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Konark Synthetic Ltd. Stock Analysis

Small Cap
Evaluated by 40 users | BSE: 514128 | NSE: |
Textile
Konark Synthetics (KSL) was incorporated in the year 1984 and is promoted by Prakash Dalmia and Ram Niranjan Tibrewala. The company has two plants, one in Palghar and the other at Silvassa for fancy twisting and air texturising respectively.   In 1989, KSL went public with an equity...

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 4.78%6.71%5.64%5.88%3.83%3.64%3.82%-0.12%4.51%1.84%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 76.187.596.210310611411411494.577.6
Y-o-Y Gr. Rt.-15%9.9%6.8%2.8%8.2%-0.3%0.6%-17.5%-17.8%
Adjusted EPS (Rs.) 1.92.872.051.61.871.030.3-5.911.16-2.6
Y-o-Y Gr. Rt.-51.1%-28.6%-22%16.9%-44.9%-70.9%-2070%NA-324.1%
Book Value per Share (Rs.) 45.247.2649.2950.8952.7652.0952.3750.5449.4346.66
Adjusted Net Profit 1.11.71.20.91.10.60.2-3.40.7-1.5
Net Op. Cash Flow (Rs. Cr.) 2.2-3.5-0.8-16.10.84.716.27.36.36.2
Debt to Cash Flow from Ops 21.14-14.01-66.42-4.1878.0813.833.287.797.43
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.
Konark Synthetic Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 0.2%-6%-12%-17.8%
Adjusted EPS -203.6%-206.8%-305.4%-324.1%
Book Value per Share 0.4-2.4-3.8-5.6
Share Price -7% -7.6% -11.8% -30.8%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Equity (%) 4.246.214.243.23.611.960.57-11.492.33-5.42
Operating Profit Margin (%) 8.9911.139.347.635.786.756.472.255.014.99
Net Profit Margin (%) 1.451.91.240.911.030.520.15-30.72-1.95
Debt to Equity 1.731.771.842.282.12.131.71.981.721.71
Working Capital Days 207166190229263247207185225271
Cash Conversion Cycle 74101108120138137133124150172
Entity Percentage Holding
Promoters 74.99%
Non-Institutions 25.01%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Konark Synthetic's performance infers:

Konark Synthetic earnings have declined by -206.8%, whereas share price has depreciated -7.6% 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 Konark Synthetic share prices over the last 10 years. Here is what we found out:

Konark Synthetic share price has depreciated -7.4% annually over the past ten years.

Konark Synthetics (KSL) was incorporated in the year 1984 and is promoted by Prakash Dalmia and Ram Niranjan Tibrewala. The company has two plants, one in Palghar and the other at Silvassa for fancy twisting and air texturising respectively.   

In 1989, KSL went public with an equity issue at par of Rs.60 lakh to part finance its expansion. The expansion envisaged setting up two more units at Silvassa and Palghar for air texturising and fancy twisting respectively.  It

Konark Synthetics (KSL) was incorporated in the year 1984 and is promoted by Prakash Dalmia and Ram Niranjan Tibrewala. The company has two plants, one in Palghar and the other at Silvassa for fancy twisting and air texturising respectively.   

In 1989, KSL went public with an equity issue at par of Rs.60 lakh to part finance its expansion. The expansion envisaged setting up two more units at Silvassa and Palghar for air texturising and fancy twisting respectively.  It acquired the air texturising technology and machines from Japanese AIKI. An expansion project for projectile shuttleless weaving with the latest technology is also on the anvil. The group is also setting up another export oriented unit for the manufacture of terry towels. The Silvassa unit (Dadra & Nagar Haveli) was commissioned from July 1989, while the Palghar (Thana) unit was commissioned in 1987.        

During 1989-90, the fancy unit at Palghar suffered a setback due to reduced activity on  account of frequent labour agitations, decrease in average sales realisation of fancy yarns and increase in input yarn prices. In 1990-91, the Palghar unit remained closed due to a labour agitation. However, an agreement was arrived at with the union and the production was resumed from April 1991, on a single shift basis.

Business areas of the company:

The company is engaged in air-texturising of synthetic yarns and fancy twisting and hollow spindle, fancy doubling and twisting computerised printing of synthetic and blended yarns.

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

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