Why is Frontier Springs Ltd ?
1
Company has a Debt to Equity ratio (avg) of 0.02 times
2
Healthy long term growth as Net Sales has grown by an annual rate of 33.15% and Operating profit at 51.91%
3
The company has declared Positive results for the last 11 consecutive quarters
- NET SALES(Latest six months) At Rs 163.97 cr has Grown at 27.75%
- PBDIT(Q) Highest at Rs 23.54 cr.
- OPERATING PROFIT TO NET SALES(Q) Highest at 28.52%
4
With ROE of 33.4, it has a Very Expensive valuation with a 9 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 11.32%, its profits have risen by 76.9% ; the PEG ratio of the company is 0.3
5
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
6
Consistent Returns over the last 3 years
- Along with generating 11.32% returns in the last 1 year, the stock has outperformed BSE500 in each of the last 3 annual periods
How much should you hold?
- Overall Portfolio exposure to Frontier Springs should be less than 10%
- Overall Portfolio exposure to Auto Components & Equipments should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Frontier Springs for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Frontier Springs
11.32%
0.21
54.83%
Sensex
-10.52%
-0.81
13.06%
Quality key factors
Factor
Value
Sales Growth (5y)
33.15%
EBIT Growth (5y)
51.91%
EBIT to Interest (avg)
32.58
Debt to EBITDA (avg)
0.19
Net Debt to Equity (avg)
0.04
Sales to Capital Employed (avg)
1.42
Tax Ratio
25.46%
Dividend Payout Ratio
2.06%
Pledged Shares
0
Institutional Holding
0.51%
ROCE (avg)
21.58%
ROE (avg)
19.35%
Valuation Key Factors 
Factor
Value
P/E Ratio
27
Industry P/E
35
Price to Book Value
9.03
EV to EBIT
20.44
EV to EBITDA
19.28
EV to Capital Employed
8.72
EV to Sales
5.17
PEG Ratio
0.34
Dividend Yield
0.04%
ROCE (Latest)
42.66%
ROE (Latest)
33.42%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
Bullish
OBV
Mildly Bearish
No Trend
Technical Movement
18What is working for the Company
NET SALES(Latest six months)
At Rs 163.97 cr has Grown at 27.75%
PBDIT(Q)
Highest at Rs 23.54 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 28.52%
PBT LESS OI(Q)
Highest at Rs 21.80 cr.
PAT(Q)
Highest at Rs 16.59 cr.
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Loading Valuation Snapshot...
Here's what is working for Frontier Springs
Profit After Tax (PAT) - Quarterly
At Rs 16.59 cr has Grown at 42.3%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Net Sales - Latest six months
At Rs 163.97 cr has Grown at 27.75%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 23.54 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 28.52%
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 21.80 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 21.80 cr has Grown at 39.30%
Year on Year (YoY)MOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 16.59 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)






