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Last Updated on: 23 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Nandan Denim Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 22, 2024, 9:51 pm

Market Cap 694 Cr.
Current Price 4.91
High / Low7.35/2.60
Stock P/E13.5
Book Value 4.17
Dividend Yield0.00 %
ROCE11.5 %
ROE7.71 %
Face Value 1.00
PEG Ratio67.77

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Nandan Denim Ltd

Competitors of Nandan Denim Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Vinny Overseas Ltd 81.0 Cr. 1.756.21/1.6039.9 1.670.00 %13.3 %12.1 % 1.00
Nandan Denim Ltd 694 Cr. 4.917.35/2.6013.5 4.170.00 %11.5 %7.71 % 1.00
Mittal Life Style Ltd 91.9 Cr. 2.077.40/1.7156.4 0.760.00 %2.23 %0.78 % 1.00
Arvind Ltd 9,524 Cr. 364421/21332.9 1341.03 %13.1 %9.73 % 10.0
Aarvee Denims & Exports Ltd 164 Cr. 69.769.8/21.69.20 20.50.00 %10.0 %117 % 10.0
Industry Average3,460.67 Cr88.4930.3832.220.21%10.03%29.46%4.60

All Competitor Stocks of Nandan Denim Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales311.62372.22360.27510.93583.18721.20779.78527.59262.24457.16554.37414.42462.18
Expenses285.17321.82327.26463.70535.29689.11741.84504.53262.27433.77534.03387.75429.85
Operating Profit26.4550.4033.0147.2347.8932.0937.9423.06-0.0323.3920.3426.6732.33
OPM %8.49%13.54%9.16%9.24%8.21%4.45%4.87%4.37%-0.01%5.12%3.67%6.44%7.00%
Other Income6.341.791.886.353.886.493.430.641.725.833.394.011.39
Interest7.8712.5211.3812.3910.807.4911.7912.9111.3117.3711.8110.3310.46
Depreciation21.8721.838.569.9413.9112.0813.337.628.118.139.689.729.77
Profit before tax3.0517.8414.9531.2527.0619.0116.253.17-17.733.722.2410.6313.49
Tax %0.00%14.46%30.30%28.83%27.09%18.78%35.02%81.39%24.53%18.28%24.11%22.86%40.99%
Net Profit3.0415.2610.4222.2419.7215.4310.560.59-13.383.031.718.207.96
EPS in Rs0.211.060.721.541.371.070.730.04-0.930.210.120.570.55

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales5747038941,0971,1571,2201,5891,4561,5241,0902,1762,0271,688
Expenses4965967619319661,0341,3631,3071,4191,0082,0151,9421,618
Operating Profit78107133165191187226149105821608470
OPM %14%15%15%15%17%15%14%10%7%8%7%4%4%
Other Income92434211413197191215
Interest28323238413658274342425351
Depreciation3341506066861211048878453736
Profit before tax2636557188856131-7-31925-1
Tax %29%13%28%28%28%15%24%32%92%40%27%85%
Net Profit1931395163734621-1-19681-0
EPS in Rs1.382.272.883.774.645.033.221.47-0.04-1.304.700.06-0.03
Dividend Payout %24%18%14%14%12%11%8%11%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)63.16%25.81%30.77%23.53%15.87%-36.99%-54.35%-104.76%-1800.00%457.89%-98.53%
Change in YoY Net Profit Growth (%)0.00%-37.35%4.96%-7.24%-7.66%-52.86%-17.36%-50.41%-1695.24%2257.89%-556.42%

Nandan Denim Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:8%
5 Years:7%
3 Years:23%
TTM:55%
Compounded Profit Growth
10 Years:1%
5 Years:15%
3 Years:168%
TTM:7331%
Stock Price CAGR
10 Years:12%
5 Years:38%
3 Years:21%
1 Year:53%
Return on Equity
10 Years:8%
5 Years:4%
3 Years:7%
Last Year:8%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 8:00 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital464646464848484848144144144144
Reserves138171213268390426443442423395396441457
Borrowings402452471511638640603522552558465330308
Other Liabilities92124130193205231170201160346262267398
Total Liabilities6777928601,0181,2801,3451,2641,2131,1831,4431,2671,1821,307
Fixed Assets341452437480798737632584503544534508482
CWIP54011906015020511
Investments0477211100001
Other Assets282335405440475607615627678899727673823
Total Assets6777928601,0181,2801,3451,2641,2131,1831,4431,2671,1821,307

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +5688133147169667915535101141230
Cash from Investing Activity +-146-94-94-180-286-0-26-18-24-55-21-50
Cash from Financing Activity +7810-2632116-65-68-124-9-34-145-168
Net Cash Flow-11413-2-01-1513112-2512

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow78.00-295.00-319.00-306.00-320.00-451.00-414.00-454.00-417.00-470.00-398.00-381.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days475049394063697693756468
Inventory Days908168939683775294524638
Days Payable343433496056394655564042
Cash Conversion Cycle103978482769010783132716963
Working Capital Days6954584846699387161848170
ROCE %13%14%16%17%13%11%5%4%3%13%5%11%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters64.73%64.73%64.73%64.73%64.74%64.74%64.87%64.87%64.87%64.87%64.87%58.46%
FIIs1.66%2.08%1.07%0.88%0.47%0.52%0.79%0.56%0.35%0.35%0.48%0.60%
DIIs0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.07%
Government0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%
Public33.60%33.18%34.19%34.38%34.79%34.75%34.32%34.56%34.77%34.77%34.65%40.87%
No. of Shareholders25,63925,00128,87331,43134,00334,09133,76034,67034,49336,88935,58572,148

