NSEI:NANDANI

Stock Analysis Report

Executive Summary

Nandani Creation Limited, together with its subsidiaries, manufactures, imports, exports, and trades in apparels for men, women, and children in India and internationally.

Rewards

PE ratio (6.6x) is below the Indian market (13.1x)

Earnings have grown 30.9% per year over the past 5 years

Risk Analysis

Interest payments are not well covered by earnings

Shareholders have been substantially diluted in the past year

Does not have a meaningful market cap (₹57M)



Snowflake Analysis

Mediocre balance sheet and slightly overvalued.


Similar Companies

Share Price & News

How has Nandani Creation's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NANDANI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.8%

NANDANI

-0.5%

IN Luxury

-1.5%

IN Market


1 Year Return

-41.8%

NANDANI

18.2%

IN Luxury

10.7%

IN Market

Return vs Industry: NANDANI underperformed the Indian Luxury industry which returned 18.2% over the past year.

Return vs Market: NANDANI underperformed the Indian Market which returned 10.7% over the past year.


Shareholder returns

NANDANIIndustryMarket
7 Day4.8%-0.5%-1.5%
30 Day10.0%3.0%-2.7%
90 Day14.9%9.2%1.3%
1 Year-41.8%-41.8%19.0%18.2%12.7%10.7%
3 Yearn/a52.2%48.8%22.0%15.1%
5 Yearn/a106.9%100.1%34.5%22.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Nandani Creation undervalued compared to its fair value and its price relative to the market?

6.64x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate NANDANI's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate NANDANI's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: NANDANI is good value based on its PE Ratio (6.6x) compared to the Luxury industry average (11.2x).

PE vs Market: NANDANI is good value based on its PE Ratio (6.6x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: NANDANI is overvalued based on its PB Ratio (0.6x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

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

19.9%

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 Nandani Creation 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 Nandani Creation performed over the past 5 years?

30.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NANDANI has high quality earnings.

Growing Profit Margin: NANDANI's current net profit margins (2.4%) are lower than last year (2.9%).


Past Earnings Growth Analysis

Earnings Trend: NANDANI's earnings have grown significantly by 30.9% per year over the past 5 years.

Accelerating Growth: NANDANI's earnings growth over the past year (4.7%) is below its 5-year average (30.9% per year).

Earnings vs Industry: NANDANI earnings growth over the past year (4.7%) underperformed the Luxury industry 5.6%.


Return on Equity

High ROE: NANDANI's Return on Equity (11.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Nandani Creation's financial position?


Financial Position Analysis

Short Term Liabilities: NANDANI's short term assets (₹298.3M) exceed its short term liabilities (₹176.5M).

Long Term Liabilities: NANDANI's short term assets (₹298.3M) exceed its long term liabilities (₹47.7M).


Debt to Equity History and Analysis

Debt Level: NANDANI's debt to equity ratio (114%) is considered high.

Reducing Debt: NANDANI's debt to equity ratio has reduced from 563.7% to 114% over the past 5 years.

Debt Coverage: NANDANI's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: NANDANI's interest payments on its debt are not well covered by EBIT (2.3x coverage).


Balance Sheet

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

Debt Coverage by Assets: NANDANI's debt is covered by short term assets (assets are 2.8x debt).


Next Steps

Dividend

What is Nandani Creation's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%0.6%markettop25%2.6%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate NANDANI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate NANDANI's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if NANDANI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NANDANI's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NANDANI's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

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

3.5yrs

Average board tenure


CEO

Anuj Mundra (38yo)

3.5yrs

Tenure

₹1,080,000

Compensation

Mr. Anuj Mundra serves as the Chairman of Nandani Creation Limited and has been its Director since February 21, 2012. Mr. Mundra has been Managing Director of Nandani Creation Limited since August 16, 2016 ...


CEO Compensation Analysis

Compensation vs Market: Anuj's total compensation ($USD15.09K) is below average for companies of similar size in the Indian market ($USD50.34K).

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


Board Members

NamePositionTenureCompensationOwnership
Anuj Mundra
Chairman & MD3.5yrs₹1.08m34.54% 19.6m
Vandna Mundra
Whole Time Director0yrs₹1.08m17.52% 9.9m
Sunita Mundhra
Whole-Time Director0yrs₹720.00k5.39% 3.1m
Gagan Saboo
Independent & Non-Executive Director3.5yrsno datano data
Gaurav Jain
Independent & Non-Executive Director3.5yrsno datano data
Neetesh Kabra
Independent & Non-Executive Director3.5yrsno datano data

3.5yrs

Average Tenure

38yo

Average Age

Experienced Board: NANDANI's board of directors are considered experienced (3.5 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 52.5%.


Top Shareholders

Company Information

Nandani Creation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nandani Creation Limited
  • Ticker: NANDANI
  • Exchange: NSEI
  • Founded: 2004
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: ₹56.779m
  • Shares outstanding: 7.37m
  • Website: https://www.nandanicreation.com

Location

  • Nandani Creation Limited
  • G-13, Kartarpura Industrial Area
  • Near 22 Godam
  • Jaipur
  • Rajasthan
  • 302006
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NANDANINSEI (National Stock Exchange of India)YesEquity SharesININROct 2016

Biography

Nandani Creation Limited, together with its subsidiaries, manufactures, imports, exports, and trades in apparels for men, women, and children in India and internationally. The company offers kurtis, dresses and tunics, tops, palazzos, suit sets, kurta palazzo sets, kurta skirt sets, ethnic tops, pants, patialas, salwar suits, dupattas, jackets, jumpsuits, bottom wears, etc. It also provides sportswear, active wear, daily wears, fashion wears, party wears, purses, belts, wallets, and other allied goods. The company sells its products under the Jaipur Kurti and Amaiva brand name; and through its own Website, jaipurkurti.com, as well as e-retail channels. Nandani Creation Limited was founded in 2004 and is based in Jaipur, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 13:18
End of Day Share Price2020/02/17 00:00
Earnings2019/09/30
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.