Why is Igarashi Motors India Ltd ?
1
Weak Long Term Fundamental Strength with a -9.99% CAGR growth in Operating Profits over the last 5 years
- Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 1.72
- The company has been able to generate a Return on Equity (avg) of 2.28% signifying low profitability per unit of shareholders funds
2
With ROCE of 4.2, it has a Expensive valuation with a 2.5 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 -17.44%, its profits have fallen by -11.5%
3
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -17.44% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods
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 Auto Components & Equipments)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Igarashi Motors for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Igarashi Motors
-17.31%
-0.38
45.75%
Sensex
-10.5%
-0.78
13.50%
Quality key factors
Factor
Value
Sales Growth (5y)
7.49%
EBIT Growth (5y)
-9.99%
EBIT to Interest (avg)
1.72
Debt to EBITDA (avg)
1.87
Net Debt to Equity (avg)
0.30
Sales to Capital Employed (avg)
1.24
Tax Ratio
19.25%
Dividend Payout Ratio
32.56%
Pledged Shares
0
Institutional Holding
4.14%
ROCE (avg)
4.14%
ROE (avg)
2.28%
Valuation Key Factors 
Factor
Value
P/E Ratio
83
Industry P/E
39
Price to Book Value
2.91
EV to EBIT
51.97
EV to EBITDA
17.09
EV to Capital Employed
2.46
EV to Sales
1.64
PEG Ratio
NA
Dividend Yield
0.30%
ROCE (Latest)
4.23%
ROE (Latest)
3.51%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
Bearish
No Signal
Bollinger Bands
Sideways
Mildly Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Bullish
Bullish
Technical Movement
15What is working for the Company
NET SALES(Q)
Highest at Rs 250.87 cr
PBDIT(Q)
Highest at Rs 24.52 cr.
PBT LESS OI(Q)
Highest at Rs 6.19 cr.
PAT(Q)
Highest at Rs 6.77 cr.
EPS(Q)
Highest at Rs 2.15
-2What is not working for the Company
ROCE(HY)
Lowest at 4.50%
Loading Valuation Snapshot...
Here's what is working for Igarashi Motors
Profit After Tax (PAT) - Quarterly
At Rs 6.77 cr has Grown at 123.1% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 3.04 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 6.19 cr has Grown at 68.0% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 3.69 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Net Sales - Quarterly
Highest at Rs 250.87 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 24.52 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 6.19 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 6.77 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 2.15
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)






