Ludlow Jute & Specialities Ltd () 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

Sh. Ajit Pulp

Emami Paper

Ludlow Jute

Cheviot Company

Ruchira Papers

Genus Paper & Bo

Satia Industries

Pakka

Orient Paper

S. V. J. Enterp.

Shree Rama News.

Why is Ludlow Jute & Specialities Ltd ?

Poor Management Efficiency with a low ROCE of 4.51%

The company has been able to generate a Return on Capital Employed (avg) of 4.51% signifying low profitability per unit of total capital (equity and debt)

Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.08 times

Poor long term growth as Net Sales has grown by an annual rate of 4.80% over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.08 times
The company has been able to generate a Return on Equity (avg) of 2.97% signifying low profitability per unit of shareholders funds

Healthy long term growth as Operating profit has grown by an annual rate 62.43%

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

ROCE(HY) Highest at 9.21%
NET SALES(Q) Highest at Rs 148.15 cr
PAT(9M) Higher at Rs 11.67 Cr

With ROCE of 8.6, it has a Attractive valuation with a 1.7 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 46.67%, its profits have risen by 193.4% ; the PEG ratio of the company is 0.1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Ludlow Jute should be less than 10%
Overall Portfolio exposure to Paper, Forest & Jute Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Paper, Forest & Jute Products)

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

Is Ludlow Jute for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Ludlow Jute

46.71%

0.90

52.01%

Sensex

-7.5%

-0.57

13.00%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.80%

EBIT Growth (5y)

62.43%

EBIT to Interest (avg)

1.17

Debt to EBITDA (avg)

15.51

Net Debt to Equity (avg)

0.82

Sales to Capital Employed (avg)

1.65

Tax Ratio

25.08%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

2.56%

ROE (avg)

2.97%

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

2.24

EV to EBIT

15.19

EV to EBITDA

12.39

EV to Capital Employed

1.68

EV to Sales

1.15

PEG Ratio

0.12

Dividend Yield

ROCE (Latest)

8.63%

ROE (Latest)

9.60%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

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

20What is working for the Company

ROCE(HY)

Highest at 9.21%

NET SALES(Q)

Highest at Rs 148.15 cr

PAT(9M)

Higher at Rs 11.67 Cr

-11What is not working for the Company

PAT(Q)

At Rs 1.38 cr has Fallen at -45.2%

OPERATING PROFIT TO INTEREST (Q)

Lowest at 2.05 times

DEBT-EQUITY RATIO(HY)

Highest at 1.15 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 9.75 times

PBDIT(Q)

Lowest at Rs 7.82 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 5.28%

PBT LESS OI(Q)

Lowest at Rs 2.44 cr.

EPS(Q)

Lowest at Rs 1.28

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Here's what is working for Ludlow Jute

Net Sales - Quarterly

Highest at Rs 148.15 cr and Grown

each quarter in the last five quarters

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Net Sales - Quarterly

At Rs 148.15 cr has Grown at 56.29%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Here's what is not working for Ludlow Jute

Profit After Tax (PAT) - Quarterly

At Rs 1.38 cr has Fallen at -45.2%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Operating Profit to Interest - Quarterly

Lowest at 2.05 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 7.82 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 5.28%

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 2.44 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs 1.28

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 1.15 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

Debtors Turnover Ratio- Half Yearly

Lowest at 9.75 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio