Why is Arihant Foundations & Housing Ltd ?
1
Poor Management Efficiency with a low ROCE of 7.13%
- The company has been able to generate a Return on Capital Employed (avg) of 7.13% signifying low profitability per unit of total capital (equity and debt)
2
Low ability to service debt as the company has a high Debt to EBITDA ratio of 8.55 times
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 8.55 times
- The company has been able to generate a Return on Equity (avg) of 8.60% signifying low profitability per unit of shareholders funds
3
Healthy long term growth as Net Sales has grown by an annual rate of 44.43% and Operating profit at 42.40%
4
With a growth in Net Profit of 89.3%, the company declared Outstanding results in Sep 25
- The company has declared positive results for the last 8 consecutive quarters
- NET SALES(Q) At Rs 87.80 cr has Grown at 81.82%
- PBT LESS OI(Q) At Rs 22.59 cr has Grown at 85.93%
- PAT(Q) At Rs 20.05 cr has Grown at 89.9%
5
With ROCE of 13.3, it has a Very Expensive valuation with a 2.4 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 39.02%, its profits have risen by 96.5% ; the PEG ratio of the company is 0.3
How much should you hold?
- Overall Portfolio exposure to Arih.Found.Hsg. should be less than 10%
- Overall Portfolio exposure to Realty should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Realty)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Arih.Found.Hsg. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Arih.Found.Hsg.
39.02%
0.92
42.34%
Sensex
4.81%
0.41
11.83%
Quality key factors
Factor
Value
Sales Growth (5y)
44.43%
EBIT Growth (5y)
42.40%
EBIT to Interest (avg)
1.59
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
0.73
Sales to Capital Employed (avg)
0.30
Tax Ratio
22.50%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
1.84%
ROCE (avg)
5.44%
ROE (avg)
8.60%
Valuation Key Factors 
Factor
Value
P/E Ratio
20
Industry P/E
40
Price to Book Value
3.40
EV to EBIT
17.95
EV to EBITDA
17.77
EV to Capital Employed
2.39
EV to Sales
4.91
PEG Ratio
0.29
Dividend Yield
NA
ROCE (Latest)
13.31%
ROE (Latest)
17.15%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
No Trend
No Trend
Technical Movement
37What is working for the Company
NET SALES(Q)
At Rs 87.80 cr has Grown at 81.82%
PBT LESS OI(Q)
At Rs 22.59 cr has Grown at 85.93%
PAT(Q)
At Rs 20.05 cr has Grown at 89.9%
DEBTORS TURNOVER RATIO(HY)
Highest at 7.43 times
OPERATING PROFIT TO INTEREST(Q)
Highest at 22.76 times
PBDIT(Q)
Highest at Rs 23.90 cr.
EPS(Q)
Highest at Rs 20.11
-3What is not working for the Company
DEBT-EQUITY RATIO(HY)
Highest at 0.88 times
Loading Valuation Snapshot...
Here's what is working for Arih.Found.Hsg.
Net Sales - Quarterly
At Rs 87.80 cr has Grown at 81.82%
Year on Year (YoY)MOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 22.59 cr has Grown at 85.93%
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 20.05 cr has Grown at 89.9%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Net Sales - Quarterly
Highest at Rs 87.80 cr and Grown
each quarter in the last five quartersMOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Operating Profit to Interest - Quarterly
Highest at 22.76 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Profit After Tax (PAT) - Quarterly
Highest at Rs 20.05 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Debtors Turnover Ratio- Half Yearly
Highest at 7.43 times and Grown
each half year in the last five half yearly periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio
Operating Profit (PBDIT) - Quarterly
Highest at Rs 23.90 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 22.59 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 20.11
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for Arih.Found.Hsg.
Debt-Equity Ratio - Half Yearly
Highest at 0.88 times
in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio






