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

Gloster Ltd

N R Agarwal Inds

T N Newsprint

Emami Paper

Cheviot Company

Pudumjee Paper

Kuantum Papers

Andhra Paper

Seshasayee Paper

Satia Industries

Shree Rama News.

Why is Gloster Ltd ?

Poor long term growth as Operating profit has grown by an annual rate 19.36% of over the last 5 years

The company has declared Positive results for the last 4 consecutive quarters

PBT LESS OI(Q) At Rs 4.82 cr has Grown at 156.71%
PAT(Q) At Rs 8.21 cr has Grown at 453.9%
ROCE(HY) Highest at 5.11%

With ROCE of 4.3, it has a 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 235.9% ; the PEG ratio of the company is 0.2

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 buy?

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, Medium Return

Absolute

Risk Adjusted

Volatility

Gloster Ltd

-6.53%

-0.17

37.89%

Sensex

-10.52%

-0.81

13.06%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

23.68%

EBIT Growth (5y)

19.36%

EBIT to Interest (avg)

16.00

Debt to EBITDA (avg)

3.94

Net Debt to Equity (avg)

0.86

Sales to Capital Employed (avg)

0.58

Tax Ratio

44.23%

Dividend Payout Ratio

89.88%

Pledged Shares

Institutional Holding

14.36%

ROCE (avg)

3.40%

ROE (avg)

2.95%

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

0.67

EV to EBIT

19.32

EV to EBITDA

11.37

EV to Capital Employed

0.82

EV to Sales

1.17

PEG Ratio

0.17

Dividend Yield

2.99%

ROCE (Latest)

4.26%

ROE (Latest)

1.67%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bearish

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

29What is working for the Company

PBT LESS OI(Q)

At Rs 4.82 cr has Grown at 156.71%

PAT(Q)

At Rs 8.21 cr has Grown at 453.9%

ROCE(HY)

Highest at 5.11%

NET SALES(Q)

At Rs 378.40 cr has Grown at 35.95%

PBDIT(Q)

Highest at Rs 40.64 cr.

EPS(Q)

Highest at Rs 7.50

-11What is not working for the Company

INTEREST(9M)

At Rs 56.27 cr has Grown at 78.46%

DEBT-EQUITY RATIO(HY)

Highest at 0.88 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.78 times

NON-OPERATING INCOME(Q)

is 62.58 % of Profit Before Tax (PBT

Loading Valuation Snapshot...

Here's what is working for Gloster Ltd

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 4.82 cr has Grown at 156.71%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 8.21 cr has Grown at 453.9%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Net Sales - Quarterly

At Rs 378.40 cr has Grown at 35.95%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 40.64 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 8.21 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 7.50

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 Gloster Ltd

Interest - Latest six months

At Rs 39.92 cr has Grown at 24.01%

over previous Half yearly period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Debt-Equity Ratio - Half Yearly

Highest at 0.88 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

Non Operating Income - Quarterly

is 62.58 % 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

Debtors Turnover Ratio- Half Yearly

Lowest at 4.78 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio