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

Shaily Engineer.

Prince Pipes

Kingfa Science

Garware Hi Tech

Time Technoplast

Astral

Apollo Pipes

Jain Irrigation

Supreme Inds.

Finolex Inds.

Jai Corp

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 14.96% of over the last 5 years

Positive results in Jun 26

CASH AND CASH EQUIVALENTS(HY) Highest at Rs 155.40 cr
NET SALES(Q) Highest at Rs 633.08 cr
PBDIT(Q) Highest at Rs 172.00 cr.

With ROE of 12.7, it has a Very Expensive valuation with a 6.1 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 112.59%, its profits have risen by 19% ; the PEG ratio of the company is 2.2

Increasing Participation by Institutional Investors

Institutional investors have increased their stake by 1.31% over the previous quarter and collectively hold 10.57% of the company
These investors have better capability and resources to analyse fundamentals of companies than most retail investors

Consistent Returns over the last 3 years

Along with generating 112.59% returns in the last 1 year, the stock has outperformed BSE500 in each of the last 3 annual periods

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

112.59%

1.98

56.82%

Sensex

-2.63%

-0.19

13.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.95%

EBIT Growth (5y)

15.07%

EBIT to Interest (avg)

30.23

Debt to EBITDA (avg)

0.35

Net Debt to Equity (avg)

-0.29

Sales to Capital Employed (avg)

0.77

Tax Ratio

24.30%

Dividend Payout Ratio

8.42%

Pledged Shares

Institutional Holding

10.57%

ROCE (avg)

16.42%

ROE (avg)

11.07%

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

6.12

EV to EBIT

34.47

EV to EBITDA

31.19

EV to Capital Employed

8.17

EV to Sales

6.87

PEG Ratio

2.21

Dividend Yield

0.17%

ROCE (Latest)

20.52%

ROE (Latest)

12.73%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

OBV

No Trend

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

18What is working for the Company

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 155.40 cr

NET SALES(Q)

Highest at Rs 633.08 cr

PBDIT(Q)

Highest at Rs 172.00 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 27.17%

PBT LESS OI(Q)

Highest at Rs 156.74 cr.

PAT(Q)

Highest at Rs 132.65 cr.

EPS(Q)

Highest at Rs 57.10

-2What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 39.94 times

Loading Valuation Snapshot...

Here's what is working for Garware Hi Tech

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 156.74 cr has Grown at 64.4% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 95.35 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 132.65 cr has Grown at 56.9% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 84.56 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Net Sales - Quarterly

Highest at Rs 633.08 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 172.00 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 27.17%

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 156.74 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 132.65 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 57.10

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 155.40 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Garware Hi Tech

Debtors Turnover Ratio- Half Yearly

Lowest at 39.94 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio