ScoreWhy is K G Denim Ltd ?
1
With a Negative Book Value, the company has a Weak Long Term Fundamental Strength
- Poor long term growth as Net Sales has grown by an annual rate of -37.73% and Operating profit at 0% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at 0 times
- The company has reported losses and also has negative networth. This is not a good sign for the investors. Either company will have to raise fresh capital or report profits to sustain going forward
2
The company has declared Negative results for the last 14 consecutive quarters
- PAT(Latest six months) At Rs -2.38 cr has Grown at -40.72%
- INVENTORY TURNOVER RATIO(HY) Lowest at 0.81 times
- DEBTORS TURNOVER RATIO(HY) Lowest at 0.78 times
3
Risky - Negative Book Value
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of -8.10%, its profits have risen by 70.9%
4
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -8.10% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Garments & Apparels)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is K G Denim for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
K G Denim
-21.71%
-0.14
56.12%
Sensex
-11.8%
-0.49
12.94%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-42.09%
EBIT Growth (5y)
-39.49%
EBIT to Interest (avg)
0.25
Debt to EBITDA (avg)
8.48
Net Debt to Equity (avg)
-26.24
Sales to Capital Employed (avg)
0.23
Tax Ratio
25.02%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0.01%
ROCE (avg)
-9.97%
ROE (avg)
1.85%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
3
Industry P/E
27
Price to Book Value
-3.68
EV to EBIT
299.45
EV to EBITDA
33.72
EV to Capital Employed
1.19
EV to Sales
9.04
PEG Ratio
0.02
Dividend Yield
NA
ROCE (Latest)
1.27%
ROE (Latest)
Negative BV
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Mildly Bullish
Dow Theory
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend18What is working for the Company
ROCE(HY)
Highest at 8.88%
PAT(Q)
Highest at Rs 8.60 cr.
EPS(Q)
Highest at Rs 3.35
-20What is not working for the Company
NET SALES(Latest six months)
At Rs 16.56 cr has Grown at -21.29%
INVENTORY TURNOVER RATIO(HY)
Lowest at 0.22 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 0.30 times
INTEREST(Q)
At Rs 8.09 cr has Grown at 148.92%
OPERATING PROFIT TO INTEREST (Q)
Lowest at -0.52 times
DEBT-EQUITY RATIO(HY)
Highest at 73.32 times
PBDIT(Q)
Lowest at Rs -4.19 cr.
OPERATING PROFIT TO NET SALES (Q)
Lowest at 0.00%
PBT LESS OI(Q)
Lowest at Rs -14.33 cr.
NON-OPERATING INCOME(Q)
is 273.91 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for K G Denim
Profit After Tax (PAT) - Quarterly
At Rs 8.60 cr has Grown at 6715.4% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs -0.13 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 8.60 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 3.35
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for K G Denim
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs -14.33 cr has Fallen at -189.3% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs -4.95 CrMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Interest - Quarterly
At Rs 8.09 cr has Grown at 148.92%
Quarter on Quarter (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Operating Profit to Interest - Quarterly
Lowest at -0.52 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Net Sales - Latest six months
At Rs 16.56 cr has Grown at -21.29%
Year on Year (YoY)MOJO Watch
Near term sales trend is negative
Net Sales (Rs Cr)
Inventory Turnover Ratio- Half Yearly
Lowest at 0.22 times and Fallen
each half year in the last five half yearly periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio- Half Yearly
Lowest at 0.30 times and Fallen
each half year in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
Operating Profit (PBDIT) - Quarterly
Lowest at Rs -4.19 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Lowest at 0.00%
in the last five quartersMOJO Watch
Company's efficiency has deteriorated
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Lowest at Rs -14.33 cr.
in the last five quartersMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
Non Operating Income - Quarterly
is 273.91 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
Debt-Equity Ratio - Half Yearly
Highest at 73.32 times
in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Non Operating Income - Quarterly
Highest at Rs 22.57 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
