Donear Industries Ltd - Stock Valuation and Financial Performance

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

Donear Inds Share Price

116.50 -1.55 -1.31%
as on 04-Oct'24 16:01

DeciZen - make an informed investing decision on Donear Inds

Overall Rating
Bole Toh

1. Quality

2. Valuation

Overvalued

3. Price Trend

Donear Industries stock performance -

mw4me loader
P/E Ratio (SA):
16.49
Market Cap:
606.1 Cr.
52-wk low:
86.2
52-wk high:
154.6

Is Donear Industries Ltd an attractive stock to invest in?

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 Overvalued 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
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

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'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 9.4%10%10.9%10.6%13%12.5%11.4%2.8%12.9%16.1%-
Value Creation
Index
-0.3-0.3-0.2-0.2-0.1-0.1-0.2-0.8-0.10.2-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 472517517499514594548358569826818
Sales YoY Gr.-9.4%0.1%-3.5%3%15.6%-7.8%-34.7%59.2%45%-
Adj EPS 0.61.31.11.62.52.82.1-14.377.1
YoY Gr.-115%-16.3%50%54.3%12%-25%-148.1%NA63.9%-
BVPS (₹) 12.713.814.716.71921.523.522.126.132.941
Adj Net
Profit
3.16.75.68.41314.610.9-5.222.236.437
Cash Flow from Ops. 30.740.479.334.3-12.536.775.650.4-24.44-
Debt/CF from Ops. 10.17.83.47.7-24.38.23.54.7-12.889.4-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 6.4%9.9%14.7%45%
Adj EPS 31.4%22.9%49.4%63.9%
BVPS11.2%11.6%11.8%25.9%
Share Price 18.9% 30.6% 26.5% 7.5%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
4.99.77.610.31413.99.4-4.417.723.719.1
Op. Profit
Mgn %
10.610.810.68.711.39.88.94.88.59.310.3
Net Profit
Mgn %
0.71.31.11.72.52.52-1.53.94.44.5
Debt to
Equity
4.74.43.53.13.12.72.22.12.32.1-
Working Cap
Days
218217214216240239257369276232132
Cash Conv.
Cycle
17517517617718917818625619316828

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 19.10%

Sales growth is growing at healthy rate in last 3 years 14.65%

Net Profit is growing at healthy rate in last 3 years 49.38%

Debt to equity has increased versus last 3 years average to 2.07

Sales growth is not so good in last 4 quarters at -0.52%

Latest Financials - Donear Industries Ltd.

Standalone Consolidated
TTM EPS (₹) 7.1 -
TTM Sales (₹ Cr.) 818 -
BVPS (₹.) 41 -
Reserves (₹ Cr.) 203 -
P/BV 2.84 -
PE 16.49 -
From the Market
52 Week Low / High (₹) 86.20 / 154.55
All Time Low / High (₹) 1.00 / 241.00
Market Cap (₹ Cr.) 606
Equity (₹ Cr.) 10.4
Face Value (₹) 2
Industry PE 29.3

Management X-Ray of Donear Inds:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Donear Inds

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales472517517499514594548358569826
Operating Expenses 422461462456456537498342521750
Manufacturing Costs9096989111212411780143176
Material Costs239262261257242299273190276441
Employee Cost 45485356637270436476
Other Costs 49555152404238283758
Operating Profit 50555543585850164976
Operating Profit Margin (%) 10.6%10.7%10.6%8.7%11.2%9.7%9.1%4.4%8.5%9.1%
Other Income 775833541212
Interest 32333023292827192130
Depreciation 22262014121091099
Exceptional Items 0200000000
Profit Before Tax 35914202318-93049
Tax -1-245787-3812
Profit After Tax 4869131412-62336
PAT Margin (%) 0.8%1.5%1.1%1.8%2.6%2.4%2.2%-1.8%4.0%4.4%
Adjusted EPS (₹)0.71.51.11.82.52.72.3-1.24.47.0
Dividend Payout Ratio (%)28%13%18%11%8%7%9%-17%5%3%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 6672768799112122115136171
Share Capital 10101010101010101010
Reserves 5562667688101112105125161
Minority Interest0000000000
Debt292292265260296294262222303345
Long Term Debt4722171393271523
Short Term Debt245270247247286291260215289322
Trade Payables31312632496244517767
Others Liabilities 34382219242744639168
Total Liabilities 422432389398467494473451607651

Fixed Assets

Gross Block297322327888995126116125135
Accumulated Depreciation18721323412172740435158
Net Fixed Assets1101089377716886737477
CWIP 10011212451
Investments 1111413111111
Inventories168167166171207214202183306321
Trade Receivables104125102110135144118105130158
Cash Equivalents 555561215101217
Others Assets24262120334449757877
Total Assets 422432389398467494473451607651

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 31407934-13377650-244
PBT 35917202318-93049
Adjustment 49554834333334272737
Changes in Working Capital -20-1921-13-62-122733-81-76
Tax Paid 0-11-4-4-7-4-1-1-5
Cash Flow From Investing Activity -13-13-6-10-3-6-18-4-25-13
Capex -14-13-7-10-5-4-10-10-23-12
Net Investments 00000-3-85-2-1
Others 1010200110
Cash Flow From Financing Activity -16-28-74-2516-27-63-464912
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing 110000002028
Interest Paid -26-31-28-18-21-26-22-17-19-26
Dividend Paid -1-1-1-1-1-1-1-1-1-1
Others 04-45-5380-39-476731
Net Cash Flow 1-1-1004-5003
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)5.7711.227.5911.1414.2513.4910.22-5.2818.1523.61
ROCE (%)9.431010.8710.6212.9612.4911.392.7612.8916.12
Asset Turnover Ratio1.151.211.261.271.191.241.130.771.081.31
PAT to CFO Conversion(x)7.75513.173.78-12.646.33N/A-1.040.11
Working Capital Days
Receivable Days768180788786871147564
Inventory Days122118117123134129139196157139
Payable Days42434041616771928560

Donear Industries Ltd Stock News

Donear Industries Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Donear Inds on 04-Oct-2024 16:01 is ₹116.5.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 04-Oct-2024 16:01 the market cap of Donear Inds stood at ₹606.1.
The latest P/E ratio of Donear Inds as of 04-Oct-2024 16:01 is 16.49.
The latest P/B ratio of Donear Inds as of 04-Oct-2024 16:01 is 2.84.
The 52-week high of Donear Inds is ₹154.6 and the 52-week low is ₹86.20.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Donear Inds is ₹817.9 ( Cr.) .

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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