Mukand Ltd (MUKANDLTD) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Part of MojoOne Strategy

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Manaksia Steels

Sunflag Iron

Vraj Iron

Indian Metals

S.A.L Steel

Maithan Alloys

Mukand

Jai Balaji Inds.

Prakash Industri

VISA Chrome

Neetu Yoshi

Why is Mukand Ltd ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 6.31%

Poor long term growth as Net Sales has grown by an annual rate of 9.82% over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 9.92 times

Flat results in Jun 26

PBT LESS OI(Q) At Rs -44.82 cr has Fallen at -331.4% (vs previous 4Q average)
PAT(Q) At Rs 57.36 cr has Fallen at -62.0% (vs previous 4Q average)
OPERATING CF(Y) Lowest at Rs -440.98 Cr

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

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?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Mukand

7.53%

0.23

32.92%

Sensex

-3.57%

-0.27

13.41%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.82%

EBIT Growth (5y)

16.58%

EBIT to Interest (avg)

0.79

Debt to EBITDA (avg)

2.48

Net Debt to Equity (avg)

1.09

Sales to Capital Employed (avg)

1.92

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

7.18%

Pledged Shares

Institutional Holding

1.28%

ROCE (avg)

2.22%

ROE (avg)

21.41%

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

1.30

EV to EBIT

56.04

EV to EBITDA

27.82

EV to Capital Employed

1.14

EV to Sales

0.71

PEG Ratio

Dividend Yield

2.19%

ROCE (Latest)

3.41%

ROE (Latest)

39.69%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

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

16What is working for the Company

PAT(Latest six months)

At Rs 612.34 cr has Grown at 1,433.53%

ROCE(HY)

Highest at 20.58%

DEBT-EQUITY RATIO(HY)

Lowest at 1.12 times

DEBTORS TURNOVER RATIO(HY)

Highest at 11.56 times

NET SALES(Q)

Highest at Rs 1,362.21 cr

-12What is not working for the Company

PBT LESS OI(Q)

At Rs -44.82 cr has Fallen at -331.4% (vs previous 4Q average

PAT(Q)

At Rs 57.36 cr has Fallen at -62.0% (vs previous 4Q average

OPERATING CF(Y)

Lowest at Rs -440.98 Cr

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.03 times

DPR(Y)

Lowest at 7.18%

NON-OPERATING INCOME(Q)

is 174.43 % of Profit Before Tax (PBT

Loading Valuation Snapshot...

Here's what is working for Mukand

Net Sales - Quarterly

Highest at Rs 1,362.21 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Debt-Equity Ratio - Half Yearly

Lowest at 1.12 times

in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio- Half Yearly

Highest at 11.56 times

in the last five half yearly periods

MOJO Watch

Company has been able to settle its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Mukand

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs -44.82 cr has Fallen at -331.4% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs -10.39 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 57.36 cr has Fallen at -62.0% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 151.04 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Inventory Turnover Ratio- Half Yearly

Lowest at 2.03 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

Operating Cash Flow - Annually

Lowest at Rs -440.98 Cr

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (Rs Cr)

Non Operating Income - Quarterly

is 174.43 % 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

Dividend Payout Ratio (DPR) - Annually

Lowest at 7.18%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)