Kirloskar Electric Company Ltd (KECL) 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

Magnus Steel

Mangal Electrica

Supreme Power

Viviana Power

Focus Lighting

Australian Prem

Kirl. Electric

Permanent Magnet

Spel Semiconduct

Prizor Viztech

Parth Electrical

Why is Kirloskar Electric Company Ltd ?

High Debt company with Weak Long Term Fundamental Strength

High Debt Company with a Debt to Equity ratio (avg) at 5.26 times
The company has been able to generate a Return on Capital Employed (avg) of 7.90% signifying low profitability per unit of total capital (equity and debt)

With ROCE of 7.4, it has a Expensive valuation with a 3.4 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 -29.73%, its profits have risen by 499.7% ; the PEG ratio of the company is 0.1

75.55% of Promoter Shares are Pledged

In falling markets, high promoter pledged shares puts additional downward pressure on the stock prices

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 1.50% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -29.73% 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 Other Electrical Equipment)

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

Is Kirl. Electric for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kirl. Electric

-29.73%

-0.79

37.85%

Sensex

-1.67%

-0.13

13.36%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.46%

EBIT Growth (5y)

26.74%

EBIT to Interest (avg)

0.61

Debt to EBITDA (avg)

1.33

Net Debt to Equity (avg)

0.65

Sales to Capital Employed (avg)

2.09

Tax Ratio

3.53%

Dividend Payout Ratio

Pledged Shares

75.55%

Institutional Holding

5.05%

ROCE (avg)

3.42%

ROE (avg)

30.21%

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

4.89

EV to EBIT

27.22

EV to EBITDA

23.28

EV to Capital Employed

3.36

EV to Sales

1.25

PEG Ratio

0.07

Dividend Yield

ROCE (Latest)

7.38%

ROE (Latest)

5.69%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

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

26What is working for the Company

NET SALES(Q)

Highest at Rs 151.42 cr

OPERATING PROFIT TO INTEREST(Q)

Highest at 2.62 times

DEBT-EQUITY RATIO(HY)

Lowest at 0.83 times

PBDIT(Q)

Highest at Rs 15.81 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 10.44%

PBT LESS OI(Q)

Highest at Rs 8.72 cr.

PAT(Q)

Highest at Rs 11.80 cr.

-1What is not working for the Company

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 22.99 cr

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Here's what is working for Kirl. Electric

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 8.72 cr has Grown at 467.9% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs -2.37 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 11.80 cr has Grown at 562.7% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 1.78 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Net Sales - Quarterly

Highest at Rs 151.42 cr and Grown

each quarter in the last five quarters

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Operating Profit to Interest - Quarterly

Highest at 2.62 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit (PBDIT) - Quarterly

Highest at Rs 15.81 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 10.44%

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 8.72 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 11.80 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Debt-Equity Ratio - Half Yearly

Lowest at 0.83 times

in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Kirl. Electric

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 22.99 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents