BSE:532641

Stock Analysis Report

Executive Summary

Nandan Denim Limited manufactures and sells denim and shirting fabrics, yarns, and khakis in India.

Rewards

PE ratio (5.3x) is below the Indian market (13.4x)

Risk Analysis

Earnings have declined by -20.93% per year over past 5 years

Interest payments are not well covered by earnings

Unstable dividend track record

Highly volatile share price over past 3 months

+ 2 more risks


Snowflake Analysis

Fair value with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 532641's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-35.7%

532641

0.2%

IN Luxury

-0.4%

IN Market


1 Year Return

-53.1%

532641

16.6%

IN Luxury

11.1%

IN Market

Return vs Industry: 532641 underperformed the Indian Luxury industry which returned 16.6% over the past year.

Return vs Market: 532641 underperformed the Indian Market which returned 11.1% over the past year.


Shareholder returns

532641IndustryMarket
7 Day-35.7%0.2%-0.4%
30 Day-41.4%3.3%-1.2%
90 Day-33.9%8.5%3.3%
1 Year-53.1%-53.1%17.3%16.6%13.0%11.1%
3 Year-82.8%-83.1%53.8%52.0%25.3%18.6%
5 Year-67.8%-69.2%103.0%96.4%35.4%23.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

5.3x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 532641 (₹19.9) is trading above our estimate of fair value (₹6.96)

Significantly Below Fair Value: 532641 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 532641 is good value based on its PE Ratio (5.3x) compared to the Luxury industry average (11x).

PE vs Market: 532641 is good value based on its PE Ratio (5.3x) compared to the Indian market (13.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 532641's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 532641 is good value based on its PB Ratio (0.2x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

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

19.8%

Forecasted Consumer Durables industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Nandan Denim has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Nandan Denim performed over the past 5 years?

-20.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 532641 has high quality earnings.

Growing Profit Margin: 532641's current net profit margins (0.7%) are lower than last year (1.3%).


Past Earnings Growth Analysis

Earnings Trend: 532641's earnings have declined by -20.9% per year over the past 5 years.

Accelerating Growth: 532641's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 532641 had negative earnings growth (-40%) over the past year, making it difficult to compare to the Luxury industry average (2.7%).


Return on Equity

High ROE: 532641's Return on Equity (2.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Nandan Denim's financial position?


Financial Position Analysis

Short Term Liabilities: 532641's short term assets (₹5.9B) exceed its short term liabilities (₹4.4B).

Long Term Liabilities: 532641's short term assets (₹5.9B) exceed its long term liabilities (₹2.9B).


Debt to Equity History and Analysis

Debt Level: 532641's debt to equity ratio (90.3%) is considered high.

Reducing Debt: 532641's debt to equity ratio has reduced from 159.7% to 90.3% over the past 5 years.

Debt Coverage: 532641's debt is not well covered by operating cash flow (17.7%).

Interest Coverage: 532641's interest payments on its debt are not well covered by EBIT (1.6x coverage).


Balance Sheet

Inventory Level: 532641 has a high level of physical assets or inventory.

Debt Coverage by Assets: 532641's debt is covered by short term assets (assets are 1.3x debt).


Next Steps

Dividend

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

2.51%

Current Dividend Yield


Dividend Yield vs Market

company2.5%marketbottom25%0.6%markettop25%2.5%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 532641's dividend (2.51%) is higher than the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: 532641's dividend (2.51%) is low compared to the top 25% of dividend payers in the Indian market (2.51%).


Stability and Growth of Payments

Stable Dividend: 532641 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 532641 has only been paying a dividend for 7 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (13.3%), 532641's dividend payments are thoroughly 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

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Deepak Chiripal (40yo)

13.8yrs

Tenure

₹9,204,693

Compensation

Mr. Deepak J. Chiripal has been the Chief Executive Officer of Nandan Denim Limited (formerly, Nandan Exim Ltd) since April 1, 2006. Mr. Chiripal served as Managing Director of Nandan Exim Ltd. Mr. Chiripa ...


CEO Compensation Analysis

Compensation vs Market: Deepak's total compensation ($USD128.71K) is above average for companies of similar size in the Indian market ($USD50.14K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Deepak Chiripal
Chief Executive Officer13.8yrs₹9.20m0.27% 2.6m
Ashok Bothra
Chief Financial Officer3.8yrs₹2.35mno data
Purvee Roy
Compliance Officer & Company Secretary0yrs₹970.17kno data
Prakashkumar Sharma
Whole-Time Director & Head of Marketing2.7yrs₹1.70mno data
Jyotiprasad Chiripal
MD & Director2.7yrs₹14.40m1.31% 12.5m
Suresh Maheshwari
COO & Whole Time Director0yrsno datano data
Pinakin Patel
Vice President of Operations0yrsno datano data
Vimal Agarwal
Senior Manager of Accounts0yrsno datano data
Amar Nath
Deputy General Manager of Marketing0yrsno datano data
. Venkatpathy
Chief People Officer0yrsno datano data

3.8yrs

Average Tenure

60yo

Average Age

Experienced Management: 532641's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Prakashkumar Sharma
Whole-Time Director & Head of Marketing2.7yrs₹1.70mno data
Jyotiprasad Chiripal
MD & Director2.7yrs₹14.40m1.31% 12.5m
Suresh Maheshwari
COO & Whole Time Director0yrsno datano data
Tara Sankar Bhattacharya
Non-Executive Independent Director7yrs₹160.00kno data
Vedprakash Chiripal
Chairman of the Board13yrsno data7.51% 71.8m
Pratima Ram
Non-Executive Independent Director5.3yrs₹210.00kno data
Giraj Sharma
Non-Executive Independent Director5.3yrs₹200.00kno data

5.3yrs

Average Tenure

66yo

Average Age

Experienced Board: 532641's board of directors are considered experienced (5.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Nandan Denim Limited
  • Ticker: 532641
  • Exchange: BSE
  • Founded: 1994
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹956.176m
  • Shares outstanding: 48.05m
  • Website: https://www.nandandenim.com

Number of Employees


Location

  • Nandan Denim Limited
  • Chiripal House
  • Near Shivranjani Cross Roads
  • Ahmedabad
  • Gujarat
  • 380015
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532641BSE (Mumbai Stock Exchange)YesEquity SharesININRJun 2005
NDLNSEI (National Stock Exchange of India)YesEquity SharesININRJun 2005

Biography

Nandan Denim Limited manufactures and sells denim and shirting fabrics, yarns, and khakis in India. It also exports its products to approximately 27 countries. The company was formerly known as Nandan Exim Limited and changed its name to Nandan Denim Limited in November 2013. Nandan Denim Limited was incorporated in 1994 and is based in Ahmedabad, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 13:12
End of Day Share Price2020/02/14 00:00
Earnings2019/12/31
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.