Shree Ajit Pulp and Paper Ltd (SAPPL) 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

Sh. Ajit Pulp

Ludlow Jute

Ruchira Papers

Genus Paper & Bo

Indian Wood Prod

Star Paper Mills

Pakka

S. V. J. Enterp.

Orient Paper

Shreyans Inds.

Exim Routes

Why is Shree Ajit Pulp and Paper Ltd ?

The company has declared Positive results for the last 5 consecutive quarters

NET SALES(Latest six months) At Rs 351.35 cr has Grown at 27.39%
PBDIT(Q) Highest at Rs 26.38 cr.
OPERATING PROFIT TO NET SALES(Q) Highest at 15.11%

With ROCE of 10.4, it has a Very Attractive valuation with a 1 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 50.57%, its profits have risen by 195.3% ; the PEG ratio of the company is 0.1

Majority shareholders : Promoters

Market Beating performance in long term as well as near term

Along with generating 50.57% returns in the last 1 year, the stock has outperformed BSE500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Sh. Ajit Pulp should be less than 10%
Overall Portfolio exposure to Paper, Forest & Jute Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Paper, Forest & Jute Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Sh. Ajit Pulp for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Sh. Ajit Pulp

50.57%

0.88

57.30%

Sensex

-8.4%

-0.65

12.97%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

23.65%

EBIT Growth (5y)

14.16%

EBIT to Interest (avg)

4.76

Debt to EBITDA (avg)

4.80

Net Debt to Equity (avg)

1.02

Sales to Capital Employed (avg)

1.16

Tax Ratio

33.49%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

11.16%

ROE (avg)

8.99%

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

0.97

EV to EBIT

8.04

EV to EBITDA

6.15

EV to Capital Employed

0.99

EV to Sales

0.77

PEG Ratio

0.05

Dividend Yield

ROCE (Latest)

10.39%

ROE (Latest)

7.20%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

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

19What is working for the Company

NET SALES(Latest six months)

At Rs 351.35 cr has Grown at 27.39%

PBDIT(Q)

Highest at Rs 26.38 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 15.11%

PAT(Q)

Highest at Rs 9.61 cr.

EPS(Q)

Highest at Rs 10.80

-9What is not working for the Company

OPERATING PROFIT TO INTEREST (Q)

Lowest at 2.26 times

INTEREST(Q)

Highest at Rs 11.67 cr

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Here's what is working for Sh. Ajit Pulp

Profit After Tax (PAT) - Quarterly

At Rs 9.61 cr has Grown at 53.9% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 6.25 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Net Sales - Latest six months

At Rs 351.35 cr has Grown at 27.39%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 26.38 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 15.11%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit After Tax (PAT) - Quarterly

Highest at Rs 9.61 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 10.80

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Here's what is not working for Sh. Ajit Pulp

Interest - Quarterly

At Rs 11.67 cr has Grown at 59.86%

Quarter on Quarter (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Operating Profit to Interest - Quarterly

Lowest at 2.26 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 11.67 cr

in the last five quarters and Increased by 59.86 % (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Non Operating Income - Quarterly

Highest at Rs 2.42 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income