R&B Denims Ltd (RNBDENIMS) 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

VIP Clothing

Maral Overseas

Super Sales Ind.

Atvo Enterprises

Brand Concepts

R&B Denims

Axita Cotton

RRIL

Rudra Ecovation

Logica Infoway

Shree Karni

Why is R&B Denims Ltd ?

Poor long term growth as Operating profit has grown by an annual rate 3.71% of over the last 5 years

Negative results in Mar 26

PAT(Latest six months) At Rs 9.41 cr has Grown at -46.87%
PBT LESS OI(Q) At Rs -1.83 cr has Fallen at -124.02%
ROCE(HY) Lowest at 14.59%

Below par performance in long term as well as near term

Along with generating -66.79% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months

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 Garments & Apparels)

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

Is R&B Denims for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

R&B Denims

-66.79%

-1.22

54.76%

Sensex

-10.52%

-0.81

13.06%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

20.66%

EBIT Growth (5y)

3.71%

EBIT to Interest (avg)

4.53

Debt to EBITDA (avg)

1.73

Net Debt to Equity (avg)

0.22

Sales to Capital Employed (avg)

1.80

Tax Ratio

24.25%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

2.25%

ROCE (avg)

17.57%

ROE (avg)

18.04%

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

1.37

EV to EBIT

14.05

EV to EBITDA

7.89

EV to Capital Employed

1.31

EV to Sales

0.68

PEG Ratio

Dividend Yield

ROCE (Latest)

9.29%

ROE (Latest)

12.38%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

9What is working for the Company

NET SALES(Latest six months)

At Rs 250.68 cr has Grown at 28.52%

DEBT-EQUITY RATIO(HY)

Lowest at 0.37 times

-22What is not working for the Company

PAT(Latest six months)

At Rs 9.41 cr has Grown at -46.87%

PBT LESS OI(Q)

At Rs -1.83 cr has Fallen at -124.02%

ROCE(HY)

Lowest at 14.59%

OPERATING PROFIT TO INTEREST (Q)

Lowest at 3.58 times

OPERATING PROFIT TO NET SALES(Q)

Lowest at 4.40%

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 2.48 cr

PBDIT(Q)

Lowest at Rs 6.05 cr.

NON-OPERATING INCOME(Q)

is 241.86 % of Profit Before Tax (PBT

EPS(Q)

Lowest at Rs 0.04

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Here's what is working for R&B Denims

Net Sales - Quarterly

Highest at Rs 137.65 cr and Grown

each quarter in the last five quarters

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Net Sales - Quarterly

At Rs 137.65 cr has Grown at 37.94%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Debt-Equity Ratio - Half Yearly

Lowest at 0.37 times

in the last five half yearly periods

MOJO Watch

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

Debt-Equity Ratio

Here's what is not working for R&B Denims

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs -1.83 cr has Fallen at -124.02%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 1.12 cr has Fallen at -85.3%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Operating Profit to Interest - Quarterly

Lowest at 3.58 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit Margin - Quarterly

Lowest at 4.40% and Fallen

each quarter in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 6.05 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs -1.83 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Non Operating Income - Quarterly

is 241.86 % 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

Earnings per Share (EPS) - Quarterly

Lowest at Rs 0.04

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 2.48 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents