Why is Butterfly Gandhimathi Appliances Ltd ?
1
Company has a Debt to Equity ratio (avg) of 0.04 times
2
Poor long term growth as Operating profit has grown by an annual rate -2.59% of over the last 5 years
3
The company has declared Positive results for the last 6 consecutive quarters
- PAT(Latest six months) At Rs 23.39 cr has Grown at 34.90%
- ROCE(HY) Highest at 17.01%
- DEBTORS TURNOVER RATIO(HY) Highest at 15.58 times
4
With ROE of 12.6, it has a Attractive valuation with a 3.2 Price to Book Value
- 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 -14.05%, its profits have risen by 43.9% ; the PEG ratio of the company is 0.6
5
Despite the size of the company, domestic mutual funds hold only 1.73% 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
6
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -14.05% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods
How much should you hold?
- Overall Portfolio exposure to Butterfly Gan Ap should be less than 10%
- Overall Portfolio exposure to Electronics & Appliances should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Butterfly Gan Ap for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Butterfly Gan Ap
-14.32%
-0.38
37.80%
Sensex
-7.5%
-0.58
13.00%
Quality key factors
Factor
Value
Sales Growth (5y)
1.64%
EBIT Growth (5y)
-2.59%
EBIT to Interest (avg)
11.33
Debt to EBITDA (avg)
0.28
Net Debt to Equity (avg)
-0.36
Sales to Capital Employed (avg)
3.13
Tax Ratio
25.50%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0.44%
ROCE (avg)
21.54%
ROE (avg)
10.72%
Valuation Key Factors 
Factor
Value
P/E Ratio
25
Industry P/E
51
Price to Book Value
3.19
EV to EBIT
18.76
EV to EBITDA
13.16
EV to Capital Employed
4.42
EV to Sales
1.12
PEG Ratio
0.58
Dividend Yield
NA
ROCE (Latest)
23.55%
ROE (Latest)
12.58%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bullish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
No Trend
Bullish
Technical Movement
10What is working for the Company
PAT(Latest six months)
At Rs 23.39 cr has Grown at 34.90%
ROCE(HY)
Highest at 17.01%
DEBTORS TURNOVER RATIO(HY)
Highest at 15.58 times
PBT LESS OI(Q)
At Rs 12.72 cr has Grown at 27.84%
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Loading Valuation Snapshot...
Here's what is working for Butterfly Gan Ap
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 12.72 cr has Grown at 27.84%
Year on Year (YoY)MOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 11.44 cr has Grown at 26.7%
Year on Year (YoY)MOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Debtors Turnover Ratio- Half Yearly
Highest at 15.58 times
in the last five half yearly periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio
Here's what is not working for Butterfly Gan Ap
Non Operating Income - Quarterly
Highest at Rs 2.64 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income






