DCW Ltd (DCW) 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

Pasupati Acrylon

Supreme Petroch.

Manali Petrochem

T N Petro Prod.

Kothari Petroche

Rain Industries

DCW

Agarwal Indl.

Indian Acrylics

Petro Carbon

Neptune Pet.

Why is DCW Ltd ?

Weak Long Term Fundamental Strength with a -0.71% CAGR growth in Operating Profits over the last 5 years

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 1.83
The company has been able to generate a Return on Equity (avg) of 7.27% signifying low profitability per unit of shareholders funds

With ROE of 4.5, it has a Expensive valuation with a 1.4 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 -32.91%, its profits have risen by 59.8% ; the PEG ratio of the company is 0.5

Falling Participation by Institutional Investors

Institutional investors have decreased their stake by -1.46% over the previous quarter and collectively hold 6.73% of the company
These investors have better capability and resources to analyse fundamentals of companies than most retail investors

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 4.64% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -32.91% 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 Petrochemicals)

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

Is DCW for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

DCW

-32.86%

-0.72

45.90%

Sensex

-3.59%

-0.27

13.48%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.92%

EBIT Growth (5y)

-0.71%

EBIT to Interest (avg)

1.83

Debt to EBITDA (avg)

1.87

Net Debt to Equity (avg)

0.08

Sales to Capital Employed (avg)

1.51

Tax Ratio

35.45%

Dividend Payout Ratio

Pledged Shares

3.83%

Institutional Holding

6.73%

ROCE (avg)

13.81%

ROE (avg)

7.27%

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

1.42

EV to EBIT

13.70

EV to EBITDA

7.28

EV to Capital Employed

1.39

EV to Sales

0.75

PEG Ratio

0.53

Dividend Yield

0.39%

ROCE (Latest)

10.15%

ROE (Latest)

4.48%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

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

20What is working for the Company

ROCE(HY)

Highest at 10.03%

OPERATING PROFIT TO INTEREST(Q)

Highest at 4.19 times

DEBT-EQUITY RATIO(HY)

Lowest at 0.27 times

NET SALES(Q)

Highest at Rs 609.06 cr

PBDIT(Q)

Highest at Rs 64.57 cr.

PBT LESS OI(Q)

Highest at Rs 22.76 cr.

PAT(Q)

Highest at Rs 18.08 cr.

EPS(Q)

Highest at Rs 0.61

-1What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 15.10 times

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Here's what is working for DCW

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 22.76 cr has Grown at 91.7% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 11.87 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Operating Profit to Interest - Quarterly

Highest at 4.19 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Profit After Tax (PAT) - Quarterly

At Rs 18.08 cr has Grown at 74.9% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 10.34 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Net Sales - Quarterly

Highest at Rs 609.06 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 64.57 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 22.76 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 18.08 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 0.61

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Debt-Equity Ratio - Half Yearly

Lowest at 0.27 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 DCW

Debtors Turnover Ratio- Half Yearly

Lowest at 15.10 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio