Kallam Textiles Ltd () 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

Kandagiri Spinng

Nivaka Fashions

Sri Nacha. Cott.

Kallam Textiles

Mish Designs

Shree Mfg. Co.

Vashishtha Lux.

Advance Lifes.

Visagar Polytex

Vivaa Tradecom

Gajanand Inter.

Why is Kallam Textiles Ltd ?

With a Operating Losses, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Operating profit has grown by an annual rate -216.22% of over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at 2.35 times
The company has been able to generate a Return on Equity (avg) of 1.38% signifying low profitability per unit of shareholders funds

The company has declared Negative results for the last 3 consecutive quarters

DEBT-EQUITY RATIO(HY) Highest at 4.65 times
PAT(Q) Lowest at Rs -19.79 cr.
CASH AND CASH EQUIVALENTS(HY) Lowest at Rs 0.28 cr

Risky - Negative EBITDA

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -27.27%, its profits have fallen by -57.4%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -27.27% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

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 Kallam Textiles for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kallam Textiles

-27.27%

-0.54

50.74%

Sensex

8.53%

0.73

11.73%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.15%

EBIT Growth (5y)

-216.22%

EBIT to Interest (avg)

0.13

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

4.65

Sales to Capital Employed (avg)

0.65

Tax Ratio

6.01%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

-1.01%

ROE (avg)

1.38%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.20

EV to EBIT

-13.65

EV to EBITDA

-27.78

EV to Capital Employed

0.86

EV to Sales

1.49

PEG Ratio

Dividend Yield

ROCE (Latest)

-5.75%

ROE (Latest)

-83.03%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

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

1What is working for the Company

NO KEY POSITIVE TRIGGERS

-9What is not working for the Company

DEBT-EQUITY RATIO(HY)

Highest at 4.65 times

PAT(Q)

Lowest at Rs -19.79 cr.

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 0.28 cr

PBT LESS OI(Q)

Lowest at Rs -20.22 cr.

EPS(Q)

Lowest at Rs -3.75

Loading Valuation Snapshot...

Here's what is not working for Kallam Textiles

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs -20.22 cr has Fallen at -14.82%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Lowest at Rs -19.79 cr. and Fallen

each quarter in the last five quarters

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Debt-Equity Ratio - Half Yearly

Highest at 4.65 times and Grown

each half year 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

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs -20.22 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs -3.75

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 0.28 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents