GRM Overseas Ltd (GRMOVER) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

KRBL

Guj. Ambuja Exp

Gulshan Polyols

AVT Natural Prod

L T Foods

GRM Overseas

Krishival Foods

Kaveri Seed Co.

Sanstar

Chamanlal Setia

Bombay Super Hyb

Why is GRM Overseas Ltd ?

Poor long term growth as Operating profit has grown by an annual rate 4.55% of over the last 5 years

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

INTEREST(9M) At Rs 18.49 cr has Grown at 88.87%
PBT LESS OI(Q) At Rs 8.93 cr has Fallen at -37.7% (vs previous 4Q average)
OPERATING PROFIT TO INTEREST (Q) Lowest at 2.91 times

With ROCE of 12.1, it has a Expensive valuation with a 4.8 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 125.07%, its profits have risen by 6.3% ; the PEG ratio of the company is 9

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 Other Agricultural Products)

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

Is GRM Overseas for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

GRM Overseas

126.04%

3.26

38.68%

Sensex

7.18%

0.64

11.21%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

17.37%

EBIT Growth (5y)

4.55%

EBIT to Interest (avg)

4.87

Debt to EBITDA (avg)

3.35

Net Debt to Equity (avg)

0.40

Sales to Capital Employed (avg)

2.25

Tax Ratio

25.99%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

6.55%

ROCE (avg)

15.38%

ROE (avg)

23.80%

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

6.36

EV to EBIT

39.87

EV to EBITDA

38.36

EV to Capital Employed

4.84

EV to Sales

2.38

PEG Ratio

8.96

Dividend Yield

ROCE (Latest)

12.13%

ROE (Latest)

14.28%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

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

8What is working for the Company

OPERATING CF(Y)

Highest at Rs 55.98 Cr

PAT(Latest six months)

At Rs 33.85 cr has Grown at 24.40%

DEBT-EQUITY RATIO(HY)

Lowest at 0.44 times

-16What is not working for the Company

INTEREST(9M)

At Rs 18.49 cr has Grown at 88.87%

PBT LESS OI(Q)

At Rs 8.93 cr has Fallen at -37.7% (vs previous 4Q average

OPERATING PROFIT TO INTEREST (Q)

Lowest at 2.91 times

DPS(Y)

Lowest at Rs 0.00

DPR(Y)

Lowest at 0.00%

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.53 times

PAT(Q)

At Rs 14.76 cr has Fallen at -5.2% (vs previous 4Q average

NON-OPERATING INCOME(Q)

is 51.94 % of Profit Before Tax (PBT

Loading Valuation Snapshot...

Here's what is working for GRM Overseas

Operating Cash Flow - Annually

Highest at Rs 55.98 Cr and Grown

each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (Rs Cr)

Debt-Equity Ratio - Half Yearly

Lowest at 0.44 times

in the last five half yearly periods

MOJO Watch

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

Debt-Equity Ratio

Here's what is not working for GRM Overseas

Interest - Nine Monthly

At Rs 18.49 cr has Grown at 88.87%

over preceding nine months period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 8.93 cr has Fallen at -37.7% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 14.33 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Operating Profit to Interest - Quarterly

Lowest at 2.91 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Profit After Tax (PAT) - Quarterly

At Rs 14.76 cr has Fallen at -5.2% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 15.58 Cr

MOJO Watch

Near term PAT trend is negative

PAT (Rs Cr)

Non Operating Income - Quarterly

is 51.94 % 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 2.53 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio

Dividend per Share (DPS) - Annually

Lowest at Rs 0.00

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (Rs)

Dividend Payout Ratio (DPR) - Annually

Lowest at 0.00%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)