Bright Brothers Ltd (BRIGHTBROS) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

National Plastic

Hind.Adhesive

Bright Brothers

Ecoplast

Rungta Irrigatn.

Guj. Toolroom

Texmo Pipes

Tainwala Chem.

Caprihans India

B. D. Industries

Texel Industries

Why is Bright Brothers Ltd ?

Poor Management Efficiency with a low ROCE of 8.13%

The company has been able to generate a Return on Capital Employed (avg) of 8.13% signifying low profitability per unit of total capital (equity and debt)

Low ability to service debt as the company has a high Debt to EBITDA ratio of 6.15 times

Low ability to service debt as the company has a high Debt to EBITDA ratio of 6.15 times
The company has been able to generate a Return on Equity (avg) of 5.34% signifying low profitability per unit of shareholders funds

Flat results in Sep 25

INTEREST(9M) At Rs 7.48 cr has Grown at 21.04%
PAT(Q) At Rs 2.01 cr has Fallen at -12.6% (vs previous 4Q average)
DEBT-EQUITY RATIO(HY) Highest at 0.82 times

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 2.12% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -15.45% returns

Real-Time Research Report

Verdict Report

How 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 Plastic Products - Industrial)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Bright Brothers for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Bright Brothers

-15.45%

-0.25

61.32%

Sensex

4.83%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

30.80%

EBIT Growth (5y)

115.33%

EBIT to Interest (avg)

0.66

Debt to EBITDA (avg)

8.66

Net Debt to Equity (avg)

0.67

Sales to Capital Employed (avg)

2.41

Tax Ratio

24.55%

Dividend Payout Ratio

-11.92%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

4.28%

ROE (avg)

5.34%

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

2.02

EV to EBIT

12.29

EV to EBITDA

7.40

EV to Capital Employed

1.61

EV to Sales

0.59

PEG Ratio

0.25

Dividend Yield

0.88%

ROCE (Latest)

13.09%

ROE (Latest)

9.96%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

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

6What is working for the Company

NET SALES(9M)

At Rs 285.54 cr has Grown at 20.63%

PAT(9M)

Higher at Rs 7.02 Cr

-11What is not working for the Company

INTEREST(9M)

At Rs 7.48 cr has Grown at 21.04%

PAT(Q)

At Rs 2.01 cr has Fallen at -12.6% (vs previous 4Q average

DEBT-EQUITY RATIO(HY)

Highest at 0.82 times

OPERATING PROFIT TO NET SALES (Q)

Lowest at 7.24%

PBT LESS OI(Q)

Lowest at Rs 1.56 cr.

NON-OPERATING INCOME(Q)

is 41.35 % of Profit Before Tax (PBT

Loading Valuation Snapshot...

Here's what is working for Bright Brothers

Net Sales - Nine Monthly

At Rs 285.54 cr has Grown at 20.63%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Here's what is not working for Bright Brothers

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 1.56 cr has Fallen at -37.5% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 2.50 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 2.01 cr has Fallen at -12.6% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 2.30 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Interest - Nine Monthly

At Rs 7.48 cr has Grown at 21.04%

over preceding nine months period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Operating Profit Margin - Quarterly

Lowest at 7.24%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 1.56 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Non Operating Income - Quarterly

is 41.35 % 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 0.82 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

Non Operating Income - Quarterly

Highest at Rs 1.10 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income