SAL Automotive 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

Samkrg Pistons

Hindustan Hardy

Porwal Auto Comp

Vishal Bearings

SAL Automotive

Akar Auto Indust

Kranti Industrie

Uravi Defence &

Universal Auto.

New Swan

Auto Pins (I)

Why is SAL Automotive Ltd ?

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 1.82

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 1.82
The company has been able to generate a Return on Equity (avg) of 9.87% signifying low profitability per unit of shareholders funds

Negative results in Mar 26

CASH AND CASH EQUIVALENTS(HY) Lowest at Rs 0.09 cr
NET SALES(Q) At Rs 88.79 cr has Fallen at -7.5% (vs previous 4Q average)
PBDIT(Q) Lowest at Rs 1.94 cr.

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -28.20% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

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 Auto Components & Equipments)

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

Is SAL Automotive for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

SAL Automotive

-28.2%

-0.58

48.54%

Sensex

-10.21%

-0.78

13.06%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

32.38%

EBIT Growth (5y)

50.30%

EBIT to Interest (avg)

1.82

Debt to EBITDA (avg)

3.88

Net Debt to Equity (avg)

0.83

Sales to Capital Employed (avg)

4.41

Tax Ratio

27.67%

Dividend Payout Ratio

21.16%

Pledged Shares

Institutional Holding

4.44%

ROCE (avg)

8.41%

ROE (avg)

9.87%

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

1.97

EV to EBIT

19.45

EV to EBITDA

11.79

EV to Capital Employed

1.53

EV to Sales

0.34

PEG Ratio

Dividend Yield

1.32%

ROCE (Latest)

7.85%

ROE (Latest)

10.22%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-6What is not working for the Company

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 0.09 cr

NET SALES(Q)

At Rs 88.79 cr has Fallen at -7.5% (vs previous 4Q average

PBDIT(Q)

Lowest at Rs 1.94 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 2.18%

PBT LESS OI(Q)

Lowest at Rs -0.28 cr.

NON-OPERATING INCOME(Q)

is 119.18 % of Profit Before Tax (PBT

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Here's what is not working for SAL Automotive

Net Sales - Quarterly

At Rs 88.79 cr has Fallen at -7.5% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 95.94 Cr

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 1.94 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at 2.18%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs -0.28 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 119.18 % 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

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 0.09 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents