Sarla Performance Fibers Ltd (SARLAPOLY) 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

RSWM Ltd

GHCL Textiles

VTM

United Polyfab

Ruby Mills

Voith Paper

Iris Clothings

Sarla Performanc

Rajapalayam Mill

Virat Industries

Swaraj Suiting

Why is Sarla Performance Fibers Ltd ?

Poor long term growth as Operating profit has grown by an annual rate -15.30% of over the last 5 years

Negative results in Mar 26

DEBT-EQUITY RATIO(HY) Highest at 0.38 times
DEBTORS TURNOVER RATIO(HY) Lowest at 3.50 times
PBDIT(Q) Lowest at Rs 2.13 cr.

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

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 2.95% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -16.44% returns

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 Sarla Performanc for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sarla Performanc

-16.44%

-0.38

43.34%

Sensex

-3.48%

-0.26

13.38%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.25%

EBIT Growth (5y)

-15.30%

EBIT to Interest (avg)

6.26

Debt to EBITDA (avg)

2.39

Net Debt to Equity (avg)

0.22

Sales to Capital Employed (avg)

0.69

Tax Ratio

13.55%

Dividend Payout Ratio

40.17%

Pledged Shares

Institutional Holding

1.68%

ROCE (avg)

7.69%

ROE (avg)

9.94%

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

1.45

EV to EBIT

64.50

EV to EBITDA

22.28

EV to Capital Employed

1.37

EV to Sales

2.14

PEG Ratio

4.44

Dividend Yield

3.35%

ROCE (Latest)

2.13%

ROE (Latest)

12.43%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

OBV

No Trend

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

-7What is not working for the Company

DEBT-EQUITY RATIO(HY)

Highest at 0.38 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.50 times

PBDIT(Q)

Lowest at Rs 2.13 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 2.08%

PBT LESS OI(Q)

Lowest at Rs -5.80 cr.

NON-OPERATING INCOME(Q)

is 206.03 % of Profit Before Tax (PBT

EPS(Q)

Lowest at Rs -7.14

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Here's what is not working for Sarla Performanc

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 2.13 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 2.08%

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 -5.80 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 206.03 % 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 -7.14

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 0.38 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 3.50 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio