Permanent Magnets Ltd (PERMAGNET) 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

Modison

GEE

Prostarm Info

Viviana Power

Australian Prem

Mangal Electrica

Permanent Magnet

Spel Semiconduct

Om Power Transmi

Parth Electrical

Prizor Viztech

Why is Permanent Magnets Ltd ?

Poor long term growth as Operating profit has grown by an annual rate -4.76% of over the last 5 years

Negative results in Jun 26

OPERATING PROFIT TO INTEREST(Q) Lowest at 4.63 times
PBT LESS OI(Q) At Rs 5.06 cr has Fallen at -31.90%
DEBT-EQUITY RATIO(HY) Highest at 0.54 times

With ROCE of 11.6, it has a Very Expensive valuation with a 3.9 Enterprise value to Capital Employed

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 -12.14%, its profits have fallen by -22.3%

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

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -12.14% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

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 Other Electrical Equipment)

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

Is Permanent Magnet for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Permanent Magnet

-12.14%

-0.28

42.84%

Sensex

-2.63%

-0.19

13.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.45%

EBIT Growth (5y)

-4.76%

EBIT to Interest (avg)

7.03

Debt to EBITDA (avg)

1.06

Net Debt to Equity (avg)

0.21

Sales to Capital Employed (avg)

1.09

Tax Ratio

37.04%

Dividend Payout Ratio

10.92%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

15.07%

ROE (avg)

10.39%

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

4.57

EV to EBIT

34.90

EV to EBITDA

20.34

EV to Capital Employed

3.95

EV to Sales

3.19

PEG Ratio

Dividend Yield

0.26%

ROCE (Latest)

11.63%

ROE (Latest)

9.85%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

Mildly Bearish

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

8What is working for the Company

DPS(Y)

Highest at Rs 2.20

NET SALES(Latest six months)

At Rs 129.77 cr has Grown at 31.31%

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 51.31 cr

PBDIT(Q)

Highest at Rs 10.97 cr.

-22What is not working for the Company

OPERATING PROFIT TO INTEREST(Q)

Lowest at 4.63 times

PBT LESS OI(Q)

At Rs 5.06 cr has Fallen at -31.90%

DEBT-EQUITY RATIO(HY)

Highest at 0.54 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.14 times

INTEREST(Q)

Highest at Rs 2.37 cr

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Here's what is working for Permanent Magnet

Net Sales - Latest six months

At Rs 129.77 cr has Grown at 31.31%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Dividend per Share (DPS) - Annually

Highest at Rs 2.20 and Grown

each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (Rs)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 10.97 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 51.31 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 Permanent Magnet

Operating Profit to Interest - Quarterly

Lowest at 4.63 times and Fallen

each quarter in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 5.06 cr has Fallen at -31.90%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Interest - Quarterly

At Rs 2.37 cr has Grown at 51.92%

Quarter on Quarter (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Interest - Quarterly

Highest at Rs 2.37 cr

in the last five quarters and Increased by 51.92 % (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Debt-Equity Ratio - Half Yearly

Highest at 0.54 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

Debtors Turnover Ratio- Half Yearly

Lowest at 4.14 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio