Gloster Ltd (GLOSTERLTD) 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

T N Newsprint

Gloster Ltd

N R Agarwal Inds

Cheviot Company

Pudumjee Paper

Satia Industries

Emami Paper

Kuantum Papers

Andhra Paper

Shree Rama News.

Orient Paper

Why is Gloster Ltd ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 17.19

The company has declared Positive results for the last 3 consecutive quarters

PBT LESS OI(Q) At Rs 1.44 cr has Grown at 151.61%
PAT(Latest six months) Higher at Rs 6.93 cr
NET SALES(Q) Highest at Rs 382.59 cr

With ROCE of 2.5, 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 -6.53%, its profits have risen by 327.2% ; the PEG ratio of the company is 0.3

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

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -6.53% 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 hold?

Overall Portfolio exposure to Gloster Ltd should be less than 10%
Overall Portfolio exposure to Paper, Forest & Jute Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Paper, Forest & Jute Products)

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

Is Gloster Ltd for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Gloster Ltd

-6.53%

-0.17

39.32%

Sensex

9.01%

0.78

11.54%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

25.23%

EBIT Growth (5y)

16.87%

EBIT to Interest (avg)

17.19

Debt to EBITDA (avg)

3.33

Net Debt to Equity (avg)

0.68

Sales to Capital Employed (avg)

0.56

Tax Ratio

64.56%

Dividend Payout Ratio

89.88%

Pledged Shares

Institutional Holding

14.51%

ROCE (avg)

3.34%

ROE (avg)

3.17%

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

0.61

EV to EBIT

21.76

EV to EBITDA

11.54

EV to Capital Employed

0.77

EV to Sales

1.05

PEG Ratio

0.26

Dividend Yield

3.33%

ROCE (Latest)

2.46%

ROE (Latest)

0.85%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Dow Theory

No Trend

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

28What is working for the Company

PBT LESS OI(Q)

At Rs 1.44 cr has Grown at 151.61%

PAT(Latest six months)

Higher at Rs 6.93 cr

NET SALES(Q)

Highest at Rs 382.59 cr

-17What is not working for the Company

PAT(Q)

At Rs -0.74 cr has Fallen at -189.2%

DEBT-EQUITY RATIO(HY)

Highest at 0.70 times

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 14.15 cr

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.94 times

INTEREST(Q)

Highest at Rs 20.25 cr

NON-OPERATING INCOME(Q)

is 63.73 % of Profit Before Tax (PBT

Loading Valuation Snapshot...

Here's what is working for Gloster Ltd

Net Sales - Quarterly

At Rs 382.59 cr has Grown at 115.31%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 1.44 cr has Grown at 151.61%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Net Sales - Quarterly

Highest at Rs 382.59 cr and Grown

each quarter in the last five quarters

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Here's what is not working for Gloster Ltd

Profit After Tax (PAT) - Quarterly

At Rs -0.74 cr has Fallen at -189.2%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Debt-Equity Ratio - Half Yearly

Highest at 0.70 times and Grown

each half year in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Interest - Quarterly

Highest at Rs 20.25 cr

in the last five quarters and Increased by 23.85 % (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Non Operating Income - Quarterly

is 63.73 % 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 14.15 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 4.94 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio