Likhitha Infrastructure Ltd (LIKHITHA) 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

SRM Contractors

Likhitha Infra.

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B.L.Kashyap

Supreme Infra.

Goel Construct.

Effwa Infra

Why is Likhitha Infrastructure Ltd ?

The company is Net-Debt Free

Poor long term growth as Operating profit has grown by an annual rate -4.06% of over the last 5 years

The company has declared negative results for the last 4 consecutive quarters

PAT(Q) At Rs 4.59 cr has Fallen at -64.8% (vs previous 4Q average)
ROCE(HY) Lowest at 13.06%
PBDIT(Q) Lowest at Rs 7.20 cr.

With ROE of 9.5, it has a Very Attractive valuation with a 2 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -27.18%, its profits have fallen by -43.3%

Despite the size of the company, domestic mutual funds hold only 0% of the company

Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -27.18% 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 hold?

Overall Portfolio exposure to Likhitha Infra. should be less than 10%
Overall Portfolio exposure to Construction should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Likhitha Infra. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Likhitha Infra.

-27.18%

-0.53

50.93%

Sensex

-10.54%

-0.81

13.06%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.44%

EBIT Growth (5y)

-4.06%

EBIT to Interest (avg)

62.17

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.19

Sales to Capital Employed (avg)

1.35

Tax Ratio

26.99%

Dividend Payout Ratio

9.05%

Pledged Shares

Institutional Holding

0.10%

ROCE (avg)

35.77%

ROE (avg)

19.46%

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

2.03

EV to EBIT

15.38

EV to EBITDA

13.45

EV to Capital Employed

2.27

EV to Sales

1.67

PEG Ratio

Dividend Yield

ROCE (Latest)

14.75%

ROE (Latest)

9.52%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Bearish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bullish

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-24What is not working for the Company

PAT(Q)

At Rs 4.59 cr has Fallen at -64.8% (vs previous 4Q average

ROCE(HY)

Lowest at 13.06%

PBDIT(Q)

Lowest at Rs 7.20 cr.

PBT LESS OI(Q)

Lowest at Rs 4.86 cr.

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.50 times

OPERATING PROFIT TO NET SALES (Q)

Lowest at 5.97%

EPS(Q)

Lowest at Rs 1.16

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Here's what is not working for Likhitha Infra.

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 4.86 cr has Fallen at -70.6% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 16.52 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 4.59 cr has Fallen at -64.8% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 13.05 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 7.20 cr. and Fallen

each quarter in the last five quarters

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 4.86 cr. and Fallen

each quarter in the last five quarters

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Lowest at Rs 4.59 cr. and Fallen

each quarter in the last five quarters

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at 5.97%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Earnings per Share (EPS) - Quarterly

Lowest at Rs 1.16

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Debtors Turnover Ratio- Half Yearly

Lowest at 4.50 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio

Non Operating Income - Quarterly

Highest at Rs 1.37 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income