Aro Granite Industries Ltd (AROGRANITE) 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

Oriental Trimex

Archies

Pearl Polymers

A B M Internatl.

Aro Granite Inds

Amin Tannery

Lexus Granito

Madhav Marbles

Divyadhan Recy.

Medistep Health.

SPP Polymer

Why is Aro Granite Industries 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 101.74 times
The company has been able to generate a Return on Equity (avg) of 1.13% signifying low profitability per unit of shareholders funds

The company has declared negative results for the last 3 consecutive quarters

PAT(Q) At Rs -6.41 cr has Fallen at -376.6% (vs previous 4Q average)
ROCE(HY) Lowest at 1.07%
INVENTORY TURNOVER RATIO(HY) Lowest at 0.35 times

Risky - Negative Operating Profits

The company has recorded a negative EBIT of Rs. -8.33 cr
Over the past year, while the stock has generated a return of -33.02%, its profits have fallen by -83.7%
The stock is trading risky as compared to its average historical valuations

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -33.02% 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 Diversified consumer products)

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

Is Aro Granite Inds for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Aro Granite Inds

-32.52%

-0.67

48.21%

Sensex

-7.23%

-0.56

13.01%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-16.34%

EBIT Growth (5y)

-191.88%

EBIT to Interest (avg)

0.57

Debt to EBITDA (avg)

20.45

Net Debt to Equity (avg)

0.80

Sales to Capital Employed (avg)

0.42

Tax Ratio

1.64%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.87%

ROE (avg)

1.13%

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

0.23

EV to EBIT

-21.37

EV to EBITDA

119.48

EV to Capital Employed

0.57

EV to Sales

2.42

PEG Ratio

Dividend Yield

ROCE (Latest)

-2.66%

ROE (Latest)

-6.79%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

OBV

No Trend

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

1What is working for the Company

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 12.53 cr

-26What is not working for the Company

PAT(Q)

At Rs -6.41 cr has Fallen at -376.6% (vs previous 4Q average

ROCE(HY)

Lowest at 1.07%

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.35 times

OPERATING PROFIT TO INTEREST (Q)

Lowest at -0.78 times

NET SALES(Q)

Lowest at Rs 11.52 cr

PBDIT(Q)

Lowest at Rs -2.79 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at -24.22%

PBT LESS OI(Q)

Lowest at Rs -8.87 cr.

EPS(Q)

Lowest at Rs -4.19

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Here's what is working for Aro Granite Inds

Cash and Cash Equivalents - Half Yearly

Highest at Rs 12.53 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 Aro Granite Inds

Net Sales - Quarterly

At Rs 11.52 cr has Fallen at -48.1% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 22.20 Cr

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs -6.41 cr has Fallen at -376.6% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs -1.35 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Operating Profit to Interest - Quarterly

Lowest at -0.78 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Inventory Turnover Ratio- Half Yearly

Lowest at 0.35 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

Net Sales - Quarterly

Lowest at Rs 11.52 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 -2.79 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 -24.22%

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 -8.87 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 -4.19

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)