Mahalaxmi Fabric Mills Ltd (MFML) 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

7NR Retail Ltd

Advance Lifes.

Mahalaxmi Fab.

Shree Bhavya

Zenith Fibres

Patspin India

K K Silk Mills

NAPS Global

Davin Sons Reta

Kizi Apparels

Southern Latex

Why is Mahalaxmi Fabric Mills Ltd ?

Weak Long Term Fundamental Strength with a -3.30% CAGR growth in Net Sales over the last 5 years

Low ability to service debt as the company has a high Debt to EBITDA ratio of 8.29 times
The company has been able to generate a Return on Equity (avg) of 3.78% signifying low profitability per unit of shareholders funds

Below par performance in long term as well as near term

Along with generating -36.76% 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 Garments & Apparels)

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

Is Mahalaxmi Fab. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Mahalaxmi Fab.

-36.76%

-0.49

75.16%

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)

-3.30%

EBIT Growth (5y)

78.20%

EBIT to Interest (avg)

0.43

Debt to EBITDA (avg)

21.21

Net Debt to Equity (avg)

0.59

Sales to Capital Employed (avg)

1.09

Tax Ratio

50.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.88%

ROCE (avg)

-0.13%

ROE (avg)

3.78%

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

0.20

EV to EBIT

11.78

EV to EBITDA

8.28

EV to Capital Employed

0.50

EV to Sales

0.57

PEG Ratio

0.01

Dividend Yield

ROCE (Latest)

4.22%

ROE (Latest)

7.56%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

Bearish

OBV

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

1What is working for the Company

PAT(9M)

Higher at Rs 3.80 Cr

-17What is not working for the Company

PAT(Q)

At Rs 0.04 cr has Fallen at -97.8% (vs previous 4Q average

OPERATING PROFIT TO INTEREST (Q)

Lowest at 1.95 times

DEBT-EQUITY RATIO(HY)

Highest at 0.79 times

NET SALES(Q)

Lowest at Rs 30.81 cr

INTEREST(Q)

Highest at Rs 1.39 cr

PBT LESS OI(Q)

Lowest at Rs -0.30 cr.

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Here's what is not working for Mahalaxmi Fab.

Profit After Tax (PAT) - Quarterly

At Rs 0.04 cr has Fallen at -97.8% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 1.85 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Interest - Quarterly

At Rs 1.39 cr has Grown at 138,999,900.00%

Quarter on Quarter (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Operating Profit to Interest - Quarterly

Lowest at 1.95 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales - Quarterly

Lowest at Rs 30.81 cr

in the last five quarters

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Net Sales - Quarterly

At Rs 30.81 cr has Fallen at -8.8% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 33.78 Cr

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Interest - Quarterly

Highest at Rs 1.39 cr

in the last five quarters and Increased by 138,999,900.00 % (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs -0.30 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Debt-Equity Ratio - Half Yearly

Highest at 0.79 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