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Blue Blends (India) Ltd. Stock Analysis

Small Cap
Evaluated by 84 users | BSE: 502761 | NSE: BLUEBLENDS |
Textile
Blue Blends (India), the flagship company of Arya Group, was incorporated in 1983 and has been manufacturing the wonder fabric ‘Denim’ since 1995. Anand Arya, the founder of the Arya Group, has shown phenomenal drive as well as caliber to put Blue Blends on the pedestal of...

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 15.98%5.41%7.45%14.05%16.17%11.99%15.06%12.86%-8.96%-37.56%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 12117017116917617618016513256.7
Y-o-Y Gr. Rt.-41.3%0.4%-1.5%4.1%0.4%2.2%-8.5%-19.8%-57.1%
Adjusted EPS (Rs.) 9.12.93.863.953.722.744.63.39-8.63-18.3
Y-o-Y Gr. Rt.--68.1%33.1%2.3%-5.8%-26.3%67.9%-26.3%-354.6%NA
Book Value per Share (Rs.) -25.96-22.9-23.833.9812.7815.6119.4125.775.4-14.9
Adjusted Net Profit 16.55.377.27.25.38.97-18.7-39.6
Net Op. Cash Flow (Rs. Cr.) 60.310.97.612.920.110.514.50.613.3-9
Debt to Cash Flow from Ops 2.0812.5112.953.42.434.563.6296.796.11-10.66
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.
Blue Blends (India) Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales -8%-20.2%-32%-57.1%
Adjusted EPS -208.1%-237.5%-258.5%NA
Book Value per Share 0-203.1-191.6-375.9
Share Price - -43.3% -67.4% -2.9%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Equity (%) -38.03-43.5-68.7750.4216.5510.5114.6710.69-42.72-1508.26
Operating Profit Margin (%) 5.037.7510.216.2810.3310.3713.0312.44-0.23-47.97
Net Profit Margin (%) 13.713.094.094.254.123.014.964.23-14.13-69.87
Debt to Equity -8.41-14.55-8.891.111.020.90.8716.96-2.98
Working Capital Days 154128139140150175203257272398
Cash Conversion Cycle 2342534508091117122182
Entity Percentage Holding
Promoters 53.16%
Institutions 1.60%
Non-Institutions 45.24%
Pledged *98.9798.9799.7699.7699.7499.7499.7499.7499.7499.74
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Blue Blends's performance infers:

Blue Blends earnings have declined by -237.5%, whereas share price has depreciated -43.3% 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.

Data is not available for this company

Blue Blends (India), the flagship company of Arya Group, was incorporated in 1983 and has been manufacturing the wonder fabric ‘Denim’ since 1995. Anand Arya, the founder of the Arya Group, has shown phenomenal drive as well as caliber to put Blue Blends on the pedestal of growth.

Today the company is very much there along with the leading textiles manufacturers of the country. They have a

Blue Blends (India), the flagship company of Arya Group, was incorporated in 1983 and has been manufacturing the wonder fabric ‘Denim’ since 1995. Anand Arya, the founder of the Arya Group, has shown phenomenal drive as well as caliber to put Blue Blends on the pedestal of growth.

Today the company is very much there along with the leading textiles manufacturers of the country. They have a composite Denim Mill with installed production capacity of 18 million meters per annum, having control over the entire manufacturing process, right from fiber processing to finished Denim Fabrics.

At Blue Blends, an experienced team of fabric designers and development engineers is at work around the clock. This team is provided inputs regarding trends by the marketing team which does a scientific research and analysis of trends in global markets. This leads the company to manufacture products with appealing designs and attractive quality. Blue Blends, consistently innovate to serve customers with right mix of products.

The company supplies products to a select clientele spread over India, Spain, Portugal, Greece, Italy, Turkey, Israel, U.S.A., Bangladesh, Guatemala, Columbia, Venezuela and other Central American countries.

Manufacturing units:

The manufacturing unit of the company is located at Piplej, in the outskirts of Ahmedabad, which is the Denim Capital of India, as more than 70% of the Indian Denim production occurs in Ahmedabad.

They have a state-of-the-art plant for producing Denim fabrics based on slasher dyeing technology and air-jet weaving machines. They employ latest equipments and utilize best technology to achieve their objective of producing internationally competitive quality in all the areas.

It also has a spinning division (under group company’s name Premier Synthetics) based at Rakanpur / Santej in Ahmedabad suburb, where they  have an installed capacity commensurate with Denim Division’s requirements in both open end and ring spun yarns. This plant is also state-of-the-art with equipments from Schlafhorst, Rieter, Trutzeller and Zinser. The quality of cotton used is also very good since the unit is based close to Kadi, the best cotton ginning centre of Gujarat

Blue Blends consistently gets supplies of quality cotton fiber from Kadi and nearby locations throughout the year, and the transportation of cotton is minimal. The cotton fibers are very carefully selected to suit Denim fabrics’ ultimate requirements and properties.

Product Variety:

The company offers a wide range of products like:

  • Classic Denim
  • Ring or Silky Denim
  • Dobby/Fancy Denim
  • Structured  Denim
  • Amslur Slub Denim
  • Ring Slub Denim
  • Elastane Denim
  • Multitwist Slub Denim
  • Multi Count  Denim

Subsidiary:

Blue Blends Equity is a wholly owned subsidiary of Blue Blends (India).

Associates:

The company's  associates are:

  • Bindal Synthetics
  • Blue Blends Leasing
  • Cressida Traders
  • Blue Blend Holdings
  • Premier Synthetics
  • Blue Blend Stocks and Securities
  • Denim Online Export

Future Plan:

Blue Blends, under its efficient and dynamic leadership, foresees a very bright future for the company in the WTO’s ‘Quota-Free’ world. The company is planning to make new investments and strategies to grow faster than the Indian textile industry.

By continuously working for the achievement of economies of scale, the company aims to become a fully integrated (Fiber to Apparels) Fashion Textiles company.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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