Generic Engineering Construction & Projects Ltd (GENCON) 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

Generic Engineer

Nila Infrastruct

Ravinder Heights

Supreme Holdings

S V Global Mill

Rainbow Foundat.

Sumit Woods

Emami Realty Ltd

Hampton Sky

Baroda Rayon

Samor Reality

Why is Generic Engineering Construction & Projects Ltd ?

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.87 times

Healthy long term growth as Operating profit has grown by an annual rate 45.14%

Flat results in Dec 25

INTEREST(Latest six months) At Rs 6.86 cr has Grown at 28.95%

With ROCE of 6.2, it has a Very Attractive valuation with a 0.8 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 43.87%, its profits have risen by 25% ; the PEG ratio of the company is 0.7

Majority shareholders : Non Institution

Market Beating Performance

Even though the market (BSE500) has generated negative returns of -4.16% in the last 1 year, the stock has been able to generate 43.87% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Generic Engineer should be less than 10%
Overall Portfolio exposure to Realty should be less than 30%

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

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

Is Generic Engineer for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Generic Engineer

43.87%

0.73

60.15%

Sensex

-7.06%

-0.53

13.30%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

19.20%

EBIT Growth (5y)

45.14%

EBIT to Interest (avg)

2.45

Debt to EBITDA (avg)

1.87

Net Debt to Equity (avg)

0.18

Sales to Capital Employed (avg)

0.86

Tax Ratio

37.19%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.34%

ROCE (avg)

8.46%

ROE (avg)

5.87%

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

0.82

EV to EBIT

12.61

EV to EBITDA

7.57

EV to Capital Employed

0.85

EV to Sales

0.95

PEG Ratio

0.74

Dividend Yield

ROCE (Latest)

6.24%

ROE (Latest)

4.44%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Mildly Bearish

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

7What is working for the Company

DEBT-EQUITY RATIO(HY)

Lowest at 0.23 times

INVENTORY TURNOVER RATIO(HY)

Highest at 4.01 times

PBT LESS OI(Q)

Highest at Rs 3.85 cr.

-2What is not working for the Company

INTEREST(Latest six months)

At Rs 6.86 cr has Grown at 28.95%

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Here's what is working for Generic Engineer

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 3.85 cr has Grown at 67.9% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 2.29 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Debt-Equity Ratio - Half Yearly

Lowest at 0.23 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio- Half Yearly

Highest at 4.01 times and Grown

each half year in the last five half yearly periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 3.85 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Here's what is not working for Generic Engineer

Interest - Latest six months

At Rs 6.86 cr has Grown at 28.95%

over previous Half yearly period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)