Asahi Songwon Colors Ltd (ASAHISONG) 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

Bodal Chemicals

Bhageria Indust.

Sh.Pushkar Chem.

Ultramarine Pig.

Sudarshan Colora

Asahi Songwon

Hindprakash Indu

Poddar Pigments

AksharChem (I)

Ducol Organics

Siddhika Coatins

Why is Asahi Songwon Colors Ltd ?

Weak Long Term Fundamental Strength with a -5.30% CAGR growth in Operating Profits over the last 5 years

Low ability to service debt as the company has a high Debt to EBITDA ratio of 2.87 times
The company has been able to generate a Return on Equity (avg) of 4.53% signifying low profitability per unit of shareholders funds

Underperformed the market in the last 1 year

Even though the market (BSE500) generated negative returns of -1.60% in the last 1 year, its fall in the stock was much higher with a return of -38.10%

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 Dyes And Pigments)

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

Is Asahi Songwon for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Asahi Songwon

-37.99%

-0.80

47.95%

Sensex

-8.46%

-0.63

13.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.60%

EBIT Growth (5y)

-5.30%

EBIT to Interest (avg)

1.95

Debt to EBITDA (avg)

3.03

Net Debt to Equity (avg)

0.51

Sales to Capital Employed (avg)

1.21

Tax Ratio

30.43%

Dividend Payout Ratio

2.94%

Pledged Shares

Institutional Holding

0.36%

ROCE (avg)

4.75%

ROE (avg)

4.53%

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

1.12

EV to EBIT

14.27

EV to EBITDA

8.91

EV to Capital Employed

1.08

EV to Sales

0.83

PEG Ratio

Dividend Yield

0.58%

ROCE (Latest)

7.59%

ROE (Latest)

6.91%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

No Trend

OBV

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

17What is working for the Company

DEBT-EQUITY RATIO(HY)

Lowest at 0.53 times

OPERATING PROFIT TO INTEREST(Q)

Highest at 5.92 times

PBDIT(Q)

Highest at Rs 19.52 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 13.55%

PBT LESS OI(Q)

Highest at Rs 11.58 cr.

PAT(Q)

Highest at Rs 10.87 cr.

EPS(Q)

Highest at Rs 9.22

-1What is not working for the Company

NO KEY NEGATIVE TRIGGERS

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Here's what is working for Asahi Songwon

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 11.58 cr has Grown at 192.1% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 3.97 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 10.87 cr has Grown at 180.0% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 3.88 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Operating Profit to Interest - Quarterly

Highest at 5.92 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Debt-Equity Ratio - Half Yearly

Lowest at 0.53 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Operating Profit (PBDIT) - Quarterly

Highest at Rs 19.52 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 13.55%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 11.58 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 10.87 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 9.22

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 Asahi Songwon

Non Operating Income - Quarterly

Highest at Rs 3.49 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income