Lykis 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

Lykis

Mehai Technology

MRC Agrotech

Variman Global

Goyal Aluminiums

Cravatex

Ashnisha Indus.

Confidence Fut.

Fervent Synerg.

Rukmani Devi Gar

Newtime Infra.

Why is Lykis Ltd ?

High Debt company with Weak Long Term Fundamental Strength

High Debt Company with a Debt to Equity ratio (avg) of 3.98 times
The company has been able to generate a Return on Capital Employed (avg) of 7.15% signifying low profitability per unit of total capital (equity and debt)

With a growth in Net Profit of 99.49%, the company declared Very Positive results in Jun 26

The company has declared positive results for the last 4 consecutive quarters
NET SALES(Q) At Rs 126.68 cr has Grown at 29.0% (vs previous 4Q average)
PBT LESS OI(Q) Highest at Rs 2.32 cr.
PAT(Q) Highest at Rs 3.90 cr.

With ROCE of 6, it has a Attractive valuation with a 1.4 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 45.72%, its profits have risen by 415.7% ; the PEG ratio of the company is 0

Majority shareholders : Promoters

Market Beating Performance

The stock has generated a return of 45.72% in the last 1 year, much higher than market (BSE500) returns of 4.32%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Lykis should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

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

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

Is Lykis for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Lykis

45.72%

0.75

60.92%

Sensex

-2.83%

-0.21

13.53%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

30.10%

EBIT Growth (5y)

45.27%

EBIT to Interest (avg)

1.29

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

2.43

Sales to Capital Employed (avg)

2.92

Tax Ratio

22.51%

Dividend Payout Ratio

Pledged Shares

3.66%

Institutional Holding

ROCE (avg)

6.21%

ROE (avg)

22.36%

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

2.34

EV to EBIT

16.09

EV to EBITDA

14.54

EV to Capital Employed

1.39

EV to Sales

0.43

PEG Ratio

0.02

Dividend Yield

ROCE (Latest)

6.01%

ROE (Latest)

15.86%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

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

26What is working for the Company

NET SALES(Q)

At Rs 126.68 cr has Grown at 29.0% (vs previous 4Q average

PBT LESS OI(Q)

Highest at Rs 2.32 cr.

PAT(Q)

Highest at Rs 3.90 cr.

EPS(Q)

Highest at Rs 2.01

-5What is not working for the Company

OPERATING CF(Y)

Lowest at Rs -32.17 Cr

NON-OPERATING INCOME(Q)

is 56.06 % of Profit Before Tax (PBT

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Here's what is working for Lykis

Profit After Tax (PAT) - Quarterly

At Rs 3.90 cr has Grown at 141.1% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 1.62 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Net Sales - Quarterly

At Rs 126.68 cr has Grown at 29.0% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 98.19 Cr

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 2.32 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 3.90 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 2.01

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Here's what is not working for Lykis

Operating Cash Flow - Annually

Lowest at Rs -32.17 Cr and Fallen

each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (Rs Cr)

Non Operating Income - Quarterly

is 56.06 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT

Non Operating Income - Quarterly

Highest at Rs 2.96 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income