Why is Signpost India Ltd ?
1
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 2.15 times
2
Poor long term growth as Net Sales has grown by an annual rate of 8.39% and Operating profit at 5.03% over the last 5 years
- NET SALES(Q) Highest at Rs 142.34 cr
- PBDIT(Q) Highest at Rs 37.87 cr.
- OPERATING PROFIT TO NET SALES(Q) Highest at 26.61%
3
With ROCE of 14.5, it has a Expensive valuation with a 4.4 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 40.33%, its profits have fallen by -1.4%
4
Reducing Promoter Confidence
- Promoters have decreased their stake in the company by -7.36% over the previous quarter and currently hold 60.38% of the company
- Promoters decreasing their stake may signify reduced confidence in the future of the business
5
Market Beating Performance
- The stock has generated a return of 40.33% in the last 1 year, much higher than market (BSE500) returns of 4.81%
How much should you hold?
- Overall Portfolio exposure to Signpost India should be less than 10%
- Overall Portfolio exposure to Media & Entertainment should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Media & Entertainment)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Signpost India for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Signpost India
40.33%
0.82
49.26%
Sensex
-3.33%
-0.25
13.43%
Quality key factors
Factor
Value
Sales Growth (5y)
8.39%
EBIT Growth (5y)
5.03%
EBIT to Interest (avg)
6.53
Debt to EBITDA (avg)
1.73
Net Debt to Equity (avg)
0.57
Sales to Capital Employed (avg)
1.19
Tax Ratio
27.20%
Dividend Payout Ratio
6.06%
Pledged Shares
0
Institutional Holding
0.12%
ROCE (avg)
21.72%
ROE (avg)
20.09%
Valuation Key Factors 
Factor
Value
P/E Ratio
32
Industry P/E
35
Price to Book Value
6.29
EV to EBIT
22.63
EV to EBITDA
14.78
EV to Capital Employed
4.37
EV to Sales
3.28
PEG Ratio
NA
Dividend Yield
0.17%
ROCE (Latest)
14.46%
ROE (Latest)
15.00%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Bullish
Bullish
Technical Movement
21What is working for the Company
NET SALES(Q)
Highest at Rs 142.34 cr
PBDIT(Q)
Highest at Rs 37.87 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 26.61%
PBT LESS OI(Q)
Highest at Rs 23.82 cr.
PAT(Q)
Highest at Rs 18.13 cr.
EPS(Q)
Highest at Rs 3.39
-10What is not working for the Company
ROCE(HY)
Lowest at 13.54%
DEBT-EQUITY RATIO(HY)
Highest at 0.83 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 2.04 times
INTEREST(Q)
Highest at Rs 3.58 cr
Loading Valuation Snapshot...
Here's what is working for Signpost India
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 23.82 cr has Grown at 106.9% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 11.52 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 18.13 cr has Grown at 92.7% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 9.41 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Net Sales - Quarterly
Highest at Rs 142.34 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 37.87 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 26.61%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 23.82 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 18.13 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 3.39
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for Signpost India
Interest - Quarterly
Highest at Rs 3.58 cr
in the last five quarters and Increased by 10.84 % (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Debt-Equity Ratio - Half Yearly
Highest at 0.83 times
in the last five half yearly periodsMOJO 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 2.04 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio






