Pakka Ltd (PAKKA) 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

Emami Paper

Cheviot Company

Sh. Ajit Pulp

Gloster Ltd

Ludlow Jute

Satia Industries

Ruchira Papers

Pakka

Genus Paper & Bo

Shree Rama News.

Orient Paper

Why is Pakka Ltd ?

Weak Long Term Fundamental Strength with a -31.37% CAGR growth in Operating Profits over the last 5 years

Low ability to service debt as the company has a high Debt to EBITDA ratio of 10.88 times

Flat results in Jun 26

ROCE(HY) Lowest at 3.80%
DEBTORS TURNOVER RATIO(HY) Lowest at 7.27 times
INTEREST(Q) At Rs 4.87 cr has Grown at 26.49%

76.68% of Promoter Shares are Pledged

In falling markets, high promoter pledged shares puts additional downward pressure on the stock prices
The proportion of pledged holdings has increased by 67.74% over the last quarter

Below par performance in long term as well as near term

Along with generating -52.41% 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 Paper, Forest & Jute Products)

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

Is Pakka for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Pakka

-52.59%

-1.21

44.15%

Sensex

-8.97%

-0.67

13.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-2.89%

EBIT Growth (5y)

-31.37%

EBIT to Interest (avg)

4.45

Debt to EBITDA (avg)

3.01

Net Debt to Equity (avg)

1.00

Sales to Capital Employed (avg)

0.92

Tax Ratio

36.10%

Dividend Payout Ratio

Pledged Shares

76.68%

Institutional Holding

12.32%

ROCE (avg)

16.62%

ROE (avg)

12.49%

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

0.83

EV to EBIT

34.38

EV to EBITDA

20.06

EV to Capital Employed

0.92

EV to Sales

2.05

PEG Ratio

Dividend Yield

ROCE (Latest)

1.61%

ROE (Latest)

1.48%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

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

22What is working for the Company

PBT LESS OI(Q)

At Rs 6.19 cr has Grown at 967.2% (vs previous 4Q average

PAT(Q)

At Rs 5.89 cr has Grown at 261.9% (vs previous 4Q average

NET SALES(Q)

At Rs 117.19 cr has Grown at 31.6% (vs previous 4Q average

PBDIT(Q)

Highest at Rs 15.30 cr.

-17What is not working for the Company

ROCE(HY)

Lowest at 3.80%

DEBTORS TURNOVER RATIO(HY)

Lowest at 7.27 times

INTEREST(Q)

At Rs 4.87 cr has Grown at 26.49%

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 22.03 cr

DEBT-EQUITY RATIO(HY)

Highest at 0.91 times

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Here's what is working for Pakka

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 6.19 cr has Grown at 967.2% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 0.58 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 5.89 cr has Grown at 261.9% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 1.63 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Net Sales - Quarterly

Highest at Rs 117.19 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Net Sales - Quarterly

At Rs 117.19 cr has Grown at 31.6% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 89.08 Cr

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 15.30 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Here's what is not working for Pakka

Interest - Quarterly

At Rs 4.87 cr has Grown at 26.49%

Quarter on Quarter (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Debtors Turnover Ratio- Half Yearly

Lowest at 7.27 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

Interest - Quarterly

Highest at Rs 4.87 cr

in the last five quarters and Increased by 26.49 % (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 22.03 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio - Half Yearly

Highest at 0.91 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