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K G Denim Limited (500239) Fair Value & Analysis

Consumer Goods · IN · Market cap ₹499M (≈ $5.3M)

What is K G Denim Limited really worth?

KG K G Denim Limited 500239 · BSE
Price₹14.45
Fair Value₹2.44
Upside−83.1%
Quality38/100

Below-average quality, and trading another 492% above our fair value of ₹2.44.

As of Sep 6, 2026, the fair value of K G Denim Limited is ₹2.44 per share against a price of ₹14.45, so the fair value sits 83% below the price. A model estimate blended from multiple valuation models, recalculated regularly.

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Risks

!Weak Growth (revenue 5y −37.4 %/yr)
!Loss over the last twelve months · -3.5% net margin · fiscal year 2026 0.7%
!Negative equity (buybacks among others) · negative free cash flow
!Trails peers (3/11)
!Narrow moat 22/100
!Evidence only medium, so the estimate is less certain
!Weak on dividend: 27 out of 100

For context

·1.35% dividend yield
Evidence: Medium Range ₹1.83 – ₹3.05

Fair value as of: Sep 6, 2026

From 4 valuation models · updated today

Share price +2.1% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case (₹3.05). The favourable scenario is already priced in.
  • Weak quality (38/100) and above fair value at the same time, the margin of safety is missing on both counts.

Price vs Fair Value (5 years)

₹69.95 ₹12.72 Fair Value ₹2.44 May 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 6, 2026.

How to read this chart

60‑month range ₹12.72 – ₹69.95 · fair‑value band ₹1.83 – ₹3.05 · the ₹14.45 price screens above the ₹2.44 fair value. Dashed = 300-day average. As of Sep 6, 2026.

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Analysis

K G Denim Limited (500239) currently trades at ₹14.45, while our model-based Fair Value estimate is ₹2.44, implying the stock looks roughly 492.1% overvalued today. The Quality Score stands at 38/100 (below-average quality), in the Consumer Goods sector. Bull case: the Multiples group reads highest at a median of ₹2.07 per share, and 0 of the 4 models we run sit above the ₹14.45 price. Bear case: the Earnings-Based group reads lowest at ₹1.01, and 4 of the 4 models stay below the price. Evidence for this calculation is medium.

Revenue declined 59.9% year over year. Net debt stands at ₹2.6B. The stock trades on a trailing P/E of 5.8 (as of Sep 6, 2026). Fundamentals as of Sep 6, 2026

Our scenario range runs from ₹1.83 (bear case) to ₹3.05 (bull case); at ₹14.45, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 42% below its 52-week high and 16% above its 52-week low. For context, the median of 10 Consumer Goods peers we cover trades at −57% fair-value upside, at −83%, 500239 screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2026 figures, and about 5 months have passed since. In that time the company retained roughly ₹3.53 per share, which is 144.8 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Graham-Dodd ₹0.8300 ₹1.01 ₹1.14 67
Growth-Adj P/E ₹1.42 ₹2.03 ₹2.64 67
P/E Multiple ₹2.01 ₹2.69 ₹3.36 63
All 4 models by family
Earnings-Based
Graham-Dodd ₹0.8300 ₹1.01 ₹1.14 67
Multiples
P/E Multiple ₹2.01 ₹2.69 ₹3.36 63
P/S Multiple ₹1.56 ₹2.07 ₹2.59 57
Growth Earnings
Growth-Adj P/E ₹1.42 ₹2.03 ₹2.64 67

Widest divergence: Multiples (₹2.07) versus Earnings-Based (₹1.01). Highest evidence: Graham-Dodd (67).

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Key figures & financial health

P/E ratio 5.8 as of Sep 6, 2026
P/S ratio 0.04 P/E × margin
EPS (TTM) ₹8.86 price ÷ EPS = P/E 5.8
Dividend yield 1.4% payout 2.2%
Net margin 0.7% FY2026
Return on assets (EBIT) −2.4% avg 5y
More key figures
Profitability
Operating margin −1.4% TTM
Growth
Revenue growth (YoY) −59.9% 3y avg −57.1%
Balance sheet & cash flow
Free cash flow −₹379M FY2026
Net debt ₹2.6B FY2026

Figures from reported company fundamentals · as of Sep 6, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 38/100

Of which business quality 32 · Market factors (momentum, volatility) 23

Profitability 14
Margins and returns on capital today
Quality Growth 53
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 0
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 36
Calm price path (market factor)
Momentum 22
Price trend over the last 3–12 months (market factor)
52W Momentum 8
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

K G Denim Limited manufactures and sells denim and apparel fabrics to fashion brands and retailers worldwide. It operates through Textiles, Power, and Garments segments. The company offers home textile products of terry towels, blankets, sheeting, and ready-made garments; and apparel products, as well circumference fabrics.

Full company description

K G Denim Limited manufactures and sells denim and apparel fabrics to fashion brands and retailers worldwide. It operates through Textiles, Power, and Garments segments. The company offers home textile products of terry towels, blankets, sheeting, and ready-made garments; and apparel products, as well circumference fabrics. It also operates an online shop for home textiles and garments. The company was incorporated in 1992 and is headquartered in Coimbatore, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

K G Denim Limited reported revenue of ₹420M in FY2026 versus ₹6.1B in FY2022, a compound −48.8%/yr. Reported net income was ₹3.1M in FY2026.

Growth Quality 14/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2026)
₹420M
Latest YoY
−35.8%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−57.1%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−37.4%
Avg. revenue growth/yr (12Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−20.2%
EBIT margin (trend) Operating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.
2.0% (2021) → 7.6% (2026)
Revenue −48.8%/yr
FY22 ₹6.1B
FY23 ₹5.3B
FY24 ₹2.6B
FY25 ₹655M
FY26 ₹420M
Net income
FY22 −₹80.4M
FY23 −₹280M
FY24 −₹256M
FY25 −₹358M
FY26 ₹3.1M

500239 screens 492% overvalued. Compare with SPL Industries Limited →

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Cite: Fair Value Calculator (2026). "K G Denim Limited Fair Value". https://www.fairvalue-calculator.com/stock/500239

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 21
FUTURE0 · sector 13
PAST0 · sector 21
HEALTH100 · sector 96
DIVIDEND27 · sector 45

VALUE 0: the price sits above our fair-value range.

PAST 0: with negative equity (buybacks among others) return on equity is not meaningfully computable.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Textile - Apparel Clothing stocks, each showing price versus our Fair Value estimate (as of Sep 6, 2026).

Stock Price Fair Value vs Fair Value
SPL Industries Limited 532651 ₹31.00 ₹47.75 +54%
Bhandari Hosiery Exports Limited 512608 ₹2.91 ₹6.40 +120%
Godrej Consumer Products Limited 532424 ₹928.70 ₹329.76 −64%
Marico Limited 531642 ₹866.00 ₹200.14 −77%
Gillette India Limited 507815 ₹7,599 ₹1,674 −78%
Hatsun Agro Product Limited 531531 ₹972.35 ₹362.14 −63%
Sundram Fasteners Limited 500403 ₹1,228 ₹240.89 −80%
EPL Limited 500135 ₹247.30 ₹111.65 −55%
V-Guard Industries Limited 532953 ₹343.45 ₹146.29 −57%
Finolex Industries Limited 500940 ₹158.35 ₹162.97 +3%

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Frequently asked questions

Is K G Denim Limited (500239) overvalued or undervalued?
As of Sep 6, 2026, our model estimates a fair value of ₹2.44 versus a price of ₹14.45, about −83% upside (overvalued).
What is the fair value of 500239?
Our model-based fair value for K G Denim Limited is ₹2.44 (as of Sep 6, 2026), built from audited fundamentals. The current price: ₹14.45.
What is the quality score of 500239?
K G Denim Limited has a Quality Score of 38/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for K G Denim Limited (500239)?
Our model-based price target is the fair value of ₹2.44 (as of Sep 6, 2026) from 4 valuation models. Cautious scenario ₹1.83, optimistic scenario ₹3.05. It is a calculation from audited fundamentals, not an analyst target.
What is the K G Denim Limited stock forecast for 2026?
Our models put fair value at ₹2.44, about −83% upside versus a price of ₹14.45 (overvalued). Cautious scenario ₹1.83, optimistic scenario ₹3.05. The calculation is refreshed regularly with new filings.
What is the net profit margin of 500239?
The net profit margin of K G Denim Limited is about −3.5%, meaning it is currently running at a net loss. Based on the latest reported figures.
Does K G Denim Limited pay a dividend?
K G Denim Limited currently shows a dividend yield of about 1.35% relative to its recent price (as of Sep 6, 2026).
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