Ratnaveer Precision Engineering Ltd (RATNAVEER) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Mangalam World.

Uni Abex Alloy

Ratnaveer Precis

Gandhi Spl. Tube

Aeroflex Enter.

Kamdhenu

Azad India

Steel Exchange

BMW Industries

Beekay Steel Ind.

Scoda Tubes

Why is Ratnaveer Precision Engineering Ltd ?

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.06 times

Healthy long term growth as Net Sales has grown by an annual rate of 39.51%

The company has declared Positive results for the last 6 consecutive quarters

NET SALES(Q) At Rs 285.87 cr has Grown at 20.1% (vs previous 4Q average)
PBDIT(Q) Highest at Rs 28.30 cr.
PBT LESS OI(Q) Highest at Rs 18.06 cr.

With ROCE of 12.3, it has a Attractive valuation with a 1.7 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 -32.09%, its profits have risen by 32.1% ; the PEG ratio of the company is 0.8

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

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 2.12% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -32.09% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Ratnaveer Precis should be less than 10%
Overall Portfolio exposure to Iron & Steel Products should be less than 30%

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

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

Is Ratnaveer Precis for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Ratnaveer Precis

-32.09%

-0.70

46.03%

Sensex

4.83%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

39.51%

EBIT Growth (5y)

22.58%

EBIT to Interest (avg)

4.70

Debt to EBITDA (avg)

3.15

Net Debt to Equity (avg)

0.34

Sales to Capital Employed (avg)

1.47

Tax Ratio

16.90%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

1.42%

ROCE (avg)

13.31%

ROE (avg)

11.88%

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

2.00

EV to EBIT

14.23

EV to EBITDA

10.70

EV to Capital Employed

1.75

EV to Sales

0.98

PEG Ratio

0.78

Dividend Yield

ROCE (Latest)

12.30%

ROE (Latest)

12.40%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

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

14What is working for the Company

NET SALES(Q)

At Rs 285.87 cr has Grown at 20.1% (vs previous 4Q average

PBDIT(Q)

Highest at Rs 28.30 cr.

PBT LESS OI(Q)

Highest at Rs 18.06 cr.

PAT(Q)

Highest at Rs 15.43 cr.

EPS(Q)

Highest at Rs 2.90

-1What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.86 times

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Here's what is working for Ratnaveer Precis

Net Sales - Quarterly

Highest at Rs 285.87 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Net Sales - Quarterly

At Rs 285.87 cr has Grown at 20.1% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 238.07 Cr

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 28.30 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 18.06 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 15.43 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 2.90

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 Ratnaveer Precis

Debtors Turnover Ratio- Half Yearly

Lowest at 0.86 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio