Pradeep Metals Ltd (PRADPME) 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

Menon Bearings

Automotive Stamp

Pradeep Metals

Munjal Auto Inds

Z F Steering

Alicon Cast.

Enkei Wheels

Sterling Tools

IST

The Hi-Tech Gear

GKW

Why is Pradeep Metals Ltd ?

Positive results in Mar 26

DEBT-EQUITY RATIO(HY) Lowest at 0.46 times
CASH AND CASH EQUIVALENTS(HY) Highest at Rs 6.59 cr
NET SALES(Q) Highest at Rs 90.96 cr

With ROCE of 18.9, it has a Fair valuation with a 4.2 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 94.04%, its profits have risen by 11.7% ; the PEG ratio of the company is 2.5

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

Consistent Returns over the last 3 years

Along with generating 94.04% returns in the last 1 year, the stock has outperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Pradeep Metals should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

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

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

Is Pradeep Metals for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Pradeep Metals

94.04%

1.72

54.65%

Sensex

-5.6%

-0.42

13.26%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.72%

EBIT Growth (5y)

21.82%

EBIT to Interest (avg)

5.26

Debt to EBITDA (avg)

1.74

Net Debt to Equity (avg)

0.42

Sales to Capital Employed (avg)

1.49

Tax Ratio

23.37%

Dividend Payout Ratio

15.89%

Pledged Shares

Institutional Holding

0.08%

ROCE (avg)

18.92%

ROE (avg)

22.81%

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

5.47

EV to EBIT

21.98

EV to EBITDA

17.91

EV to Capital Employed

4.16

EV to Sales

2.86

PEG Ratio

2.54

Dividend Yield

0.48%

ROCE (Latest)

18.92%

ROE (Latest)

18.47%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

OBV

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

17What is working for the Company

DEBT-EQUITY RATIO(HY)

Lowest at 0.46 times

PAT(Q)

At Rs 10.32 cr has Grown at 45.6%

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 6.59 cr

NET SALES(Q)

Highest at Rs 90.96 cr

PBDIT(Q)

Highest at Rs 16.74 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 18.40%

PBT LESS OI(Q)

Highest at Rs 12.30 cr.

EPS(Q)

Highest at Rs 5.98

-3What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.58 times

INTEREST(Q)

Highest at Rs 2.05 cr

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Here's what is working for Pradeep Metals

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 12.30 cr has Grown at 44.03%

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 10.32 cr has Grown at 45.6%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Debt-Equity Ratio - Half Yearly

Lowest at 0.46 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Net Sales - Quarterly

Highest at Rs 90.96 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 16.74 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 18.40%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 12.30 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 10.32 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 5.98

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 6.59 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 Pradeep Metals

Interest - Quarterly

Highest at Rs 2.05 cr

in the last five quarters and Increased by 16.48 % (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Debtors Turnover Ratio- Half Yearly

Lowest at 3.58 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio