AKI India Ltd (AKI) 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

Mishka Exim

Bhakti Gems

U. H. Zaveri

Sarup Industries

Deep Diamond

AKI India

Zodiac-JRD MKJ

Rajnish Retail

Retaggio Indust.

Luxury Time

Manoj Jewellers

Why is AKI India Ltd ?

With a Operating Losses, the company has a Weak Long Term Fundamental Strength

Low ability to service debt as the company has a high Debt to EBITDA ratio of 12.54 times
The company has been able to generate a Return on Equity (avg) of 3.57% signifying low profitability per unit of shareholders funds

Risky - Negative EBITDA

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -41.54%, its profits have risen by 55.9% ; the PEG ratio of the company is 0.6

Falling Participation by Institutional Investors

Institutional investors have decreased their stake by -0.7% over the previous quarter and collectively hold 0.28% of the company
These investors have better capability and resources to analyse fundamentals of companies than most retail investors

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -41.54% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

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 Gems, Jewellery And Watches)

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

Is AKI India for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

AKI India

-41.54%

-0.70

58.95%

Sensex

8.53%

0.73

11.73%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.54%

EBIT Growth (5y)

-199.51%

EBIT to Interest (avg)

0.16

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.21

Sales to Capital Employed (avg)

0.88

Tax Ratio

25.81%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.28%

ROCE (avg)

1.41%

ROE (avg)

3.57%

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

0.53

EV to EBIT

-15.69

EV to EBITDA

-27.03

EV to Capital Employed

0.61

EV to Sales

0.78

PEG Ratio

0.67

Dividend Yield

ROCE (Latest)

-1.97%

ROE (Latest)

2.00%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

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

18What is working for the Company

NET SALES(Latest six months)

At Rs 53.08 cr has Grown at 46.75%

PAT(Latest six months)

Higher at Rs 1.71 cr

EPS(Q)

Highest at Rs 0.11

-7What is not working for the Company

PBDIT(Q)

Lowest at Rs -1.70 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at -6.65%

PBT LESS OI(Q)

Lowest at Rs -2.72 cr.

NON-OPERATING INCOME(Q)

is 324.79 % of Profit Before Tax (PBT

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Here's what is working for AKI India

Net Sales - Latest six months

At Rs 53.08 cr has Grown at 46.75%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 1.09 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 0.11

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Here's what is not working for AKI India

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs -2.72 cr has Fallen at -138.6% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs -1.14 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs -1.70 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 -6.65%

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 -2.72 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Non Operating Income - Quarterly

is 324.79 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT

Non Operating Income - Quarterly

Highest at Rs 3.93 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income