Electrosteel Castings Ltd (ELECTCAST) 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

Jayaswal Neco

Goodluck India

Kalyani Steels

Mah. Seamless

Technocraf.Inds.

Jindal Saw

Bansal Wire Inds

Electrost.Cast.

Surya Roshni

Man Industries

Sambhv Steel

Why is Electrosteel Castings Ltd ?

With a fall in Net Sales of -8.49%, the company declared Very Negative results in Dec 25

The company has declared negative results for the last 2 consecutive quarters
PAT(Q) At Rs 16.50 cr has Fallen at -86.7% (vs previous 4Q average)
ROCE(HY) Lowest at 8.88%
OPERATING PROFIT TO INTEREST (Q) Lowest at 0.92 times

Despite the size of the company, domestic mutual funds hold only 0.34% 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

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 7.71% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -41.95% returns

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 Iron & Steel Products)

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

Is Electrost.Cast. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Electrost.Cast.

-41.42%

-0.99

42.48%

Sensex

7.79%

0.61

11.53%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

20.95%

EBIT Growth (5y)

20.34%

EBIT to Interest (avg)

3.54

Debt to EBITDA (avg)

3.22

Net Debt to Equity (avg)

0.25

Sales to Capital Employed (avg)

0.90

Tax Ratio

12.57%

Dividend Payout Ratio

11.70%

Pledged Shares

11.44%

Institutional Holding

19.86%

ROCE (avg)

10.82%

ROE (avg)

10.01%

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

0.75

EV to EBIT

11.28

EV to EBITDA

8.65

EV to Capital Employed

0.80

EV to Sales

0.91

PEG Ratio

Dividend Yield

1.96%

ROCE (Latest)

7.08%

ROE (Latest)

8.41%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

1What is working for the Company

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 609.96 cr

-27What is not working for the Company

PAT(Q)

At Rs 16.50 cr has Fallen at -86.7% (vs previous 4Q average

ROCE(HY)

Lowest at 8.88%

OPERATING PROFIT TO INTEREST (Q)

Lowest at 0.92 times

NET SALES(Q)

At Rs 1,471.81 cr has Fallen at -8.5% (vs previous 4Q average

PBDIT(Q)

Lowest at Rs 34.10 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 2.32%

PBT LESS OI(Q)

Lowest at Rs -47.39 cr.

NON-OPERATING INCOME(Q)

is 822.41 % of Profit Before Tax (PBT

EPS(Q)

Lowest at Rs -0.35

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Here's what is working for Electrost.Cast.

Cash and Cash Equivalents - Half Yearly

Highest at Rs 609.96 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Electrost.Cast.

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs -47.39 cr has Fallen at -151.8% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 91.53 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 16.50 cr has Fallen at -86.7% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 123.95 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Operating Profit to Interest - Quarterly

Lowest at 0.92 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales - Quarterly

At Rs 1,471.81 cr has Fallen at -8.5% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 1,608.44 Cr

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 34.10 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 2.32%

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 -47.39 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Non Operating Income - Quarterly

is 822.41 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT

Earnings per Share (EPS) - Quarterly

Lowest at Rs -0.35

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)