NAKODA NSE Market Price
Transcript of NAKODA NSE Market Price
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SECTOR: TEXTILES REPORTING DATE: 31ST MAY, 2016
NAKODA LIMITED www.nakoda.com
Nakoda Ltd 31st May, 2016 TABLE 1 - MARKET DATA (STANDALONE) (As on 31st May, 2016)
NSE Code - NAKODA NSE Market Price (₹) 0.30 NSE Market Cap. (₹ Cr.) 7.80
Sector - Textiles Face Value (₹) 5.00 Equity (₹ Cr.) 150.00
52-week High/Low (₹) 1.70/0.15 Net worth ( ₹ Cr.) -24.86
Business Group - Indian Private TTM P/E N.A. Traded Volume (Shares) 3,005
Year of Incorporation - 1984 TTM P/BV N.A. Traded Volume (lacs) 0.01
Source - Capitaline
Corporate Office: COMPANY BACKGROUND
Block No 1 & 12-16, The company was incorporated in 1984 and is based in Mumbai, India. Nakoda Limited
manufactures and sells various polyester products in India. It offers polyester chips that
are used in the production of polyester filament yarns and polyester staple fibres; partially
oriented yarns, which are used as a feedstock in texturizing, draw twisting, and draw
winding machines; fully drawn yarns for use in fabrics; polyester textured yarns, which are
used in the weaving and knitting of fabrics for making clothes, home furnishings, seat
covers, bags, and other uses; and twisted yarns for use in garments, fishnets, industrial
fabrics, etc. The company also trades in knitted and fancy fabrics, fancy shirting’s, PTA,
MEG, and polyester chips.
Village - Karanj,
Taluka - Mandvi,
Surat – 394 110, Gujarat
Company Website:
www.nakodaltd.com
TABLE 2 - PRICE PERFORMANCE
30th May, 2016 29th May, 2015 30th May, 2014
% Change CAGR
for 2
years 2016 vs 2015 2015 vs 2014
Price (₹) 0.30 1.60 9.60 -81.25% -83.33% -82.32%
Trading Volume (Shares)
(yearly avg.) 5,13,332 1,57,942 27,718 225.01% 469.82% -
NSE Market Cap. (in ₹ Cr.) 9.00 48.00 288.00 -81.25% -83.33% -82.32%
Source - Money Control
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SECTOR: TEXTILES REPORTING DATE: 31ST MAY, 2016
NAKODA LIMITED www.nakoda.com
TABLE 3 - FINANCIALS
( ₹ Cr.) *2015 2013 2012
Net Worth -24.86 681.30 469.47
Current Assets 1,173.64 1,881.81 1,404.41
Non-Current Assets 648.69 650.89 663.18
Total Assets 1,822.33 2,532.69 2,067.59
Investments 185.69 138.61 49.85
Finance Cost 276.05 61.66 46.60
Long Term Liabilities 1,807.14 435.90 539.56
Current Liabilities 40.05 1,415.49 1,058.56
Turnover 1,477.13 2,764.40 2,383.68
Profit After Tax (PAT, ₹ Cr.) -716.69 74.16 59.59
EPS (₹) -24.00 2.00 3.00
Source - Money Control/Annual Report
* The Company has changed its financial year end from December to March for a 15 months’ period, hence, the above numbers
are not comparable.
Discussion as per Company:
“As per Annual Report FY 2014-15 Company has discussed on financials as follow: During the year the turnover has drastically
reduce mainly on account of working capital liquidity. The CDR package of the company was not implemented by the lending
banks resulting in stoppage of production activity during major period. The stoppage of production has further aggravated the
realization of debtors and receivables adding to the liquidity crisis. The non-cooperation by the bankers and non-provision of
funds under CDR package has forced the has forced the management to closed down the plans. The company has since
received notice from creditors for recovery of debts under SARFAESI Act 2002.
As per Annual Report 2013 Company has discussed on financials as follow: There was a complete change in performance
after the end of the financial year 2013. Excess capacity in the industry and flawing economy has dragged down the demand
and profitability. Rampant expansion carried out by the Company during the past couple of years added to the problems and
demand slow down, increase in the prices of raw materials, lower prices of finished goods, piling up of inventory and slowdown
in realization of book debts have made the Company suffer heavy losses. The plant of the company has also remained closed
for over one month due to labour unrest.”
AUDIT QUALIFICATIONS
Audit Qualifications in last 3 years: The Auditor has not raised any qualification for last three years.
