Faze Three Ltd (FAZE3Q) 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

Indo Rama Synth.

SBC Exports

R&B Denims

Mafatlal Inds.

Sportking India

Pashupati Cotsp.

Raj Rayon Inds.

Century Enka

Faze Three

AYM Syntex

Le Merite Export

Why is Faze Three Ltd ?

Poor long term growth as Operating profit has grown by an annual rate 11.44% of over the last 5 years

With a fall in Net Sales of -2.35%, the company declared Very Negative results in Sep 25

The company has declared negative results in Sep 25 after 2 consecutive negative quarters
OPERATING CF(Y) Lowest at Rs 12.27 Cr
PAT(Latest six months) At Rs 7.57 cr has Grown at -47.28%
PBT LESS OI(Q) At Rs -6.89 cr has Fallen at -159.3% (vs previous 4Q average)

With ROCE of 7.6, it has a Expensive valuation with a 2.2 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 12.30%, its profits have fallen by -5.9%

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

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 Garments & Apparels)

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

Is Faze Three for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Faze Three

12.35%

0.21

59.14%

Sensex

4.66%

0.39

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

23.70%

EBIT Growth (5y)

11.44%

EBIT to Interest (avg)

7.63

Debt to EBITDA (avg)

2.17

Net Debt to Equity (avg)

0.49

Sales to Capital Employed (avg)

1.10

Tax Ratio

21.83%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.99%

ROCE (avg)

14.79%

ROE (avg)

13.34%

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

2.72

EV to EBIT

28.31

EV to EBITDA

17.95

EV to Capital Employed

2.15

EV to Sales

1.70

PEG Ratio

Dividend Yield

ROCE (Latest)

7.60%

ROE (Latest)

7.94%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

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

5What is working for the Company

NET SALES(Latest six months)

At Rs 418.95 cr has Grown at 39.09%

DEBTORS TURNOVER RATIO(HY)

Highest at 10.06 times

-25What is not working for the Company

OPERATING CF(Y)

Lowest at Rs 12.27 Cr

PAT(Latest six months)

At Rs 7.57 cr has Grown at -47.28%

PBT LESS OI(Q)

At Rs -6.89 cr has Fallen at -159.3% (vs previous 4Q average

INTEREST(9M)

At Rs 12.83 cr has Grown at 22.54%

ROCE(HY)

Lowest at 9.13%

OPERATING PROFIT TO INTEREST (Q)

Lowest at 1.17 times

DPR(Y)

Lowest at 0.00%

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 9.06 cr

DEBT-EQUITY RATIO(HY)

Highest at 0.55 times

PBDIT(Q)

Lowest at Rs 5.33 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 2.58%

EPS(Q)

Lowest at Rs -2.14

Loading Valuation Snapshot...

Here's what is working for Faze Three

Net Sales - Latest six months

At Rs 418.95 cr has Grown at 39.09%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Debtors Turnover Ratio- Half Yearly

Highest at 10.06 times

in the last five half yearly periods

MOJO Watch

Company has been able to settle its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Faze Three

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs -6.89 cr has Fallen at -159.3% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 11.63 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs -5.20 cr has Fallen at -145.1% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 11.54 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Operating Cash Flow - Annually

Lowest at Rs 12.27 Cr and Fallen

each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (Rs Cr)

Operating Profit to Interest - Quarterly

Lowest at 1.17 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest - Nine Monthly

At Rs 12.83 cr has Grown at 22.54%

over preceding nine months period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 5.33 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 2.58%

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 -6.89 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs -2.14

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 9.06 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio - Half Yearly

Highest at 0.55 times

in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Dividend Payout Ratio (DPR) - Annually

Lowest at 0.00%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)