Madras Fertilizers Ltd (MADRASFERT) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Rama Phosphates

Krishana Phosch.

M B Agro Prod.

Zuari Agro Chem.

Aries Agro

Mangalore Chem.

Khaitan Chemical

SPIC

Madras Fertilize

Indogulf Cropsci

Kothari Indl

Why is Madras Fertilizers Ltd ?

Poor long term growth as Net Sales has grown by an annual rate of 10.30% and Operating profit at 16.15% over the last 5 years

Negative results in Sep 25

PBT LESS OI(Q) At Rs -5.25 cr has Fallen at -143.3% (vs previous 4Q average)
PAT(Q) At Rs 12.95 cr has Fallen at -23.6% (vs previous 4Q average)
DEBT-EQUITY RATIO(HY) Highest at 23.64 times

Despite the size of the company, domestic mutual funds hold only 0.01% 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

Below par performance in long term as well as near term

Along with generating -25.32% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months

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 Fertilizers)

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

Is Madras Fertilize for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Madras Fertilize

-25.38%

-0.69

36.93%

Sensex

4.83%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.30%

EBIT Growth (5y)

16.15%

EBIT to Interest (avg)

2.26

Debt to EBITDA (avg)

10.13

Net Debt to Equity (avg)

-1.72

Sales to Capital Employed (avg)

2.22

Tax Ratio

28.29%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.14%

ROCE (avg)

-46.14%

ROE (avg)

320.52%

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

48.83

EV to EBIT

10.52

EV to EBITDA

9.45

EV to Capital Employed

-65.51

EV to Sales

0.46

PEG Ratio

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

320.52%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

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

9What is working for the Company

PAT(Latest six months)

At Rs 57.01 cr has Grown at 35.54%

ROCE(HY)

Highest at 28.18%

INVENTORY TURNOVER RATIO(HY)

Highest at 15.30 times

DEBTORS TURNOVER RATIO(HY)

Highest at 2,393.42 times

-17What is not working for the Company

PBT LESS OI(Q)

At Rs -5.25 cr has Fallen at -143.3% (vs previous 4Q average

PAT(Q)

At Rs 12.95 cr has Fallen at -23.6% (vs previous 4Q average

DEBT-EQUITY RATIO(HY)

Highest at 23.64 times

NET SALES(Q)

Lowest at Rs 510.37 cr

NON-OPERATING INCOME(Q)

is 130.22 % of Profit Before Tax (PBT

Loading Valuation Snapshot...

Here's what is working for Madras Fertilize

Inventory Turnover Ratio- Half Yearly

Highest at 15.30 times and Grown

each half year in the last five half yearly periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio- Half Yearly

Highest at 2,393.42 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 Madras Fertilize

Net Sales - Quarterly

At Rs 510.37 cr has Fallen at -20.2% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 639.77 Cr

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs -5.25 cr has Fallen at -143.3% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 12.11 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 12.95 cr has Fallen at -23.6% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 16.96 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Net Sales - Quarterly

Lowest at Rs 510.37 cr

in the last five quarters

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Non Operating Income - Quarterly

is 130.22 % 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

Debt-Equity Ratio - Half Yearly

Highest at 23.64 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

Non Operating Income - Quarterly

Highest at Rs 22.62 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income