Aditya Birla Real Estate Ltd (ABREL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

T N Newsprint

N R Agarwal Inds

Gloster Ltd

Cheviot Company

West Coast Paper

Seshasayee Paper

JK Paper

Pudumjee Paper

Andhra Paper

A B Real Estate

KS Smart Technlo

Why is Aditya Birla Real Estate Ltd ?

Low ability to service debt as the company has a high Debt to EBITDA ratio of -15.69 times

Low ability to service debt as the company has a high Debt to EBITDA ratio of -15.69 times
The company has been able to generate a Return on Equity (avg) of 3.20% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -31.07% and Operating profit at -323.23% over the last 5 years

The company has declared negative results for the last 6 consecutive quarters

INTEREST(Latest six months) At Rs 39.61 cr has Grown at 59.78%
NET SALES(Q) At Rs 82.61 cr has Fallen at -79.07%
ROCE(HY) Lowest at -6.54%

Risky - Negative EBITDA

The company has recorded a negative EBITDA of Rs. -359.19 cr
Over the past year, while the stock has generated a return of -20.61%, its profits have fallen by -1142.5%
The stock is trading risky as compared to its average historical valuations

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 5.38% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -20.61% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Paper, Forest & Jute Products)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is A B Real Estate for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

A B Real Estate

-20.61%

-0.53

39.12%

Sensex

-3.74%

-0.28

13.48%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-31.07%

EBIT Growth (5y)

-323.23%

EBIT to Interest (avg)

2.30

Debt to EBITDA (avg)

14.98

Net Debt to Equity (avg)

0.88

Sales to Capital Employed (avg)

0.52

Tax Ratio

29.13%

Dividend Payout Ratio

110.52%

Pledged Shares

Institutional Holding

25.45%

ROCE (avg)

2.58%

ROE (avg)

3.03%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

4.50

EV to EBIT

-46.63

EV to EBITDA

-55.39

EV to Capital Employed

2.86

EV to Sales

48.86

PEG Ratio

Dividend Yield

ROCE (Latest)

-6.13%

ROE (Latest)

-8.15%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 1,398.76 cr

EPS(Q)

Highest at Rs 0.97

-43What is not working for the Company

INTEREST(Latest six months)

At Rs 39.61 cr has Grown at 59.78%

NET SALES(Q)

At Rs 82.61 cr has Fallen at -79.07%

ROCE(HY)

Lowest at -6.54%

DEBT-EQUITY RATIO(HY)

Highest at 1.52 times

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.04 times

OPERATING PROFIT TO INTEREST (Q)

Lowest at -7.77 times

PBDIT(Q)

Lowest at Rs -160.11 cr.

OPERATING PROFIT TO NET SALES(Q)

Lowest at -193.81%

PAT(Q)

Lowest at Rs -102.36 cr.

PBT LESS OI(Q)

Lowest at Rs -320.36 cr.

Loading Valuation Snapshot...

Here's what is working for A B Real Estate

Earnings per Share (EPS) - Quarterly

Highest at Rs 0.97

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 1,398.76 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for A B Real Estate

Net Sales - Quarterly

At Rs 82.61 cr has Fallen at -79.07%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs -320.36 cr has Fallen at -543.94%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs -102.36 cr has Fallen at -8848.7%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Interest - Latest six months

At Rs 39.61 cr has Grown at 59.78%

over previous Half yearly period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Operating Profit to Interest - Quarterly

Lowest at -7.77 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit (PBDIT) - Quarterly

Lowest at Rs -160.11 cr. and Fallen

each quarter in the last five quarters

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at -193.81% and Fallen

each quarter in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Profit After Tax (PAT) - Quarterly

Lowest at Rs -102.36 cr. and Fallen

each quarter in the last five quarters

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Debt-Equity Ratio - Half Yearly

Highest at 1.52 times and Grown

each half year in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio- Half Yearly

Lowest at 0.04 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs -320.36 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Non Operating Income - Quarterly

Highest at Rs 15.58 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income