Monte Carlo Fashions Ltd (MONTECARLO) 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

GHCL Textiles

Sunrakshakk Inds

Ambika Cotton

Iris Clothings

Nahar Spinning

RSWM Ltd

Ruby Mills

Precot

Monte Carlo Fas.

Mafatlal Inds.

Himatsing. Seide

Why is Monte Carlo Fashions Ltd ?

Poor long term growth as Operating profit has grown by an annual rate -0.32% of over the last 5 years

PAT(Q) At Rs -23.42 cr has Fallen at -44.4%
DEBTORS TURNOVER RATIO(HY) Lowest at 2.56 times
OPERATING PROFIT TO INTEREST (Q) Lowest at -1.05 times

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

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -10.22% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

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 Monte Carlo Fas. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Monte Carlo Fas.

-10.0%

-0.30

34.41%

Sensex

-2.63%

-0.20

13.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.16%

EBIT Growth (5y)

-0.32%

EBIT to Interest (avg)

4.58

Debt to EBITDA (avg)

2.61

Net Debt to Equity (avg)

0.51

Sales to Capital Employed (avg)

0.88

Tax Ratio

23.49%

Dividend Payout Ratio

51.08%

Pledged Shares

Institutional Holding

2.78%

ROCE (avg)

13.71%

ROE (avg)

11.72%

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

1.14

EV to EBIT

9.81

EV to EBITDA

6.81

EV to Capital Employed

1.09

EV to Sales

1.17

PEG Ratio

0.29

Dividend Yield

4.20%

ROCE (Latest)

11.80%

ROE (Latest)

12.37%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

7What is working for the Company

NET SALES(Latest six months)

At Rs 429.34 cr has Grown at 24.64%

ROCE(HY)

Highest at 13.32%

PAT(9M)

Higher at Rs 88.60 Cr

-15What is not working for the Company

PAT(Q)

At Rs -23.42 cr has Fallen at -44.4%

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.56 times

OPERATING PROFIT TO INTEREST (Q)

Lowest at -1.05 times

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 2.74 cr

PBDIT(Q)

Lowest at Rs -12.93 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at -8.68%

PBT LESS OI(Q)

Lowest at Rs -42.17 cr.

EPS(Q)

Lowest at Rs -11.30

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Here's what is working for Monte Carlo Fas.

Net Sales - Latest six months

At Rs 429.34 cr has Grown at 24.64%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Here's what is not working for Monte Carlo Fas.

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs -42.17 cr has Fallen at -31.74%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs -23.42 cr has Fallen at -44.4%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Operating Profit to Interest - Quarterly

Lowest at -1.05 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debtors Turnover Ratio- Half Yearly

Lowest at 2.56 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 Profit (PBDIT) - Quarterly

Lowest at Rs -12.93 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at -8.68%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs -42.17 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs -11.30

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 2.74 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Non Operating Income - Quarterly

Highest at Rs 10.46 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income