K G DENIM

CMP--29.75
K G Denim Ltd., incorporated in the year 1992, is a Mid Cap company (having a market cap of Rs 76.32 Cr.) operating in Textiles sector.

K G Denim Ltd. key Products/Revenue Segments include Fabrics which contributed Rs 408.54 Cr to Sales Value (69.02% of Total Sales), Textiles which contributed Rs 111.05 Cr to Sales Value (18.76% of Total Sales), Garments which contributed Rs 57.56 Cr to Sales Value (9.72% of Total Sales), Job Work which contributed Rs 6.21 Cr to Sales Value (1.04% of Total Sales), Terry Towels which contributed Rs 4.70 Cr to Sales Value (0.79% of Total Sales), Waste which contributed Rs 3.80 Cr to Sales Value (0.64% of Total Sales), for the year ending 31-Mar-2014.

For the quarter ended 31-Mar-2015, the company has reported a Standalone sales of Rs. 134.33 Cr., down -12.03% from last quarter Sales of Rs. 152.70 Cr. and down -5.36% from last year same quarter Sales of Rs. 141.94 Cr. Company has reported net profit after tax of Rs. -2.56 Cr. in latest quarter..

It has recommended equity dividend of 7.50 pct (i.e. 0.75 Indian rupees per share) on its Equity Shares for the Financial year 2014-15.

Appears attractive.

Compounded average sales growth of 19.87% and NP growth of 13.56%. during 3 years ended Mar 2014. For Mar 2015 sales almost remained at the same level of 2014 ie:around 586cr...while Net profit declined to 0.37cr from 6.74cr because of increase in depreciation from 13cr to 21cr ( excess of 8 cr) .Debt eq ratio at 1.55 at the end of 2014.ROE average for the last 5 years at 21.75. A good bet for long term.

 

Better to go with leaders in the business Nandan Denim, Kitex or KPR Mills

 

@Biju How about Arvind? I guess in denims Arvind was a market leader.Does anyone has any information about the market share or any other views on Arvind.

 

Kitex, KPR AND PAGE have already given exceptional returns.My view is to catch it small for bigger gains.

 

Smaller will always have to survive while competing with leaders

 

KG DENIM @ 31.75 NOW

 

KG DENIM @ 35.95