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 -36.46% and Operating profit at -184.63% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at 2.77 times
- The company has been able to generate a Return on Equity (avg) of 1.85% signifying low profitability per unit of shareholders funds
2
The company has declared Negative results for the last 13 consecutive quarters
- OPERATING CF(Y) Lowest at Rs -1.76 Cr
- PAT(Latest six months) At Rs -1.43 cr has Grown at -51.83%
- NET SALES(Q) At Rs 8.04 cr has Fallen at -34.4% (vs previous 4Q average)
3
Risky - Negative Operating Profits
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of -30.66%, its profits have risen by 54.6%
4
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -30.66% 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, Low Return
Absolute
Risk Adjusted
Volatility
K G Denim
-8.35%
-0.54
56.61%
Sensex
-4.3%
0.43
11.83%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-37.73%
EBIT Growth (5y)
-6.04%
EBIT to Interest (avg)
0.25
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
-26.20
Sales to Capital Employed (avg)
0.30
Tax Ratio
25.02%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0.01%
ROCE (avg)
-21.21%
ROE (avg)
1.85%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
20
Price to Book Value
-4.31
EV to EBIT
63.83
EV to EBITDA
23.41
EV to Capital Employed
1.21
EV to Sales
6.82
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-21.21%
ROE (Latest)
Negative BV
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bullish
Dow Theory
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend0What is working for the Company
NO KEY POSITIVE TRIGGERS
-19What is not working for the Company
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
NET SALES(Q)
At Rs 8.53 cr has Fallen at -18.7% (vs previous 4Q average
DEBT-EQUITY RATIO(HY)
Highest at 53.91 times
Loading Valuation Snapshot...
Here's what is not working for K G Denim
Profit After Tax (PAT) - Latest six months
At Rs -2.38 cr has Grown at -40.72%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Net Sales - Quarterly
At Rs 8.53 cr has Fallen at -18.7% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 10.50 CrMOJO Watch
Near term sales trend is very negative
Net Sales (Rs Cr)
Inventory Turnover Ratio- Half Yearly
Lowest at 0.81 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 0.78 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
Debt-Equity Ratio - Half Yearly
Highest at 53.91 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
