Gallantt Ispat Ltd. (GALLANTT) 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

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Gallantt Ispat L

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Mah. Seamless

Surya Roshni

Jindal Saw

Why is Gallantt Ispat Ltd. ?

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.82 times

Healthy long term growth as Net Sales has grown by an annual rate of 41.02% and Operating profit at 89.40%

Flat results in Sep 25

PBT LESS OI(Q) At Rs 89.79 cr has Fallen at -38.5% (vs previous 4Q average)
PAT(Q) At Rs 88.93 cr has Fallen at -21.4% (vs previous 4Q average)
DEBTORS TURNOVER RATIO(HY) Lowest at 3.28 times

With ROCE of 18.2, it has a Very Expensive valuation with a 4.2 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 53.25%, its profits have risen by 54.9% ; the PEG ratio of the company is 0.5

Despite the size of the company, domestic mutual funds hold only 0.19% 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 hold?

Overall Portfolio exposure to Gallantt Ispat L should be less than 10%
Overall Portfolio exposure to Iron & Steel Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Iron & Steel Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Gallantt Ispat L for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Gallantt Ispat L

53.62%

0.97

54.73%

Sensex

4.68%

0.45

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

41.02%

EBIT Growth (5y)

89.40%

EBIT to Interest (avg)

15.20

Debt to EBITDA (avg)

1.06

Net Debt to Equity (avg)

0.12

Sales to Capital Employed (avg)

1.37

Tax Ratio

23.64%

Dividend Payout Ratio

10.71%

Pledged Shares

Institutional Holding

0.24%

ROCE (avg)

13.26%

ROE (avg)

11.56%

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

4.58

EV to EBIT

22.98

EV to EBITDA

19.22

EV to Capital Employed

4.19

EV to Sales

3.37

PEG Ratio

0.53

Dividend Yield

0.20%

ROCE (Latest)

18.25%

ROE (Latest)

15.87%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

No Trend

OBV

Bullish

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

6What is working for the Company

PAT(Latest six months)

At Rs 262.72 cr has Grown at 53.85%

-8What is not working for the Company

PBT LESS OI(Q)

At Rs 89.79 cr has Fallen at -38.5% (vs previous 4Q average

PAT(Q)

At Rs 88.93 cr has Fallen at -21.4% (vs previous 4Q average

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.28 times

Loading Valuation Snapshot...

Here's what is not working for Gallantt Ispat L

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 89.79 cr has Fallen at -38.5% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 145.96 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 88.93 cr has Fallen at -21.4% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 113.17 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Debtors Turnover Ratio- Half Yearly

Lowest at 3.28 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio

Non Operating Income - Quarterly

Highest at Rs 13.22 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income