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 -6.70% and Operating profit at 0% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at 0 times
2
Negative results in Sep 25
- NET SALES(Q) At Rs 54.53 cr has Fallen at -21.3% (vs previous 4Q average)
- PAT(Latest six months) At Rs -10.55 cr has Grown at -36.76%
- ROCE(HY) Lowest at 4.96%
3
Risky - Negative EBITDA
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of -30.12%, its profits have risen by 78.4%
4
Underperformed the market in the last 1 year
- Even though the market (BSE500) has generated returns of 2.12% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -30.12% returns
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.
-30.63%
-0.67
45.90%
Sensex
4.83%
0.41
11.83%
Quality key factors
Factor
Value
Sales Growth (5y)
-6.70%
EBIT Growth (5y)
-10.79%
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
1.24%
ROCE (avg)
39.55%
ROE (avg)
0
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
38
Price to Book Value
-0.12
EV to EBIT
-31.56
EV to EBITDA
-34.29
EV to Capital Employed
-3.80
EV to Sales
10.67
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
Negative Capital Employed
ROE (Latest)
Negative BV
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
No Trend
No Trend
Technical Movement
0What is working for the Company
NO KEY POSITIVE TRIGGERS
-11What is not working for the Company
NET SALES(Q)
At Rs 54.53 cr has Fallen at -21.3% (vs previous 4Q average
PAT(Latest six months)
At Rs -10.55 cr has Grown at -36.76%
ROCE(HY)
Lowest at 4.96%
CASH AND CASH EQUIVALENTS(HY)
Lowest at Rs 217.69 cr
DEBTORS TURNOVER RATIO(HY)
Lowest at 3.75 times
Loading Valuation Snapshot...
Here's what is not working for IL&FS Engg.
Net Sales - Quarterly
At Rs 54.53 cr has Fallen at -21.3% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 69.27 CrMOJO Watch
Near term sales trend is very negative
Net Sales (Rs Cr)
Profit After Tax (PAT) - Latest six months
At Rs -10.55 cr has Grown at -36.76%
Year on Year (YoY)MOJO Watch
Near term PAT trend is negative
PAT (Rs Cr)
Cash and Cash Equivalents - Half Yearly
Lowest at Rs 217.69 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debtors Turnover Ratio- Half Yearly
Lowest at 3.75 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio






