Sanghi Industries Ltd (SANGHIIND) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Sh. Digvijay Cem

Mangalam Cement

Deccan Cements

Orient Cement

NCL Industries

Saurashtra Cem.

Sanghi Industrie

Sagar Cements

Heidelberg Cem.

KCP

BIGBLOC Const.

Why is Sanghi Industries Ltd ?

With HIgh Debt (Debt-Equity Ratio at 5.92 times)- the company has a Weak Long Term Fundamental Strength

Low ability to service debt as the company has a high Debt to EBITDA ratio of 33.33 times
The company has been able to generate a Return on Equity (avg) of 1.06% signifying low profitability per unit of shareholders funds

Flat results in Sep 25

OPERATING CF(Y) Lowest at Rs -248.55 Cr
PBT LESS OI(Q) At Rs -120.92 cr has Fallen at -21.9% (vs previous 4Q average)
PAT(Q) At Rs -116.55 cr has Fallen at -15.5% (vs previous 4Q average)

Risky - Negative Operating Profits

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -24.99%, its profits have fallen by -43.2%

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

Below par performance in long term as well as near term

Along with generating -24.99% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months

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 Cement & Cement Products)

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

Is Sanghi Industrie for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sanghi Industrie

-24.99%

-0.90

27.81%

Sensex

4.83%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.05%

EBIT Growth (5y)

-214.65%

EBIT to Interest (avg)

0.13

Debt to EBITDA (avg)

1.56

Net Debt to Equity (avg)

5.92

Sales to Capital Employed (avg)

0.31

Tax Ratio

9.95%

Dividend Payout Ratio

Pledged Shares

14.10%

Institutional Holding

1.05%

ROCE (avg)

-1.78%

ROE (avg)

1.06%

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

3.80

EV to EBIT

-20.48

EV to EBITDA

34.93

EV to Capital Employed

1.40

EV to Sales

3.64

PEG Ratio

Dividend Yield

ROCE (Latest)

-6.86%

ROE (Latest)

-106.01%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Sideways

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

No Trend

OBV

Mildly Bearish

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

5What is working for the Company

NET SALES(9M)

At Rs 865.56 cr has Grown at 31.27%

-8What is not working for the Company

OPERATING CF(Y)

Lowest at Rs -248.55 Cr

PBT LESS OI(Q)

At Rs -120.92 cr has Fallen at -21.9% (vs previous 4Q average

PAT(Q)

At Rs -116.55 cr has Fallen at -15.5% (vs previous 4Q average

Loading Valuation Snapshot...

Here's what is working for Sanghi Industrie

Net Sales - Latest six months

At Rs 530.31 cr has Grown at 41.61%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Here's what is not working for Sanghi Industrie

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs -120.92 cr has Fallen at -21.9% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs -99.16 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Operating Cash Flow - Annually

Lowest at Rs -248.55 Cr and Fallen

each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs -116.55 cr has Fallen at -15.5% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs -100.94 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)