KCP Ltd. (KCP) 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

Mangalam Cement

Orient Cement

NCL Industries

Heidelberg Cem.

Deccan Cements

Sh. Digvijay Cem

BIGBLOC Const.

KCP

Prism Johnson

Sagar Cements

Sanghi Industrie

Why is KCP Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 10.50% and Operating profit at 1.82% over the last 5 years

The company has declared negative results for the last 2 consecutive quarters

PBT LESS OI(Q) At Rs 4.60 cr has Fallen at -77.45%
PAT(Q) At Rs 24.22 cr has Fallen at -25.3%
INTEREST(9M) At Rs 26.96 cr has Grown at 20.20%

Falling Participation by Institutional Investors

Institutional investors have decreased their stake by -0.55% over the previous quarter and collectively hold 3.3% of the company
These investors have better capability and resources to analyse fundamentals of companies than most retail investors

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 5.82% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -25.19% returns

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 Cement & Cement Products)

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

Is KCP for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

KCP

-25.27%

-0.84

30.06%

Sensex

2.2%

0.18

12.34%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.50%

EBIT Growth (5y)

1.82%

EBIT to Interest (avg)

6.52

Debt to EBITDA (avg)

1.78

Net Debt to Equity (avg)

-0.17

Sales to Capital Employed (avg)

1.29

Tax Ratio

17.44%

Dividend Payout Ratio

6.84%

Pledged Shares

Institutional Holding

3.30%

ROCE (avg)

21.47%

ROE (avg)

11.99%

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

1.09

EV to EBIT

6.22

EV to EBITDA

4.61

EV to Capital Employed

1.11

EV to Sales

0.60

PEG Ratio

Dividend Yield

0.18%

ROCE (Latest)

18.95%

ROE (Latest)

10.00%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 1,105.20 cr

-22What is not working for the Company

PBT LESS OI(Q)

At Rs 4.60 cr has Fallen at -77.45%

PAT(Q)

At Rs 24.22 cr has Fallen at -25.3%

INTEREST(9M)

At Rs 26.96 cr has Grown at 20.20%

OPERATING PROFIT TO INTEREST (Q)

Lowest at 4.01 times

DEBT-EQUITY RATIO(HY)

Highest at 0.50 times

PBDIT(Q)

Lowest at Rs 31.64 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 5.15%

NON-OPERATING INCOME(Q)

is 84.51 % of Profit Before Tax (PBT

EPS(Q)

Lowest at Rs 1.19

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Here's what is working for KCP

Cash and Cash Equivalents - Half Yearly

Highest at Rs 1,105.20 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 KCP

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 4.60 cr has Fallen at -77.45%

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 24.22 cr has Fallen at -25.3%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Operating Profit to Interest - Quarterly

Lowest at 4.01 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest - Nine Monthly

At Rs 26.96 cr has Grown at 20.20%

over preceding nine months period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 31.64 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at 5.15%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 4.60 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 84.51 % 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

Earnings per Share (EPS) - Quarterly

Lowest at Rs 1.19

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Debt-Equity Ratio - Half Yearly

Highest at 0.50 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 25.09 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income