Mangalam Cement Ltd (MANGLMCEM) 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

NCL Industries

Mangalam Cement

JK Lakshmi Cem.

Heidelberg Cem.

KCP

Orient Cement

Sh. Digvijay Cem

Birla Corpn.

Prism Johnson

Deccan Cements

Sagar Cements

Why is Mangalam Cement Ltd ?

Weak Long Term Fundamental Strength with a -6.25% CAGR growth in Operating Profits over the last 5 years

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 1.75
The company has been able to generate a Return on Equity (avg) of 8.67% signifying low profitability per unit of shareholders funds

Positive results in Mar 26

PAT(Q) At Rs 85.96 cr has Grown at 322.5% (vs previous 4Q average)
EPS(Q) Highest at Rs 23.72

With ROCE of 8.3, it has a Fair valuation with a 2 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 32.76%, its profits have risen by 233.8% ; the PEG ratio of the company is 0.1

Majority shareholders : Non Institution

Market Beating Performance

The stock has generated a return of 32.76% in the last 1 year, much higher than market (BSE500) returns of 2.91%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Mangalam Cement should be less than 10%
Overall Portfolio exposure to Cement & Cement Products should be less than 30%

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

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

Is Mangalam Cement for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Mangalam Cement

32.76%

1.09

29.95%

Sensex

-3.2%

-0.24

13.59%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.18%

EBIT Growth (5y)

-6.25%

EBIT to Interest (avg)

1.75

Debt to EBITDA (avg)

3.49

Net Debt to Equity (avg)

0.68

Sales to Capital Employed (avg)

1.16

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

9.15%

Pledged Shares

Institutional Holding

11.70%

ROCE (avg)

9.98%

ROE (avg)

8.67%

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

2.64

EV to EBIT

23.83

EV to EBITDA

14.95

EV to Capital Employed

1.98

EV to Sales

1.84

PEG Ratio

0.07

Dividend Yield

0.16%

ROCE (Latest)

8.31%

ROE (Latest)

15.39%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

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

16What is working for the Company

PAT(Q)

At Rs 85.96 cr has Grown at 322.5% (vs previous 4Q average

EPS(Q)

Highest at Rs 23.72

-2What is not working for the Company

DEBT-EQUITY RATIO(HY)

Highest at 0.91 times

NON-OPERATING INCOME(Q)

is 48.18 % of Profit Before Tax (PBT

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Here's what is working for Mangalam Cement

Profit After Tax (PAT) - Quarterly

At Rs 85.96 cr has Grown at 322.5% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 20.35 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 85.96 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 23.72

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 Mangalam Cement

Non Operating Income - Quarterly

is 48.18 % 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 0.91 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 16.27 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income