Ruby Mills Ltd (RUBYMILLS) 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

Century Enka

Sunrakshakk Inds

GHCL Textiles

AYM Syntex

Nahar Spinning

Rupa & Co

Faze Three

Ruby Mills

Sai Silks

Pashupati Cotsp.

Raj Rayon Inds.

Why is Ruby Mills Ltd ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 5.33%

Poor long term growth as Operating profit has grown by an annual rate 11.91% of over the last 5 years

Flat results in Jun 26

PAT(9M) At Rs 32.35 cr has Grown at -24.36%
DEBTORS TURNOVER RATIO(HY) Lowest at 8.30 times
PBT LESS OI(Q) Lowest at Rs 2.75 cr.

With ROCE of 5.1, it has a Expensive valuation with a 1.6 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 55.51%, its profits have fallen by -4.9%

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

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 Ruby Mills for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Ruby Mills

55.51%

1.02

54.52%

Sensex

-3.21%

-0.24

13.52%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

21.96%

EBIT Growth (5y)

11.91%

EBIT to Interest (avg)

7.04

Debt to EBITDA (avg)

6.96

Net Debt to Equity (avg)

0.47

Sales to Capital Employed (avg)

0.25

Tax Ratio

18.28%

Dividend Payout Ratio

13.83%

Pledged Shares

Institutional Holding

0.12%

ROCE (avg)

4.71%

ROE (avg)

6.61%

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

1.85

EV to EBIT

28.30

EV to EBITDA

17.39

EV to Capital Employed

1.58

EV to Sales

4.11

PEG Ratio

Dividend Yield

0.47%

ROCE (Latest)

5.14%

ROE (Latest)

6.43%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

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

6What is working for the Company

NET SALES(Latest six months)

At Rs 214.86 cr has Grown at 42.17%

-8What is not working for the Company

PAT(9M)

At Rs 32.35 cr has Grown at -24.36%

DEBTORS TURNOVER RATIO(HY)

Lowest at 8.30 times

PBT LESS OI(Q)

Lowest at Rs 2.75 cr.

NON-OPERATING INCOME(Q)

is 83.15 % of Profit Before Tax (PBT

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Here's what is working for Ruby Mills

Net Sales - Latest six months

At Rs 214.86 cr has Grown at 42.17%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Here's what is not working for Ruby Mills

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 2.75 cr has Fallen at -69.0% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 8.87 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Nine Monthly

At Rs 32.35 cr has Grown at -24.36%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is negative

PAT (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 2.75 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 83.15 % 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

Debtors Turnover Ratio- Half Yearly

Lowest at 8.30 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio

Non Operating Income - Quarterly

Highest at Rs 13.57 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income