BSE:500239

Stock Analysis Report

Executive Summary

K G Denim Limited manufactures and sells denim and apparel fabrics to fashion brands and retailers worldwide.

Snowflake

Fundamentals

Acceptable track record second-rate dividend payer.

Share Price & News

How has K G Denim's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

9.8%

500239

1.0%

IN Luxury

1.4%

IN Market


1 Year Return

-11.9%

500239

9.3%

IN Luxury

2.3%

IN Market

Return vs Industry: 500239 underperformed the Indian Luxury industry which returned 9.3% over the past year.

Return vs Market: 500239 underperformed the Indian Market which returned 2.3% over the past year.


Shareholder returns

500239IndustryMarket
7 Day9.8%1.0%1.4%
30 Day-16.1%4.8%2.7%
90 Day-39.1%6.0%-1.4%
1 Year-9.6%-11.9%10.2%9.3%4.3%2.3%
3 Year-74.1%-75.6%47.5%45.8%20.9%14.9%
5 Year48.6%36.0%105.1%101.4%41.2%28.2%

Price Volatility Vs. Market

How volatile is K G Denim's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is K G Denim undervalued compared to its fair value and its price relative to the market?

7.22x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: 500239 (₹24) is trading above our estimate of fair value (₹9.4)

Significantly Undervalued: 500239 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 500239 is good value based on its PE Ratio (7.2x) compared to the Luxury industry average (10.2x).

PE vs Market: 500239 is good value based on its PE Ratio (7.2x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate 500239's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 500239 is overvalued based on its PB Ratio (0.6x) compared to the IN Luxury industry average (0.6x).


Next Steps

Future Growth

How is K G Denim forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

2.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 500239's forecast earnings growth (2.1% per year) is below the savings rate (7.6%).

Earnings vs Market: 500239's earnings (2.1% per year) are forecast to grow slower than the Indian market (18.1% per year).

High Growth Earnings: 500239's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 500239's revenue is forecast to grow faster than the Indian market.

High Growth Revenue: Insufficient data to determine if 500239's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if 500239's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has K G Denim performed over the past 5 years?

3.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 500239's earnings have grown by 3.9% per year over the past 5 years.

Accelerating Growth: 500239's earnings growth over the past year (835.2%) exceeds its 5-year average (3.9% per year).

Earnings vs Industry: 500239 earnings growth over the past year (835.2%) exceeded the Luxury industry 7.9%.


Return on Equity

High ROE: 500239's Return on Equity (8.6%) is considered low.


Return on Assets

ROA vs Industry: 500239's Return on Assets is below or equal to the Luxury industry average last year.


Return on Capital Employed

ROCE Improving: 500239's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is K G Denim's financial position?


Financial Position Analysis

Short Term Liabilities: 500239's short term assets (₹2.6B) do not cover its short term liabilities (₹2.6B)

Long Term Liabilities: 500239's short term assets (2.6B) exceeds its long term liabilities (1.0B)


Debt to Equity History and Analysis

Debt Level: 500239's debt to equity ratio (196.7%) is considered high

Reducing Debt: 500239's debt to equity ratio has reduced from 205.9% to 196.7% over the past 5 years.

Debt Coverage: 500239's debt is not well covered by operating cash flow (13.4%).

Interest Coverage: 500239's interest payments on its debt are not well covered by EBIT (1.8x coverage).


Balance Sheet

Inventory Level: 500239 has a high level of physical assets or inventory.

Debt Coverage by Assets: 500239's debt is covered by short term assets (assets are 1.327470x debt).


Next Steps

Dividend

What is K G Denim's current dividend yield, its reliability and sustainability?

3.13%

Current Dividend Yield


Dividend Yield vs Market

company3.1%marketbottom25%0.6%markettop25%2.5%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 500239's dividend (3.13%) is higher than the bottom 25% of dividend payers in the Indian market (0.61%).

High Dividend: 500239's dividend (3.13%) is in the top 25% of dividend payers in the Indian market (2.51%)

Stable Dividend: Whilst dividend payments have been stable, 500239 has been paying a dividend for less than 10 years.

Growing Dividend: 500239 has only been paying a dividend for 7 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (22.6%), 500239's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of K G Denim's salary, the management and board of directors tenure and is there insider trading?

7.5yrs

Average board tenure


CEO

B. Srihari (50yo)

0yrs

Tenure

₹4,900,000

Compensation

Mr. B. Srihari serves as the Managing Director of KG Denim Ltd. and KG Fabriks Ltd. Mr. Srihari joined KG Denim in November 3, 2003. He has 17 years experience. Mr. Srihari serves as an Executive Director  ...


CEO Compensation Analysis

Compensation vs. Market: B.'s total compensation ($USD68.61K) is above average for companies of similar size in the Indian market ($USD27.28K).

Compensation vs Earnings: B.'s compensation has been consistent with company performance over the past year.


Board Age and Tenure

7.5yrs

Average Tenure

71yo

Average Age

Experienced Board: 500239's board of directors are considered experienced (7.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • K. Baalakrishnan (79yo)

    Executive Chairman

    • Tenure: 0yrs
    • Compensation: ₹6.00m
  • B. Srihari (50yo)

    MD & Executive Director

    • Tenure: 0yrs
    • Compensation: ₹4.90m
  • Balakrishnan Sriramulu (52yo)

    MD & Executive Director

    • Tenure: 0yrs
    • Compensation: ₹4.90m
  • S. Muthuswamy (63yo)

    Chief Financial Officer

    • Tenure: 2.3yrs
    • Compensation: ₹1.62m
  • M. Balaji

    Compliance Officer & Company Secretary

    • Tenure: 2.3yrs
    • Compensation: ₹2.40m

Board Members

  • Kodumudi Narayanaswami Ramani (88yo)

    Independent Director

    • Tenure: 0yrs
    • Compensation: ₹160.00k
  • G. V. Desikan (87yo)

    Independent Director

    • Tenure: 0yrs
    • Compensation: ₹150.00k
  • K. Baalakrishnan (79yo)

    Executive Chairman

    • Tenure: 0yrs
    • Compensation: ₹6.00m
  • B. Srihari (50yo)

    MD & Executive Director

    • Tenure: 0yrs
    • Compensation: ₹4.90m
  • Balakrishnan Sriramulu (52yo)

    MD & Executive Director

    • Tenure: 0yrs
    • Compensation: ₹4.90m
  • A. Velusamy (63yo)

    Director

    • Tenure: 14.5yrs
    • Compensation: ₹147.75k
  • T. Anandhi (54yo)

    Non-Executive Director

    • Tenure: 0yrs
    • Compensation: ₹778.87k
  • G. Muniappan (77yo)

    Independent Director

    • Tenure: 11yrs
    • Compensation: ₹160.00k
  • Mandavilli Bhaskara Rao (71yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: ₹10.00k
  • A. Seturaaman

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: ₹60.00k

Company Information

K G Denim Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: K G Denim Limited
  • Ticker: 500239
  • Exchange: BSE
  • Founded: 1992
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹584.542m
  • Shares outstanding: 25.64m
  • Website: https://www.kgdenim.com

Location

  • K G Denim Limited
  • Then Thirumalai
  • Jadayampalayam
  • Coimbatore
  • Tamil Nadu
  • 641302
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500239BSE (Mumbai Stock Exchange)YesEquity SharesININRJul 1998

Biography

K G Denim Limited manufactures and sells denim and apparel fabrics to fashion brands and retailers worldwide. It operates through Textiles, Power, and Garments segments. The company offers home textile pro ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 12:38
End of Day Share Price2019/10/17 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.