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Kitex Garments Ltd Stock Analysis

Small Cap
Evaluated by 2039 users | BSE: 521248 | NSE: KITEX |
Textile

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.
Kitex Garments Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Capital Employed 19.16%20.49%17.41%21.83%28.96%24.82%21.71%15.01%12.03%12.34%8.08%-
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 256312317442511546546557607739455564
Y-o-Y Gr. Rt.-21.8%1.6%39.5%15.6%6.8%0%2.1%8.9%21.8%-38.4%-
Adjusted EPS (Rs.) 2.863.894.157.4313.7515.1414.410.5410.512.748.8911.40
Y-o-Y Gr. Rt.-36%6.7%79%85.1%10.1%-4.9%-26.8%-0.4%21.3%-30.2%-
Book Value per Share (Rs.) 11.0714.6518.426.1939.6855.2568.5377.6388.94101.53110.56116.46
Adjusted Net Profit 1925.927.649.491.410195.770.169.884.759.176
Net Op. Cash Flow (Rs. Cr.) -15.662.624.411512813544.728.69.758.9116-
Debt to Cash Flow from Ops -6.931.624.151.161.260.810.190.289.291.630-
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.
Kitex Garments Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  10 yrs 5 yrs 3 yrs 1 yr
Net Sales 4.3%-3.6%-6.5%-38.4%
Adjusted EPS 9.6%-10.1%-5.5%-30.2%
Book Value per Share 25.214.912.58.9
Share Price 18.4% -9.2% 17.6% 51.7%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity (%) 29.4830.2825.0933.3441.7431.9123.2614.4212.6113.378.3810.04
Operating Profit Margin (%) 18.6619.0419.4921.933.5134.5932.0324.0922.918.1922.0419.9
Net Profit Margin (%) 7.428.38.711.1817.8918.4517.5412.5811.5111.4612.9813.43
Debt to Equity 1.471.040.830.770.610.30.020.020.150.1400
Working Capital Days 1251331391049398127170246281458278
Cash Conversion Cycle 4063684126315288120140232236
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Entity Percentage Holding
Promoters 55.57%
Institutions 0.03%
Non-Institutions 44.39%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Past 10 year’s financial track record indicates that that Kitex Garments Ltd is a below average quality company.

Kitex Garments Ltd's earnings have declined by -10.1%, whereas share price has declined -9.2% CAGR over the past five years, indicating the company’s share price is likely overvalued. However, for specific investment actions please consult your investment advisor.

Kitex Garments Ltd share price has appreciated 18.4% annually (CAGR) over the past ten years.

Past 10 years financial track record analysis by Moneyworks4me indicates that Kitex Garments Ltd is a below average long term investment. However, you need to ensure you buy at a right price to earn good returns.

Kitex Garments incorporated in 1992, it commenced its production in 1996, after setting up its world-class facility on a 105 acre landscape at Kochi. It was primarily conceived with a domestic focus, intending to make the most of the strong brand power the group enjoyed in the state of Kerala. It also tied up with a leading Italian company for manufacture & sale of undergarments positioned at the premium segment.

However, it experienced that the highly up market innerwear products

Kitex Garments incorporated in 1992, it commenced its production in 1996, after setting up its world-class facility on a 105 acre landscape at Kochi. It was primarily conceived with a domestic focus, intending to make the most of the strong brand power the group enjoyed in the state of Kerala. It also tied up with a leading Italian company for manufacture & sale of undergarments positioned at the premium segment.

However, it experienced that the highly up market innerwear products would not generate volumes enough for the huge facility being set-up. Plus the high credit period & even bad debts led the company to naturally shift its focus to the exports markets.

KGL has had a key focus on the US markets, where the customers generally demand for bulk deliveries, much in contrast to the relatively smaller orders by the Europeon buyers. This time round, KGL experienced a little less than expected growth for a few years as most buyer representatives sourced their entire requirement from the textile hub of Tirupur (5 hrs drive from Kochi, with no flight connections).

However, with the coming up of an international airport at Kochi and having been satisfied with the production at its top-class facilities, Kitex Garments has no looking back. Further with no quotas on textiles, it is now enabled to scale up its operations and is poised to evolve as a notable player in the Indian textile space.

Business Area of Company 

The company manufactures all kinds of garments for exports. Infant wear dominates with over 90% share in production; Capacity (infant wear) increased to 200,000 pcs per day; Vertical integration through fabric & processing plant.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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