Signet Industries Ltd (SIGIND) 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

Amrapali Inds.

Rama Vision

Maximus Interna.

Northern Spirits

Signet Industrie

Sicagen India

Sakuma Exports

Parshva Enterpr.

Vikas Lifecare

Polo Queen Ind.

Chemkart India

Why is Signet 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 9.80% and Operating profit at 10.05% over the last 5 years
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 1.37
The company has been able to generate a Return on Equity (avg) of 6.41% signifying low profitability per unit of shareholders funds

Positive results in Jun 26

OPERATING PROFIT TO INTEREST(Q) Highest at 1.87 times
PAT(Q) At Rs 8.05 cr has Grown at 66.6% (vs previous 4Q average)
PBDIT(Q) Highest at Rs 27.97 cr.

With ROCE of 12.8, it has a 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 30.59%, its profits have risen by 23.8% ; the PEG ratio of the company is 0.4

Majority shareholders : Promoters

Market Beating performance in long term as well as near term

Along with generating 30.59% 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 hold?

Overall Portfolio exposure to Signet Industrie should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Trading & Distributors)

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

Is Signet Industrie for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Signet Industrie

30.59%

0.59

51.72%

Sensex

-9.29%

-0.69

13.52%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.80%

EBIT Growth (5y)

10.05%

EBIT to Interest (avg)

1.37

Debt to EBITDA (avg)

4.40

Net Debt to Equity (avg)

1.79

Sales to Capital Employed (avg)

1.94

Tax Ratio

30.46%

Dividend Payout Ratio

9.41%

Pledged Shares

Institutional Holding

ROCE (avg)

12.74%

ROE (avg)

6.41%

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

0.87

EV to EBIT

7.17

EV to EBITDA

6.53

EV to Capital Employed

0.95

EV to Sales

0.47

PEG Ratio

0.38

Dividend Yield

0.68%

ROCE (Latest)

12.85%

ROE (Latest)

9.51%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bearish

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

14What is working for the Company

OPERATING PROFIT TO INTEREST(Q)

Highest at 1.87 times

PAT(Q)

At Rs 8.05 cr has Grown at 66.6% (vs previous 4Q average

PBDIT(Q)

Highest at Rs 27.97 cr.

PBT LESS OI(Q)

Highest at Rs 10.52 cr.

EPS(Q)

Highest at Rs 2.73

-6What is not working for the Company

ROCE(HY)

Lowest at 12.88%

DEBT-EQUITY RATIO(HY)

Highest at 1.86 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.62 times

NET SALES(Q)

At Rs 306.03 cr has Fallen at -9.1% (vs previous 4Q average

Loading Valuation Snapshot...

Here's what is working for Signet Industrie

Operating Profit to Interest - Quarterly

Highest at 1.87 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Profit After Tax (PAT) - Quarterly

At Rs 8.05 cr has Grown at 66.6% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 4.83 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 27.97 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 10.52 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 8.05 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 2.73

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 Signet Industrie

Debt-Equity Ratio - Half Yearly

Highest at 1.86 times and Grown

each half year 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

Net Sales - Quarterly

At Rs 306.03 cr has Fallen at -9.1% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 336.70 Cr

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Debtors Turnover Ratio- Half Yearly

Lowest at 2.62 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio