Why is IL&FS Engineering & Construction Co Ltd ?
1
With a Negative Book Value, the company has a Weak Long Term Fundamental Strength
- Poor long term growth as Net Sales has grown by an annual rate of -10.80% and Operating profit at 0% over the last 5 years
- The company has a negative book value of Rs 3,189.88 crore
2
Flat results in Mar 26
- ROCE(HY) Lowest at -1.12%
- DEBTORS TURNOVER RATIO(HY) Lowest at 3.26 times
- NET SALES(Q) Lowest at Rs 29.81 cr
3
Risky - Negative EBITDA
- The company has recorded a negative EBITDA of Rs. -58.05 cr
- Over the past year, while the stock has generated a return of -24.55%, its profits have risen by 112.2% ; the PEG ratio of the company is 0.8
- The stock is trading risky as compared to its average historical valuations
4
Underperformed the market in the last 1 year
- Even though the market (BSE500) generated negative returns of -1.52% in the last 1 year, its fall in the stock was much higher with a return of -24.55%
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 Construction)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is IL&FS Engg. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
IL&FS Engg.
-24.55%
-0.53
46.22%
Sensex
-7.92%
-0.61
13.09%
Quality key factors
Factor
Value
Sales Growth (5y)
-10.80%
EBIT Growth (5y)
11.61%
EBIT to Interest (avg)
0
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
-0.77
Sales to Capital Employed (avg)
0
Tax Ratio
Tax Ratio is Negative%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
1.04%
ROCE (avg)
27.58%
ROE (avg)
0
Valuation Key Factors 
Factor
Value
P/E Ratio
95
Industry P/E
45
Price to Book Value
-0.12
EV to EBIT
-43.74
EV to EBITDA
-48.59
EV to Capital Employed
-3.80
EV to Sales
15.01
PEG Ratio
0.84
Dividend Yield
NA
ROCE (Latest)
Negative Capital Employed
ROE (Latest)
Negative BV
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Bullish
Bearish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Movement
17What is working for the Company
PAT(Q)
At Rs 10.97 cr has Grown at 261.0% (vs previous 4Q average
EPS(Q)
Highest at Rs 0.77
-14What is not working for the Company
ROCE(HY)
Lowest at -1.12%
DEBTORS TURNOVER RATIO(HY)
Lowest at 3.26 times
NET SALES(Q)
Lowest at Rs 29.81 cr
NON-OPERATING INCOME(Q)
is 295.35 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for IL&FS Engg.
Profit After Tax (PAT) - Quarterly
At Rs 10.97 cr has Grown at 261.0% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs -6.81 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 10.97 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 0.77
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for IL&FS Engg.
Net Sales - Quarterly
At Rs 29.81 cr has Fallen at -54.2% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 65.04 CrMOJO Watch
Near term sales trend is very negative
Net Sales (Rs Cr)
Net Sales - Quarterly
Lowest at Rs 29.81 cr
in the last five quartersMOJO Watch
Near term sales trend is negative
Net Sales (Rs Cr)
Non Operating Income - Quarterly
is 295.35 % 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 3.26 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
Non Operating Income - Quarterly
Highest at Rs 32.37 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income






