Why is Acknit Industries Ltd ?
1
Weak Long Term Fundamental Strength with a 10.45% CAGR growth in Operating Profits over the last 5 years
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.01 times
2
Flat results in Mar 26
- ROCE(HY) Lowest at 8.93%
3
With ROCE of 8.8, it has a Attractive valuation with a 1 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 15.81%, its profits have fallen by -8.9%
4
Majority shareholders : Promoters
5
Market Beating performance in long term as well as near term
- Along with generating 15.81% returns in the last 1 year, the stock has outperformed BSE500 in the last 3 years, 1 year and 3 months
How much should you hold?
- Overall Portfolio exposure to Acknit Indus. should be less than 10%
- Overall Portfolio exposure to Garments & Apparels should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Garments & Apparels)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Acknit Indus. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Acknit Indus.
15.81%
0.28
56.48%
Sensex
-7.92%
-0.61
13.09%
Quality key factors
Factor
Value
Sales Growth (5y)
7.17%
EBIT Growth (5y)
10.45%
EBIT to Interest (avg)
4.86
Debt to EBITDA (avg)
3.09
Net Debt to Equity (avg)
0.74
Sales to Capital Employed (avg)
1.82
Tax Ratio
25.00%
Dividend Payout Ratio
5.07%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
10.91%
ROE (avg)
11.09%
Valuation Key Factors 
Factor
Value
P/E Ratio
11
Industry P/E
23
Price to Book Value
0.92
EV to EBIT
10.89
EV to EBITDA
8.93
EV to Capital Employed
0.95
EV to Sales
0.66
PEG Ratio
NA
Dividend Yield
0.52%
ROCE (Latest)
8.76%
ROE (Latest)
8.60%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
No Trend
No Trend
Technical Movement
7What is working for the Company
DEBTORS TURNOVER RATIO(HY)
Highest at 8.17 times
NET SALES(Q)
Highest at Rs 66.88 cr
PBDIT(Q)
Highest at Rs 6.37 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 9.52%
PBT LESS OI(Q)
Highest at Rs 4.64 cr.
PAT(Q)
Highest at Rs 3.61 cr.
EPS(Q)
Highest at Rs 11.88
-3What is not working for the Company
ROCE(HY)
Lowest at 8.93%
Loading Valuation Snapshot...
Here's what is working for Acknit Indus.
Net Sales - Quarterly
Highest at Rs 66.88 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 6.37 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 9.52%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 4.64 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 3.61 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 11.88
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Debtors Turnover Ratio- Half Yearly
Highest at 8.17 times
in the last five half yearly periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio






