Black Box Ltd (BBOX) 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

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Black Box

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Tata Elxsi

KPIT Technologi.

IDream Film

Why is Black Box Ltd ?

High Management Efficiency with a high ROCE of 28.93%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 2.00 times

Flat results in Jun 26

ROCE(HY) Lowest at 18.84%
DEBTORS TURNOVER RATIO(HY) Lowest at 5.48 times
OPERATING PROFIT TO INTEREST (Q) Lowest at 3.33 times

With ROCE of 24.1, it has a Expensive valuation with a 7.9 Enterprise value to Capital Employed

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 64.32%, its profits have risen by 4.1%

Increasing Participation by Institutional Investors

Institutional investors have increased their stake by 1.85% over the previous quarter and collectively hold 8.22% of the company
These investors have better capability and resources to analyse fundamentals of companies than most retail investors

Market Beating Performance

Even though the market (BSE500) has generated negative returns of -2.18% in the last 1 year, the stock has been able to generate 64.32% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Black Box should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

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

Is Black Box for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Black Box

63.98%

1.39

46.29%

Sensex

-8.8%

-0.66

13.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.42%

EBIT Growth (5y)

18.19%

EBIT to Interest (avg)

2.34

Debt to EBITDA (avg)

1.87

Net Debt to Equity (avg)

0.48

Sales to Capital Employed (avg)

5.46

Tax Ratio

11.39%

Dividend Payout Ratio

8.27%

Pledged Shares

Institutional Holding

8.22%

ROCE (avg)

30.67%

ROE (avg)

29.37%

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

11.20

EV to EBIT

30.47

EV to EBITDA

24.29

EV to Capital Employed

7.91

EV to Sales

2.26

PEG Ratio

Dividend Yield

0.12%

ROCE (Latest)

24.15%

ROE (Latest)

21.31%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

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

5What is working for the Company

NET SALES(Q)

Highest at Rs 1,718.50 cr

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 539.98 cr

DEBT-EQUITY RATIO(HY)

Lowest at 0.90 times

-6What is not working for the Company

ROCE(HY)

Lowest at 18.84%

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.48 times

OPERATING PROFIT TO INTEREST (Q)

Lowest at 3.33 times

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Here's what is working for Black Box

Net Sales - Quarterly

Highest at Rs 1,718.50 cr and Grown

each quarter in the last five quarters

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 539.98 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio - Half Yearly

Lowest at 0.90 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 Black Box

Operating Profit to Interest - Quarterly

Lowest at 3.33 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debtors Turnover Ratio- Half Yearly

Lowest at 5.48 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio

Non Operating Income - Quarterly

Highest at Rs 3.75 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income