Why is Interarch Building Solutions Ltd ?
1
The company is Net-Debt Free
2
Low Debt Company with Strong Long Term Fundamental Strength
3
Flat results in Jun 26
- PBT LESS OI(Q) At Rs 34.55 cr has Fallen at -13.4% (vs previous 4Q average)
- PAT(Q) At Rs 28.25 cr has Fallen at -17.5% (vs previous 4Q average)
- DEBTORS TURNOVER RATIO(HY) Lowest at 6.59 times
4
With ROE of 15.5, it has a Attractive valuation with a 3.4 Price to Book Value
- 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 -19.25%, its profits have risen by 18% ; the PEG ratio of the company is 1.3
5
Majority shareholders : Promoters
6
Below par performance in long term as well as near term
- Along with generating -19.25% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months
How much should you hold?
- Overall Portfolio exposure to Interarch Build. should be less than 10%
- Overall Portfolio exposure to Construction should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Interarch Build. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Interarch Build.
-19.25%
-0.46
41.90%
Sensex
-2.63%
-0.19
13.57%
Quality key factors
Factor
Value
Sales Growth (5y)
23.17%
EBIT Growth (5y)
27.83%
EBIT to Interest (avg)
55.54
Debt to EBITDA (avg)
0.12
Net Debt to Equity (avg)
-0.09
Sales to Capital Employed (avg)
2.16
Tax Ratio
27.26%
Dividend Payout Ratio
19.29%
Pledged Shares
0
Institutional Holding
10.96%
ROCE (avg)
26.38%
ROE (avg)
14.95%
Valuation Key Factors 
Factor
Value
P/E Ratio
22
Industry P/E
25
Price to Book Value
3.37
EV to EBIT
17.15
EV to EBITDA
15.72
EV to Capital Employed
3.60
EV to Sales
1.46
PEG Ratio
1.27
Dividend Yield
0.71%
ROCE (Latest)
20.15%
ROE (Latest)
15.53%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
RSI
Bullish
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
Mildly Bearish
No Trend
Technical Movement
3What is working for the Company
NET SALES(9M)
At Rs 1,485.79 cr has Grown at 23.01%
-6What is not working for the Company
PBT LESS OI(Q)
At Rs 34.55 cr has Fallen at -13.4% (vs previous 4Q average
PAT(Q)
At Rs 28.25 cr has Fallen at -17.5% (vs previous 4Q average
DEBTORS TURNOVER RATIO(HY)
Lowest at 6.59 times
EPS(Q)
Lowest at Rs 16.85
Loading Valuation Snapshot...
Here's what is working for Interarch Build.
Net Sales - Nine Monthly
At Rs 1,485.79 cr has Grown at 23.01%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Here's what is not working for Interarch Build.
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 34.55 cr has Fallen at -13.4% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 39.91 CrMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 28.25 cr has Fallen at -17.5% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 34.23 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Lowest at Rs 16.85
in the last five quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)
Debtors Turnover Ratio- Half Yearly
Lowest at 6.59 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio






