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Chothani Foods (BOM:540681) Net-Net Working Capital : ₹3.76 (As of Sep. 2023)


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What is Chothani Foods Net-Net Working Capital?

In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.

Chothani Foods's Net-Net Working Capital for the quarter that ended in Sep. 2023 was ₹3.76.

The industry rank for Chothani Foods's Net-Net Working Capital or its related term are showing as below:

BOM:540681's Price-to-Net-Net-Working-Capital is ranked better than
59.9% of 601 companies
in the Consumer Packaged Goods industry
Industry Median: 7.43 vs BOM:540681: 5.64

Chothani Foods Net-Net Working Capital Historical Data

The historical data trend for Chothani Foods's Net-Net Working Capital can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Chothani Foods Net-Net Working Capital Chart

Chothani Foods Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Net-Net Working Capital
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.52 3.58 5.37 2.24 2.07

Chothani Foods Semi-Annual Data
Mar14 Mar15 Mar16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
Net-Net Working Capital Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.26 2.24 2.36 2.07 3.76

Competitive Comparison of Chothani Foods's Net-Net Working Capital

For the Packaged Foods subindustry, Chothani Foods's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Chothani Foods's Price-to-Net-Net-Working-Capital Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Chothani Foods's Price-to-Net-Net-Working-Capital distribution charts can be found below:

* The bar in red indicates where Chothani Foods's Price-to-Net-Net-Working-Capital falls into.



Chothani Foods Net-Net Working Capital Calculation

Chothani Foods's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Mar. 2023 is calculated as

Net-Net Working Capital(A: Mar. 2023 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(0.217+0.75 * 64.838+0.5 * 43.515-59.899
-0-0)/5.16
=2.07

Chothani Foods's Net-Net Working Capital (NNWC) per share for the quarter that ended in Sep. 2023 is calculated as

Net-Net Working Capital(Q: Sep. 2023 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(4.782+0.75 * 65.27+0.5 * 51.807-60.214
-0-0)/5.16
=3.76

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.

In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.

This is a conservative way of estimating the company's value.


Chothani Foods  (BOM:540681) Net-Net Working Capital Explanation

One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.

Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.


Chothani Foods Net-Net Working Capital Related Terms

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Chothani Foods (BOM:540681) Business Description

Traded in Other Exchanges
N/A
Address
Office No. 408, B Wing, Dhamji Shamji Corporate Square, Laxmi Nagar, Ghatkopar East, Mumbai, MH, IND, 400075
Chothani Foods Ltd is engaged in manufacturing and supplying different types of spices. The company has two brands "APPU MASALA" and "GAYATRI MASALA". With more than 30 types of Spices and Masalas like Pav Bhaji Masala, Chaat Masala, Tea Masala, Garam Masala, Sambhar Masala, Punjabi Chole Masala, Biryani and Pulav Masala, Kitchen King Masala and various Powders like Red Chilli Powder, Jeera Powder, White Pepper Powder, Turmeric Powder, etc.

Chothani Foods (BOM:540681) Headlines

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