Ahmedabad Steelcraft Ltd () 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

Suraj Products

Ahm. Steelcraft

Remi Edelstahl

D P Wires

VMS TMT

Geekay Wires

Supershakti Met.

Riddhi Steel

Chaman Metallics

Krishca Strapp.

P S Raj Steels

Why is Ahmedabad Steelcraft Ltd ?

Poor Management Efficiency with a low ROE of 5.20%

The company has been able to generate a Return on Equity (avg) of 5.20% signifying low profitability per unit of shareholders funds

The company is Net-Debt Free

Healthy long term growth as Net Sales has grown by an annual rate of 193.66% and Operating profit at 76.18%

Negative results in Jun 26

PAT(Q) At Rs 1.50 cr has Fallen at -67.8% (vs previous 4Q average)
CASH AND CASH EQUIVALENTS(HY) Lowest at Rs 0.43 cr
NET SALES(Q) Lowest at Rs 38.72 cr

With ROE of 12.7, it has a Very Attractive valuation with a 2.1 Price to Book Value

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 -11.84%, its profits have risen by 19.3% ; the PEG ratio of the company is 0.9

Majority shareholders : Promoters

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 3.66% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -11.84% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Ahm. Steelcraft should be less than 10%
Overall Portfolio exposure to Iron & Steel Products should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Ahm. Steelcraft for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Ahm. Steelcraft

-11.84%

-0.17

69.28%

Sensex

-3.56%

-0.26

13.52%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

193.66%

EBIT Growth (5y)

76.18%

EBIT to Interest (avg)

6.36

Debt to EBITDA (avg)

0.14

Net Debt to Equity (avg)

0.02

Sales to Capital Employed (avg)

0.67

Tax Ratio

24.61%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

-2.52%

ROE (avg)

5.20%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.09

EV to EBIT

12.40

EV to EBITDA

12.11

EV to Capital Employed

2.07

EV to Sales

1.28

PEG Ratio

0.85

Dividend Yield

ROCE (Latest)

18.60%

ROE (Latest)

12.74%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

No Trend

Mildly 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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-19What is not working for the Company

PAT(Q)

At Rs 1.50 cr has Fallen at -67.8% (vs previous 4Q average

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 0.43 cr

NET SALES(Q)

Lowest at Rs 38.72 cr

PBDIT(Q)

Lowest at Rs 2.08 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 5.37%

PBT LESS OI(Q)

Lowest at Rs 1.83 cr.

EPS(Q)

Lowest at Rs 0.99

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Here's what is not working for Ahm. Steelcraft

Net Sales - Quarterly

At Rs 38.72 cr has Fallen at -30.0% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 55.32 Cr

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 1.83 cr has Fallen at -70.6% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 6.23 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 1.50 cr has Fallen at -67.8% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 4.66 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Net Sales - Quarterly

Lowest at Rs 38.72 cr

in the last five quarters

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 2.08 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at 5.37%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 1.83 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs 0.99

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 0.43 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents