Punjab Communications Ltd (PUNJCOMMU) 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

Birla Cable

Kore Digital

Umiya Buildcon

Telogica

Punjab Commun.

Aksh Optifibre

T N Telecom.

Uniinfo Telecom

Kavveri Defence

Marushika Tech.

Frog Innovations

Why is Punjab Communications 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 5.46% and Operating profit at 10.31% over the last 5 years
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -12.76

Risky - Negative EBITDA

The company has recorded a negative EBITDA of Rs. -7.24 cr
Over the past year, while the stock has generated a return of -22.96%, its profits have risen by 385.6% ; the PEG ratio of the company is 0.1
The stock is trading risky as compared to its average historical valuations

Underperformed the market in the last 1 year

Even though the market (BSE500) generated negative returns of -1.52% in the last 1 year, its fall in the stock was much higher with a return of -22.96%

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 Telecom - Equipment & Accessories)

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

Is Punjab Commun. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Punjab Commun.

-22.96%

-0.49

47.10%

Sensex

-7.92%

-0.61

13.09%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.46%

EBIT Growth (5y)

10.31%

EBIT to Interest (avg)

-12.76

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-1.93

Sales to Capital Employed (avg)

0.60

Tax Ratio

Dividend Payout Ratio

Pledged Shares

Institutional Holding

4.80%

ROCE (avg)

50.73%

ROE (avg)

1.95%

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

1.96

EV to EBIT

-0.11

EV to EBITDA

-0.12

EV to Capital Employed

-0.03

EV to Sales

0.03

PEG Ratio

0.05

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

9.75%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

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

16What is working for the Company

PAT(9M)

At Rs 2.62 cr has Grown at 773.33%

NET SALES(9M)

At Rs 20.18 cr has Grown at 44.04%

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 58.89 cr

DEBTORS TURNOVER RATIO(HY)

Highest at 2.02 times

-4What is not working for the Company

PAT(Q)

At Rs 0.30 cr has Fallen at -70.6% (vs previous 4Q average

NON-OPERATING INCOME(Q)

is 893.33 % of Profit Before Tax (PBT

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Here's what is working for Punjab Commun.

Net Sales - Latest six months

At Rs 12.01 cr has Grown at 41.79%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 58.89 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio- Half Yearly

Highest at 2.02 times

in the last five half yearly periods

MOJO Watch

Company has been able to settle its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Punjab Commun.

Profit After Tax (PAT) - Quarterly

At Rs 0.30 cr has Fallen at -70.6% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 1.02 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Non Operating Income - Quarterly

is 893.33 % 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