Gokak Textiles Ltd () 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

H P Cotton Tex

Sambandam Spg.

Wires & Fabriks

Arex Industries

Vinny Overseas

Celebrity Fash.

Shekhawati Inds

K G Denim

Gokak Textiles

Jaihind Synth

Marc Loire

Why is Gokak Textiles Ltd ?

With a Negative Book Value, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of -5.65% and Operating profit at 0% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at 0 times

The company has declared Negative results for the last 5 consecutive quarters

NET SALES(9M) At Rs 54.41 cr has Grown at -31.46%
PAT(9M) At Rs -34.52 cr has Grown at -31.46%

Risky - Negative Operating Profits

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 1.20%, its profits have fallen by -37.8%

Underperformed the market in the last 1 year

The stock has generated a return of 1.20% in the last 1 year, much lower than market (BSE500) returns of 11.51%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Gokak Textiles for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Gokak Textiles

1.2%

0.02

59.36%

Sensex

8.53%

0.73

11.73%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-5.65%

EBIT Growth (5y)

7.18%

EBIT to Interest (avg)

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-3.87

Sales to Capital Employed (avg)

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

5.49%

ROCE (avg)

-15.47%

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

-0.58

EV to EBIT

-25.44

EV to EBITDA

57.05

EV to Capital Employed

1.55

EV to Sales

4.54

PEG Ratio

Dividend Yield

ROCE (Latest)

-6.85%

ROE (Latest)

Negative BV

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

Mildly 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

6What is working for the Company

OPERATING PROFIT TO INTEREST(Q)

Highest at 0.33 times

PBDIT(Q)

Highest at Rs 2.91 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 15.68%

PAT(Q)

Highest at Rs -9.09 cr.

EPS(Q)

Highest at Rs -9.82

-13What is not working for the Company

NET SALES(9M)

At Rs 54.41 cr has Grown at -31.46%

PAT(9M)

At Rs -34.52 cr has Grown at -31.46%

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Here's what is working for Gokak Textiles

Operating Profit to Interest - Quarterly

Highest at 0.33 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit (PBDIT) - Quarterly

Highest at Rs 2.91 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 15.68%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit After Tax (PAT) - Quarterly

Highest at Rs -9.09 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 -9.82

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 Gokak Textiles

Net Sales - Quarterly

At Rs 18.56 cr has Fallen at -23.87%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Non Operating Income - Quarterly

Highest at Rs 1.32 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income