Nelcast Ltd. (NELCAST) 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

Tirupati Forge

Steelcast

Inv.& Prec.Cast.

Happy Forgings

AIA Engineering

Nelcast

Magna Electrocas

Balu Forge

Synergy Green

ANB Metal

Amic Forging

Why is Nelcast Ltd. ?

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 1.80

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 1.80
The company has been able to generate a Return on Equity (avg) of 5.93% signifying low profitability per unit of shareholders funds

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 Castings & Forgings)

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

Is Nelcast for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Nelcast

28.61%

0.49

58.94%

Sensex

-5.02%

-0.39

12.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

20.11%

EBIT Growth (5y)

37.87%

EBIT to Interest (avg)

1.80

Debt to EBITDA (avg)

3.96

Net Debt to Equity (avg)

0.40

Sales to Capital Employed (avg)

1.42

Tax Ratio

25.28%

Dividend Payout Ratio

6.40%

Pledged Shares

Institutional Holding

0.56%

ROCE (avg)

7.09%

ROE (avg)

5.93%

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

1.81

EV to EBIT

15.19

EV to EBITDA

11.51

EV to Capital Employed

1.58

EV to Sales

0.97

PEG Ratio

0.26

Dividend Yield

0.43%

ROCE (Latest)

8.42%

ROE (Latest)

6.50%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Dow Theory

Mildly Bullish

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

21What is working for the Company

ROCE(HY)

Highest at 9.93%

OPERATING PROFIT TO INTEREST(Q)

Highest at 4.21 times

DEBT-EQUITY RATIO(HY)

Lowest at 0.52 times

PBDIT(Q)

Highest at Rs 33.29 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 10.10%

PBT LESS OI(Q)

Highest at Rs 18.78 cr.

PAT(Q)

Highest at Rs 15.90 cr.

EPS(Q)

Highest at Rs 1.83

-2What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.57 times

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Here's what is working for Nelcast

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 18.78 cr has Grown at 146.4% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 7.62 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Operating Profit to Interest - Quarterly

Highest at 4.21 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Profit After Tax (PAT) - Quarterly

At Rs 15.90 cr has Grown at 72.9% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 9.20 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 33.29 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 10.10%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 18.78 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 15.90 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 1.83

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Debt-Equity Ratio - Half Yearly

Lowest at 0.52 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

Here's what is not working for Nelcast

Debtors Turnover Ratio- Half Yearly

Lowest at 3.57 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