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 87.27% and Operating profit at 0% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at 0 times
2
Risky - Negative EBITDA
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of -22.41%, its profits have risen by 16.6% ; the PEG ratio of the company is 0.4
3
52.05% of Promoter Shares are Pledged
- In falling markets, high promoter pledged shares puts additional downward pressure on the stock prices
4
Underperformed the market in the last 1 year
- Even though the market (BSE500) has generated returns of 0.76% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -22.41% returns
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, Low Return
Absolute
Risk Adjusted
Volatility
Bihar Sponge
-22.41%
-0.46
48.98%
Sensex
-2.38%
-0.19
12.70%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
87.27%
EBIT Growth (5y)
-272.27%
EBIT to Interest (avg)
0
Debt to EBITDA (avg)
6.09
Net Debt to Equity (avg)
-0.59
Sales to Capital Employed (avg)
0
Tax Ratio
Tax Ratio is Negative%
Dividend Payout Ratio
0
Pledged Shares
52.05%
Institutional Holding
0.08%
ROCE (avg)
29.49%
ROE (avg)
0
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
7
Industry P/E
26
Price to Book Value
-2.31
EV to EBIT
-7.15
EV to EBITDA
-9.29
EV to Capital Employed
-7.11
EV to Sales
0.37
PEG Ratio
0.43
Dividend Yield
NA
ROCE (Latest)
Negative Capital Employed
ROE (Latest)
Negative BV
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend18What is working for the Company
NET SALES(Latest six months)
At Rs 151.06 cr has Grown at 29.04%
PBDIT(Q)
Highest at Rs -1.15 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at -1.32%
PBT LESS OI(Q)
Highest at Rs -2.16 cr.
PAT(Q)
Highest at Rs 6.21 cr.
EPS(Q)
Highest at Rs 0.69
-1What is not working for the Company
NON-OPERATING INCOME(Q)
is 134.78 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for Bihar Sponge
Profit After Tax (PAT) - Quarterly
At Rs 6.21 cr has Grown at 172.4% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 2.28 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Net Sales - Latest six months
At Rs 151.06 cr has Grown at 29.04%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs -1.15 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at -1.32%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs -2.16 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 6.21 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 0.69
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for Bihar Sponge
Non Operating Income - Quarterly
is 134.78 % 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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