Ducon Infratechnologies Ltd (DUCON) 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

Rishi Laser

Cenlub Industrie

Intl. Combustion

T & I Global

Ducon Tech

Emkay Taps & Cut

Shigan Quantum

Lakshya Powertec

United Heat

Readymix Cons.

Holmarc Opto

Why is Ducon Infratechnologies Ltd ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 9.56%

Poor long term growth as Net Sales has grown by an annual rate of 3.17% over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.64 times
PBT LESS OI(Q) At Rs 3.40 cr has Fallen at -31.4% (vs previous 4Q average)
PAT(Q) At Rs 2.31 cr has Fallen at -33.2% (vs previous 4Q average)
NET SALES(Q) Lowest at Rs 94.30 cr

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -44.82% 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 Industrial Manufacturing)

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

Is Ducon Tech for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Ducon Tech

-44.82%

-0.84

53.11%

Sensex

-2.38%

-0.19

12.70%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.17%

EBIT Growth (5y)

21.74%

EBIT to Interest (avg)

2.10

Debt to EBITDA (avg)

4.63

Net Debt to Equity (avg)

0.36

Sales to Capital Employed (avg)

1.72

Tax Ratio

29.98%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

8.77%

ROE (avg)

5.57%

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

0.55

EV to EBIT

5.65

EV to EBITDA

5.33

EV to Capital Employed

0.67

EV to Sales

0.36

PEG Ratio

Dividend Yield

ROCE (Latest)

12.67%

ROE (Latest)

7.94%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

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

4What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 1.88 times

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 37.67 cr

DEBT-EQUITY RATIO(HY)

Lowest at 0.58 times

-14What is not working for the Company

PBT LESS OI(Q)

At Rs 3.40 cr has Fallen at -31.4% (vs previous 4Q average

PAT(Q)

At Rs 2.31 cr has Fallen at -33.2% (vs previous 4Q average

NET SALES(Q)

Lowest at Rs 94.30 cr

PBDIT(Q)

Lowest at Rs 5.83 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 6.18%

EPS(Q)

Lowest at Rs 0.07

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Here's what is working for Ducon Tech

Debtors Turnover Ratio- Half Yearly

Highest at 1.88 times and Grown

each half year in the last five half yearly periods

MOJO Watch

Company has been able to settle its Debtors faster

Debtors Turnover Ratio

Cash and Cash Equivalents - Half Yearly

Highest at Rs 37.67 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio - Half Yearly

Lowest at 0.58 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 Ducon Tech

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 3.40 cr has Fallen at -31.4% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 4.96 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 2.31 cr has Fallen at -33.2% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 3.46 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Net Sales - Quarterly

At Rs 94.30 cr has Fallen at -17.8% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 114.72 Cr

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Net Sales - Quarterly

Lowest at Rs 94.30 cr

in the last five quarters

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 5.83 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at 6.18%

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 3.40 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 0.07

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)