Mukand Ltd (MUKANDLTD) 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

Manaksia Steels

Indian Metals

S.A.L Steel

Sunflag Iron

Vraj Iron

Mukand

Maithan Alloys

Prakash Industri

Jai Balaji Inds.

Visa Steel

Neetu Yoshi

Why is Mukand Ltd ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 5.20%

Poor long term growth as Net Sales has grown by an annual rate of 14.03% over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 6.37 times

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

PAT(Q) At Rs 9.88 cr has Fallen at -50.7% (vs previous 4Q average)
ROCE(HY) Lowest at 8.94%
INVENTORY TURNOVER RATIO(HY) Lowest at 2.14 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

Below par performance in long term as well as near term

Along with generating -6.55% 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 Ferrous Metals)

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

Is Mukand for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Mukand

-6.55%

-0.13

49.28%

Sensex

4.89%

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)

14.03%

EBIT Growth (5y)

36.30%

EBIT to Interest (avg)

0.35

Debt to EBITDA (avg)

1.03

Net Debt to Equity (avg)

1.86

Sales to Capital Employed (avg)

1.87

Tax Ratio

41.67%

Dividend Payout Ratio

28.14%

Pledged Shares

Institutional Holding

1.29%

ROCE (avg)

-0.62%

ROE (avg)

14.80%

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

2.02

EV to EBIT

18.67

EV to EBITDA

14.64

EV to Capital Employed

1.36

EV to Sales

0.80

PEG Ratio

Dividend Yield

1.50%

ROCE (Latest)

7.26%

ROE (Latest)

6.76%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Sideways

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

No Trend

OBV

Mildly Bearish

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-17What is not working for the Company

PAT(Q)

At Rs 9.88 cr has Fallen at -50.7% (vs previous 4Q average

ROCE(HY)

Lowest at 8.94%

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.14 times

DEBT-EQUITY RATIO(HY)

Highest at 1.89 times

INTEREST(Q)

Highest at Rs 37.53 cr

PBT LESS OI(Q)

At Rs 17.11 cr has Fallen at -9.0% (vs previous 4Q average

EPS(Q)

Lowest at Rs 0.68

Loading Valuation Snapshot...

Here's what is not working for Mukand

Profit After Tax (PAT) - Quarterly

At Rs 9.88 cr has Fallen at -50.7% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 20.03 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Inventory Turnover Ratio- Half Yearly

Lowest at 2.14 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Interest - Quarterly

Highest at Rs 37.53 cr

in the last five quarters and Increased by 10.74 % (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 17.11 cr has Fallen at -9.0% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 18.81 Cr

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs 0.68

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Debt-Equity Ratio - Half Yearly

Highest at 1.89 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