Airo Lam Ltd (AIROLAM) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Archidply Inds.

W I Plywoods

Airo Lam

Greenpanel Inds.

Duroply Indust.

Greenply Industr

Ecoboard Inds.

Rushil Decor

Sylvan Plyboard

Naman In-Store

Milton Industri.

Why is Airo Lam Ltd ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 9.20%

Poor long term growth as Net Sales has grown by an annual rate of 6.56% and Operating profit at 10.94% over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.22 times

Below par performance in long term as well as near term

Along with generating -100.00% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months

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 Plywood Boards/ Laminates)

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

Is Airo Lam for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Airo Lam

-14.63%

-0.29

50.12%

Sensex

4.83%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.56%

EBIT Growth (5y)

10.94%

EBIT to Interest (avg)

2.48

Debt to EBITDA (avg)

3.72

Net Debt to Equity (avg)

1.15

Sales to Capital Employed (avg)

1.46

Tax Ratio

19.43%

Dividend Payout Ratio

Pledged Shares

17.56%

Institutional Holding

ROCE (avg)

9.30%

ROE (avg)

8.73%

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

2.08

EV to EBIT

16.01

EV to EBITDA

12.16

EV to Capital Employed

1.50

EV to Sales

1.10

PEG Ratio

0.09

Dividend Yield

ROCE (Latest)

9.39%

ROE (Latest)

10.15%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bearish

Moving Averages

Bullish (Daily)

KST

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bearish

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

24What is working for the Company

OPERATING CF(Y)

Highest at Rs 13.88 Cr

PAT(Q)

At Rs 2.46 cr has Grown at 175.9%

NET SALES(Q)

Highest at Rs 61.85 cr

PBT LESS OI(Q)

Highest at Rs 2.76 cr.

-8What is not working for the Company

INTEREST(Latest six months)

At Rs 4.17 cr has Grown at 27.91%

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 0.51 cr

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.23 times

Loading Valuation Snapshot...

Here's what is working for Airo Lam

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 2.76 cr has Grown at 177.09%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 2.46 cr has Grown at 175.9%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Operating Cash Flow - Annually

Highest at Rs 13.88 Cr and Grown

each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (Rs Cr)

Net Sales - Quarterly

Highest at Rs 61.85 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 2.76 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Here's what is not working for Airo Lam

Interest - Latest six months

At Rs 4.17 cr has Grown at 27.91%

over previous Half yearly period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 0.51 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio- Half Yearly

Lowest at 3.23 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio