Enkei Wheels India 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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Jay Bharat Maru.

Saint-Gob. Sekur

Munjal Auto Inds

Sar Auto Prod.

Z F Steering

Enkei Wheels

Automotive Stamp

Hind.Composites

Kinetic Engg.

GKW

IST

Why is Enkei Wheels India Ltd ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 3.08%

Poor long term growth as Operating profit has grown by an annual rate 17.46% of over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.02 times

With ROCE of 1, it has a Expensive valuation with a 2.5 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 -22.78%, its profits have fallen by -126.4%

Despite the size of the company, domestic mutual funds hold only 0% 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

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -22.78% 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 Auto Components & Equipments)

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

Is Enkei Wheels for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Enkei Wheels

-22.78%

-0.63

35.91%

Sensex

4.76%

0.40

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

34.76%

EBIT Growth (5y)

17.46%

EBIT to Interest (avg)

2.03

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

1.06

Sales to Capital Employed (avg)

1.49

Tax Ratio

8.56%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.02%

ROCE (avg)

2.33%

ROE (avg)

3.66%

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

4.02

EV to EBIT

117.51

EV to EBITDA

17.55

EV to Capital Employed

2.46

EV to Sales

1.25

PEG Ratio

Dividend Yield

ROCE (Latest)

0.95%

ROE (Latest)

-0.90%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

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

20What is working for the Company

OPERATING PROFIT TO INTEREST(Q)

Highest at 5.96 times

NET SALES(Q)

Highest at Rs 265.11 cr

PBDIT(Q)

Highest at Rs 29.99 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 11.31%

PBT LESS OI(Q)

Highest at Rs 10.04 cr.

PAT(Q)

Highest at Rs 7.94 cr.

EPS(Q)

Highest at Rs 4.42

-5What is not working for the Company

INTEREST(Latest six months)

At Rs 11.17 cr has Grown at 26.50%

Loading Valuation Snapshot...

Here's what is working for Enkei Wheels

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 10.04 cr has Grown at 375.8% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs -3.64 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 7.94 cr has Grown at 318.4% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs -3.64 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Operating Profit to Interest - Quarterly

Highest at 5.96 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales - Quarterly

Highest at Rs 265.11 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 29.99 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 11.31%

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 10.04 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 7.94 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 4.42

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 Enkei Wheels

Interest - Latest six months

At Rs 11.17 cr has Grown at 26.50%

over previous Half yearly period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)