DR Corp. Ltd. () 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

DR Corp. Ltd.

Why is DR Corp. Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of -16.49% and Operating profit at -68.50% over the last 5 years

With a growth in Operating Profit of 47.83%, the company declared Very Positive results in Sep 25

The company has declared positive results in Jan 70 after 11 consecutive negative quarters
ROCE(HY) Highest at 2.16%
RAW MATERIAL COST(Y) Fallen by -50.03% (YoY)
PRE-TAX PROFIT(Q) Highest at CNY 104.66 MM

With ROE of 0.63%, it has a very expensive valuation with a 2.17 Price to Book Value

Over the past year, while the stock has generated a return of -2.47%, its profits have risen by 69.1% ; the PEG ratio of the company is 5

Below par performance in long term as well as near term

Along with generating -2.47% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to DR Corp. Ltd. should be less than 10%
Overall Portfolio exposure to Gems, Jewellery And Watches should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Gems, Jewellery And Watches)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is DR Corp. Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

DR Corp. Ltd.

-2.47%

0.64

51.69%

China Shanghai Composite

16.1%

1.26

12.73%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-16.49%

EBIT Growth (5y)

-68.50%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.70

Sales to Capital Employed (avg)

0.26

Tax Ratio

43.63%

Dividend Payout Ratio

377.07%

Pledged Shares

Institutional Holding

ROCE (avg)

44.60%

ROE (avg)

5.87%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

342

Industry P/E

Price to Book Value

2.17

EV to EBIT

-353.43

EV to EBITDA

40.52

EV to Capital Employed

6.48

EV to Sales

6.04

PEG Ratio

4.96

Dividend Yield

ROCE (Latest)

-1.83%

ROE (Latest)

0.63%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

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

22What is working for the Company

ROCE(HY)

Highest at 2.16%

RAW MATERIAL COST(Y)

Fallen by -50.03% (YoY

PRE-TAX PROFIT(Q)

Highest at CNY 104.66 MM

NET PROFIT(Q)

Highest at CNY 85.37 MM

-14What is not working for the Company

INTEREST(HY)

At CNY 7.55 MM has Grown at 27.49%

OPERATING CASH FLOW(Y)

Lowest at CNY 109.64 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 168.83

DEBT-EQUITY RATIO (HY)

Highest at -62.85 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.32 times

OPERATING PROFIT(Q)

Lowest at CNY 6.32 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 1.71 %

Here's what is working for DR Corp. Ltd.

Pre-Tax Profit

At CNY 104.66 MM has Grown at 1,114.06%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 85.37 MM has Grown at 3,707.61%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 104.66 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 85.37 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -50.03% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for DR Corp. Ltd.

Interest

At CNY 7.55 MM has Grown at 27.49%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 168.83

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Cash Flow

Lowest at CNY 109.64 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Operating Profit

Lowest at CNY 6.32 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 1.71 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at -62.85 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 1.32 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Non Operating Income

Highest at CNY 3.07 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income