Haryana Leather Chemicals 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

Ritesh Intl.

Camex

Sonal Adhesives

Shreyas Interm.

Deco-Mica

Gayatri BioOrga.

Haryana Leather

Pentokey Organy

TCM

Standard Surfact

Asian Petroprod.

Why is Haryana Leather Chemicals Ltd ?

With a Operating Losses, the company has a Weak Long Term Fundamental Strength

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 1.84
The company has been able to generate a Return on Equity (avg) of 5.80% signifying low profitability per unit of shareholders funds

Flat results in Jun 26

OPERATING PROFIT TO NET SALES(Q) Lowest at -2.11%
DEBTORS TURNOVER RATIO(HY) Lowest at 4.32 times
PBDIT(Q) Lowest at Rs -0.31 cr.

With ROE of 3, it has a Very Expensive valuation with a 0.7 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -10.04%, its profits have fallen by -37.9%

Below par performance in long term as well as near term

Along with generating -10.04% 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 Commodity Chemicals)

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

Is Haryana Leather for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Haryana Leather

-10.04%

-0.19

52.89%

Sensex

-3.04%

-0.22

13.54%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.74%

EBIT Growth (5y)

-1.87%

EBIT to Interest (avg)

1.84

Debt to EBITDA (avg)

0.18

Net Debt to Equity (avg)

-0.23

Sales to Capital Employed (avg)

1.12

Tax Ratio

44.29%

Dividend Payout Ratio

21.34%

Pledged Shares

Institutional Holding

0.21%

ROCE (avg)

5.88%

ROE (avg)

5.80%

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

0.67

EV to EBIT

19.80

EV to EBITDA

11.00

EV to Capital Employed

0.58

EV to Sales

0.36

PEG Ratio

Dividend Yield

1.62%

ROCE (Latest)

5.73%

ROE (Latest)

2.97%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

Mildly Bullish

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

2What is working for the Company

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 11.29 cr

-6What is not working for the Company

OPERATING PROFIT TO NET SALES(Q)

Lowest at -2.11%

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.32 times

PBDIT(Q)

Lowest at Rs -0.31 cr.

PBT LESS OI(Q)

Lowest at Rs -0.55 cr.

EPS(Q)

Lowest at Rs 0.06

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Here's what is working for Haryana Leather

Cash and Cash Equivalents - Half Yearly

Highest at Rs 11.29 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Haryana Leather

Operating Profit Margin - Quarterly

Lowest at -2.11% and Fallen

each quarter in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Operating Profit (PBDIT) - Quarterly

Lowest at Rs -0.31 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs -0.55 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs 0.06

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Debtors Turnover Ratio- Half Yearly

Lowest at 4.32 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio