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

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Comparison

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Score

Quality

Valuation

Financial

Technical

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Why is Black Box Ltd ?

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.11 times

Poor long term growth as Net Sales has grown by an annual rate of 4.98% and Operating profit at 9.10% over the last 5 years

Flat results in Sep 25

OPERATING CF(Y) Lowest at Rs -87.61 Cr
INTEREST(9M) At Rs 120.26 cr has Grown at 23.34%
ROCE(HY) Lowest at 22.19%

With ROCE of 25.3, it has a Expensive valuation with a 5.7 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 -24.84%, its profits have risen by 25.3% ; the PEG ratio of the company is 1.3

Despite the size of the company, domestic mutual funds hold only 0.03% of the company

Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 2.38% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -24.84% 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, Low Return

Absolute

Risk Adjusted

Volatility

Black Box

-24.34%

-0.53

46.52%

Sensex

5.58%

0.48

11.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.98%

EBIT Growth (5y)

9.10%

EBIT to Interest (avg)

2.22

Debt to EBITDA (avg)

1.77

Net Debt to Equity (avg)

0.83

Sales to Capital Employed (avg)

6.08

Tax Ratio

1.62%

Dividend Payout Ratio

8.27%

Pledged Shares

Institutional Holding

4.38%

ROCE (avg)

45.67%

ROE (avg)

31.59%

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

9.63

EV to EBIT

22.55

EV to EBITDA

17.73

EV to Capital Employed

5.71

EV to Sales

1.57

PEG Ratio

1.34

Dividend Yield

0.20%

ROCE (Latest)

25.34%

ROE (Latest)

30.29%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

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

PAT(9M)

At Rs 205.34 cr has Grown at 20.48%

DPR(Y)

Highest at 8.27%

NET SALES(Q)

Highest at Rs 1,584.59 cr

PBDIT(Q)

Highest at Rs 143.33 cr.

-8What is not working for the Company

OPERATING CF(Y)

Lowest at Rs -87.61 Cr

INTEREST(9M)

At Rs 120.26 cr has Grown at 23.34%

ROCE(HY)

Lowest at 22.19%

DEBTORS TURNOVER RATIO(HY)

Lowest at 8.92 times

Loading Valuation Snapshot...

Here's what is working for Black Box

Profit After Tax (PAT) - Nine Monthly

At Rs 205.34 cr has Grown at 20.48%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Net Sales - Quarterly

Highest at Rs 1,584.59 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 143.33 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Dividend Payout Ratio (DPR) - Annually

Highest at 8.27%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Black Box

Interest - Nine Monthly

At Rs 120.26 cr has Grown at 23.34%

over preceding nine months period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Operating Cash Flow - Annually

Lowest at Rs -87.61 Cr

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (Rs Cr)

Debtors Turnover Ratio- Half Yearly

Lowest at 8.92 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio