Deccan Cements Ltd. (DECCANCE) 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

Mangalam Cement

Orient Cement

NCL Industries

BIGBLOC Const.

Saurashtra Cem.

Sh. Digvijay Cem

Deccan Cements

KCP

Shiva Cement

Sagar Cements

Sanghi Industrie

Why is Deccan Cements Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of -4.16% and Operating profit at -19.18% over the last 5 years

PAT(Q) At Rs -0.56 cr has Fallen at -169.1%
INTEREST(9M) At Rs 12.24 cr has Grown at 25.80%
DEBT-EQUITY RATIO(HY) Highest at 1.02 times

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 11.51% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -11.15% 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 Cement & Cement Products)

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

Is Deccan Cements for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Deccan Cements

-11.15%

-0.24

45.57%

Sensex

8.53%

0.73

11.73%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-4.16%

EBIT Growth (5y)

-19.18%

EBIT to Interest (avg)

5.87

Debt to EBITDA (avg)

5.73

Net Debt to Equity (avg)

0.85

Sales to Capital Employed (avg)

0.75

Tax Ratio

25.36%

Dividend Payout Ratio

11.28%

Pledged Shares

Institutional Holding

13.64%

ROCE (avg)

14.06%

ROE (avg)

8.77%

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

1.32

EV to EBIT

36.64

EV to EBITDA

22.26

EV to Capital Employed

1.17

EV to Sales

2.99

PEG Ratio

0.22

Dividend Yield

0.09%

ROCE (Latest)

3.09%

ROE (Latest)

4.27%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

OBV

No Trend

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

10What is working for the Company

PAT(9M)

At Rs 23.86 cr has Grown at 5,648.84%

-18What is not working for the Company

PAT(Q)

At Rs -0.56 cr has Fallen at -169.1%

INTEREST(9M)

At Rs 12.24 cr has Grown at 25.80%

DEBT-EQUITY RATIO(HY)

Highest at 1.02 times

OPERATING PROFIT TO INTEREST (Q)

Lowest at 2.07 times

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 128.37 cr

DEBTORS TURNOVER RATIO(HY)

Lowest at 8.05 times

PBT LESS OI(Q)

Lowest at Rs -2.27 cr.

EPS(Q)

Lowest at Rs -0.40

Loading Valuation Snapshot...

Here's what is not working for Deccan Cements

Profit After Tax (PAT) - Quarterly

At Rs -0.56 cr has Fallen at -169.1%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Interest - Quarterly

At Rs 5.50 cr has Grown at 68.20%

Quarter on Quarter (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Operating Profit to Interest - Quarterly

Lowest at 2.07 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio - Half Yearly

Highest at 1.02 times and Grown

each half year 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

Interest - Quarterly

Highest at Rs 5.50 cr

in the last five quarters and Increased by 68.20 % (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs -2.27 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs -0.40

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 128.37 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio- Half Yearly

Lowest at 8.05 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio