Kavveri Defence & Wireless Technologies Ltd (KAVDEFENCE) 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

Valiant Commun.

Umiya Buildcon

Punjab Commun.

Kavveri Defence

Kore Digital

Suyog Telematics

ADC India

Birla Cable

GTL Infra.

Aksh Optifibre

Frog Innovations

Why is Kavveri Defence & Wireless Technologies Ltd ?

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

High Debt Company with a Debt to Equity ratio (avg) at 5.03 times
The company has been able to generate a Return on Capital Employed (avg) of 0.69% signifying low profitability per unit of total capital (equity and debt)

With ROE of 10.3, it has a Very Expensive valuation with a 3.9 Price to Book Value

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 79.83%, its profits have risen by 744%

Falling Participation by Institutional Investors

Institutional investors have decreased their stake by -2.91% over the previous quarter and collectively hold 4.72% of the company
These investors have better capability and resources to analyse fundamentals of companies than most retail investors

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 Telecom - Equipment & Accessories)

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

Is Kavveri Defence for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Kavveri Defence

79.83%

1.52

52.50%

Sensex

4.65%

0.38

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

26.74%

EBIT Growth (5y)

21.54%

EBIT to Interest (avg)

-5.86

Debt to EBITDA (avg)

7.18

Net Debt to Equity (avg)

-0.07

Sales to Capital Employed (avg)

0.08

Tax Ratio

Dividend Payout Ratio

Pledged Shares

14.16%

Institutional Holding

4.72%

ROCE (avg)

-74.78%

ROE (avg)

11.27%

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

3.89

EV to EBIT

118.52

EV to EBITDA

105.40

EV to Capital Employed

4.10

EV to Sales

13.01

PEG Ratio

Dividend Yield

ROCE (Latest)

3.46%

ROE (Latest)

10.32%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

NET SALES(9M)

At Rs 14.21 cr has Grown at 614.07%

PAT(9M)

At Rs 5.24 cr has Grown at 1,590.32%

OPERATING CF(Y)

Highest at Rs 0.65 Cr

DEBTORS TURNOVER RATIO(HY)

Highest at 6.57 times

-4What is not working for the Company

OPERATING PROFIT TO NET SALES (Q)

Lowest at 0.00%

EPS(Q)

Lowest at Rs 0.15

Loading Valuation Snapshot...

Here's what is working for Kavveri Defence

Net Sales - Latest six months

At Rs 6.01 cr has Grown at 213.02%

Year on Year (YoY)

MOJO Watch

Sales trend is very positive

Net Sales (Rs Cr)

Profit After Tax (PAT) - Latest six months

At Rs 1.55 cr has Grown at 203.92%

Year on Year (YoY)

MOJO Watch

PAT trend is very positive

PAT (Rs Cr)

Operating Cash Flow - Annually

Highest at Rs 0.65 Cr and Grown

each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (Rs Cr)

Debtors Turnover Ratio- Half Yearly

Highest at 6.57 times

in the last five half yearly periods

MOJO Watch

Company has been able to settle its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Kavveri Defence

Operating Profit Margin - Quarterly

Lowest at 0.00%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Earnings per Share (EPS) - Quarterly

Lowest at Rs 0.15

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)