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

Sahyadri Industr

Visaka Industrie

NCL Industries

KCP

Sh. Digvijay Cem

BIGBLOC Const.

Deccan Cements

Saurashtra Cem.

Shiva Cement

Sagar Cements

Andhra Cements

Why is Deccan Cements Ltd. ?

Weak Long Term Fundamental Strength with a -33.88% CAGR growth in Operating Profits over the last 5 years

Low ability to service debt as the company has a high Debt to EBITDA ratio of 10.87 times
The company has been able to generate a Return on Equity (avg) of 2.10% signifying low profitability per unit of shareholders funds

The company has declared Negative results for the last 3 consecutive quarters

INTEREST(9M) At Rs 36.21 cr has Grown at 279.16%
OPERATING PROFIT TO INTEREST(Q) Lowest at 1.08 times
PBT LESS OI(Q) At Rs -14.34 cr has Fallen at -180.93%

Despite the size of the company, domestic mutual funds hold only 0.14% 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

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

-45.35%

-1.20

37.82%

Sensex

-4.42%

-0.33

13.44%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-3.56%

EBIT Growth (5y)

-33.88%

EBIT to Interest (avg)

1.18

Debt to EBITDA (avg)

5.73

Net Debt to Equity (avg)

0.88

Sales to Capital Employed (avg)

0.75

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

11.16%

Pledged Shares

Institutional Holding

15.51%

ROCE (avg)

14.06%

ROE (avg)

2.10%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.07

EV to EBIT

69.46

EV to EBITDA

22.38

EV to Capital Employed

1.04

EV to Sales

2.08

PEG Ratio

Dividend Yield

0.10%

ROCE (Latest)

2.90%

ROE (Latest)

2.10%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

OBV

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

11What is working for the Company

NET SALES(Q)

Highest at Rs 219.34 cr

-22What is not working for the Company

INTEREST(9M)

At Rs 36.21 cr has Grown at 279.16%

OPERATING PROFIT TO INTEREST(Q)

Lowest at 1.08 times

PBT LESS OI(Q)

At Rs -14.34 cr has Fallen at -180.93%

PAT(Q)

At Rs -5.11 cr has Fallen at -133.3%

OPERATING PROFIT TO NET SALES(Q)

Lowest at 7.68%

EPS(Q)

Lowest at Rs -2.03

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Here's what is working for Deccan Cements

Net Sales - Quarterly

At Rs 219.34 cr has Grown at 45.68%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Net Sales - Quarterly

Highest at Rs 219.34 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Here's what is not working for Deccan Cements

Interest - Latest six months

At Rs 30.71 cr has Grown at 250.17%

over previous Half yearly period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Operating Profit to Interest - Quarterly

Lowest at 1.08 times and Fallen

each quarter 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

At Rs -14.34 cr has Fallen at -180.93%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs -5.11 cr has Fallen at -133.3%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at 7.68% and Fallen

each quarter 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 -14.34 cr. and Fallen

each quarter in the last five quarters

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs -2.03

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Non Operating Income - Quarterly

Highest at Rs 7.12 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income