NAKODA NSE Market Price

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STAKEHOLDERS EMPOWERMENT SERVICES

1 | P A G E

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

http://www.nakoda.com/

http://www.nakodaltd.com/



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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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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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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


http://www.bseindia.com/downloads1/Regulation_31_Shareholding_Pattern.pdf



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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


http://www.investopedia.com/terms/i/invested-capital.asp

http://www.investopedia.com/articles/stocks/05/04405.asp



7 | P A G E



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


https://en.wikipedia.org/wiki/Stock

https://en.wikipedia.org/wiki/Market_cap

https://en.wikipedia.org/wiki/Stock



8 | P A G E



DISCLAIMER

Sources Company Information

Only publicly available data has been used while making the factsheet. Our

data sources include: BSE, NSE, SEBI, Capitaline, Moneycontrol, Businessweek,

Reuters, Annual Reports, IPO Documents and Company Website.

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This factsheet in no manner constitutes an offer, solicitation or advice to buy or sell securities, nor solicits votes or proxies on behalf of any party. SES, which is a not-for-profit Initiative or its staff, has no financial interest in the companies covered in this factsheet except what is disclosed on its website. The factsheet is released in India and SES has ensured that it is in accordance with Indian laws. Person resident outside India shall ensure that laws in their country are not violated while using this factsheet; SES shall not be responsible for any such violation.

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Stakeholders Empowerment Services

Contact Information

Stakeholders Empowerment Services

A 202, Muktangan,

Upper Govind Nagar,

Malad East,

Mumbai – 400 097

Tel +91 22 4022 0322

[email protected]

[email protected]

www.sesgovernance.com.

Research Analyst: Sudarshan Shetty


mailto:[email protected]

mailto:[email protected]

http://www.sesgovernance.com/

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