ScoreWhy is Permanent Magnets Ltd ?
1
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.96 times
2
Poor long term growth as Net Sales has grown by an annual rate of 14.08% and Operating profit at 3.72% over the last 5 years
3
Flat results in Mar 26
- INTEREST(Latest six months) At Rs 3.01 cr has Grown at 176.15%
- OPERATING PROFIT TO INTEREST(Q) Lowest at 6.08 times
- DEBT-EQUITY RATIO(HY) Highest at 0.54 times
4
With ROCE of 11.6, it has a Very Expensive valuation with a 4.5 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 2.83%, its profits have risen by 40.8% ; the PEG ratio of the company is 1.3
5
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 ReportHow much should you hold?
- Overall Portfolio exposure to Permanent Magnet should be less than 10%
- Overall Portfolio exposure to Other Electrical Equipment should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Electrical Equipment)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Permanent Magnet for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Permanent Magnet
2.83%
0.06
46.22%
Sensex
-6.17%
-0.47
13.26%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
14.08%
EBIT Growth (5y)
3.72%
EBIT to Interest (avg)
8.26
Debt to EBITDA (avg)
0.49
Net Debt to Equity (avg)
0.21
Sales to Capital Employed (avg)
1.37
Tax Ratio
33.99%
Dividend Payout Ratio
11.34%
Pledged Shares
0
Institutional Holding
0.01%
ROCE (avg)
25.86%
ROE (avg)
10.39%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
53
Industry P/E
38
Price to Book Value
5.22
EV to EBIT
38.57
EV to EBITDA
23.31
EV to Capital Employed
4.49
EV to Sales
3.78
PEG Ratio
1.30
Dividend Yield
0.21%
ROCE (Latest)
11.63%
ROE (Latest)
9.85%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bearish
RSI
No Signal
Bearish
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend16What is working for the Company
PBT LESS OI(Q)
At Rs 2.81 cr has Grown at 126.61%
PAT(Q)
At Rs 3.63 cr has Grown at 129.9%
CASH AND CASH EQUIVALENTS(HY)
Highest at Rs 51.31 cr
NET SALES(Q)
Highest at Rs 66.54 cr
-17What is not working for the Company
INTEREST(Latest six months)
At Rs 3.01 cr has Grown at 176.15%
OPERATING PROFIT TO INTEREST(Q)
Lowest at 6.08 times
DEBT-EQUITY RATIO(HY)
Highest at 0.54 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 4.14 times
NON-OPERATING INCOME(Q)
is 42.30 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for Permanent Magnet
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 2.81 cr has Grown at 126.61%
Year on Year (YoY)MOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 3.63 cr has Grown at 129.9%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Net Sales - Quarterly
At Rs 66.54 cr has Grown at 46.95%
Year on Year (YoY)MOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Net Sales - Quarterly
Highest at Rs 66.54 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Cash and Cash Equivalents - Half Yearly
Highest at Rs 51.31 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Here's what is not working for Permanent Magnet
Interest - Latest six months
At Rs 3.01 cr has Grown at 176.15%
over previous Half yearly periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Operating Profit to Interest - Quarterly
Lowest at 6.08 times and Fallen
each quarter in the last five quartersMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Non Operating Income - Quarterly
is 42.30 % 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
Debt-Equity Ratio - Half Yearly
Highest at 0.54 times
in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Debtors Turnover Ratio- Half Yearly
Lowest at 4.14 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
Non Operating Income - Quarterly
Highest at Rs 2.06 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
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