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Donear Industries Ltd. Stock Analysis

Small Cap
Evaluated by 299 users | BSE: 512519 | NSE: DONEAR |
Textile
Donear was created in the significant year of 1977, promoted by Vishwanath Agarwal, Rajendra Agarwal and Ajay Agarwal. Within a short span of time it became a household name along with other Indian brands. The company is engaged in the manufacture of fabrics like Suiting, Trouser &...

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'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 5.24%5.13%5.73%6.92%7.76%7.36%7%8.85%8.45%7.2%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 311377401472517517499514594548
Y-o-Y Gr. Rt.-21.2%6.3%17.8%9.4%0.1%-3.5%3%15.6%-7.8%
Adjusted EPS (Rs.) 0.74-0.12-0.060.61.291.081.622.52.82.1
Y-o-Y Gr. Rt.--116.2%NANA115%-16.3%50%54.3%12%-25%
Book Value per Share (Rs.) 12.1712.2912.1812.6613.8414.6916.6718.9721.4523.52
Adjusted Net Profit 3.8-0.6-0.33.16.75.68.41314.610.9
Net Op. Cash Flow (Rs. Cr.) 12.3-5.418.230.740.479.334.3-12.536.783.7
Debt to Cash Flow from Ops 19.26-51.416.510.127.793.47.7-24.38.213.14
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.
Donear Industries Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 6.5%1.2%3.2%-7.8%
Adjusted EPS 12.3%10.2%9%-25%
Book Value per Share 7.611.212.29.7
Share Price 6.1% 15.6% -23.6% 9.4%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 6.08-0.98-0.524.879.717.5910.314.0313.859.35
Operating Profit Margin (%) 14.1810.9810.9810.6110.7510.648.7411.299.828.63
Net Profit Margin (%) 1.23-0.16-0.080.671.291.091.682.532.452
Debt to Equity 3.734.34.744.724.373.533.053.082.72.15
Working Capital Days 229226236218217214216240239257
Cash Conversion Cycle 162165185175175176177189178184
Entity Percentage Holding
Promoters 74.56%
Non-Institutions 25.44%
Pledged *0.100.100.100.100.100.100.100.100.100.10
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Donear Industries Ltd.'s performance infers:

Donear Industries Ltd. earnings have grown by 10.2%, whereas share price has appreciated 15.6% 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 Donear Industries Ltd. share prices over the last 10 years. Here is what we found out:

Donear Industries Ltd. share price has appreciated -0.4% annually over the past ten years.

Donear was created in the significant year of 1977, promoted by Vishwanath Agarwal, Rajendra Agarwal and Ajay Agarwal. Within a short span of time it became a household name along with other Indian brands. The company is engaged in the manufacture of fabrics like Suiting, Trouser & Shirtings created by Donear in a wide variety and range meant for Menswear & Womenswear.

Donear, with its three decades of expertise in the textile industry, is a reputed and fastest growing fashion

Donear was created in the significant year of 1977, promoted by Vishwanath Agarwal, Rajendra Agarwal and Ajay Agarwal. Within a short span of time it became a household name along with other Indian brands. The company is engaged in the manufacture of fabrics like Suiting, Trouser & Shirtings created by Donear in a wide variety and range meant for Menswear & Womenswear.

Donear, with its three decades of expertise in the textile industry, is a reputed and fastest growing fashion fabric brand creating a wide variety of exotic; Suitings, Trouser & Shirting Fabrics. Donear has flourished into one of the largest textile-business enterprise in India

One of the top three well-known brands in India in its product category; Donear primarily caters to the middle and the premium segments with high quality apparel fabrics that are woven with Natural Fibres, Synthetic Fibres and its Various Blends.

As a brand, Donear has succeeded by maintaining pace with the changing demands of the local and global fashion trends, and primarily due to the company's; innovative approach in continuously developing newer products, using state-of-the-art-technology along with highly-skilled workforce, strong logistics, by being perpetually quality conscious, and thereby creating world-class fabrics.

These highly ingenious fabrics are available in a wide range of colour, texture and comfort along with contemporary designs. Donear fabrics are simply a luxury affordable that suits every desire!

Fabrics created by Donear have steadily captured the domestic textile markets as a result of its well-planned and expanding sales network consisting of; 44 Agents, 290 Wholesalers and 12000 Retailers, that are spread in all the 29 States & 7 Union Territories of India.

Similarly, fabrics created by Donear have a wider reach in the overseas markets too, with exports to over 28 countries across the globe.

Donear currently produces 11 million metres of fabric annually at its production unit located at Silvasa - UT of Dadra & Nagar Haveli.

To augment the production capacity further, another plant with an investment of $27 million is being set up at Surat - the textile hub of western India. This will lead to an increase in the total production capacity up to 17.5 million metres of fabric per annum.

Presently, Upperwear & Bottomwear fabrics account for 20% and 80% of the total production created by Donear, and considering the expansion project, this would increase up to 45% and 55% respectively.

Nearly 10% of the total production is currently exported and this percentage will increase up to 25% with the underlying opportunities created by the post WTO scenario, and also due to the expansion plans for creating 100% High Value Cotton Fabrics.

 The company’s product range includes:

  • Polyester Viscose Blended Fabrics
  • Polyester Cotton Blended Fabrics
  • 100% Polyester Fabrics
  • 100% Cotton High Value Plain and Yarn Dyed Shirting Fabrics
  • 100% Cotton Plain and Yarn Dyed Bottomwear
  • Polyster Wool, Wool Rich & All Wool Fabrics

Future plans

With mounting demands for Donear's premier products and as a part of its future plan, DIL has taken concrete steps to increase its production by investing $27 million in a greenfield integrated textile-unit project at Surat - based on the western region of India in Gujarat, with facilities for Yarn Dyeing, Weaving, Processing and garment manufacturing. The upcoming production unit at Surat is spread over an area of 7.7 Hectares (19 Acres), and is about 300 km from Mumbai City. The first phase has already been operational since December 2007.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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