SAB Industries Ltd () 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

RBM Infracon

Globe Civil

Shradha Realty

SAB Industries

A2Z Infra Engg.

RPP Infra Proj.

GRE Renew

Propshare Celest

Suyog Gurbaxani

Mason Infratech

Pratham EPC

Why is SAB Industries Ltd ?

Poor Management Efficiency with a low ROCE of 0.60%

The company has been able to generate a Return on Capital Employed (avg) of 0.60% signifying low profitability per unit of total capital (equity and debt)

Low ability to service debt as the company has a high Debt to EBITDA ratio of 10.79 times

Low ability to service debt as the company has a high Debt to EBITDA ratio of 10.79 times
The company has been able to generate a Return on Equity (avg) of 5.39% signifying low profitability per unit of shareholders funds

The company has declared Negative results for the last 3 consecutive quarters

PBT LESS OI(Q) At Rs -10.41 cr has Fallen at -610.6% (vs previous 4Q average)
NET SALES(9M) At Rs 23.84 cr has Grown at -29.36%
PAT(9M) At Rs -48.55 cr has Grown at -29.36%

With ROCE of 1.1, it has a Very Expensive valuation with a 0.8 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 11.07%, its profits have risen by 90.2%

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 Construction)

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

Is SAB Industries for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

SAB Industries

11.07%

0.22

51.09%

Sensex

-3.04%

-0.22

13.54%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

89.51%

EBIT Growth (5y)

34.39%

EBIT to Interest (avg)

-0.65

Debt to EBITDA (avg)

1.35

Net Debt to Equity (avg)

0.13

Sales to Capital Employed (avg)

0.08

Tax Ratio

38.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

0.03%

ROE (avg)

5.39%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.75

EV to EBIT

70.99

EV to EBITDA

62.54

EV to Capital Employed

0.78

EV to Sales

10.05

PEG Ratio

Dividend Yield

ROCE (Latest)

1.10%

ROE (Latest)

-0.60%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

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

7What is working for the Company

NET SALES(Q)

At Rs 12.64 cr has Grown at 85.9% (vs previous 4Q average

OPERATING PROFIT TO INTEREST(Q)

Highest at 1.48 times

PBDIT(Q)

Highest at Rs 6.22 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 49.21%

-19What is not working for the Company

PBT LESS OI(Q)

At Rs -10.41 cr has Fallen at -610.6% (vs previous 4Q average

NET SALES(9M)

At Rs 23.84 cr has Grown at -29.36%

PAT(9M)

At Rs -48.55 cr has Grown at -29.36%

INTEREST(Q)

At Rs 4.19 cr has Grown at 418,999,900.00%

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 6.56 cr

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Here's what is working for SAB Industries

Net Sales - Quarterly

At Rs 12.64 cr has Grown at 85.9% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 6.80 Cr

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Operating Profit to Interest - Quarterly

Highest at 1.48 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit (PBDIT) - Quarterly

Highest at Rs 6.22 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 49.21%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Here's what is not working for SAB Industries

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs -10.41 cr has Fallen at -610.6% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs -1.47 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs -10.67 cr has Fallen at -1504.5% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs -0.67 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Interest - Quarterly

At Rs 4.19 cr has Grown at 418,999,900.00%

Quarter on Quarter (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Interest - Quarterly

Highest at Rs 4.19 cr

in the last five quarters and Increased by 418,999,900.00 % (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 6.56 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents