Heranba Industries Ltd (HERANBA) 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

Bhaskar Agrochem

India Pesticides

Punjab Chemicals

Advance Agrolife

Best Agrolife

Dharmaj Crop

Shivalik Rasayan

Astec Lifescienc

Meghmani Organi.

Heranba Inds

Mahamaya Lifesc.

Why is Heranba Industries Ltd ?

Weak Long Term Fundamental Strength with a -141.01% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 4.37% signifying low profitability per unit of shareholders funds

Negative results in Dec 25

NET SALES(Q) At Rs 301.37 cr has Fallen at -26.9% (vs previous 4Q average)
PBT LESS OI(Q) At Rs -25.63 cr has Fallen at -140.1% (vs previous 4Q average)
PAT(Q) At Rs -23.25 cr has Fallen at -97.7% (vs previous 4Q average)

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 -21.40%, its profits have fallen by -235.9%

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 -21.40% 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 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 Pesticides & Agrochemicals)

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

Is Heranba Inds for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Heranba Inds

-21.4%

-0.51

42.01%

Sensex

-2.38%

-0.19

12.70%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.08%

EBIT Growth (5y)

-141.01%

EBIT to Interest (avg)

3.11

Debt to EBITDA (avg)

2.36

Net Debt to Equity (avg)

0.56

Sales to Capital Employed (avg)

1.21

Tax Ratio

38.13%

Dividend Payout Ratio

130.33%

Pledged Shares

Institutional Holding

0.35%

ROCE (avg)

7.85%

ROE (avg)

4.37%

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

0.85

EV to EBIT

-116.50

EV to EBITDA

15.24

EV to Capital Employed

0.91

EV to Sales

0.74

PEG Ratio

Dividend Yield

0.56%

ROCE (Latest)

0.12%

ROE (Latest)

-5.59%

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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

Bearish

Dow Theory

Bearish

OBV

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-18What is not working for the Company

NET SALES(Q)

At Rs 301.37 cr has Fallen at -26.9% (vs previous 4Q average

PBT LESS OI(Q)

At Rs -25.63 cr has Fallen at -140.1% (vs previous 4Q average

PAT(Q)

At Rs -23.25 cr has Fallen at -97.7% (vs previous 4Q average

INTEREST(9M)

At Rs 36.27 cr has Grown at 37.91%

ROCE(HY)

Lowest at 1.07%

DEBT-EQUITY RATIO(HY)

Highest at 0.61 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.21 times

Loading Valuation Snapshot...

Here's what is not working for Heranba Inds

Net Sales - Quarterly

At Rs 301.37 cr has Fallen at -26.9% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 412.55 Cr

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs -25.63 cr has Fallen at -140.1% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs -10.67 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs -23.25 cr has Fallen at -97.7% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs -11.76 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Debt-Equity Ratio - Half Yearly

Highest at 0.61 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 36.27 cr has Grown at 37.91%

over preceding nine months period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Net Sales - Quarterly

Lowest at Rs 301.37 cr

in the last five quarters

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Debtors Turnover Ratio- Half Yearly

Lowest at 2.21 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio