Smruthi Organics 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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Smruthi Organic

Sotac Pharma.

Lactose (India)

Quest Laborato.

Genesis IBRC

Auro Labs.

Coral Labs.

Transchem

Kimia Bioscien.

Krebs Biochem

Astonea Labs

Why is Smruthi Organics Ltd ?

Company has a low Debt to Equity ratio (avg) at 0.10 times

Poor long term growth as Net Sales has grown by an annual rate of -1.13% and Operating profit at -12.59% over the last 5 years

PAT(Q) At Rs 2.06 cr has Grown at 143.1% (vs previous 4Q average)
ROCE(HY) Highest at 10.57%
DEBTORS TURNOVER RATIO(HY) Highest at 6.11 times

With ROCE of 10.5, it has a Attractive valuation with a 1.9 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 -6.15%, its profits have risen by 558% ; the PEG ratio of the company is 0.1

Majority shareholders : Promoters

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -6.15% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Smruthi Organic should be less than 10%
Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%

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

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

Is Smruthi Organic for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Smruthi Organic

-6.15%

-0.12

52.16%

Sensex

4.83%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.13%

EBIT Growth (5y)

-12.59%

EBIT to Interest (avg)

8.14

Debt to EBITDA (avg)

0.84

Net Debt to Equity (avg)

0.11

Sales to Capital Employed (avg)

1.72

Tax Ratio

25.95%

Dividend Payout Ratio

48.19%

Pledged Shares

Institutional Holding

ROCE (avg)

15.98%

ROE (avg)

9.85%

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

2.05

EV to EBIT

18.49

EV to EBITDA

10.88

EV to Capital Employed

1.94

EV to Sales

1.28

PEG Ratio

0.05

Dividend Yield

1.18%

ROCE (Latest)

10.49%

ROE (Latest)

6.60%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

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

18What is working for the Company

PAT(Q)

At Rs 2.06 cr has Grown at 143.1% (vs previous 4Q average

ROCE(HY)

Highest at 10.57%

DEBTORS TURNOVER RATIO(HY)

Highest at 6.11 times

PBDIT(Q)

Highest at Rs 5.01 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 15.85%

PBT LESS OI(Q)

Highest at Rs 2.84 cr.

-1What is not working for the Company

DPS(Y)

Lowest at Rs 1.50

Loading Valuation Snapshot...

Here's what is working for Smruthi Organic

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 2.84 cr has Grown at 157.0% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 1.11 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 2.06 cr has Grown at 143.1% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 0.85 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 5.01 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 15.85%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 2.84 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Debtors Turnover Ratio- Half Yearly

Highest at 6.11 times

in the last five half yearly periods

MOJO Watch

Company has been able to settle its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Smruthi Organic

Dividend per Share (DPS) - Annually

Lowest at Rs 1.50

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (Rs)