ScoreWhy is Gandhi Special Tubes Ltd ?
1
The company is Net-Debt Free
2
Poor long term growth as Net Sales has grown by an annual rate of 11.05% and Operating profit at 14.07% over the last 5 years
3
Flat results in Mar 26
- PAT(Q) At Rs 9.19 cr has Fallen at -48.9% (vs previous 4Q average)
- EPS(Q) Lowest at Rs 7.70
4
With ROE of 21.9, it has a Very Expensive valuation with a 3.3 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 20.52%, its profits have risen by 17.7% ; the PEG ratio of the company is 0.8
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
Market Beating Performance
- The stock has generated a return of 20.52% in the last 1 year, much higher than market (BSE500) returns of 0.84%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Gandhi Spl. Tube 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 Gandhi Spl. Tube for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Gandhi Spl. Tube
20.52%
0.46
45.02%
Sensex
-4.95%
-0.37
13.26%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
11.05%
EBIT Growth (5y)
14.07%
EBIT to Interest (avg)
61.98
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
-0.04
Sales to Capital Employed (avg)
0.79
Tax Ratio
24.86%
Dividend Payout Ratio
31.07%
Pledged Shares
0
Institutional Holding
1.29%
ROCE (avg)
36.81%
ROE (avg)
24.22%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
15
Industry P/E
26
Price to Book Value
3.27
EV to EBIT
12.73
EV to EBITDA
12.21
EV to Capital Employed
3.36
EV to Sales
5.32
PEG Ratio
0.84
Dividend Yield
1.76%
ROCE (Latest)
26.42%
ROE (Latest)
21.86%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend0What is working for the Company
NO KEY POSITIVE TRIGGERS
-4What is not working for the Company
PAT(Q)
At Rs 9.19 cr has Fallen at -48.9% (vs previous 4Q average
EPS(Q)
Lowest at Rs 7.70
Loading Valuation Snapshot...
Here's what is not working for Gandhi Spl. Tube
Profit After Tax (PAT) - Quarterly
At Rs 9.19 cr has Fallen at -48.9% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 17.96 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Lowest at Rs 7.70
in the last five quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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