Popular Vehicles & Services Ltd (PVSL) 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

Atul Auto

Popular Vehicles

Landmark Cars

VST Till. Tract.

Mercury EV-Tech

Competent Auto

Jinkushal Indus.

Indo Farm Equip.

Ebix

Zelio E-Mobility

Hindustan Motors

Why is Popular Vehicles & Services Ltd ?

Weak Long Term Fundamental Strength with a -34.01% 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 7.66 times
The company has been able to generate a Return on Capital Employed (avg) of 3.27% signifying low profitability per unit of total capital (equity and debt)

Positive results in Jun 26

PAT(Q) At Rs 1.37 cr has Grown at 146.1% (vs previous 4Q average)
PBDIT(Q) Highest at Rs 57.93 cr.
NET SALES(Q) Highest at Rs 1,889.58 cr

With ROCE of 2.9, it has a Attractive valuation with a 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 -28.91%, its profits have risen by 92.9%

High Institutional Holdings at 20.13%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Underperformed the market in the last 1 year

Even though the market (BSE500) generated negative returns of -3.53% in the last 1 year, its fall in the stock was much higher with a return of -28.91%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Popular Vehicles should be less than 10%
Overall Portfolio exposure to Automobiles should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Automobiles)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Popular Vehicles for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Popular Vehicles

-28.91%

-0.66

43.58%

Sensex

-10.5%

-0.78

13.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.49%

EBIT Growth (5y)

-34.01%

EBIT to Interest (avg)

0.90

Debt to EBITDA (avg)

6.00

Net Debt to Equity (avg)

2.12

Sales to Capital Employed (avg)

3.36

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

20.13%

ROCE (avg)

5.42%

ROE (avg)

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

1.12

EV to EBIT

29.90

EV to EBITDA

9.78

EV to Capital Employed

1.04

EV to Sales

0.29

PEG Ratio

Dividend Yield

ROCE (Latest)

2.86%

ROE (Latest)

-1.89%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

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

15What is working for the Company

PAT(Q)

At Rs 1.37 cr has Grown at 146.1% (vs previous 4Q average

PBDIT(Q)

Highest at Rs 57.93 cr.

NET SALES(Q)

Highest at Rs 1,889.58 cr

OPERATING PROFIT TO NET SALES(Q)

Highest at 3.07%

EPS(Q)

Highest at Rs 0.19

-9What is not working for the Company

DEBT-EQUITY RATIO(HY)

Highest at 2.24 times

INTEREST(Q)

Highest at Rs 30.08 cr

NON-OPERATING INCOME(Q)

is 727.42 % of Profit Before Tax (PBT

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Here's what is working for Popular Vehicles

Profit After Tax (PAT) - Quarterly

At Rs 1.37 cr has Grown at 146.1% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs -2.97 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 57.93 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (Rs Cr)

Net Sales - Quarterly

Highest at Rs 1,889.58 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 3.07%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Earnings per Share (EPS) - Quarterly

Highest at Rs 0.19

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Here's what is not working for Popular Vehicles

Interest - Quarterly

Highest at Rs 30.08 cr

in the last five quarters and Increased by 10.51 % (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Non Operating Income - Quarterly

is 727.42 % 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 2.24 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

Non Operating Income - Quarterly

Highest at Rs 13.53 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income