ISGEC Heavy Engineering Ltd (ISGEC) 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

Ceigall India

SG Mart

NDR INVIT Trust

ISGEC Heavy

Welspun Enterp

Hind.Construct.

IRB InvIT Fund

Dilip Buildcon

Shrem InvIT

RaajMarg Infra

Citius Transnet

Why is ISGEC Heavy Engineering Ltd ?

Company has a Debt to Equity ratio (avg) of 0.31 times

Poor long term growth as Net Sales has grown by an annual rate of 4.76% and Operating profit at 7.09% over the last 5 years

PAT(Q) At Rs 73.23 cr has Fallen at -19.7%
DEBT-EQUITY RATIO(HY) Highest at 0.35 times
INTEREST(Q) Highest at Rs 20.11 cr

With ROCE of 14.5, it has a Attractive valuation with a 2.2 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 -29.71%, its profits have risen by 7.3% ; the PEG ratio of the company is 2.9

Majority shareholders : Promoters

Underperformed the market in the last 1 year

Even though the market (BSE500) generated negative returns of -5.03% in the last 1 year, its fall in the stock was much higher with a return of -29.71%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to ISGEC Heavy 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 ISGEC Heavy for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

ISGEC Heavy

-29.71%

-0.72

40.98%

Sensex

-10.21%

-0.78

13.06%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.76%

EBIT Growth (5y)

7.09%

EBIT to Interest (avg)

6.23

Debt to EBITDA (avg)

2.30

Net Debt to Equity (avg)

0.19

Sales to Capital Employed (avg)

1.80

Tax Ratio

29.98%

Dividend Payout Ratio

14.75%

Pledged Shares

Institutional Holding

14.17%

ROCE (avg)

11.37%

ROE (avg)

8.98%

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

2.37

EV to EBIT

14.93

EV to EBITDA

11.35

EV to Capital Employed

2.16

EV to Sales

1.03

PEG Ratio

2.92

Dividend Yield

0.57%

ROCE (Latest)

14.45%

ROE (Latest)

11.17%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

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

6What is working for the Company

PAT(Latest six months)

At Rs 175.99 cr has Grown at 30.57%

ROCE(HY)

Highest at 18.35%

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 397.16 cr

NET SALES(Q)

Highest at Rs 2,048.28 cr

-13What is not working for the Company

PAT(Q)

At Rs 73.23 cr has Fallen at -19.7%

DEBT-EQUITY RATIO(HY)

Highest at 0.35 times

INTEREST(Q)

Highest at Rs 20.11 cr

PBT LESS OI(Q)

Lowest at Rs 68.07 cr.

NON-OPERATING INCOME(Q)

is 47.95 % of Profit Before Tax (PBT

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Here's what is working for ISGEC Heavy

Net Sales - Quarterly

Highest at Rs 2,048.28 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 397.16 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for ISGEC Heavy

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 68.07 cr has Fallen at -46.44%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 73.23 cr has Fallen at -19.7%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Interest - Quarterly

Highest at Rs 20.11 cr

in the last five quarters and Increased by 20.28 % (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 68.07 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Non Operating Income - Quarterly

is 47.95 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT

Debt-Equity Ratio - Half Yearly

Highest at 0.35 times

in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Non Operating Income - Quarterly

Highest at Rs 62.70 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income