Bharat Wire Ropes Ltd (BHARATWIRE) 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

Aeroflex Enter.

Ratnaveer Precis

Bharat Wire

Mangalam World.

Mahamaya Steel

Rajputana Stain.

Manaksia Coated

Steel Exchange

Hi-Tech Pipes

Electrotherm(I)

Cosmic CRF

Why is Bharat Wire Ropes Ltd ?

Company has a Debt to Equity ratio (avg) of 0.26 times

Healthy long term growth as Operating profit has grown by an annual rate 58.33%

Negative results in Mar 26

PBT LESS OI(Q) At Rs 21.44 cr has Fallen at -16.1% (vs previous 4Q average)
PAT(Q) At Rs 16.46 cr has Fallen at -14.0% (vs previous 4Q average)
NET SALES(Q) Lowest at Rs 141.48 cr

With ROE of 8.9, it has a Very Attractive valuation with a 1.7 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 15.93%, its profits have risen by 0.1%

51% of Promoter Shares are Pledged

In falling markets, high promoter pledged shares puts additional downward pressure on the stock prices

Market Beating Performance

The stock has generated a return of 15.93% in the last 1 year, much higher than market (BSE500) returns of 4.11%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Bharat Wire should be less than 10%
Overall Portfolio exposure to Iron & Steel Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Iron & Steel Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Bharat Wire for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Bharat Wire

15.93%

0.30

52.35%

Sensex

-2.63%

-0.19

13.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

18.74%

EBIT Growth (5y)

58.33%

EBIT to Interest (avg)

6.94

Debt to EBITDA (avg)

3.31

Net Debt to Equity (avg)

0.07

Sales to Capital Employed (avg)

0.67

Tax Ratio

25.27%

Dividend Payout Ratio

Pledged Shares

51.00%

Institutional Holding

21.06%

ROCE (avg)

11.50%

ROE (avg)

9.50%

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

1.70

EV to EBIT

13.39

EV to EBITDA

10.95

EV to Capital Employed

1.65

EV to Sales

2.43

PEG Ratio

Dividend Yield

ROCE (Latest)

12.32%

ROE (Latest)

8.94%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bearish

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

DEBT-EQUITY RATIO(HY)

Lowest at 0.09 times

-19What is not working for the Company

PAT(Q)

At Rs 12.23 cr has Fallen at -32.5% (vs previous 4Q average

ROCE(HY)

Lowest at 12.19%

INTEREST(Q)

At Rs 2.76 cr has Grown at 32.06%

NET SALES(Q)

Lowest at Rs 130.39 cr

PBDIT(Q)

Lowest at Rs 25.53 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 19.58%

PBT LESS OI(Q)

Lowest at Rs 16.19 cr.

EPS(Q)

Lowest at Rs 1.78

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Here's what is working for Bharat Wire

Debt-Equity Ratio - Half Yearly

Lowest at 0.09 times

in the last five half yearly periods

MOJO Watch

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

Debt-Equity Ratio

Here's what is not working for Bharat Wire

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 16.19 cr has Fallen at -32.5% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 23.98 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 12.23 cr has Fallen at -32.5% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 18.12 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Net Sales - Quarterly

At Rs 130.39 cr has Fallen at -11.7% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 147.64 Cr

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Interest - Quarterly

At Rs 2.76 cr has Grown at 32.06%

Quarter on Quarter (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Net Sales - Quarterly

Lowest at Rs 130.39 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 25.53 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 19.58%

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 16.19 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 1.78

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)