NSEI:NDL

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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


Market Performance


7 Day Return

-1.9%

NDL

-0.02%

IN Luxury

1.6%

IN Market


1 Year Return

-59.0%

NDL

7.7%

IN Luxury

0.8%

IN Market

Return vs Industry: NDL underperformed the Indian Luxury industry which returned 7.7% over the past year.

Return vs Market: NDL underperformed the Indian Market which returned 0.8% over the past year.


Shareholder returns

NDLIndustryMarket
7 Day-1.9%-0.02%1.6%
30 Day-11.5%5.5%1.5%
90 Day-13.8%3.9%-3.3%
1 Year-59.0%-59.0%8.6%7.7%2.7%0.8%
3 Year-78.0%-78.5%49.5%47.8%22.0%16.0%
5 Year-27.2%-30.9%108.9%105.0%42.3%29.3%

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

Valuation

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

7.07x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: NDL (₹30.3) is trading above our estimate of fair value (₹6.43)

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


Price To Earnings Ratio

PE vs Industry: NDL is good value based on its PE Ratio (7.1x) compared to the Luxury industry average (10.1x).

PE vs Market: NDL is good value based on its PE Ratio (7.1x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: NDL is good value based on its PB Ratio (0.3x) compared to the IN Luxury industry average (0.6x).


Next Steps

Future Growth

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

9.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NDL's forecast earnings growth (9.5% per year) is above the savings rate (7.6%).

Earnings vs Market: NDL's earnings (9.5% per year) are forecast to grow slower than the Indian market (18.3% per year).

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

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

High Growth Revenue: Insufficient data to determine if NDL'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 NDL's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Nandan Denim performed over the past 5 years?

-10.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NDL's earnings have declined by -10.9% per year over the past 5 years.

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

Earnings vs Industry: NDL had negative earnings growth (-43.8%) over the past year, making it difficult to compare to the Luxury industry average (7.8%).


Return on Equity

High ROE: NDL's Return on Equity (4.1%) is considered low.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Nandan Denim's financial position?


Financial Position Analysis

Short Term Liabilities: NDL's short term assets (₹6.1B) exceeds its short term liabilities (₹4.5B)

Long Term Liabilities: NDL's short term assets (6.1B) exceeds its long term liabilities (3.3B)


Debt to Equity History and Analysis

Debt Level: NDL's debt to equity ratio (108.2%) is considered high

Reducing Debt: NDL's debt to equity ratio has reduced from 208% to 108.2% over the past 5 years.

Debt Coverage: NDL's debt is not well covered by operating cash flow (14.9%).

Interest Coverage: NDL's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet

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

Debt Coverage by Assets: NDL's debt is covered by short term assets (assets are 1.143460x debt).


Next Steps

Dividend

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

1.69%

Current Dividend Yield


Dividend Yield vs Market

company1.7%marketbottom25%0.6%markettop25%2.5%industryaverage0.7%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: NDL's dividend (1.69%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: NDL's dividend (1.69%) is low compared to the top 25% of dividend payers in the Indian market (2.49%).

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

Growing Dividend: NDL 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 (12%), NDL'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

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

3.4yrs

Average management tenure


CEO

Deepak Chiripal (40yo)

13.5yrs

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 ($USD129.77K) is above average for companies of similar size in the Indian market ($USD25.38K).

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


Management Age and Tenure

3.4yrs

Average Tenure

60yo

Average Age

Experienced Management: NDL's management team is considered experienced (3.4 years average tenure).


Board Age and Tenure

4.9yrs

Average Tenure

67yo

Average Age

Experienced Board: NDL's board of directors are considered experienced (4.9 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.


Recent Insider Transactions

Buy₹3,277,49909 Jan 19
Chiripal Exim LLP
EntityCompany
Shares50,000
Max Price₹65.55
Buy₹2,562,39717 Dec 18
Vedprakash Chiripal
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares40,000
Max Price₹64.06

Ownership Breakdown


Management Team

  • Amar Nath (54yo)

    Deputy General Manager of Marketing

    • Tenure: 0yrs
  • Deepak Chiripal (40yo)

    Chief Executive Officer

    • Tenure: 13.5yrs
    • Compensation: ₹9.20m
  • Pinakin Patel

    Vice President of Operations

    • Tenure: 0yrs
  • Jyotiprasad Chiripal (66yo)

    MD & Director

    • Tenure: 2.3yrs
    • Compensation: ₹14.40m
  • Suresh Maheshwari (61yo)

    Chief Operating Officer

    • Tenure: 0yrs
  • Purvee Roy

    Compliance Officer & Company Secretary

    • Tenure: 0yrs
    • Compensation: ₹970.17k
  • Prakashkumar Sharma (60yo)

    Whole-Time Director & Head of Marketing

    • Tenure: 2.3yrs
    • Compensation: ₹1.70m
  • Ashok Bothra

    Chief Financial Officer

    • Tenure: 3.4yrs
    • Compensation: ₹2.35m
  • . Venkatpathy

    Chief People Officer

    • Tenure: 0yrs
  • Vimal Agarwal

    Senior Manager of Accounts

    • Tenure: 0yrs

Board Members

  • Tara Sankar Bhattacharya (71yo)

    Non-Executive Independent Director

    • Tenure: 6.7yrs
    • Compensation: ₹160.00k
  • Vedprakash Chiripal (68yo)

    Chairman of the Board

    • Tenure: 12.7yrs
  • Jyotiprasad Chiripal (66yo)

    MD & Director

    • Tenure: 2.3yrs
    • Compensation: ₹14.40m
  • Pratima Ram (69yo)

    Non-Executive Independent Director

    • Tenure: 4.9yrs
    • Compensation: ₹210.00k
  • Giraj Sharma (58yo)

    Non-Executive Independent Director

    • Tenure: 4.9yrs
    • Compensation: ₹200.00k
  • Prakashkumar Sharma (60yo)

    Whole-Time Director & Head of Marketing

    • Tenure: 2.3yrs
    • Compensation: ₹1.70m

Company Information

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


Key Information

  • Name: Nandan Denim Limited
  • Ticker: NDL
  • Exchange: NSEI
  • Founded: 1994
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹1.490b
  • 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 12:48
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
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.