Deepak Spinners Ltd. (DEEPAKSPIN) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Shalimar Wires

APM Industries

Tuni Text. Mills

Amarjothi Spg.

Vippy Spinpro

Acknit Indus.

Nagreeka Exports

Bhandari Hosiery

Pion. Embroider.

Deepak Spinners

Shine Fashions

Why is Deepak Spinners Ltd. ?

Weak Long Term Fundamental Strength with a -199.04% CAGR growth in Operating Profits over the last 5 years

Risky - Negative Operating Profits

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -32.37%, its profits have risen by 78.1%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -32.37% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

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 Garments & Apparels)

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

Is Deepak Spinners for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Deepak Spinners

-31.15%

-0.80

40.62%

Sensex

4.31%

0.45

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.36%

EBIT Growth (5y)

-199.04%

EBIT to Interest (avg)

6.46

Debt to EBITDA (avg)

2.68

Net Debt to Equity (avg)

0.13

Sales to Capital Employed (avg)

1.96

Tax Ratio

63.12%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

8.38%

ROE (avg)

10.04%

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

0.41

EV to EBIT

-16.86

EV to EBITDA

11.41

EV to Capital Employed

0.47

EV to Sales

0.22

PEG Ratio

Dividend Yield

ROCE (Latest)

-2.81%

ROE (Latest)

-1.23%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

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

12What is working for the Company

PAT(Q)

At Rs 1.97 cr has Grown at 196.3% (vs previous 4Q average

NET SALES(Q)

Highest at Rs 139.47 cr

PBDIT(Q)

Highest at Rs 6.84 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 4.90%

PBT LESS OI(Q)

Highest at Rs 1.66 cr.

EPS(Q)

Highest at Rs 2.74

-6What is not working for the Company

OPERATING CF(Y)

Lowest at Rs 16.34 Cr

DPS(Y)

Lowest at Rs 0.00

DPR(Y)

Lowest at 0.00%

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.93 times

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Here's what is working for Deepak Spinners

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 1.66 cr has Grown at 142.5% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs -3.91 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 1.97 cr has Grown at 196.3% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs -2.05 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Net Sales - Quarterly

Highest at Rs 139.47 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 6.84 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 4.90%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 1.66 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 1.97 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 2.74

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Here's what is not working for Deepak Spinners

Operating Cash Flow - Annually

Lowest at Rs 16.34 Cr and Fallen

each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (Rs Cr)

Debtors Turnover Ratio- Half Yearly

Lowest at 0.93 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio

Dividend per Share (DPS) - Annually

Lowest at Rs 0.00

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (Rs)

Dividend Payout Ratio (DPR) - Annually

Lowest at 0.00%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)