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

S I Paper Mills

Sh. Ajit Pulp

Ludlow Jute

Ruchira Papers

Star Paper Mills

Kuantum Papers

Pakka

Genus Paper & Bo

Satia Industries

Shree Rama News.

Orient Paper

Why is Ludlow Jute & Specialities Ltd ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 3.95%

Poor long term growth as Net Sales has grown by an annual rate of 4.02% and Operating profit at 19.95% over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 5.06 times

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 3.63% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -19.52% 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 Paper, Forest & Jute Products)

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

Is Ludlow Jute for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Ludlow Jute

-19.03%

-0.40

48.53%

Sensex

-3.61%

-0.27

13.41%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.02%

EBIT Growth (5y)

19.95%

EBIT to Interest (avg)

1.09

Debt to EBITDA (avg)

15.48

Net Debt to Equity (avg)

1.13

Sales to Capital Employed (avg)

1.61

Tax Ratio

25.73%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

3.25%

ROE (avg)

3.21%

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

1.92

EV to EBIT

14.64

EV to EBITDA

12.48

EV to Capital Employed

1.43

EV to Sales

0.93

PEG Ratio

0.01

Dividend Yield

ROCE (Latest)

9.07%

ROE (Latest)

9.72%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

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

22What is working for the Company

ROCE(HY)

Highest at 9.21%

NET SALES(Q)

Highest at Rs 189.47 cr

PAT(Q)

At Rs 6.43 cr has Grown at 43.2%

PBDIT(Q)

Highest at Rs 14.44 cr.

PBT LESS OI(Q)

At Rs 8.41 cr has Grown at 35.43%

-3What is not working for the Company

DEBT-EQUITY RATIO(HY)

Highest at 1.15 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 9.75 times

INTEREST(Q)

Highest at Rs 4.22 cr

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Here's what is working for Ludlow Jute

Net Sales - Quarterly

Highest at Rs 189.47 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 189.47 cr has Grown at 67.63%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 6.43 cr has Grown at 43.2%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 14.44 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 8.41 cr has Grown at 35.43%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Here's what is not working for Ludlow Jute

Interest - Quarterly

Highest at Rs 4.22 cr

in the last five quarters and Increased by 10.47 % (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

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