Shalimar Wires Industries 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

Kamadgiri Fash.

Betex India

Shalimar Wires

Sanrhea Tech.

Fiberweb (India)

Pion. Embroider.

Kiaasa Retail

Shanti Spintex

Veekayem Fash.

Jakharia Fabric

Harikanta Overse

Why is Shalimar Wires Industries Ltd ?

High Debt company with Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of 9.77% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) of 2.47 times
The company has been able to generate a Return on Equity (avg) of 4.95% signifying low profitability per unit of shareholders funds

45.03% of Promoter Shares are Pledged

In falling markets, high promoter pledged shares puts additional downward pressure on the stock prices

Underperformed the market in the last 1 year

Even though the market (BSE500) generated negative returns of -1.78% in the last 1 year, its fall in the stock was much higher with a return of -19.28%

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 Shalimar Wires for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shalimar Wires

-19.28%

-0.36

52.87%

Sensex

-8.46%

-0.64

13.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.77%

EBIT Growth (5y)

57.35%

EBIT to Interest (avg)

0.72

Debt to EBITDA (avg)

5.78

Net Debt to Equity (avg)

1.90

Sales to Capital Employed (avg)

1.00

Tax Ratio

Dividend Payout Ratio

Pledged Shares

45.03%

Institutional Holding

27.60%

ROCE (avg)

7.12%

ROE (avg)

4.95%

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

1.78

EV to EBIT

8.18

EV to EBITDA

5.13

EV to Capital Employed

1.27

EV to Sales

1.12

PEG Ratio

0.03

Dividend Yield

ROCE (Latest)

15.52%

ROE (Latest)

17.82%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Sideways

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

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

26What is working for the Company

ROCE(HY)

Highest at 16.22%

DEBT-EQUITY RATIO(HY)

Lowest at 2.12 times

NET SALES(Q)

Highest at Rs 38.33 cr

PBDIT(Q)

Highest at Rs 8.04 cr.

PBT LESS OI(Q)

Highest at Rs 3.35 cr.

PAT(Q)

Highest at Rs 4.20 cr.

EPS(Q)

Highest at Rs 0.54

-1What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.48 times

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Here's what is working for Shalimar Wires

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 3.35 cr has Grown at 955.1% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 0.32 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 4.20 cr has Grown at 317.9% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 1.01 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Debt-Equity Ratio - Half Yearly

Lowest at 2.12 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Net Sales - Quarterly

Highest at Rs 38.33 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 8.04 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 3.35 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 4.20 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 0.54

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 Shalimar Wires

Debtors Turnover Ratio- Half Yearly

Lowest at 4.48 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio