Dynamatic Technologies Ltd (DYNAMATECH) 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

Lloyds Engineeri

Kennametal India

Centum Electron

Titagarh Rail

Standard Enginee

Dynamatic Tech.

Praj Industries

Elecon Engg.Co

Jupiter Wagons

Tega Inds.

Lohia Corp

Why is Dynamatic Technologies Ltd ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 8.30%

Poor long term growth as Net Sales has grown by an annual rate of 6.69% and Operating profit at 11.62% over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.49 times

Positive results in Mar 26

PBT LESS OI(Q) At Rs 14.78 cr has Grown at 47.9% (vs previous 4Q average)
PAT(Q) At Rs 17.84 cr has Grown at 47.8% (vs previous 4Q average)
NET SALES(Q) Highest at Rs 433.16 cr

With ROCE of 7.8, it has a Very Expensive valuation with a 6.2 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 73.48%, its profits have risen by 16.2% ; the PEG ratio of the company is 9.8

High Institutional Holdings at 26.11%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Market Beating Performance

The stock has generated a return of 73.48% in the last 1 year, much higher than market (BSE500) returns of 4.11%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Dynamatic Tech. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

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

Is Dynamatic Tech. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Dynamatic Tech.

73.48%

1.63

44.97%

Sensex

-2.63%

-0.19

13.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.69%

EBIT Growth (5y)

11.62%

EBIT to Interest (avg)

1.63

Debt to EBITDA (avg)

3.80

Net Debt to Equity (avg)

0.72

Sales to Capital Employed (avg)

1.13

Tax Ratio

35.43%

Dividend Payout Ratio

3.16%

Pledged Shares

Institutional Holding

26.11%

ROCE (avg)

8.34%

ROE (avg)

6.72%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

159

Industry P/E

Price to Book Value

10.00

EV to EBIT

80.17

EV to EBITDA

46.54

EV to Capital Employed

6.23

EV to Sales

5.24

PEG Ratio

9.79

Dividend Yield

0.04%

ROCE (Latest)

7.78%

ROE (Latest)

6.30%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

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

NET SALES(9M)

At Rs 1,282.84 cr has Grown at 20.23%

OPERATING PROFIT TO INTEREST(Q)

Highest at 3.69 times

PBDIT(Q)

Highest at Rs 55.11 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 12.97%

PBT LESS OI(Q)

Highest at Rs 20.51 cr.

PAT(Q)

Highest at Rs 20.79 cr.

EPS(Q)

Highest at Rs 30.62

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Loading Valuation Snapshot...

Here's what is working for Dynamatic Tech.

Operating Profit to Interest - Quarterly

Highest at 3.69 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 20.51 cr has Grown at 70.7% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 12.01 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 20.79 cr has Grown at 66.3% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 12.50 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Net Sales - Nine Monthly

At Rs 1,282.84 cr has Grown at 20.23%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 55.11 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 12.97%

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 20.51 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 20.79 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 30.62

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)