Nirlon Ltd (NIRLON) 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

International Ge

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Nirlon

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Hemisphere Prop

Why is Nirlon Ltd ?

High Debt Company with a Debt to Equity ratio (avg) at 2.24 times

Poor long term growth as Operating profit has grown by an annual rate 19.02% of over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at 2.24 times

Poor long term growth as Operating profit has grown by an annual rate 19.02% of over the last 5 years

With ROCE of 34.7, it has a Very Expensive valuation with a 4 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 -2.98%, its profits have risen by 52.4% ; the PEG ratio of the company is 0.3
At the current price, the company has a high dividend yield of 5.4

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 Diversified Commercial Services)

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

Is Nirlon for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Nirlon

-2.9%

-0.14

21.75%

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)

15.30%

EBIT Growth (5y)

19.02%

EBIT to Interest (avg)

5.13

Debt to EBITDA (avg)

2.92

Net Debt to Equity (avg)

1.83

Sales to Capital Employed (avg)

0.34

Tax Ratio

8.71%

Dividend Payout Ratio

107.39%

Pledged Shares

Institutional Holding

15.64%

ROCE (avg)

23.91%

ROE (avg)

43.98%

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

9.42

EV to EBIT

11.42

EV to EBITDA

10.20

EV to Capital Employed

3.98

EV to Sales

7.96

PEG Ratio

0.25

Dividend Yield

5.36%

ROCE (Latest)

34.69%

ROE (Latest)

70.91%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

Mildly 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

13What is working for the Company

PAT(9M)

At Rs 275.39 cr has Grown at 67.29%

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 297.06 cr

DEBT-EQUITY RATIO(HY)

Lowest at 2.47 times

NET SALES(Q)

Highest at Rs 169.93 cr

PBDIT(Q)

Highest at Rs 131.73 cr.

PBT LESS OI(Q)

Highest at Rs 90.03 cr.

-3What is not working for the Company

PAT(Q)

At Rs 69.32 cr has Fallen at -12.8% (vs previous 4Q average

DEBTORS TURNOVER RATIO(HY)

Lowest at 64.77 times

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Here's what is working for Nirlon

Net Sales - Quarterly

Highest at Rs 169.93 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 131.73 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 90.03 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 297.06 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio - Half Yearly

Lowest at 2.47 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 Nirlon

Profit After Tax (PAT) - Quarterly

At Rs 69.32 cr has Fallen at -12.8% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 79.48 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Debtors Turnover Ratio- Half Yearly

Lowest at 64.77 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio