Mac Charles (India) 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

Advani Hotels.

Praveg

Viceroy Hotels

Benares Hotels

Kamat Hotels

Royal Orch.Hotel

Mac Charles(I)

Asian Hotels (N)

HLV

Advent Hotels

U P Hotels

Why is Mac Charles (India) Ltd ?

With HIgh Debt (Debt-Equity Ratio at 15.38 times)- the company has a Weak Long Term Fundamental Strength

Low ability to service debt as the company has a high Debt to EBITDA ratio of 7.58 times
The company has been able to generate a Return on Capital Employed (avg) of 3.77% signifying low profitability per unit of total capital (equity and debt)

With ROCE of 0.3, it has a Very Expensive 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 12.89%, its profits have risen by 10.7%

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

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 Hotels & Resorts)

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

Is Mac Charles(I) for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Mac Charles(I)

12.89%

0.27

47.72%

Sensex

4.31%

0.36

11.95%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

23.99%

EBIT Growth (5y)

51.08%

EBIT to Interest (avg)

0.47

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

15.38

Sales to Capital Employed (avg)

0.04

Tax Ratio

12.90%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.02%

ROCE (avg)

-0.79%

ROE (avg)

19.56%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

12.27

EV to EBIT

59.80

EV to EBITDA

39.19

EV to Capital Employed

1.69

EV to Sales

22.42

PEG Ratio

Dividend Yield

ROCE (Latest)

0.31%

ROE (Latest)

-148.45%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

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

21What is working for the Company

OPERATING PROFIT TO INTEREST(Q)

Highest at 0.77 times

DEBTORS TURNOVER RATIO(HY)

Highest at 22.33 times

NET SALES(Q)

Highest at Rs 32.73 cr

PBDIT(Q)

Highest at Rs 24.27 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 74.15%

PBT LESS OI(Q)

Highest at Rs -12.73 cr.

PAT(Q)

Highest at Rs -6.89 cr.

-6What is not working for the Company

INTEREST(9M)

At Rs 94.72 cr has Grown at 25.34%

DEBT-EQUITY RATIO(HY)

Highest at 16.21 times

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 45.29 cr

EPS(Q)

Lowest at Rs -48.44

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Here's what is working for Mac Charles(I)

Operating Profit to Interest - Quarterly

Highest at 0.77 times and Grown

each quarter in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales - Quarterly

Highest at Rs 32.73 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 24.27 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 74.15%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs -12.73 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 -6.89 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Debtors Turnover Ratio- Half Yearly

Highest at 22.33 times

in the last five half yearly periods

MOJO Watch

Company has been able to settle its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Mac Charles(I)

Debt-Equity Ratio - Half Yearly

Highest at 16.21 times and Grown

each half year 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

Interest - Nine Monthly

At Rs 94.72 cr has Grown at 25.34%

over preceding nine months period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs -48.44

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 45.29 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents