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Mafatlal Industries Ltd. Stock Analysis

Small Cap
Evaluated by 200 users | BSE: 500264 | NSE: MAFATLAIND |
Textile
Mafatlal Industries Ltd., a flagship company of the Arvind Mafatlal Group that has vertically integrated composite textile mills, was incorporated in 1913 at Ahmedabad. The company is engaged in manufacture of textiles and textile chemicals. The total capacity of the two mills, located at...

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
 Jun'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 106.39%-2.98%19.94%6.07%3.74%4.94%1.58%-2.64%-11.74%0.27%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 6301927979181,0141,3231,2391,1681,0241,005
Y-o-Y Gr. Rt.--69.6%316.1%15.1%10.4%30.5%-6.4%-5.8%-12.3%-1.8%
Adjusted EPS (Rs.) 289.28-18.9958.8612.874.759.14-5.21-33.4-88.85-14.72
Y-o-Y Gr. Rt.--106.6%NA-78.1%-63.1%92.4%-157%NANANA
Book Value per Share (Rs.) 335.94414.78330.25249.58262.68271.38423.74573.76364.07204.02
Adjusted Net Profit 284-18.657.817.96.612.7-7.3-46.5-124-20.5
Net Op. Cash Flow (Rs. Cr.) 430-49620.9126.9-35.487.912.5824.1
Debt to Cash Flow from Ops 0.14-0.015.0210.221.43-6.342.8518.7125.956.21
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.
Mafatlal Industries Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 5.3%-0.2%-6.7%-1.8%
Adjusted EPS -171.8%-225.4%NANA
Book Value per Share -5.4-4.9-21.6-44
Share Price -5.9% -20.6% -32% 26.9%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Jun'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 135.58-3.7116.665.081.863.42-1.5-6.7-18.94-5.17
Operating Profit Margin (%) 58.84-29.775.953.091.953.031.23-0.66-5.98-0.69
Net Profit Margin (%) 45.04-9.727.241.950.650.96-0.59-3.98-12.08-2.04
Debt to Equity 0.160.020.30.350.40.590.420.290.410.53
Working Capital Days 64493157173176171207216227216
Cash Conversion Cycle -135573951454258605025
Entity Percentage Holding
Promoters 72.08%
Institutions 2.59%
Non-Institutions 25.33%
Pledged *24.7824.7824.7825.7425.7425.7425.7469.7069.7069.70
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

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

Mafatlal Industries Ltd. earnings have declined by -225.4%, whereas share price has depreciated -20.6% 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 Mafatlal Industries Ltd. share prices over the last 10 years. Here is what we found out:

Mafatlal Industries Ltd. share price has depreciated -11.5% annually over the past ten years.

Mafatlal Industries Ltd., a flagship company of the Arvind Mafatlal Group that has vertically integrated composite textile mills, was incorporated in 1913 at Ahmedabad. The company is engaged in manufacture of textiles and textile chemicals.

The total capacity of the two mills, located at Navsari (near Surat) and Nadiad (near Ahmedabad) is 30 million meters per annum (85,000 meters per day). The mills are equipped to do bleaching, dyeing, calico printing, mercerising, calendering,

Mafatlal Industries Ltd., a flagship company of the Arvind Mafatlal Group that has vertically integrated composite textile mills, was incorporated in 1913 at Ahmedabad. The company is engaged in manufacture of textiles and textile chemicals.

The total capacity of the two mills, located at Navsari (near Surat) and Nadiad (near Ahmedabad) is 30 million meters per annum (85,000 meters per day). The mills are equipped to do bleaching, dyeing, calico printing, mercerising, calendering, sanforising, anti-creasing and texturising. Mafatlal Industries has been a leader in textiles for nearly 100 years. It has an installed capacity of 100,000 spindles, 816 rotors and 492 looms and a capability to process 60,000 meters of fabrics per day.

Mafatlal Industries produces some of the finest fabrics, in a count range of 12's to 105's, which are exported to the most demanding buyers of Europe, UK, USA and Middle East.MIL produces a complete range of products in 100% cotton and in polyester/ cotton blends, consisting of yarn dyed and piece dyed shirtings, poplins, bottomwear fabrics, cambrics, fine lawns and voiles. In addition to these, the mills also have the capacity to produce printed voiles and dress materials.

Product range of the company includes:

  • Shirtings- It offers shirtings in multifarious designs and colours with unique patterns of textures and weaves, which suit casual as well as formal occasions.
  • Prints.
  • Voiles- The company specialize in premium voiles. These voiles are available in floral prints, solids, lenos and dobbies.
  • Sleepwear- The company caters to sleepwear products which hold immense value for its superior quality and comfortable clothing, namely, lawn, voiles, satins and flannels.
  • Beachwear
  • Bottomwear- The company offers a range of chinos and twills in 100% cotton & blend with surface, elegantly styled and available in Two/ Three folds and soft finish for you to enjoy a comfortable and an eye-catching wear.
  • Kidswear- Mafatlals has always had great endeavours to delight kids with bright colour schemes for wovens and character prints alongwith soft and smooth flannels, which are eco-friendly, keeping in mind the comfort of the wearer.
  • Speciality Products

Other group Companies:

  • Navin Flourine International Limited- It’s the Largest integrated fluorochemicals complex in India, since 1967.
  • Mafatlal Denim Limited- Mafatlal Industries Limited, India and Burlington Industries, USA joined hands to form Mafatlal Burlington Industries Limited. This joint venture company was established for the manufacture and marketing of denim fabrics. In April 2006, the Arvind Mafatlal Group - India acquired Burlington Industries' equity in the joint venture and the company is now called 'Mafatlal Denim Limited'.
  • NOCIL Limited- NOCIL commenced its rubber chemicals manufacturing operations in the year 1976, it offers a wide range of rubber chemicals.

Milestones:

  • 1905  First Textile mill set-up in Ahmedabad. 
  • 1912  Old unit bought at Nadiad
  • 1916  Bought Jaffer Ali Mill & renamed it as Surat Cotton Spinning & Weaving Mills.
  • 1919  Took over China Mill at Mumbai.
  • 1958  Franchise retail shops opened for market Growth. 
  • 1962  New unit constructed at Nadiad. 
  • 1970  1980 - Consolidation of existing business. 
  • 1981 Set up direct distribution system. 
  • 1982 Set up 2 tier system (Wholesalers to semi-wholesalers). 
  • 1984  Tie-up with 'Tootal' for Technological upgradation named as ‘TOOTAL’.  
  • Post 1990 Focus on export of high-value products to European markets and on HR initiatives for People Development. Collaboration with Burlington; set- up state-of-the-art denim manufacturing. Joint Venture with Grupo la Perla & Silvia.

Achievements/ recognition :

  • Obtained ISO-9002 Certification in 1994.
  • ISO 9000 and Oekotex certified.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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