Ravindra Energy Ltd (RELTD) 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

Redington

SMT Engineering

Vintage Coffee

Elitecon Inter.

Arisinfra Solu.

MSTC

MMTC

BN Agrochem

Yamuna Syndicate

Ravindra Energy

TCC Concept

Why is Ravindra Energy Ltd ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 5.43%

Poor long term growth as Net Sales has grown by an annual rate of 12.31% over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.83 times
OPERATING PROFIT TO INTEREST(Q) Lowest at 2.87 times
PAT(Q) At Rs 12.62 cr has Fallen at -47.1% (vs previous 4Q average)
DEBT-EQUITY RATIO(HY) Highest at 1.19 times

With ROCE of 12.4, it has a Very Expensive valuation with a 3.4 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 31.79%, its profits have risen by 175.9% ; the PEG ratio of the company is 0.2

Reducing Promoter Confidence

Promoters have decreased their stake in the company by -1.11% over the previous quarter and currently hold 63.66% of the company
Promoters decreasing their stake may signify reduced confidence in the future of the business

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 Trading & Distributors)

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

Is Ravindra Energy for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Ravindra Energy

31.69%

0.62

50.81%

Sensex

-3.33%

-0.25

13.43%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.31%

EBIT Growth (5y)

75.48%

EBIT to Interest (avg)

1.30

Debt to EBITDA (avg)

5.19

Net Debt to Equity (avg)

0.97

Sales to Capital Employed (avg)

1.02

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

12.75%

Institutional Holding

4.79%

ROCE (avg)

4.10%

ROE (avg)

12.95%

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

5.71

EV to EBIT

27.40

EV to EBITDA

21.54

EV to Capital Employed

3.39

EV to Sales

5.20

PEG Ratio

0.17

Dividend Yield

ROCE (Latest)

12.36%

ROE (Latest)

19.09%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Bullish

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

13What is working for the Company

NET SALES(Latest six months)

At Rs 260.23 cr has Grown at 22.67%

ROCE(HY)

Highest at 13.06%

PAT(9M)

Higher at Rs 58.05 Cr

-19What is not working for the Company

OPERATING PROFIT TO INTEREST(Q)

Lowest at 2.87 times

PAT(Q)

At Rs 12.62 cr has Fallen at -47.1% (vs previous 4Q average

DEBT-EQUITY RATIO(HY)

Highest at 1.19 times

NET SALES(Q)

At Rs 133.06 cr has Fallen at -6.5% (vs previous 4Q average

INTEREST(Q)

Highest at Rs 11.74 cr

PBT LESS OI(Q)

Lowest at Rs 13.00 cr.

EPS(Q)

Lowest at Rs 0.71

Loading Valuation Snapshot...

Here's what is not working for Ravindra Energy

Operating Profit to Interest - Quarterly

Lowest at 2.87 times and Fallen

each quarter in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Profit After Tax (PAT) - Quarterly

At Rs 12.62 cr has Fallen at -47.1% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 23.83 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Net Sales - Quarterly

At Rs 133.06 cr has Fallen at -6.5% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 142.28 Cr

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Interest - Quarterly

Highest at Rs 11.74 cr

in the last five quarters and Increased by 11.49 % (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 13.00 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs 0.71

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Debt-Equity Ratio - Half Yearly

Highest at 1.19 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