IZMO Ltd (IZMO) 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

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IZMO

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Xtranet Techno.

TAC Infosec

Why is IZMO Ltd ?

Poor Management Efficiency with a low ROE of 9.60%

The company has been able to generate a Return on Equity (avg) of 9.60% signifying low profitability per unit of shareholders funds

The company is Net-Debt Free

Healthy long term growth as Operating profit has grown by an annual rate 53.67%

Positive results in Jun 26

PAT(Latest six months) At Rs 29.50 cr has Grown at 128.86%
NET SALES(Latest six months) At Rs 174.54 cr has Grown at 50.05%
PBDIT(Q) Highest at Rs 16.39 cr.

With ROE of 11.6, it has a Very Expensive valuation with a 3.4 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 -7.52%, its profits have risen by 5.6% ; the PEG ratio of the company is 5.2

Despite the size of the company, domestic mutual funds hold only 0% 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 hold?

Overall Portfolio exposure to IZMO should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is IZMO for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

IZMO

-7.52%

-0.12

60.23%

Sensex

-10.5%

-0.78

13.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

19.44%

EBIT Growth (5y)

53.67%

EBIT to Interest (avg)

19.88

Debt to EBITDA (avg)

0.18

Net Debt to Equity (avg)

-0.01

Sales to Capital Employed (avg)

0.58

Tax Ratio

0.32%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

3.87%

ROCE (avg)

6.51%

ROE (avg)

9.60%

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

3.39

EV to EBIT

33.34

EV to EBITDA

23.51

EV to Capital Employed

3.42

EV to Sales

4.71

PEG Ratio

5.22

Dividend Yield

ROCE (Latest)

8.57%

ROE (Latest)

11.63%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

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

21What is working for the Company

PAT(Latest six months)

At Rs 29.50 cr has Grown at 128.86%

NET SALES(Latest six months)

At Rs 174.54 cr has Grown at 50.05%

PBDIT(Q)

Highest at Rs 16.39 cr.

PBT LESS OI(Q)

Highest at Rs 11.86 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 25.07%

-2What is not working for the Company

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 10.29 cr

NET SALES(Q)

At Rs 65.38 cr has Fallen at -8.2% (vs previous 4Q average

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Here's what is working for IZMO

Profit After Tax (PAT) - Latest six months

At Rs 29.50 cr has Grown at 128.86%

Year on Year (YoY)

MOJO Watch

PAT trend is very positive

PAT (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 16.39 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 11.86 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 11.86 cr has Grown at 43.9% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 8.24 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 25.07%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Here's what is not working for IZMO

Net Sales - Quarterly

At Rs 65.38 cr has Fallen at -8.2% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 71.22 Cr

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 10.29 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents