S H Kelkar & Company Ltd (SHK) 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

Bhansali Engg.

Nitta Gelatin

Titan Biotech

DDev Plastiks

Platinum Industr

NOCIL

Excel Industries

Vidhi Specialty

Camlin Fine

S H Kelkar & Co.

Indokem

Why is S H Kelkar & Company Ltd ?

Weak Long Term Fundamental Strength with a -6.83% CAGR growth in Operating Profits over the last 5 years

Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.26 times
The company has been able to generate a Return on Equity (avg) of 9.04% signifying low profitability per unit of shareholders funds

With a fall in Operating Profit of -5.91%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 3 consecutive quarters
PAT(Q) At Rs 1.85 cr has Fallen at -91.5% (vs previous 4Q average)
ROCE(HY) Lowest at 5.52%
CASH AND CASH EQUIVALENTS(HY) Lowest at Rs 64.93 cr

Underperformed the market in the last 1 year

Even though the market (BSE500) generated negative returns of -0.26% in the last 1 year, its fall in the stock was much higher with a return of -43.83%

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 Specialty Chemicals)

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

Is S H Kelkar & Co. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

S H Kelkar & Co.

-43.83%

-0.97

45.37%

Sensex

-5.81%

-0.44

13.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.37%

EBIT Growth (5y)

-6.83%

EBIT to Interest (avg)

5.26

Debt to EBITDA (avg)

2.89

Net Debt to Equity (avg)

0.71

Sales to Capital Employed (avg)

0.99

Tax Ratio

38.48%

Dividend Payout Ratio

8.48%

Pledged Shares

8.30%

Institutional Holding

12.60%

ROCE (avg)

9.64%

ROE (avg)

9.04%

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

1.30

EV to EBIT

22.37

EV to EBITDA

11.33

EV to Capital Employed

1.18

EV to Sales

1.16

PEG Ratio

Dividend Yield

1.56%

ROCE (Latest)

5.26%

ROE (Latest)

3.32%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

Mildly 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

2What is working for the Company

NET SALES(Q)

Highest at Rs 649.94 cr

-22What is not working for the Company

PAT(Q)

At Rs 1.85 cr has Fallen at -91.5% (vs previous 4Q average

ROCE(HY)

Lowest at 5.52%

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 64.93 cr

DEBT-EQUITY RATIO(HY)

Highest at 0.76 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.71 times

INTEREST(Q)

Highest at Rs 15.03 cr

PBT LESS OI(Q)

Lowest at Rs 7.32 cr.

NON-OPERATING INCOME(Q)

is 49.86 % of Profit Before Tax (PBT

EPS(Q)

Lowest at Rs 0.13

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Here's what is working for S H Kelkar & Co.

Net Sales - Quarterly

Highest at Rs 649.94 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Here's what is not working for S H Kelkar & Co.

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 7.32 cr has Fallen at -69.4% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 23.92 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 1.85 cr has Fallen at -91.5% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 21.64 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Interest - Quarterly

Highest at Rs 15.03 cr

in the last five quarters and Increased by 11.33 % (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 7.32 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 49.86 % 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 0.13

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 64.93 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio - Half Yearly

Highest at 0.76 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

Debtors Turnover Ratio- Half Yearly

Lowest at 3.71 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 7.28 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income