ScoreWhy is Kernex Microsystems (India) Ltd ?
1
Poor Management Efficiency with a low ROE of 6.19%
- The company has been able to generate a Return on Equity (avg) of 6.19% signifying low profitability per unit of shareholders funds
2
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -3.78
- Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -3.78
- The company has been able to generate a Return on Equity (avg) of 6.19% signifying low profitability per unit of shareholders funds
3
Healthy long term growth as Net Sales has grown by an annual rate of 133.23% and Operating profit at 51.68%
4
Flat results in Sep 25
- NET SALES(Q) At Rs 47.12 cr has Fallen at -13.2% (vs previous 4Q average)
- OPERATING PROFIT TO INTEREST (Q) Lowest at 3.04 times
- DEBT-EQUITY RATIO(HY) Highest at 0.51 times
5
With ROCE of 21.3, it has a Expensive valuation with a 7.6 Enterprise value to Capital Employed
- 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 -6.93%, its profits have risen by 605.2% ; the PEG ratio of the company is 0.1
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Kernex Microsys. should be less than 10%
- Overall Portfolio exposure to Transport Services should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Transport Services)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Kernex Microsys. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Kernex Microsys.
-7.04%
-0.12
58.55%
Sensex
4.83%
0.41
11.83%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
133.23%
EBIT Growth (5y)
51.68%
EBIT to Interest (avg)
-3.78
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
0.33
Sales to Capital Employed (avg)
0.33
Tax Ratio
Tax Ratio is Negative%
Dividend Payout Ratio
0
Pledged Shares
8.82%
Institutional Holding
0.99%
ROCE (avg)
-8.55%
ROE (avg)
6.19%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
31
Industry P/E
28
Price to Book Value
9.73
EV to EBIT
35.52
EV to EBITDA
33.25
EV to Capital Employed
7.58
EV to Sales
7.84
PEG Ratio
0.05
Dividend Yield
NA
ROCE (Latest)
21.35%
ROE (Latest)
30.97%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend18What is working for the Company
PAT(9M)
At Rs 46.62 cr has Grown at 2,268.37%
OPERATING CF(Y)
Highest at Rs 14.55 Cr
NET SALES(9M)
Higher at Rs 186.12 cr
OPERATING PROFIT TO NET SALES(Q)
Highest at 30.28%
-16What is not working for the Company
NET SALES(Q)
At Rs 47.12 cr has Fallen at -13.2% (vs previous 4Q average
OPERATING PROFIT TO INTEREST (Q)
Lowest at 3.04 times
DEBT-EQUITY RATIO(HY)
Highest at 0.51 times
INTEREST(Q)
Highest at Rs 4.69 cr
EPS(Q)
Lowest at Rs 3.92
Loading Valuation Snapshot...
Here's what is working for Kernex Microsys.
Profit After Tax (PAT) - Latest six months
At Rs 14.03 cr has Grown at 34.00%
Year on Year (YoY)MOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Operating Cash Flow - Annually
Highest at Rs 14.55 Cr
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 30.28%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Here's what is not working for Kernex Microsys.
Net Sales - Quarterly
At Rs 47.12 cr has Fallen at -13.2% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 54.26 CrMOJO Watch
Near term sales trend is very negative
Net Sales (Rs Cr)
Interest - Quarterly
At Rs 4.69 cr has Grown at 83.92%
Quarter on Quarter (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Operating Profit to Interest - Quarterly
Lowest at 3.04 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest - Quarterly
Highest at Rs 4.69 cr
in the last five quarters and Increased by 83.92 % (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Earnings per Share (EPS) - Quarterly
Lowest at Rs 3.92
in the last five quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)
Debt-Equity Ratio - Half Yearly
Highest at 0.51 times
in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
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