Why is Ludlow Jute & Specialities Ltd ?
1
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)
2
Low ability to service debt as the company has a high Debt to EBITDA ratio of 5.30 times
- Poor long term growth as Net Sales has grown by an annual rate of 1.47% over the last 5 years
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 5.30 times
- The company has been able to generate a Return on Equity (avg) of 2.97% signifying low profitability per unit of shareholders funds
3
Healthy long term growth as Operating profit has grown by an annual rate 43.47%
4
With a growth in Operating Profit of 512.58%, the company declared Outstanding results in Dec 25
- The company has declared positive results for the last 3 consecutive quarters
- PBT LESS OI(Q) At Rs 3.80 cr has Grown at 204.40%
- PAT(Q) At Rs 3.43 cr has Grown at 231.9%
- ROCE(HY) Highest at 8.89%
5
With ROCE of 8.6, it has a Very Attractive valuation with a 1.2 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 17.65%, its profits have risen by 161.2% ; the PEG ratio of the company is 0.1
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, Medium Return
Absolute
Risk Adjusted
Volatility
Ludlow Jute
17.65%
0.39
45.83%
Sensex
10.41%
0.90
11.52%
Quality key factors
Factor
Value
Sales Growth (5y)
1.47%
EBIT Growth (5y)
43.47%
EBIT to Interest (avg)
1.14
Debt to EBITDA (avg)
15.51
Net Debt to Equity (avg)
0.82
Sales to Capital Employed (avg)
1.65
Tax Ratio
26.39%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0.00%
ROCE (avg)
2.56%
ROE (avg)
2.97%
Valuation Key Factors 
Factor
Value
P/E Ratio
23
Industry P/E
22
Price to Book Value
1.43
EV to EBIT
14.35
EV to EBITDA
11.06
EV to Capital Employed
1.24
EV to Sales
1.03
PEG Ratio
0.14
Dividend Yield
NA
ROCE (Latest)
8.63%
ROE (Latest)
6.25%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
Bullish
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
No Trend
No Trend
Technical Movement
33What is working for the Company
PBT LESS OI(Q)
At Rs 3.80 cr has Grown at 204.40%
PAT(Q)
At Rs 3.43 cr has Grown at 231.9%
ROCE(HY)
Highest at 8.89%
NET SALES(Q)
Highest at Rs 135.52 cr
-2What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 9.84 times
Loading Valuation Snapshot...
Here's what is working for Ludlow Jute
Net Sales - Quarterly
At Rs 135.52 cr has Grown at 158.82%
Year on Year (YoY)MOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 3.80 cr has Grown at 204.40%
Year on Year (YoY)MOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 3.43 cr has Grown at 231.9%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Net Sales - Quarterly
Highest at Rs 135.52 cr and Grown
each quarter in the last five quartersMOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Here's what is not working for Ludlow Jute
Debtors Turnover Ratio- Half Yearly
Lowest at 9.84 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio






