Kanco Tea & Industries 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

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Sinnar Bidi Udy.

Kanco Tea

Sanwaria Consum.

Tyroon Tea Co.

Swojas Foods

Sonalis Consumer

Lake Shore

Chothani Foods

Panjon

Tapi Fruit

Walpar Nutrition

Why is Kanco Tea & Industries Ltd ?

Weak Long Term Fundamental Strength with a -173.12% CAGR growth in Operating Profits over the last 5 years

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -0.49
The company has been able to generate a Return on Equity (avg) of 6.75% signifying low profitability per unit of shareholders funds

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 -19.70%, its profits have risen by 60.7%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -19.70% 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 FMCG)

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

Is Kanco Tea for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kanco Tea

-19.7%

-0.42

47.23%

Sensex

4.83%

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)

-2.37%

EBIT Growth (5y)

-173.12%

EBIT to Interest (avg)

-0.49

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.70

Sales to Capital Employed (avg)

0.72

Tax Ratio

28.04%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.40%

ROCE (avg)

2.22%

ROE (avg)

6.75%

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

0.50

EV to EBIT

-18.90

EV to EBITDA

-42.04

EV to Capital Employed

0.71

EV to Sales

1.31

PEG Ratio

Dividend Yield

ROCE (Latest)

-3.74%

ROE (Latest)

-3.71%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

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

24What is working for the Company

OPERATING PROFIT TO INTEREST(Q)

Highest at 8.83 times

NET SALES(Q)

Highest at Rs 31.22 cr

PBDIT(Q)

Highest at Rs 9.54 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 30.56%

PBT LESS OI(Q)

Highest at Rs 7.82 cr.

PAT(Q)

Highest at Rs 9.77 cr.

EPS(Q)

Highest at Rs 19.08

-5What is not working for the Company

INTEREST(Latest six months)

At Rs 2.19 cr has Grown at 65.91%

DPR(Y)

Lowest at 0.00%

Loading Valuation Snapshot...

Here's what is working for Kanco Tea

Profit After Tax (PAT) - Quarterly

At Rs 9.77 cr has Grown at 80.9%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Operating Profit to Interest - Quarterly

Highest at 8.83 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 7.82 cr has Grown at 58.30%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Net Sales - Quarterly

Highest at Rs 31.22 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 9.54 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 30.56%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 7.82 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

Highest at Rs 9.77 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 19.08

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Here's what is not working for Kanco Tea

Interest - Latest six months

At Rs 2.19 cr has Grown at 65.91%

over previous Half yearly period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Dividend Payout Ratio (DPR) - Annually

Lowest at 0.00%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)