Why is Eraaya Lifespaces Ltd ?
1
With a Negative Book Value, the company has a Weak Long Term Fundamental Strength
- Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -1.00
- The company has reported losses and also has negative networth. This is not a good sign for the investors. Either company will have to raise fresh capital or report profits to sustain going forward
2
The company has declared Negative results for the last 3 consecutive quarters
- NET SALES(Latest six months) At Rs 6.42 cr has Grown at -62.46%
- PAT(Latest six months) At Rs -23.80 cr has Grown at -62.46%
- ROCE(HY) Lowest at -2.38%
3
Risky - Negative Operating Profits
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of -80.04%, its profits have fallen by -28502%
4
Underperformed the market in the last 1 year
- Even though the market (BSE500) has generated returns of 2.12% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -80.04% returns
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 Automobiles)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Eraaya Lifespace for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Eraaya Lifespace
-80.04%
-1.37
58.38%
Sensex
4.86%
0.41
11.83%
Quality key factors
Factor
Value
Sales Growth (5y)
398.20%
EBIT Growth (5y)
-9,239.00%
EBIT to Interest (avg)
-1.00
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
25.94
Sales to Capital Employed (avg)
4.58
Tax Ratio
100.00%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
24.55%
ROCE (avg)
-3.04%
ROE (avg)
0
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
35
Price to Book Value
-30.96
EV to EBIT
-1.25
EV to EBITDA
34.72
EV to Capital Employed
-0.19
EV to Sales
0.08
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
Negative Capital Employed
ROE (Latest)
Negative BV
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
Bullish
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
Technical Movement
2What is working for the Company
NET SALES(Q)
At Rs 609.28 cr has Grown at 64.7% (vs previous 4Q average
-19What is not working for the Company
NET SALES(Latest six months)
At Rs 6.42 cr has Grown at -62.46%
PAT(Latest six months)
At Rs -23.80 cr has Grown at -62.46%
ROCE(HY)
Lowest at -2.38%
INTEREST(Q)
At Rs 20.54 cr has Grown at 134.21%
DEBT-EQUITY RATIO(HY)
Highest at 2.94 times
NON-OPERATING INCOME(Q)
is 258.73 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for Eraaya Lifespace
Net Sales - Quarterly
At Rs 609.28 cr has Grown at 64.7% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 369.87 CrMOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Here's what is not working for Eraaya Lifespace
Profit After Tax (PAT) - Latest six months
At Rs -23.80 cr has Grown at -62.46%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Interest - Quarterly
At Rs 20.54 cr has Grown at 134.21%
Quarter on Quarter (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Non Operating Income - Quarterly
is 258.73 % 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
Debt-Equity Ratio - Half Yearly
Highest at 2.94 times
in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Non Operating Income - Quarterly
Highest at Rs 41.81 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income






