Gandhi Special Tubes Ltd (GANDHITUBE) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Gandhi Spl. Tube

Kamdhenu

BMW Industries

India Homes

Uni Abex Alloy

Hariom Pipe

Bharat Wire

Mangalam World.

Scoda Tubes

Electrotherm(I)

Cosmic CRF

Why is Gandhi Special Tubes Ltd ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 8.19% and Operating profit at 10.43% over the last 5 years

Positive results in Jun 26

OPERATING CF(Y) Highest at Rs 55.20 Cr
DPS(Y) Highest at Rs 15.00
NET SALES(Q) Highest at Rs 57.20 cr

With ROE of 23.9, it has a Very Expensive valuation with a 3.4 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 3.94%, its profits have risen by 14.3% ; the PEG ratio of the company is 1

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 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, Medium Return

Absolute

Risk Adjusted

Volatility

Gandhi Spl. Tube

3.94%

0.10

39.59%

Sensex

-4.26%

-0.32

13.42%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.19%

EBIT Growth (5y)

10.43%

EBIT to Interest (avg)

64.59

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

24.65%

Dividend Payout Ratio

26.66%

Pledged Shares

Institutional Holding

1.28%

ROCE (avg)

36.81%

ROE (avg)

24.22%

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

3.45

EV to EBIT

12.51

EV to EBITDA

12.03

EV to Capital Employed

3.55

EV to Sales

5.36

PEG Ratio

1.01

Dividend Yield

1.67%

ROCE (Latest)

26.41%

ROE (Latest)

23.87%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

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

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

13What is working for the Company

OPERATING CF(Y)

Highest at Rs 55.20 Cr

DPS(Y)

Highest at Rs 15.00

NET SALES(Q)

Highest at Rs 57.20 cr

PBDIT(Q)

Highest at Rs 26.65 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 46.59%

PBT LESS OI(Q)

Highest at Rs 25.75 cr.

PAT(Q)

Highest at Rs 27.94 cr.

EPS(Q)

Highest at Rs 22.98

-1What is not working for the Company

DPR(Y)

Lowest at 26.66%

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Here's what is working for Gandhi Spl. Tube

Operating Cash Flow - Annually

Highest at Rs 55.20 Cr and Grown

each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 27.94 cr has Grown at 61.8% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 17.27 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Net Sales - Quarterly

Highest at Rs 57.20 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 26.65 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 46.59%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 25.75 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 25.75 cr has Grown at 28.6% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 20.02 Cr

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 27.94 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 22.98

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Dividend per Share (DPS) - Annually

Highest at Rs 15.00

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (Rs)

Here's what is not working for Gandhi Spl. Tube

Dividend Payout Ratio (DPR) - Annually

Lowest at 26.66%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)