Gujarat Craft Industries 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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Jumbo Bag

Polyspin Exports

Guj. Craft Inds

TPI India

Orient Press

Innovative Tech

3B Films

Rex Sealing

D.K. Enterprises

Bulkcorp Inter.

Uma Converter

Why is Gujarat Craft Industries Ltd ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 8.25%

Poor long term growth as Net Sales has grown by an annual rate of 8.69% and Operating profit at 4.53% over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.96 times

Flat results in Sep 25

INTEREST(9M) At Rs 4.34 cr has Grown at 22.95%
DEBT-EQUITY RATIO(HY) Highest at 1.06 times
NET SALES(Q) Lowest at Rs 44.49 cr

Below par performance in long term as well as near term

Along with generating -2.54% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months

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 Packaging)

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

Is Guj. Craft Inds for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Guj. Craft Inds

-2.54%

-0.05

55.84%

Sensex

4.74%

0.40

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.69%

EBIT Growth (5y)

4.53%

EBIT to Interest (avg)

2.60

Debt to EBITDA (avg)

4.05

Net Debt to Equity (avg)

1.02

Sales to Capital Employed (avg)

1.79

Tax Ratio

26.80%

Dividend Payout Ratio

18.20%

Pledged Shares

Institutional Holding

0.12%

ROCE (avg)

8.40%

ROE (avg)

6.98%

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

0.88

EV to EBIT

13.76

EV to EBITDA

8.69

EV to Capital Employed

0.94

EV to Sales

0.58

PEG Ratio

2.90

Dividend Yield

0.87%

ROCE (Latest)

6.83%

ROE (Latest)

3.97%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

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

4What is working for the Company

DPR(Y)

Highest at 18.20%

DPS(Y)

Highest at Rs 1.00

OPERATING PROFIT TO NET SALES(Q)

Highest at 7.69%

-7What is not working for the Company

INTEREST(9M)

At Rs 4.34 cr has Grown at 22.95%

DEBT-EQUITY RATIO(HY)

Highest at 1.06 times

NET SALES(Q)

Lowest at Rs 44.49 cr

Loading Valuation Snapshot...

Here's what is working for Guj. Craft Inds

Dividend Payout Ratio (DPR) - Annually

Highest at 18.20% and Grown

each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Operating Profit Margin - Quarterly

Highest at 7.69%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Dividend per Share (DPS) - Annually

Highest at Rs 1.00

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (Rs)

Here's what is not working for Guj. Craft Inds

Net Sales - Quarterly

At Rs 44.49 cr has Fallen at -15.7% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 52.79 Cr

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Debt-Equity Ratio - Half Yearly

Highest at 1.06 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 - Nine Monthly

At Rs 4.34 cr has Grown at 22.95%

over preceding nine months period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Net Sales - Quarterly

Lowest at Rs 44.49 cr

in the last five quarters

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)