Response Comment
Frequency of Qualifications Not Applicable
Have the auditors made any adverse remark in last 3 years? No
Are the material accounts audited by the Principal Auditors? Yes
The auditor has not audit the financial
statement of 3 subsidiaries, but they not
disclosed the details for the same.
Do the financial statements include material unaudited
financial statements? No
-
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SECTOR: TEXTILES REPORTING DATE: 31ST MAY, 2016
NAKODA LIMITED www.nakoda.com
TABLE 4: BOARD PROFILE (As on 31st March, 2015)
Regulatory
Norms Company
% of Independent Directors on the Board 50% 60%
% of Promoter Directors on the Board - 40%
Number of Women Directors on the Board At least 1 1
Classification of Chairman of the Board - Executive Promoter Director
Is the post of Chairman and MD/CEO held by the same person? - Yes
Average attendance of Directors in the Board meetings (%) - 88.24%
Source - Money Control/Annual Report
Composition of Board: As per Regulation 17(i)(b) of the Listing Regulations, 2015, the Company should have at least 50%
Independent Directors as the Chairman of the Board is a Promoter Director. The Company as on 31st March, 2015 has 60% of
Independent Directors and hence, it meets the regulatory requirements.
Board Diversity: The Company has 5 directors out of which 4 are male and 1 is female.
Holding of position of MD & Chairman by same person: The Company has appointed Mr. Babulal Gumanmal Jain as the
Chairman and Managing Director of the Company. Appointment of a single person as the Chairman and Managing Director of
the Company is not a good governance practice as this may lead to concentration of power in a single person.
TABLE 5 - FINANCIAL RATIOS
Ratios Mar’ 2015 Dec’ 2013 Dec’ 2012 % Change
2015 vs 2014 2014 vs 2013
Turn
ove
r
Rat
ios
Inventory Turnover 144.29 5.23 5.45 2658.53% -4.00%
Debtors Turnover 1.13 2.83 3.36 -60.11% -15.80%
Fixed asset Turnover 1.82 4.25 3.59 -57.11% 18.16%
Current Asset Turnover 1.01 1.47 1.70 -31.46% -13.45%
Ret
urn
Rat
ios Operating Profit Margin -48.52% 3.35% 3.17% -1546.88% 5.87%
Net Profit Margin -48.52% 2.68% 2.50% -1908.61% 7.31%
Return on Assets (ROA) -31.46% 2.93% 2.88% -1174.50% 1.60%
Return on Equity (ROE) N.A. 10.89% 12.69% N.A. -14.24%
Return on Capital Employed (ROCE) N.A. 7.86% 7.28% N.A. 7.86%
Liq
uid
ity
Rat
ios
Current Ratio 29.30 1.33 1.33 2104.26% 0.21%
Quick Ratio 29.10 0.96 0.91 2943.71% 4.67%
Cash Ratio 2.95 0.27 0.24 1011.28% 9.27%
Working Capital Turnover ratio 1.04 5.93 6.89 -82.42% -13.99%
Solv
ency
Rat
ios Debt to equity ratio N.A. 2.66 3.36 N.A. -20.70%
Interest Coverage Ratio N.A. 2.50 2.62 N.A. -4.46%
Trad
ing
Rat
ios
Market Cap / Sales 0.01 0.00 0.00 133.93% -13.77%
Market Cap/ Net Worth N.A. 0.01 0.02 N.A. -31.09%
Market Cap/PAT N.A. 0.13 0.16 N.A. -19.65%
Market Cap/EBITDA N.A. 61.74 46.69 N.A. 32.22%
Trading Volume (shares) (avg. of 1
year) 5,16,312 1,57,692 24,263 227.42% 549.92%
Trading Volume (shares) (high in 1
year) 59,97,430 17,39,627 6,76,397 244.75% 157.19%
Trading Volume (shares) (low in 1
year) 7,983 3,860 162 106.81% 2282.72%
Ratio - High/low trading volume 751.28 450.68 4,175.29 66.70% -89.21%
Ratio - High/average trading volume 11.62 11.03 27.88 5.29% -60.43%
Source - Money Control
Note: - The financial ratios of the Company and percentage change have been calculated considering 12 months’ period.
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SECTOR: TEXTILES REPORTING DATE: 31ST MAY, 2016
NAKODA LIMITED www.nakoda.com
TABLE 6 (A): OWNERSHIP & MANAGEMENT RISKS
Dec' 2015 Dec' 2014 Dec' 2013 Comments
Shar
eho
ldin
g
Promoter shareholding 45.62% 52.78% 53.98% No new equity shares issued during the period
Dec’13 to Dec’15. The promoter shareholding
decreased from 53.98% as on Dec’13 to 45.62% as
on Dec’2015 due to Invocation of pledge of shares.
The shareholding of non-promoter non-public
decreased from 19.86% to 0% during the above
mentioned period due to reclassification of the
shareholders as per the SEBI circular dated 30th
November, 2015. The promoters have pledged
4.54% of their shareholding.
Public - Institutional
shareholding 11.63% 0.00% 0.00%
Public - Others shareholding 42.75% 27.36% 26.16%
Non Promoter Non Public
Shareholding 0.00% 19.86% 19.86%
TABLE 6 (B): OWNERSHIP & MANAGEMENT RISKS
Market Activity of Promoters The promoters have pledged their shares.
Preferential issue to promoters No preferential issue of shares was made to Promoters during last three years
Preferential issue to others No preferential issue of shares was made to other shareholders during last three years
GDRs issued by the Company The Company did not issue any GDRs during last three years
Issue of ESOPs/Issue of shares other
than Preferential allotment
The Company did not issue any shares to the employees under its ESOP Scheme in last
three years
Source - Annual Report
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SECTOR: TEXTILES REPORTING DATE: 31ST MAY, 2016
NAKODA LIMITED www.nakoda.com
Glossary
Equity: The equity shares capital of the Company
Net Worth: The amount by which the Assets exceeds the liabilities excluding shareholders’ funds of the Company
Turnover: The revenue earned from the operations of the Company
EPS: Earning Per Share is net profit earned by the Company per share
𝐸𝑃𝑆 =Profit After Tax
Number of outstanding shares
P/E ratio: It is the ratio of the Company’s share price to earnings per share of the Company
𝑃/𝐸 𝑟𝑎𝑡𝑖𝑜 =Price of each share
Earnings per share
Current Assets: Cash and other assets that are expected to be converted to cash in one year
Fixed Assets: assets which are purchased for long-term use and are not likely to be converted quickly into cash, such as land,
buildings, and equipment
Total Assets: Current Assets + Fixed Assets
Investments: An investment is an asset or item that is purchased with the hope that it will generate income or appreciate in the
future.
Finance Cost: The Financing Cost (FC), also known as the Cost of Finances (COF), is the cost and interest and other charges
incurred during the year in relation to borrowed money.
Long Term Liabilities: Long-term liabilities are liabilities with a maturity period of over one year.
Current Liabilities: A company's debts or obligations that are due within one year.
Inventory Turnover ratio: Inventory Turnover is a ratio showing how many times a company's inventory is sold and replaced over
a period.
𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 =Sales Turnover
Inventory
Debtors Turnover: Accounts receivable turnover is an efficiency ratio or activity ratio that measures how many times a business
can turn its accounts receivable into cash during a period
𝐷𝑒𝑏𝑡𝑜𝑟𝑠 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 =Sales Turnover
Accounts recievables
Fixed Asset Turnover: The fixed-asset turnover ratio is a financial ratio of net sales to fixed assets
𝐹𝑖𝑥𝑒𝑑 𝐴𝑠𝑠𝑒𝑡 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 =Sales Turnover
Fixed Assets
Current Asset Turnover: The current-asset turnover ratio is a financial ratio of net sales to fixed assets
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 =Sales Turnover
Current Assets
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Operating Profit Margin: Operating margin is a measurement of what proportion of a Company’s revenue is left over after
paying for variable costs of production such as wages, raw materials etc. It can be calculated by dividing a Company’s operating
income (also known as “operating profit”) during a given period by its sales during the same period.
𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑃𝑟𝑜𝑓𝑖𝑡 𝑀𝑎𝑟𝑔𝑖𝑛 =Operating profit
Sales Turnover
Net Profit Margin: Net profit margin is the percentage of revenue left after all expenses have been deducted from sales
𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡 𝑀𝑎𝑟𝑔𝑖𝑛 =Net profit
Sales Turnover
Return on Assets: ROA tells you what earnings were generated from invested capital (assets)
𝑅𝑒𝑡𝑢𝑟𝑛 𝑜𝑛 𝐴𝑠𝑠𝑒𝑡𝑠 =Net profit
Total Assets
Return on equity/net worth: return on equity (ROE) is the amount of net income returned as a percentage of shareholders’
equity.
𝑅𝑒𝑡𝑢𝑟𝑛 𝑜𝑛 𝐸𝑞𝑢𝑖𝑡𝑦 =Net profit
Net worth
Return on Capital Employed: Return on capital employed (ROCE) is a financial ratio that measures a company's profitability
and the efficiency with which its capital is employed.
𝑅𝑒𝑡𝑢𝑟𝑛 𝑜𝑛 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝐸𝑚𝑝𝑙𝑜𝑦𝑒𝑑 =Net profit
Total Debt + Equity share capital
Current ratio: The current ratio is a financial ratio that measures whether or not a firm has enough resources to pay its debts
over the next 12 months. It compares a firm's current assets to its current liabilities.
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑟𝑎𝑡𝑖𝑜 =Current Assets
Current Liabilities
Quick ratio: The quick ratio is a measure of how well a Company can meet its short term financial liabilities.
𝑄𝑢𝑖𝑐𝑘 𝑟𝑎𝑡𝑖𝑜 =Current Assets − Inventories
Current Liabilities
Cash ratio: The ratio of the liquid assets of a Company to its current liabilities.
𝑄𝑢𝑖𝑐𝑘 𝑟𝑎𝑡𝑖𝑜 =Current Assets − Inventories − Account Recievables
Current Liabilities
Working Capital Turnover ratio: The working capital turnover ratio is also referred to as net sales to working capital. It indicates a
Company's effectiveness in using its working capital.
𝑊𝑜𝑟𝑘𝑖𝑛𝑔 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 =𝑆𝑎𝑙𝑒𝑠 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟
Current Assets − Current Liabilities
Debt to Equity ratio: The debt-to-equity ratio (D/E) is a financial ratio indicating the relative proportion of
shareholders' equity and debt used to finance a company's assets.
𝐷𝑒𝑏𝑡 𝑡𝑜 𝐸𝑞𝑢𝑖𝑡𝑦 𝑟𝑎𝑡𝑖𝑜 =𝑆ℎ𝑜𝑟𝑡 𝑇𝑒𝑟𝑚 𝐷𝑒𝑏𝑡 + 𝐿𝑜𝑛𝑔 𝑇𝑒𝑟𝑚 𝐷𝑒𝑏𝑡
𝑁𝑒𝑡 𝑊𝑜𝑟𝑡ℎ
Interest Coverage ratio: The Interest coverage ratio is a debt ratio and profitability ratio used to determine how easily a
Company can pay interest on outstanding debt.
𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝐶𝑜𝑣𝑒𝑟𝑎𝑔𝑒 𝑅𝑎𝑡𝑖𝑜 =𝐸𝑎𝑟𝑛𝑖𝑛𝑔 𝐵𝑒𝑓𝑜𝑟𝑒 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑎𝑛𝑑 𝑇𝑎𝑥
𝐹𝑖𝑛𝑎𝑛𝑐𝑒 𝐶𝑜𝑠𝑡
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Market Cap/Sales ratio: Market Cap/sales ratio, Price–sales ratio, P/S ratio, or PSR, is a valuation metric for stocks. It is calculated
by dividing the company's market cap by the revenue in the most recent year; or, equivalently, divide the per-share stock price by
the per-share revenue.
𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝/𝑆𝑎𝑙𝑒𝑠 𝑟𝑎𝑡𝑖𝑜 =𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝
𝑆𝑎𝑙𝑒𝑠 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟
Market Cap/ Net Worth ratio: It is a valuation ratio calculated by dividing Company’s market cap to net worth.
𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝/𝑁𝑒𝑡𝑤𝑜𝑟𝑡ℎ 𝑟𝑎𝑡𝑖𝑜 =𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝
𝑁𝑒𝑡𝑤𝑜𝑟𝑡ℎ
Market Cap/ PAT ratio: It is a valuation ratio calculated by dividing Company’s market cap to net profit.
𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝/𝑃𝐴𝑇 𝑟𝑎𝑡𝑖𝑜 =𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝
𝑛𝑒𝑡 𝑝𝑟𝑜𝑓𝑖𝑡
Market Cap/ EBITDA ratio: It is a valuation ratio calculated by dividing Company’s market cap to EBITDA.
𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝/𝐸𝐵𝐼𝑇𝐷𝐴 𝑟𝑎𝑡𝑖𝑜 =𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝
𝐸𝐵𝐼𝑇𝐷𝐴
Trading Volume (shares) (avg. of 1 year): Average number of shares/day traded in 1 year
Trading volume (shares) (high in 1 year): Highest number of shares/day traded in 1 year
Trading volume (shares) (minimum in 1 year): Lowest number of shares traded on any one day in 1 year
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Research Analyst: Sudarshan Shetty