Why is Eternal Ltd ?
1
Risky - Negative Operating Profits
- The company has recorded a negative EBIT of Rs. -389 cr
- Over the past year, while the stock has generated a return of 11.72%, its profits have fallen by -30.6%
- The stock is trading risky as compared to its average historical valuations
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 E-Retail/ E-Commerce)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Eternal for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Eternal
11.72%
0.34
34.92%
Sensex
-3.74%
-0.28
13.48%
Quality key factors
Factor
Value
Sales Growth (5y)
93.70%
EBIT Growth (5y)
6.30%
EBIT to Interest (avg)
-41.95
Debt to EBITDA (avg)
3.08
Net Debt to Equity (avg)
-0.07
Sales to Capital Employed (avg)
0.60
Tax Ratio
40.49%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
68.60%
ROCE (avg)
-6.13%
ROE (avg)
1.16%
Valuation Key Factors 
Factor
Value
P/E Ratio
675
Industry P/E
21
Price to Book Value
7.97
EV to EBIT
-629.89
EV to EBITDA
202.84
EV to Capital Employed
8.46
EV to Sales
4.51
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-1.34%
ROE (Latest)
1.18%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Sideways
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
No Trend
No Trend
OBV
Mildly Bearish
No Trend
Technical Movement
37What is working for the Company
NET SALES(Q)
Highest at Rs 17,292.00 cr
PBDIT(Q)
Highest at Rs 486.00 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 2.81%
PBT LESS OI(Q)
Highest at Rs -114.00 cr.
DEBTORS TURNOVER RATIO(HY)
Highest at 30.82 times
PAT(Q)
Highest at Rs 174.00 cr.
EPS(Q)
Highest at Rs 0.19
-4What is not working for the Company
NON-OPERATING INCOME(Q)
is 150.00 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for Eternal
Profit After Tax (PAT) - Quarterly
At Rs 174.00 cr has Grown at 201.3% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 57.75 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Net Sales - Quarterly
Highest at Rs 17,292.00 cr and Grown
each quarter in the last five quartersMOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Net Sales - Quarterly
At Rs 17,292.00 cr has Grown at 61.2% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 10,726.25 CrMOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 486.00 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term Operating Profit trend is quite positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 2.81% and Grown
each quarter in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs -114.00 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 174.00 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 0.19
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Debtors Turnover Ratio- Half Yearly
Highest at 30.82 times
in the last five half yearly periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio
Here's what is not working for Eternal
Non Operating Income - Quarterly
is 150.00 % 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






