Our 12th company in the Series of Best Stocks Below Rs. 50 is Ginni Filaments Ltd.
This company is good for investing purpose or not ?
Let’s start with the Company profile
Company Profile :
Ginni Filaments Limited is a textile company engaged in the manufacturing of cotton yarn, knitted fabric, non-woven fabric, garments and wipes.
Now Let’s check the important fundamental figures of this company. This is a small cap company with Market Cap ₹345cr. We can check more fundamental details below in depth:
Company Fundamental Detail :
PE Ratio: 8.36
Sector PE Ratio: -454.69
PE Ratio of this company is high but better than Sector’s PE. So it’s a Average PE than the peers of this company.
PB Ratio : 1.45
Sector PB Ratio : 6.17
PB Ratio of this company is low than Sector’s PB ratio. So it’s Average PB than the peers of this company.
Dividend Yield : 0.22
Sector Dividend Yield : 0.50%
Dividend Yield of this company is low than Sector. Dividend of this company is Below Average than the peers of this company.
ROE: 19.4%
ROCE: 25.8%
ROE (Return on equity) and ROCE (Return on capital equity) is Average
According to above data, this company is looking fundamentally average. Now We’ll check the company Financially data:
Company Financial Detail
| Year | Revenue(cr.) | Profit(cr.) |
| 2021 | 783.42 | 41.30 |
| 2020 | 797.01 | 5.69 |
| 2019 | 812.44 | -3.49 |
| 2018 | 708.00 | 2.66 |
| 2017 | 772.01 | 16.15 |
We should check now liabilities of company also in the below table
Total Current & Non Current Liabilities
| 2021 | 2020 | 2019 | 2018 |
| 344.79 | 408.97 | 408.75 | 394.10 |
Liabilities of a company refers to the debt of that company. We should also aware the debt of company. In 2021, Company have 344.79 Cr. debt.
Let’s check the Free Cash flow of the company
Free Cash flow
| 2021 | 2020 | 2019 | 2018 |
| 92.31 | 2.52 | 44.55 | -0.37 |
Debt Level: Ginni Filaments’s net debt to equity ratio (64.5%) is considered high.
Reducing Debt: Ginni Filaments’s debt to equity ratio has reduced from 116.5% to 76% over the past 5 years.
Debt Coverage: Ginni Filaments’s debt is well covered by operating cash flow (21.2%).
Interest Coverage: Ginni Filaments’s interest payments on its debt are well covered by EBIT (5.2x coverage).
Share Holding Pattern
| Promotor Holding | Foreign Institution | Mutual Fund | Other Domestic Institutions | Retail & Others | |
| Jun 2021 | 69.72% | 0.17% | 0.00% | 0.00% | 30.10% |
| Mar 2021 | 67.24% | 0.01% | 0.00% | 0.00% | 32.75% |
| Dec 2020 | 67.24% | 0.01% | 0.00% | 0.00% | 32.75% |
| Sep 2020 | 67.24% | 0.01% | 0.00% | 0.00% | 36.69% |
Above table showing there is no big change in Promotors holding which is 69.72% in June 2021. FIIs invested in June 2021 with 0.17% and retail investor is 30.10%.
Now We’ll check the return of the company, This company started from Rs. 9.10 at 05 Jan 2000. This company given 103.74% returns in last 1 year from 2020 to 16 Dec 2021.
Investment Checklist for Ginni Filaments Ltd.
- The company is currently profitable
- Has a high level of debt
- Shareholders have been diluted in the past year
- Does not have a meaningful market cap (₹3B)
- Earnings have grown by 39.2% per year over past 5 years
- They do not pay a dividend
- Share price has been stable over the past 3 months
- The company’s earnings are high quality
- Profit margins improved or Ginni Filaments became profitable
- At least 3 years of financial data is available
- Revenue is meaningful (₹9B)
- Ginni Filaments does not have negative shareholders equity.
According to its historical performance we can predict stock target.
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Entry Buying Zone : Premium members can see only
Target: Premium members can see only
Time Horizon:Premium members can see only
Risk Profile: Premium members can see only
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Entry Buying Zone : 30 to 35
Target: 50 ( 40% Upside)
Time Horizon: 1 Year
Risk Profile: High Risk (Stock is 3.71x as volatile as Nifty)
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Hope you liked Our 12th company in the Series of Best Stocks Below Rs. 50. We tried to cover many important things about this company, if you think anything left to cover, you can comment us and we’ll try to cover those things also.
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