ScoreWhy is Bihar Sponge Iron Ltd ?
1
With a Negative Book Value, the company has a Weak Long Term Fundamental Strength
- Poor long term growth as Net Sales has grown by an annual rate of 37.00% and Operating profit at 0% over the last 5 years
- The company has a negative book value of Rs 34.01 crore
2
Negative results in Jun 26
- NET SALES(Latest six months) At Rs 16.92 cr has Grown at -90.39%
- PAT(Q) At Rs 2.48 cr has Fallen at -12.4% (vs previous 4Q average)
- NON-OPERATING INCOME(Q) is 257.66 % of Profit Before Tax (PBT)
3
Risky - Negative EBITDA
- The company has recorded a negative EBITDA of Rs. -12.3 cr
- Over the past year, while the stock has generated a return of 1.59%, its profits have risen by 32.4% ; the PEG ratio of the company is 0.3
- The stock is trading risky as compared to its average historical valuations
4
52.05% of Promoter Shares are Pledged
- In falling markets, high promoter pledged shares puts additional downward pressure on the stock prices
Real-Time Research ReportHow 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 Ferrous Metals)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Bihar Sponge for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Bihar Sponge
1.59%
0.03
46.30%
Sensex
-10.5%
-0.78
13.50%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
37.00%
EBIT Growth (5y)
-222.57%
EBIT to Interest (avg)
0
Debt to EBITDA (avg)
4.90
Net Debt to Equity (avg)
-0.72
Sales to Capital Employed (avg)
0
Tax Ratio
Tax Ratio is Negative%
Dividend Payout Ratio
0
Pledged Shares
52.05%
Institutional Holding
0.07%
ROCE (avg)
46.96%
ROE (avg)
0
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
10
Industry P/E
24
Price to Book Value
-3.51
EV to EBIT
-9.06
EV to EBITDA
-11.70
EV to Capital Employed
-15.32
EV to Sales
0.86
PEG Ratio
0.32
Dividend Yield
NA
ROCE (Latest)
Negative Capital Employed
ROE (Latest)
Negative BV
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Mildly Bullish
Dow Theory
Mildly Bullish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend5What is working for the Company
INVENTORY TURNOVER RATIO(HY)
Highest at 69.65 times
PAT(9M)
Higher at Rs 9.94 Cr
-12What is not working for the Company
NET SALES(Latest six months)
At Rs 16.92 cr has Grown at -90.39%
PAT(Q)
At Rs 2.48 cr has Fallen at -12.4% (vs previous 4Q average
NON-OPERATING INCOME(Q)
is 257.66 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for Bihar Sponge
Inventory Turnover Ratio- Half Yearly
Highest at 69.65 times and Grown
each half year in the last five half yearly periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Here's what is not working for Bihar Sponge
Net Sales - Latest six months
At Rs 16.92 cr has Grown at -90.39%
Year on Year (YoY)MOJO Watch
Near term sales trend is very negative
Net Sales (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 2.48 cr has Fallen at -12.4% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 2.83 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Non Operating Income - Quarterly
is 257.66 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
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