Suryalata Spinning Mills 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

Salona Cotspin

Suryalata Spg.

Premco Global

Lambodhara Text.

Sh. Dinesh Mills

Scoobee Garments

Lovable Lingerie

KG Petrochem

Lagnam Spintex

Indian CardCloth

Surat Trade

Why is Suryalata Spinning Mills Ltd ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 8.07%

Poor long term growth as Net Sales has grown by an annual rate of 12.36% and Operating profit at 2.69% over the last 5 years

The company has declared Positive results for the last 3 consecutive quarters

PAT(9M) At Rs 19.46 cr has Grown at 113.61%
OPERATING PROFIT TO INTEREST(Q) Highest at 11.13 times
ROCE(HY) Highest at 10.59%

With ROCE of 9.2, it has a Very Attractive valuation with a 0.6 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 -0.18%, its profits have risen by 158.4% ; the PEG ratio of the company is 0

35.98% of Promoter Shares are Pledged

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

Below par performance in long term as well as near term

Along with generating -0.18% returns in the last 1 year, the stock has also underperformed 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 Suryalata Spg. should be less than 10%
Overall Portfolio exposure to Garments & Apparels should be less than 30%

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

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

Is Suryalata Spg. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Suryalata Spg.

-1.67%

-0.00

49.61%

Sensex

4.85%

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)

12.36%

EBIT Growth (5y)

2.69%

EBIT to Interest (avg)

4.14

Debt to EBITDA (avg)

1.75

Net Debt to Equity (avg)

0.17

Sales to Capital Employed (avg)

1.55

Tax Ratio

20.66%

Dividend Payout Ratio

8.69%

Pledged Shares

35.98%

Institutional Holding

0.02%

ROCE (avg)

14.69%

ROE (avg)

6.71%

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

0.50

EV to EBIT

6.20

EV to EBITDA

3.99

EV to Capital Employed

0.57

EV to Sales

0.37

PEG Ratio

0.04

Dividend Yield

0.62%

ROCE (Latest)

9.25%

ROE (Latest)

8.33%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bullish

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

18What is working for the Company

PAT(9M)

At Rs 19.46 cr has Grown at 113.61%

OPERATING PROFIT TO INTEREST(Q)

Highest at 11.13 times

ROCE(HY)

Highest at 10.59%

DEBT-EQUITY RATIO(HY)

Lowest at 0.18 times

DPR(Y)

Highest at 8.69%

DEBTORS TURNOVER RATIO(HY)

Highest at 23.32 times

-4What is not working for the Company

OPERATING CF(Y)

Lowest at Rs 29.32 Cr

DPS(Y)

Lowest at Rs 2.00

Loading Valuation Snapshot...

Here's what is working for Suryalata Spg.

Profit After Tax (PAT) - Latest six months

At Rs 11.14 cr has Grown at 200.27%

Year on Year (YoY)

MOJO Watch

PAT trend is very positive

PAT (Rs Cr)

Operating Profit to Interest - Quarterly

Highest at 11.13 times and Grown

each quarter in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Debt-Equity Ratio - Half Yearly

Lowest at 0.18 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

Debtors Turnover Ratio- Half Yearly

Highest at 23.32 times

in the last five half yearly periods

MOJO Watch

Company has been able to settle its Debtors faster

Debtors Turnover Ratio

Dividend Payout Ratio (DPR) - Annually

Highest at 8.69%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Suryalata Spg.

Operating Cash Flow - Annually

Lowest at Rs 29.32 Cr and Fallen

each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (Rs Cr)

Dividend per Share (DPS) - Annually

Lowest at Rs 2.00

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (Rs)