Donear Industries Ltd Stock Analysis

BSE: 512519 | NSE: DONEAR | Textile | Small Cap

BSE Share Price May 20, 18:01
55.65 2.65 (5.00%)

DeciZen - Make an Informed Decision on Donear Inds

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

1. Quality

2. Valuation

Fair

3. Price Trend

FAQs

1. Is Donear Industries Ltd a good quality company?

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

2. Is Donear Industries Ltd undervalued or overvalued?

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

3. Is Donear Industries Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Donear 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 Donear Inds:

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.
Donear 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'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
ROCE % 5.1%5.7%6.9%7.8%7.4%7%8.9%8.5%7.5%2.3%-
Value Creation Index -0.6-0.6-0.5-0.5-0.5-0.5-0.4-0.4-0.5-0.8-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 377401472517517499514594548358545
YoY Gr. Rt. %-6.3%17.8%9.4%0.1%-3.5%3%15.6%-7.8%-34.7%-
Adj EPS -0.1-0.10.61.31.11.62.52.82.1-13.2
YoY Gr. Rt. %-NANA115%-16.3%50%54.3%12%-25%-148.1%-
BVPS (₹) 12.312.212.713.814.716.71921.523.522.124.3
Adj Net Profit -0.6-0.33.16.75.68.41314.610.9-5.217
Cash Flow from Ops. -5.418.230.740.479.334.3-12.536.775.650.4-
Debt/CF from Ops. -51.416.510.17.83.47.7-24.38.23.54.7-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales -0.6%-7.1%-11.4%-34.7%
Adj EPS NA-198.7%-173.9%-148.1%
BVPS 6.78.55.2-6
Share Price 11.9% -4% 13.6% 55.9%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity % -1-0.54.99.77.610.31413.99.4-4.413.8
Op. Profit Mgn % 111110.610.810.68.711.39.88.958.1
Net Profit Mgn % -0.2-0.10.71.31.11.72.52.52-1.53
Debt to Equity 4.34.74.74.43.53.13.12.72.22.1-
Working Cap Days 2262362182172142162402392573700
Cash Conv. Cycle 1651851751751761771891781862590

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 13.80%

Sales growth is good in last 4 quarters at 108.04%

Sales growth has been subdued in last 3 years -11.39%

Net Profit has been subdued in last 3 years -173.93%

Debt to equity has increased versus last 3 years average to 2.06

Latest Financials - Donear Industries Ltd.

Standalone Consolidated
TTM EPS (₹) 3.2 -
TTM Sales (₹ Cr.) 545 -
BVPS (₹.) 24.3 -
Reserves (₹ Cr.) 116 -
P/BV 2.18 -
PE 16.61 -
From the Market
52 Week Low / High (₹) 34.70 / 76.50
All Time Low / High (₹) 1.00 / 241.00
Market Cap (₹ Cr.) 276
Equity (₹ Cr.) 10.4
Face Value (₹) 2
Industry PE 13.3

Management X-Ray of Donear Inds :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.100.100.100.100.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

Analyst's Notes

News

About Donear Industries Ltd

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.

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