I woke up and was searching for companies to get my hands on and then I found the company named Nandan Denim Ltd.(hereinafter NDL)(BOM: 532641).
About the Company:
NDL is the denim group of diversified conglomerate, the Chirpal Group. NDL is currently the 2nd largest denim manufacturers of India and 5th largest in the world. NDL exports it's denim to more than 27 countries across the globe. The global denim fabric market is approx. $17 billion, growing at a modest rate of 3-5% a year. Europe represents the largest market for the denim since it is a mature market and thus represents major share of global market. Asia-Pacific is forecast to emerge as fastest growing market with CAGR of 9.4% over the analysis period. Moreover India's denim market was valued at Rs.13,500 crore in 2013 as per consulting firm Technopak accounting for 5% of the apparel market.
Company being second largest producer of the denim enjoy considerable market share in the denim fabric market.
Financials:
The annual profit and loss statement of last 10 years are shown below:
Courtesy: Screener.in
As we can see that company's profit margin is increasing YOY indicating strong product mix. Compounded sales growth over 10 year period is 27.45% and compounded profit growth is 17.41% over 10 year period. Though dividend payout ratio is fluctuating which shows the capital expenditure on capacity expansion.Company is expected to grow at the same pace. The equity share capital is around Rs.45.5 crores and reserves is Rs.213.33 crores and consolidated borrowings stand at Rs.470.86 crores. Thus, the financials of the company are strong and the share is trading at Rs.147.80 at the P/E Ratio of 11.53 which is less than the industry standards. As the company is expected to grow the share at CMP is a value buy.
About the Company:
NDL is the denim group of diversified conglomerate, the Chirpal Group. NDL is currently the 2nd largest denim manufacturers of India and 5th largest in the world. NDL exports it's denim to more than 27 countries across the globe. The global denim fabric market is approx. $17 billion, growing at a modest rate of 3-5% a year. Europe represents the largest market for the denim since it is a mature market and thus represents major share of global market. Asia-Pacific is forecast to emerge as fastest growing market with CAGR of 9.4% over the analysis period. Moreover India's denim market was valued at Rs.13,500 crore in 2013 as per consulting firm Technopak accounting for 5% of the apparel market.
Company being second largest producer of the denim enjoy considerable market share in the denim fabric market.
Financials:
The annual profit and loss statement of last 10 years are shown below:
As we can see that company's profit margin is increasing YOY indicating strong product mix. Compounded sales growth over 10 year period is 27.45% and compounded profit growth is 17.41% over 10 year period. Though dividend payout ratio is fluctuating which shows the capital expenditure on capacity expansion.Company is expected to grow at the same pace. The equity share capital is around Rs.45.5 crores and reserves is Rs.213.33 crores and consolidated borrowings stand at Rs.470.86 crores. Thus, the financials of the company are strong and the share is trading at Rs.147.80 at the P/E Ratio of 11.53 which is less than the industry standards. As the company is expected to grow the share at CMP is a value buy.
Good one
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