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)3.120.064.70-3.90-0.11
Diluted EPS (Rs.)3.120.064.70-3.90-0.11
Cash EPS (Rs.)5.932.637.7912.4218.15
Book Value[Excl.RevalReserv]/Share (Rs.)40.6037.4937.3998.03102.05
Book Value[Incl.RevalReserv]/Share (Rs.)40.6037.4937.3998.03102.05
Revenue From Operations / Share (Rs.)139.45140.60150.93226.90317.23
PBDIT / Share (Rs.)10.616.6612.4018.5825.71
PBIT / Share (Rs.)7.794.089.322.267.46
PBT / Share (Rs.)4.520.376.40-6.53-1.50
Net Profit / Share (Rs.)3.120.054.70-3.90-0.10
PBDIT Margin (%)7.604.738.218.188.10
PBIT Margin (%)5.582.906.170.992.35
PBT Margin (%)3.230.264.24-2.87-0.47
Net Profit Margin (%)2.230.033.11-1.71-0.03
Return on Networth / Equity (%)7.680.1412.58-3.97-0.10
Return on Capital Employeed (%)15.418.1216.591.474.66
Return On Assets (%)3.800.064.70-1.58-0.04
Long Term Debt / Equity (X)0.160.300.460.550.53
Total Debt / Equity (X)0.560.861.040.980.96
Asset Turnover Ratio (%)1.641.501.660.911.23
Current Ratio (X)1.461.321.381.491.40
Quick Ratio (X)1.090.940.991.031.03
Inventory Turnover Ratio (X)8.507.107.514.265.57
Interest Coverage Ratio (X)3.241.804.252.112.87
Interest Coverage Ratio (Post Tax) (X)1.951.012.610.550.98
Enterprise Value (Cr.)738.21661.731413.55583.77522.02
EV / Net Operating Revenue (X)0.360.320.640.530.34
EV / EBITDA (X)4.836.897.906.544.23
MarketCap / Net Operating Revenue (X)0.230.110.410.130.04
Price / BV (X)0.790.411.670.310.15
Price / Net Operating Revenue (X)0.230.110.410.130.04
EarningsYield0.090.000.07-0.12-0.01

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Nandan Denim Ltd as of November 23, 2024 is: 4.43

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 23, 2024, Nandan Denim Ltd is Overvalued by 9.78% compared to the current share price 4.91

Intrinsic Value of Nandan Denim Ltd as of November 23, 2024 is: 4.44

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 23, 2024, Nandan Denim Ltd is Overvalued by 9.57% compared to the current share price 4.91

Last 5 Year EPS CAGR: 0.20%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has shown consistent growth in sales (167.92 cr) and profit (39.31 cr) over the years.
  1. The stock has a low average ROCE of 10.42%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 76.67, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 88.08, which may not be favorable.
  4. The company has higher borrowings (496.31) compared to reserves (354.08), which may suggest financial risk.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Nandan Denim Ltd:
    1. Net Profit Margin: 2.23%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 15.41% (Industry Average ROCE: 10.03%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 7.68% (Industry Average ROE: 29.46%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 1.95
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.09
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 13.5 (Industry average Stock P/E: 30.38)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.56
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Nandan Denim Ltd. is a Public Limited Listed company incorporated on 09/08/1994 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L51909GJ1994PLC022719 and registration number is 022719. Currently Company is involved in the business activities of Finishing of cotton and blended cotton textiles.. Company’s Total Operating Revenue is Rs. 2175.57 Cr. and Equity Capital is Rs. 144.15 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Textiles - DenimSurvey No. 198/1, 203/2, Saijpur-Gopalpur, Ahmedabad Gujarat 382405cs.ndl@chiripalgroup.com
http://www.nandandenim.com
Management
NamePosition Held
Mr. Jyotiprasad ChiripalManaging Director
Mr. Shaktidan GadhaviWhole Time Director
Ms. Nalini NageswaranIndependent Director
Mr. Giraj Mohan SharmaIndependent Director
Mr. Rahul Narendra MehtaIndependent Director
Mr. Kirit Vaikunthraya JoshiIndependent Director

FAQ

What is the latest intrinsic value of Nandan Denim Ltd?

The latest intrinsic value of Nandan Denim Ltd as on 23 November 2024 is ₹4.43, which is 9.78% lower than the current market price of ₹4.91.

What is the Market Cap of Nandan Denim Ltd?

The Market Cap of Nandan Denim Ltd is 694 Cr..

What is the current Stock Price of Nandan Denim Ltd as on 23 November 2024?

The current stock price of Nandan Denim Ltd as on 23 November 2024 is 4.91.

What is the High / Low of Nandan Denim Ltd stocks in FY 2024?

In FY 2024, the High / Low of Nandan Denim Ltd stocks is 7.35/2.60.

What is the Stock P/E of Nandan Denim Ltd?

The Stock P/E of Nandan Denim Ltd is 13.5.

What is the Book Value of Nandan Denim Ltd?

The Book Value of Nandan Denim Ltd is 4.17.

What is the Dividend Yield of Nandan Denim Ltd?

The Dividend Yield of Nandan Denim Ltd is 0.00 %.

What is the ROCE of Nandan Denim Ltd?

The ROCE of Nandan Denim Ltd is 11.5 %.

What is the ROE of Nandan Denim Ltd?

The ROE of Nandan Denim Ltd is 7.71 %.

What is the Face Value of Nandan Denim Ltd?

The Face Value of Nandan Denim Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Nandan Denim Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE