48-0.81-0.89-0.75
Working Capital Days 12312711512114910498124147232
Cash Conversion Cycle 688563577439221419-3
Entity Percentage Holding
Promoters 72.64%
Institutions 4.70%
Non-Institutions 22.66%
Pledged *22.8122.8122.8122.8122.8122.8122.8122.8122.8122.81
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Rainbow Denim Ltd.'s performance infers:

Rainbow Denim Ltd. earnings have grown by 0%, whereas share price has depreciated -17.7% 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 Rainbow Denim Ltd. share prices over the last 10 years. Here is what we found out:

Rainbow Denim Ltd. share price has depreciated -9.7% annually over the past ten years.

Rainbow Denim Limited, a division of Rama Petrochemicals, aims to strengthen India’s present position of third largest producer of denim in the world by becoming a leading player in the industry, both in India and overseas. Set in the state of Punjab, their ultramodern plant uses the preferred rope-dyeing technology and has capacity to produce 18 million meters of denim per year.

The fabric is intended for exports to the developed markets of the world and the plant adheres to the

Rainbow Denim Limited, a division of Rama Petrochemicals, aims to strengthen India’s present position of third largest producer of denim in the world by becoming a leading player in the industry, both in India and overseas. Set in the state of Punjab, their ultramodern plant uses the preferred rope-dyeing technology and has capacity to produce 18 million meters of denim per year.

The fabric is intended for exports to the developed markets of the world and the plant adheres to the strictest international norms of technology and environment-friendly processes. To keep pace with international fashion trends, Denim is not only produced in shades of blue, but various other colours as well, making Rainbow part of the select few in India with such manufacturing capabilities.

The modern, integrated plant of Spinning, Dyeing, Weaving and Finishing is equipped with state-of-the-art quality control systems at all the stages.

Rainbow has most modern Spinning Machines available in the industry. It has Blow Room/Automatic Bale Opener and Cards of ‘Crosrol Make’. These machines are equipped with latest technology like PLC, PNP and NPN Sensor, MCB to give trouble free working. Entire system is automatically synchronized with the help of Photohelic. No manual operation is required at any stage. These are also connected to a centralized waste evacuation to remove the cotton waste generated during process. Cards are equipped with Long Term and Mid Term Auto-leveller to maintain the uniformity of Sliver and are having on line monitoring system called Card Management System (CMS). Length of Sliver, quality of Sliver in terms of CV% and other technical parameters can be adjusted on CMS as per the requirement of production.

Products manufactured by the company:

They manufacture all the three categories of Denim:

  • Light Weight Denim (6.50 to   8.50 per square yard)
  • Medium Weight Denim (9.00 to 12.50 per square yard)
  • Heavy Weight Denim (13.50 to 14.75 per square yard)

Varieties:

  • Basic Denim (Open End x Open End)
  • Slub Denim (Slub x Open End)
  • Cross Hatch (Slub x Slub)
  • Poly Denim (Cotton x Polyester)
  • Stretch Denim (Cotton x Lycra)
  • Ring Slub Denim
  • Fancy Denim

Other varieties for the fashion demanding clients.

Achievements/ recognition:

  • National Quality Award 2000 'Golden Peacock National Award' instituted by the Indian Chapter of World Quality Council, for outstanding achievement in pursuit of total quality.
  • The products of the company have been certified for OEKO-Tex Standard 100 by the Oeko-Tex.
  • An ISO 14001 certified company.
  • Accredited Certification by NQA/QSR Quality System Register under endorsement of JAS-ANZ (Australia  and New Zealand).
  • 'Export House' issued by the Ministry of Commerce and Industry, Government of India.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

Callback