ScoreWhy is Panchmahal Steel Ltd ?
1
Poor long term growth as Operating profit has grown by an annual rate -27.34% of over the last 5 years
2
Flat results in Mar 26
- PAT(Q) At Rs -2.12 cr has Fallen at -290.8% (vs previous 4Q average)
- DEBTORS TURNOVER RATIO(HY) Lowest at 8.08 times
- EPS(Q) Lowest at Rs -1.11
3
With ROCE of 1.7, it has a Expensive valuation with a 3.1 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 65.12%, its profits have fallen by -168.1%
4
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
5
Market Beating Performance
- Even though the market (BSE500) has generated negative returns of -2.24% in the last 1 year, the stock has been able to generate 65.12% returns
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Panchmahal Steel should be less than 10%
- Overall Portfolio exposure to Iron & Steel Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Iron & Steel Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Panchmahal Steel for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Panchmahal Steel
65.12%
1.23
52.96%
Sensex
-7.55%
-0.58
13.06%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
2.54%
EBIT Growth (5y)
-27.34%
EBIT to Interest (avg)
3.11
Debt to EBITDA (avg)
3.22
Net Debt to Equity (avg)
0.23
Sales to Capital Employed (avg)
2.20
Tax Ratio
100.00%
Dividend Payout Ratio
172.12%
Pledged Shares
5.79%
Institutional Holding
3.93%
ROCE (avg)
9.30%
ROE (avg)
8.30%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
26
Price to Book Value
3.60
EV to EBIT
181.79
EV to EBITDA
51.64
EV to Capital Employed
3.11
EV to Sales
1.50
PEG Ratio
NA
Dividend Yield
1.06%
ROCE (Latest)
1.71%
ROE (Latest)
-1.50%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend2What is working for the Company
DEBT-EQUITY RATIO(HY)
Lowest at 0.23 times
NET SALES(Q)
Highest at Rs 105.96 cr
-5What is not working for the Company
PAT(Q)
At Rs -2.12 cr has Fallen at -290.8% (vs previous 4Q average
DEBTORS TURNOVER RATIO(HY)
Lowest at 8.08 times
EPS(Q)
Lowest at Rs -1.11
Loading Valuation Snapshot...
Here's what is working for Panchmahal Steel
Net Sales - Quarterly
Highest at Rs 105.96 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Debt-Equity Ratio - Half Yearly
Lowest at 0.23 times
in the last five half yearly periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Here's what is not working for Panchmahal Steel
Profit After Tax (PAT) - Quarterly
At Rs -2.12 cr has Fallen at -290.8% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs -0.54 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Lowest at Rs -1.11
in the last five quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)
Debtors Turnover Ratio- Half Yearly
Lowest at 8.08 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
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