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

Rategain Travel

Black Box

Sonata Software

Sagility

Intellect Design

Affle 3i

Zensar Tech.

KPIT Technologi.

Cyient

Tata Elxsi

IDream Film

Why is Black Box Ltd ?

High Management Efficiency with a high ROCE of 28.74%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 2.07 times

Flat results in Mar 26

ROCE(HY) Lowest at 18.84%
DEBTORS TURNOVER RATIO(HY) Lowest at 5.48 times

With ROCE of 23.2, it has a Expensive valuation with a 7.1 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 49.33%, its profits have risen by 2.6%

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

Consistent Returns over the last 3 years

Along with generating 49.33% returns in the last 1 year, the stock has outperformed BSE500 in each of the last 3 annual periods

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

49.48%

1.12

43.93%

Sensex

-3.84%

-0.28

13.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.23%

EBIT Growth (5y)

15.13%

EBIT to Interest (avg)

2.31

Debt to EBITDA (avg)

1.88

Net Debt to Equity (avg)

0.48

Sales to Capital Employed (avg)

5.46

Tax Ratio

9.04%

Dividend Payout Ratio

8.27%

Pledged Shares

Institutional Holding

8.22%

ROCE (avg)

30.50%

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

10.03

EV to EBIT

30.70

EV to EBITDA

24.29

EV to Capital Employed

7.12

EV to Sales

2.14

PEG Ratio

Dividend Yield

0.13%

ROCE (Latest)

23.18%

ROE (Latest)

21.31%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Bullish

OBV

Mildly Bearish

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

10What is working for the Company

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 539.98 cr

DEBT-EQUITY RATIO(HY)

Lowest at 0.90 times

NET SALES(Q)

Highest at Rs 1,690.94 cr

PBDIT(Q)

Highest at Rs 157.23 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 9.30%

PBT LESS OI(Q)

Highest at Rs 88.19 cr.

PAT(Q)

Highest at Rs 76.83 cr.

EPS(Q)

Highest at Rs 3.65

-5What is not working for the Company

ROCE(HY)

Lowest at 18.84%

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.48 times

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Here's what is working for Black Box

Net Sales - Quarterly

Highest at Rs 1,690.94 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 157.23 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 9.30%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 88.19 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 88.19 cr has Grown at 25.8% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 70.10 Cr

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 76.83 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 3.65

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

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

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 2.14 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income