Mafatlal Industries Ltd (MAFATLAIND) 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

Indo Rama Synth.

SBC Exports

R&B Denims

Mafatlal Inds.

AB Cotspin

Sportking India

Raj Rayon Inds.

Century Enka

Faze Three

AYM Syntex

Le Merite Export

Why is Mafatlal Industries Ltd ?

Poor Management Efficiency with a low ROE of 8.23%

The company has been able to generate a Return on Equity (avg) of 8.23% signifying low profitability per unit of shareholders funds

Company has a low Debt to Equity ratio (avg) at 0.02 times

Healthy long term growth as Net Sales has grown by an annual rate of 40.44%

Flat results in Sep 25

PAT(Q) At Rs 21.82 cr has Fallen at -26.9% (vs previous 4Q average)
OPERATING CF(Y) Lowest at Rs -89.15 Cr
DEBTORS TURNOVER RATIO(HY) Lowest at 0.33 times

With ROE of 14.4, it has a Fair valuation with a 1.4 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -2.75%, its profits have risen by 8.1% ; the PEG ratio of the company is 1.3

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 hold?

Overall Portfolio exposure to Mafatlal Inds. should be less than 10%
Overall Portfolio exposure to Garments & Apparels should be less than 30%

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

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

Is Mafatlal Inds. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Mafatlal Inds.

-2.75%

-0.06

49.29%

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)

40.44%

EBIT Growth (5y)

27.53%

EBIT to Interest (avg)

2.33

Debt to EBITDA (avg)

0.88

Net Debt to Equity (avg)

-0.22

Sales to Capital Employed (avg)

2.07

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

7.34%

Pledged Shares

Institutional Holding

0.89%

ROCE (avg)

0.62%

ROE (avg)

8.23%

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

1.42

EV to EBIT

12.54

EV to EBITDA

10.38

EV to Capital Employed

1.54

EV to Sales

0.27

PEG Ratio

1.33

Dividend Yield

1.42%

ROCE (Latest)

12.26%

ROE (Latest)

14.37%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

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

8What is working for the Company

NET SALES(9M)

At Rs 2,719.76 cr has Grown at 22.97%

DPS(Y)

Highest at Rs 1.00

DPR(Y)

Highest at 7.33%

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 2,348.90 cr

-10What is not working for the Company

PAT(Q)

At Rs 21.82 cr has Fallen at -26.9% (vs previous 4Q average

OPERATING CF(Y)

Lowest at Rs -89.15 Cr

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.33 times

NON-OPERATING INCOME(Q)

is 38.66 % of Profit Before Tax (PBT

Loading Valuation Snapshot...

Here's what is working for Mafatlal Inds.

Net Sales - Latest six months

At Rs 2,269.97 cr has Grown at 56.83%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 2,348.90 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per Share (DPS) - Annually

Highest at Rs 1.00

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (Rs)

Dividend Payout Ratio (DPR) - Annually

Highest at 7.33%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Mafatlal Inds.

Profit After Tax (PAT) - Quarterly

At Rs 21.82 cr has Fallen at -26.9% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 29.84 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Debtors Turnover Ratio- Half Yearly

Lowest at 0.33 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio

Operating Cash Flow - Annually

Lowest at Rs -89.15 Cr

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 38.66 % 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