Indo Rama Synthetics (India) Ltd (INDORAMA) 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

Sunrakshakk Inds

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Monte Carlo Fas.

Nahar Spinning

AYM Syntex

Rupa & Co

Indo Rama Synth.

Raj Rayon Inds.

Himatsing. Seide

Why is Indo Rama Synthetics (India) Ltd ?

High Debt company with Weak Long Term Fundamental Strength

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 1.37

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

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 Garments & Apparels)

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

Is Indo Rama Synth. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Indo Rama Synth.

-12.5%

-0.23

50.70%

Sensex

-8.4%

-0.65

13.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

19.17%

EBIT Growth (5y)

34.47%

EBIT to Interest (avg)

1.37

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

2.15

Sales to Capital Employed (avg)

3.18

Tax Ratio

Dividend Payout Ratio

Pledged Shares

Institutional Holding

1.17%

ROCE (avg)

10.71%

ROE (avg)

14.93%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.21

EV to EBIT

8.57

EV to EBITDA

7.25

EV to Capital Employed

1.39

EV to Sales

0.46

PEG Ratio

Dividend Yield

ROCE (Latest)

16.17%

ROE (Latest)

29.45%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

OBV

No Trend

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

19What is working for the Company

OPERATING PROFIT TO INTEREST(Q)

Highest at 3.24 times

DEBT-EQUITY RATIO(HY)

Lowest at 2.18 times

PBDIT(Q)

Highest at Rs 102.33 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 8.52%

PBT LESS OI(Q)

Highest at Rs 58.86 cr.

PAT(Q)

Highest at Rs 64.13 cr.

EPS(Q)

Highest at Rs 2.46

-2What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 20.18 times

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Here's what is working for Indo Rama Synth.

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 58.86 cr has Grown at 127.7% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 25.85 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 64.13 cr has Grown at 83.4% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 34.96 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Operating Profit to Interest - Quarterly

Highest at 3.24 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit (PBDIT) - Quarterly

Highest at Rs 102.33 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 8.52%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 58.86 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 64.13 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 2.46

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Debt-Equity Ratio - Half Yearly

Lowest at 2.18 times

in the last five half yearly periods

MOJO 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.

Debtors Turnover Ratio- Half Yearly

Lowest at 20.18 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio