The Hi-Tech Gears Ltd (HITECHGEAR) 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

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The Hi-Tech Gear

Why is The Hi-Tech Gears Ltd ?

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 7.28%

Poor long term growth as Net Sales has grown by an annual rate of 6.39% and Operating profit at 13.75% over the last 5 years

With a fall in Net Sales of -7.15%, the company declared Very Negative results in Dec 25

PBT LESS OI(Q) At Rs 0.06 cr has Fallen at -99.2% (vs previous 4Q average)
PAT(Q) At Rs 0.86 cr has Fallen at -88.0% (vs previous 4Q average)
ROCE(HY) Lowest at 9.24%

Despite the size of the company, domestic mutual funds hold only 0% of the company

Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is The Hi-Tech Gear for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

The Hi-Tech Gear

-10.74%

-0.24

45.29%

Sensex

-7.06%

-0.53

13.21%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.39%

EBIT Growth (5y)

13.75%

EBIT to Interest (avg)

2.38

Debt to EBITDA (avg)

3.17

Net Debt to Equity (avg)

0.30

Sales to Capital Employed (avg)

1.31

Tax Ratio

44.21%

Dividend Payout Ratio

23.28%

Pledged Shares

Institutional Holding

0.02%

ROCE (avg)

8.72%

ROE (avg)

7.28%

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

2.04

EV to EBIT

27.91

EV to EBITDA

10.69

EV to Capital Employed

1.80

EV to Sales

1.30

PEG Ratio

Dividend Yield

0.92%

ROCE (Latest)

7.46%

ROE (Latest)

5.73%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

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

2What is working for the Company

DEBT-EQUITY RATIO(HY)

Lowest at 0.36 times

-22What is not working for the Company

PBT LESS OI(Q)

At Rs 0.06 cr has Fallen at -99.2% (vs previous 4Q average

PAT(Q)

At Rs 0.86 cr has Fallen at -88.0% (vs previous 4Q average

ROCE(HY)

Lowest at 9.24%

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 30.40 cr

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.04 times

PBDIT(Q)

Lowest at Rs 21.92 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 9.81%

NON-OPERATING INCOME(Q)

is 98.08 % of Profit Before Tax (PBT

EPS(Q)

Lowest at Rs 0.46

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Here's what is working for The Hi-Tech Gear

Debt-Equity Ratio - Half Yearly

Lowest at 0.36 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

Here's what is not working for The Hi-Tech Gear

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 0.06 cr has Fallen at -99.2% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 7.95 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 0.86 cr has Fallen at -88.0% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 7.15 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 21.92 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at 9.81%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 0.06 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Non Operating Income - Quarterly

is 98.08 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT

Earnings per Share (EPS) - Quarterly

Lowest at Rs 0.46

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 30.40 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio- Half Yearly

Lowest at 5.04 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio