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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Sh. Digvijay Cem

Mangalam Cement

Deccan Cements

Orient Cement

Saurashtra Cem.

Prism Johnson

Sanghi Industrie

Sagar Cements

Heidelberg Cem.

KCP

BIGBLOC Const.

Why is Mangalam Cement Ltd ?

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 1.93

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 1.93
The company has been able to generate a Return on Equity (avg) of 8.85% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 9.10% and Operating profit at 1.28% over the last 5 years

The company has declared Positive results for the last 3 consecutive quarters

OPERATING CF(Y) Highest at Rs 187.63 Cr
PAT(9M) Higher at Rs 69.28 Cr

With ROCE of 9.5, it has a Attractive valuation with a 1.9 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 -17.21%, its profits have risen by 43.9% ; the PEG ratio of the company is 0.6

Majority shareholders : Non Institution

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 2.12% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -17.21% returns

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, Low Return

Absolute

Risk Adjusted

Volatility

Mangalam Cement

-17.07%

-0.54

31.76%

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)

9.10%

EBIT Growth (5y)

1.28%

EBIT to Interest (avg)

1.93

Debt to EBITDA (avg)

3.34

Net Debt to Equity (avg)

0.58

Sales to Capital Employed (avg)

1.16

Tax Ratio

26.98%

Dividend Payout Ratio

9.15%

Pledged Shares

Institutional Holding

13.02%

ROCE (avg)

10.91%

ROE (avg)

8.85%

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

2.39

EV to EBIT

19.90

EV to EBITDA

12.41

EV to Capital Employed

1.88

EV to Sales

1.50

PEG Ratio

0.64

Dividend Yield

0.19%

ROCE (Latest)

9.45%

ROE (Latest)

8.56%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

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

15What is working for the Company

OPERATING CF(Y)

Highest at Rs 187.63 Cr

PAT(9M)

Higher at Rs 69.28 Cr

-8What is not working for the Company

PBT LESS OI(Q)

At Rs 6.69 cr has Fallen at -49.8% (vs previous 4Q average

DEBT-EQUITY RATIO(HY)

Highest at 0.82 times

NET SALES(Q)

At Rs 394.88 cr has Fallen at -9.9% (vs previous 4Q average

NON-OPERATING INCOME(Q)

is 59.31 % of Profit Before Tax (PBT

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Here's what is working for Mangalam Cement

Operating Cash Flow - Annually

Highest at Rs 187.63 Cr and Grown

each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 20.11 cr has Grown at 33.5% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 15.07 Cr

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Here's what is not working for Mangalam Cement

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 6.69 cr has Fallen at -49.8% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 13.33 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Net Sales - Quarterly

At Rs 394.88 cr has Fallen at -9.9% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 438.04 Cr

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Non Operating Income - Quarterly

is 59.31 % 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 0.82 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