Garment Mantra Lifestyle Ltd () 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

Garment Mantra

Gem Spinners

Katare Spinning

Hindoo. Mills

Sri Ramakr. Mill

Piotex Indus.

Classic Filament

Vashishtha Lux.

Sihora Indust.

Subhash Silk

Gujarat Hy-Spin

Why is Garment Mantra Lifestyle Ltd ?

Weak Long Term Fundamental Strength with a -22.48% CAGR growth in Operating Profits over the last 5 years

Low ability to service debt as the company has a high Debt to EBITDA ratio of 5.60 times
The company has been able to generate a Return on Equity (avg) of 7.36% signifying low profitability per unit of shareholders funds

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -18.15% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

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 Garment Mantra for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Garment Mantra

-18.15%

-0.31

58.24%

Sensex

4.69%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.78%

EBIT Growth (5y)

-22.48%

EBIT to Interest (avg)

2.03

Debt to EBITDA (avg)

6.07

Net Debt to Equity (avg)

0.36

Sales to Capital Employed (avg)

2.07

Tax Ratio

24.69%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.20%

ROCE (avg)

9.46%

ROE (avg)

7.36%

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

0.45

EV to EBIT

10.26

EV to EBITDA

7.91

EV to Capital Employed

0.60

EV to Sales

0.34

PEG Ratio

0.05

Dividend Yield

ROCE (Latest)

5.80%

ROE (Latest)

7.67%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

Bearish

Bollinger Bands

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Dow Theory

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

23What is working for the Company

PAT(Q)

At Rs 2.64 cr has Grown at 288.2%

OPERATING CF(Y)

Highest at Rs 14.99 Cr

NET SALES(Q)

Highest at Rs 65.02 cr

-5What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.98 times

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 0.08 cr

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.47 times

NON-OPERATING INCOME(Q)

is 80.39 % of Profit Before Tax (PBT

Loading Valuation Snapshot...

Here's what is working for Garment Mantra

Net Sales - Quarterly

At Rs 65.02 cr has Grown at 87.86%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 2.64 cr has Grown at 288.2%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Operating Cash Flow - Annually

Highest at Rs 14.99 Cr

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (Rs Cr)

Net Sales - Quarterly

Highest at Rs 65.02 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 2.64 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Here's what is not working for Garment Mantra

Inventory Turnover Ratio- Half Yearly

Lowest at 1.98 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Non Operating Income - Quarterly

is 80.39 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 0.08 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio- Half Yearly

Lowest at 3.47 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 2.87 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income