ScoreWhy is Indo Rama Synthetics (India) Ltd ?
1
High Debt company with Weak Long Term Fundamental Strength
- Poor long term growth as Net Sales has grown by an annual rate of 11.63% and Operating profit at 14.97% over the last 5 years
- Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 1.45
2
Flat results in Jun 26
- DEBTORS TURNOVER RATIO(HY) Lowest at 20.18 times
- NET SALES(Q) Lowest at Rs 936.64 cr
3
With ROCE of 16.2, it has a Attractive valuation with a 1.6 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 15.88%, its profits have risen by 123.5% ; the PEG ratio of the company is 0.1
4
Despite the size of the company, domestic mutual funds hold only 0.01% 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
5
Market Beating Performance
- The stock has generated a return of 15.88% in the last 1 year, much higher than market (BSE500) returns of 4.11%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Indo Rama Synth. should be less than 10%
- Overall Portfolio exposure to Garments & Apparels should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Garments & Apparels)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Indo Rama Synth. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Indo Rama Synth.
15.88%
0.29
54.25%
Sensex
-2.63%
-0.19
13.57%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
11.63%
EBIT Growth (5y)
14.97%
EBIT to Interest (avg)
1.45
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
2.15
Sales to Capital Employed (avg)
3.18
Tax Ratio
0
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
1.06%
ROCE (avg)
10.71%
ROE (avg)
14.93%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
9
Industry P/E
25
Price to Book Value
2.97
EV to EBIT
9.67
EV to EBITDA
8.24
EV to Capital Employed
1.63
EV to Sales
0.59
PEG Ratio
0.08
Dividend Yield
NA
ROCE (Latest)
16.17%
ROE (Latest)
29.45%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
Bearish
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
PAT(Latest six months)
At Rs 127.87 cr has Grown at 23.17%
OPERATING PROFIT TO INTEREST(Q)
Highest at 3.46 times
DEBT-EQUITY RATIO(HY)
Lowest at 2.18 times
PBT LESS OI(Q)
Highest at Rs 60.18 cr.
-7What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 20.18 times
NET SALES(Q)
Lowest at Rs 936.64 cr
Loading Valuation Snapshot...
Here's what is working for Indo Rama Synth.
Operating Profit to Interest - Quarterly
Highest at 3.46 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 60.18 cr has Grown at 79.7% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 33.49 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Latest six months
At Rs 127.87 cr has Grown at 23.17%
Year on Year (YoY)MOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 60.18 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Debt-Equity Ratio - Half Yearly
Lowest at 2.18 times
in the last five half yearly periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Here's what is not working for Indo Rama Synth.
Net Sales - Quarterly
At Rs 936.64 cr has Fallen at -23.7% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 1,227.52 CrMOJO Watch
Near term sales trend is very negative
Net Sales (Rs Cr)
Net Sales - Quarterly
Lowest at Rs 936.64 cr
in the last five quartersMOJO Watch
Near term sales trend is negative
Net Sales (Rs Cr)
Debtors Turnover Ratio- Half Yearly
Lowest at 20.18 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
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