SMT Engineering 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

SMT Engineering

Veritas (India)

Polo Queen Ind.

Oswal Agro Mills

S T C

Kothari Products

Yamuna Syndicate

Riddhi Siddhi Gl

Arisinfra Solu.

Balgopal Commer.

Shiv Aum Steels Ltd

Why is SMT Engineering Ltd ?

Poor Management Efficiency with a low ROCE of 2.40%

The company has been able to generate a Return on Capital Employed (avg) of 2.40% signifying low profitability per unit of total capital (equity and debt)

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 1.39

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 1.39
The company has been able to generate a Return on Equity (avg) of 7.25% signifying low profitability per unit of shareholders funds

Healthy long term growth as Net Sales has grown by an annual rate of 200.71% and Operating profit at 103.44%

The company has declared Positive results for the last 4 consecutive quarters

PAT(Latest six months) Higher at Rs 8.67 cr
DEBTORS TURNOVER RATIO(HY) Highest at 2.77 times
NET SALES(Q) At Rs 26.88 cr has Grown at 32.2% (vs previous 4Q average)

With ROCE of 12, it has a Very Expensive valuation with a 4.8 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 3633.05%, its profits have risen by 402.3% ; the PEG ratio of the company is 0.3

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to SMT Engineering 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 SMT Engineering for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

SMT Engineering

3633.05%

164.17

22.13%

Sensex

8.52%

0.74

11.46%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

155.43%

EBIT Growth (5y)

86.89%

EBIT to Interest (avg)

0.78

Debt to EBITDA (avg)

0.33

Net Debt to Equity (avg)

0.84

Sales to Capital Employed (avg)

0.20

Tax Ratio

28.14%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

-6.56%

ROE (avg)

7.25%

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

8.01

EV to EBIT

29.40

EV to EBITDA

28.49

EV to Capital Employed

4.81

EV to Sales

5.85

PEG Ratio

0.26

Dividend Yield

ROCE (Latest)

12.01%

ROE (Latest)

15.19%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

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

24What is working for the Company

PAT(Latest six months)

Higher at Rs 8.67 cr

DEBTORS TURNOVER RATIO(HY)

Highest at 2.77 times

NET SALES(Q)

At Rs 26.88 cr has Grown at 32.2% (vs previous 4Q average

-6What is not working for the Company

PAT(Q)

At Rs 2.32 cr has Fallen at -14.6% (vs previous 4Q average

DEBT-EQUITY RATIO(HY)

Highest at 0.95 times

INTEREST(Q)

Highest at Rs 1.60 cr

Loading Valuation Snapshot...

Here's what is working for SMT Engineering

Net Sales - Quarterly

At Rs 26.88 cr has Grown at 32.2% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 20.34 Cr

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Debtors Turnover Ratio- Half Yearly

Highest at 2.77 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 SMT Engineering

Interest - Quarterly

At Rs 1.60 cr has Grown at 159,999,900.00%

Quarter on Quarter (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Profit After Tax (PAT) - Quarterly

At Rs 2.32 cr has Fallen at -14.6% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 2.72 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Interest - Quarterly

Highest at Rs 1.60 cr

in the last five quarters and Increased by 159,999,900.00 % (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Debt-Equity Ratio - Half Yearly

Highest at 0.95 times

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