IRM Energy Ltd (IRMENERGY) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Aegis Logistics

Indraprastha Gas

Adani Total Gas

Mahanagar Gas

Confidence Petro

GAIL (India)

Petronet LNG

IRM Energy

Gujarat Gas

Guj.St.Petronet

Positron Energy

Why is IRM Energy Ltd ?

Poor long term growth as Operating profit has grown by an annual rate -31.42% of over the last 5 years

With ROE of 4.2, it has a Very Expensive valuation with a 1.2 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -23.54%, its profits have fallen by -35.3%

Falling Participation by Institutional Investors

Institutional investors have decreased their stake by -0.72% over the previous quarter and collectively hold 6.55% of the company
These investors have better capability and resources to analyse fundamentals of companies than most retail investors

Below par performance in long term as well as near term

Along with generating -23.54% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months

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 Gas)

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

Is IRM Energy for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

IRM Energy

-23.04%

-0.49

47.88%

Sensex

4.84%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.14%

EBIT Growth (5y)

-31.42%

EBIT to Interest (avg)

3.80

Debt to EBITDA (avg)

1.60

Net Debt to Equity (avg)

-0.25

Sales to Capital Employed (avg)

0.94

Tax Ratio

32.65%

Dividend Payout Ratio

13.62%

Pledged Shares

Institutional Holding

6.55%

ROCE (avg)

12.34%

ROE (avg)

5.46%

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

1.24

EV to EBIT

18.06

EV to EBITDA

10.37

EV to Capital Employed

1.32

EV to Sales

0.92

PEG Ratio

Dividend Yield

0.51%

ROCE (Latest)

7.29%

ROE (Latest)

4.23%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Bullish

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

13What is working for the Company

OPERATING PROFIT TO INTEREST(Q)

Highest at 9.34 times

DPR(Y)

Highest at 13.62%

DEBT-EQUITY RATIO(HY)

Lowest at 0.08 times

DEBTORS TURNOVER RATIO(HY)

Highest at 28.45 times

PBDIT(Q)

Highest at Rs 26.80 cr.

PBT LESS OI(Q)

Highest at Rs 13.52 cr.

PAT(Q)

At Rs 12.66 cr has Grown at 25.3% (vs previous 4Q average

-5What is not working for the Company

PAT(9M)

At Rs 30.97 cr has Grown at -21.97%

ROCE(HY)

Lowest at 7.84%

Loading Valuation Snapshot...

Here's what is working for IRM Energy

Operating Profit to Interest - Quarterly

Highest at 9.34 times

in the last five quarters

MOJO 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 13.52 cr has Grown at 59.5% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 8.48 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 26.80 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 13.52 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

At Rs 12.66 cr has Grown at 25.3% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 10.11 Cr

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Debt-Equity Ratio - Half Yearly

Lowest at 0.08 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

Debtors Turnover Ratio- Half Yearly

Highest at 28.45 times

in the last five half yearly periods

MOJO Watch

Company has been able to settle its Debtors faster

Debtors Turnover Ratio

Dividend Payout Ratio (DPR) - Annually

Highest at 13.62%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)