BMW Industries Ltd () 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

Gandhi Spl. Tube

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BMW Industries

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Electrotherm(I)

Cosmic CRF

Why is BMW Industries Ltd ?

Poor long term growth as Net Sales has grown by an annual rate of 9.02% and Operating profit at 16.21% over the last 5 years

Flat results in Jun 26

INTEREST(9M) At Rs 15.72 cr has Grown at 56.73%
OPERATING PROFIT TO INTEREST (Q) Lowest at 6.13 times
DEBT-EQUITY RATIO(HY) Highest at 0.46 times

With ROCE of 9.7, it has a Attractive valuation with a 1.3 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 11.43%, its profits have risen by 25.2% ; the PEG ratio of the company is 0.6

Despite the size of the company, domestic mutual funds hold only 0% 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

Market Beating Performance

Even though the market (BSE500) has generated negative returns of -2.82% in the last 1 year, the stock has been able to generate 11.43% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to BMW Industries should be less than 10%
Overall Portfolio exposure to Iron & Steel Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Iron & Steel Products)

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

Is BMW Industries for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

BMW Industries

11.43%

0.23

48.94%

Sensex

-9.29%

-0.69

13.52%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.02%

EBIT Growth (5y)

16.21%

EBIT to Interest (avg)

4.98

Debt to EBITDA (avg)

1.71

Net Debt to Equity (avg)

0.44

Sales to Capital Employed (avg)

0.65

Tax Ratio

25.52%

Dividend Payout Ratio

12.90%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

10.21%

ROE (avg)

9.06%

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

1.47

EV to EBIT

13.54

EV to EBITDA

9.20

EV to Capital Employed

1.33

EV to Sales

2.25

PEG Ratio

0.55

Dividend Yield

0.82%

ROCE (Latest)

9.71%

ROE (Latest)

10.10%

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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

Mildly Bullish

Dow Theory

No Trend

Mildly 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

8What is working for the Company

PAT(Latest six months)

At Rs 52.28 cr has Grown at 59.29%

NET SALES(Latest six months)

At Rs 375.50 cr has Grown at 22.78%

-12What is not working for the Company

INTEREST(9M)

At Rs 15.72 cr has Grown at 56.73%

OPERATING PROFIT TO INTEREST (Q)

Lowest at 6.13 times

DEBT-EQUITY RATIO(HY)

Highest at 0.46 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.43 times

PBT LESS OI(Q)

Lowest at Rs 14.31 cr.

PAT(Q)

At Rs 19.12 cr has Fallen at -5.7% (vs previous 4Q average

NON-OPERATING INCOME(Q)

is 42.74 % of Profit Before Tax (PBT

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Here's what is working for BMW Industries

Net Sales - Latest six months

At Rs 375.50 cr has Grown at 22.78%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Here's what is not working for BMW Industries

Interest - Nine Monthly

At Rs 15.72 cr has Grown at 56.73%

over preceding nine months period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Operating Profit to Interest - Quarterly

Lowest at 6.13 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 14.31 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 19.12 cr has Fallen at -5.7% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 20.28 Cr

MOJO Watch

Near term PAT trend is negative

PAT (Rs Cr)

Non Operating Income - Quarterly

is 42.74 % 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

Debt-Equity Ratio - Half Yearly

Highest at 0.46 times

in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio- Half Yearly

Lowest at 4.43 times

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 10.68 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income