Paul Merchants Ltd () 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

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Why is Paul Merchants Ltd ?

With a Operating Losses, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of -8.18% and Operating profit at -25.60%

Flat results in Dec 25

PAT(Latest six months) At Rs -4.00 cr has Grown at -36.75%
NET SALES(Q) At Rs 504.79 cr has Fallen at -16.5% (vs previous 4Q average)
NON-OPERATING INCOME(Q) is 47.06 % of Profit Before Tax (PBT)

With ROE of -1.2, it has a Very Expensive valuation with a 0.2 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -40.51%, its profits have risen by 66.5%

Below par performance in long term as well as near term

Along with generating -40.51% 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 Non Banking Financial Company (NBFC))

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

Is Paul Merchants for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Paul Merchants

-40.51%

-1.44

28.15%

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)

-8.18%

EBIT Growth (5y)

-25.60%

Net Debt to Equity (avg)

0.01

Institutional Holding

0.16%

ROE (avg)

5.59%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.16

EV to EBIT

23.51

EV to EBITDA

29.93

EV to Capital Employed

-2.39

EV to Sales

-0.25

PEG Ratio

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

-1.19%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

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

9What is working for the Company

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 103.75 cr

PBT LESS OI(Q)

Highest at Rs 17.44 cr.

PAT(Q)

Highest at Rs 2.61 cr.

-11What is not working for the Company

PAT(Latest six months)

At Rs -4.00 cr has Grown at -36.75%

NET SALES(Q)

At Rs 504.79 cr has Fallen at -16.5% (vs previous 4Q average

NON-OPERATING INCOME(Q)

is 47.06 % of Profit Before Tax (PBT

EPS(Q)

Lowest at Rs -46.75

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Here's what is working for Paul Merchants

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 17.44 cr has Grown at 119.9% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs -87.74 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 2.61 cr has Grown at 163.7% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs -4.09 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 17.44 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 2.61 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 103.75 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Paul Merchants

Net Sales - Quarterly

At Rs 504.79 cr has Fallen at -16.5% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 604.80 Cr

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Non Operating Income - Quarterly

is 47.06 % 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

Earnings per Share (EPS) - Quarterly

Lowest at Rs -46.75

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Non Operating Income - Quarterly

Highest at Rs 15.50 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income