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 been able to generate a Return on Equity (avg) of 0.01% signifying low profitability per unit of shareholders funds
2
Flat results in Mar 26
- NET SALES(Q) Lowest at Rs 573.24 cr
- NON-OPERATING INCOME(Q) is 330.98 % of Profit Before Tax (PBT)
3
Risky - Negative Operating Profits
- The company has recorded a negative EBIT of Rs. -49.44 cr
- Over the past year, while the stock has generated a return of -36.03%, its profits have fallen by -39%
- The stock is trading risky as compared to its average historical valuations
4
Underperformed the market in the last 1 year
- Even though the market (BSE500) generated negative returns of -5.53% in the last 1 year, its fall in the stock was much higher with a return of -36.03%
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
-36.03%
-0.63
57.37%
Sensex
-10.52%
-0.81
13.06%
Quality key factors
Factor
Value
Sales Growth (5y)
186.40%
EBIT Growth (5y)
-796.71%
EBIT to Interest (avg)
-1.00
Debt to EBITDA (avg)
274.93
Net Debt to Equity (avg)
-0.42
Sales to Capital Employed (avg)
-1.98
Tax Ratio
100.00%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
17.21%
ROCE (avg)
0.64%
ROE (avg)
0.01%
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
32
Price to Book Value
-0.32
EV to EBIT
-28.21
EV to EBITDA
13.84
EV to Capital Employed
-1.26
EV to Sales
0.57
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
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
Technical Movement
5What is working for the Company
NET SALES(9M)
At Rs 1,828.59 cr has Grown at 23.62%
EPS(Q)
Highest at Rs -1.54
-4What is not working for the Company
NET SALES(Q)
Lowest at Rs 573.24 cr
NON-OPERATING INCOME(Q)
is 330.98 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for Eraaya Lifespace
Earnings per Share (EPS) - Quarterly
Highest at Rs -1.54
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for Eraaya Lifespace
Net Sales - Quarterly
Lowest at Rs 573.24 cr
in the last five quartersMOJO Watch
Near term sales trend is negative
Net Sales (Rs Cr)
Net Sales - Quarterly
At Rs 573.24 cr has Fallen at -7.1% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 617.15 CrMOJO Watch
Near term sales trend is negative
Net Sales (Rs Cr)
Non Operating Income - Quarterly
is 330.98 % 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
Non Operating Income - Quarterly
Highest at Rs 42.63 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income






