Sanathan Textiles Ltd (SANATHAN) 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

Sangam India

Kewal Kir.Cloth.

PDS

Ganesha Ecosphe.

Gokaldas Exports

Lux Industries

City Pulse Multi

Indo Count Inds.

Siyaram Silk

Sanathan Textile

Kitex Garments

Why is Sanathan Textiles Ltd ?

Weak Long Term Fundamental Strength with a -5.10% CAGR growth in Net Sales over the last 5 years

Low ability to service debt as the company has a high Debt to EBITDA ratio of 5.03 times
The company has been able to generate a Return on Equity (avg) of 7.48% signifying low profitability per unit of shareholders funds

The company has declared negative results for the last 2 consecutive quarters

INTEREST(Latest six months) At Rs 54.31 cr has Grown at 666.01%
PAT(Latest six months) At Rs 15.35 cr has Grown at -77.00%
OPERATING PROFIT TO INTEREST (Q) Lowest at 1.60 times

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 Sanathan Textile for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Sanathan Textile

5.3%

0.14

36.65%

Sensex

-5.47%

-0.43

12.65%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-5.10%

EBIT Growth (5y)

0.68%

EBIT to Interest (avg)

6.99

Debt to EBITDA (avg)

0.85

Net Debt to Equity (avg)

0.71

Sales to Capital Employed (avg)

1.58

Tax Ratio

29.40%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

13.50%

ROCE (avg)

11.47%

ROE (avg)

7.48%

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

1.66

EV to EBIT

23.58

EV to EBITDA

16.97

EV to Capital Employed

1.39

EV to Sales

1.30

PEG Ratio

Dividend Yield

ROCE (Latest)

6.53%

ROE (Latest)

7.48%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

5What is working for the Company

NET SALES(Latest six months)

At Rs 1,896.66 cr has Grown at 27.70%

-31What is not working for the Company

INTEREST(Latest six months)

At Rs 54.31 cr has Grown at 666.01%

PAT(Latest six months)

At Rs 15.35 cr has Grown at -77.00%

OPERATING PROFIT TO INTEREST (Q)

Lowest at 1.60 times

DEBT-EQUITY RATIO(HY)

Highest at 0.78 times

PBDIT(Q)

Lowest at Rs 57.21 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 5.30%

PBT LESS OI(Q)

Lowest at Rs -9.33 cr.

EPS(Q)

Lowest at Rs -0.57

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Here's what is working for Sanathan Textile

Net Sales - Quarterly

At Rs 1,078.67 cr has Grown at 42.0% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 759.66 Cr

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Net Sales - Quarterly

Highest at Rs 1,078.67 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 Sanathan Textile

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs -9.33 cr has Fallen at -121.3% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 43.84 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs -4.77 cr has Fallen at -113.8% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 34.59 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Interest - Quarterly

At Rs 35.83 cr has Grown at 93.89%

Quarter on Quarter (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Operating Profit to Interest - Quarterly

Lowest at 1.60 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest - Quarterly

Highest at Rs 35.83 cr

in the last five quarters and Increased by 93.89 % (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 57.21 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 5.30%

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 -9.33 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 -0.57

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 0.78 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