K G Denim Ltd Detail
As per the Company website it is incorporated in year 1992. The Company head quarters is in Coimbatore. The company has two wholly owned subsidiaries (a) Trigger Apparels Limited (b) K G Denim (USA) Inc.
It has capacity to produce 30 million meters of Denim fabric and 12 million meters of processed fabric. It has online shopping website as well selling Trigger brands of Jeans, Shirts, Trousers and Joggers. It also has home textiles division dealing with products like Terry towels, Blankets, Sheeting and ready-made garments.
The Company also exports products to different top brands for their Apparels and Fashion brands. With the online website and retail presence it is also targeting to tap in the Denim and Home textiles market in India.
I have shared long term price performance chart of the Company below.As per Dow theory of technical analysis price performance over a period of time reflects Company state.
K G Denim Ltd Stock Performance
On an absolute basis the stock gave 5 times return in span of 16 years. The stock also gives handsome dividend of more than 1% over the years.It has not been a consistent performer.
The stock performed in last 3 and 4 years. It has silent years between 2008 and 2014 trading almost flat in these 6 years testing patience of investors. During recent time it has quickly risen past 100 and then came tumbling to 50 odd levels as well. So it has been mixed for it.
K G Denim Ltd My Opinion
K G Denim Ltd is a Apparels Company. It has mixed performance over the years as shown by price graph above. Textiles Companies have common problem. Most of them have cyclic stock price performance.
The Company is textiles ones making products and catering different (top brands) in World. It has also ventured in launching its own brand as well. This is good play. It will eliminate or lessen dependency on other players for Company products. Company can consume denim produced to create its own brand apparels driving the profit.
It has done basics right with workable website to give users view of products available. But it has to increase offline presence and presence of other major online platforms. As mentioned before I have not invested into Textiles sector and will not do so as of now.
In case you are interested then you can track the company by adding it to your stock watch list. That way you can keep close eye on the Company.