ScoreWhy is Azad Engineering Ltd ?
1
Company has a low Debt to Equity ratio (avg) at 0.09 times
2
Healthy long term growth as Net Sales has grown by an annual rate of 32.60%
3
The company has declared Positive results for the last 7 consecutive quarters
- NET SALES(Q) Highest at Rs 145.63 cr
- PBDIT(Q) Highest at Rs 52.55 cr.
- PBT LESS OI(Q) Highest at Rs 34.18 cr.
4
With ROE of 7.5, it has a Very Expensive valuation with a 7.1 Price to Book Value
- 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 -8.04%, its profits have risen by 51% ; the PEG ratio of the company is 2.5
5
High Institutional Holdings at 25.6%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
- Their stake has increased by 0.54% over the previous quarter.
6
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -8.04% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Azad Engineering should be less than 10%
- Overall Portfolio exposure to Heavy Electrical Equipment should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Heavy Electrical Equipment)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Azad Engineering for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Azad Engineering
-8.06%
-0.18
43.82%
Sensex
4.71%
0.39
11.83%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
32.60%
EBIT Growth (5y)
39.34%
EBIT to Interest (avg)
3.94
Debt to EBITDA (avg)
1.29
Net Debt to Equity (avg)
-0.02
Sales to Capital Employed (avg)
0.36
Tax Ratio
30.12%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
25.60%
ROCE (avg)
12.51%
ROE (avg)
8.89%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
94
Industry P/E
39
Price to Book Value
7.13
EV to EBIT
69.30
EV to EBITDA
55.27
EV to Capital Employed
7.28
EV to Sales
19.83
PEG Ratio
2.46
Dividend Yield
NA
ROCE (Latest)
10.51%
ROE (Latest)
7.55%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Sideways
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend22What is working for the Company
NET SALES(Q)
Highest at Rs 145.63 cr
PBDIT(Q)
Highest at Rs 52.55 cr.
PBT LESS OI(Q)
Highest at Rs 34.18 cr.
PAT(Q)
Highest at Rs 32.74 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 36.08%
EPS(Q)
Highest at Rs 5.07
-3What is not working for the Company
INTEREST(Q)
Highest at Rs 6.71 cr
Loading Valuation Snapshot...
Here's what is working for Azad Engineering
Net Sales - Quarterly
Highest at Rs 145.63 cr and Grown
each quarter in the last five quartersMOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 52.55 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term Operating Profit trend is quite positive
Operating Profit (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 34.18 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 32.74 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 36.08%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit After Tax (PAT) - Quarterly
At Rs 32.74 cr has Grown at 31.1% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 24.98 CrMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 5.07
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for Azad Engineering
Interest - Quarterly
Highest at Rs 6.71 cr
in the last five quarters and Increased by 13.54 % (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Non Operating Income - Quarterly
Highest at Rs 12.25 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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