Garware Hi Tech Films Ltd (GRWRHITECH) 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

Kingfa Science

Shaily Engineer.

Garware Hi Tech

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Apollo Pipes

Jai Corp

Supreme Inds.

Finolex Inds.

Jain Irrigation

Prince Pipes

Why is Garware Hi Tech Films Ltd ?

The company is Net-Debt Free

Poor long term growth as Operating profit has grown by an annual rate 14.03% of over the last 5 years

NET SALES(Q) Highest at Rs 596.69 cr
PBDIT(Q) Highest at Rs 135.44 cr.
OPERATING PROFIT TO NET SALES(Q) Highest at 22.70%

With ROE of 12.5, it has a Very Expensive valuation with a 5 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 77.68%, its profits have risen by 2.1% ; the PEG ratio of the company is 17.7

Majority shareholders : Promoters

Consistent Returns over the last 3 years

Along with generating 77.68% returns in the last 1 year, the stock has outperformed BSE500 in each of the last 3 annual periods

With its market cap of Rs 11,706 cr, it is the biggest company in the sector and constitutes 41.13% of the entire sector

Its annual Sales of Rs 2,120.11 are 6.96% of the industry

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Garware Hi Tech should be less than 10%
Overall Portfolio exposure to Plastic Products - Industrial should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Plastic Products - Industrial)

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

Is Garware Hi Tech for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Garware Hi Tech

77.68%

1.38

56.43%

Sensex

-3.59%

-0.27

13.48%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

17.57%

EBIT Growth (5y)

14.03%

EBIT to Interest (avg)

27.33

Debt to EBITDA (avg)

0.42

Net Debt to Equity (avg)

-0.27

Sales to Capital Employed (avg)

0.75

Tax Ratio

24.20%

Dividend Payout Ratio

11.43%

Pledged Shares

Institutional Holding

9.26%

ROCE (avg)

15.67%

ROE (avg)

10.83%

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

5.04

EV to EBIT

30.71

EV to EBITDA

27.52

EV to Capital Employed

6.54

EV to Sales

5.64

PEG Ratio

17.66

Dividend Yield

0.22%

ROCE (Latest)

20.38%

ROE (Latest)

12.48%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Bullish

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

10What is working for the Company

NET SALES(Q)

Highest at Rs 596.69 cr

PBDIT(Q)

Highest at Rs 135.44 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 22.70%

PBT LESS OI(Q)

Highest at Rs 121.26 cr.

PAT(Q)

Highest at Rs 108.21 cr.

EPS(Q)

Highest at Rs 46.58

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Loading Valuation Snapshot...

Here's what is working for Garware Hi Tech

Profit After Tax (PAT) - Quarterly

At Rs 108.21 cr has Grown at 40.6% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 76.96 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Net Sales - Quarterly

Highest at Rs 596.69 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 135.44 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 22.70%

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 121.26 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 121.26 cr has Grown at 37.8% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 88.01 Cr

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 108.21 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 46.58

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Here's what is not working for Garware Hi Tech

Non Operating Income - Quarterly

Highest at Rs 21.13 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income