Vaswani Industries Ltd (VASWANI) 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

Manaksia Steels

Scan Steels

KIC Metaliks

Vraj Iron

Jainam Ferro

Nagpur Power

Indsil Hydro

Vaswani Industri

Bihar Sponge

Shyam Century

Neetu Yoshi

Why is Vaswani Industries Ltd ?

Weak Long Term Fundamental Strength with a 16.90% CAGR growth in Operating Profits over the last 5 years

Low ability to service debt as the company has a high Debt to EBITDA ratio of 6.90 times
The company has been able to generate a Return on Equity (avg) of 5.52% signifying low profitability per unit of shareholders funds

Flat results in Mar 26

INTEREST(Latest six months) At Rs 10.99 cr has Grown at 67.02%
DEBT-EQUITY RATIO(HY) Highest at 1.85 times
CASH AND CASH EQUIVALENTS(HY) Lowest at Rs 16.24 cr

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 Ferrous Metals)

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

Is Vaswani Industri for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Vaswani Industri

21.95%

0.39

55.77%

Sensex

-6.2%

-0.47

13.26%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.26%

EBIT Growth (5y)

16.90%

EBIT to Interest (avg)

2.14

Debt to EBITDA (avg)

3.92

Net Debt to Equity (avg)

1.74

Sales to Capital Employed (avg)

1.98

Tax Ratio

69.74%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

10.32%

ROE (avg)

5.52%

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

1.18

EV to EBIT

14.24

EV to EBITDA

10.92

EV to Capital Employed

1.07

EV to Sales

0.94

PEG Ratio

Dividend Yield

ROCE (Latest)

7.49%

ROE (Latest)

2.82%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

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

13What is working for the Company

PBT LESS OI(Q)

At Rs 9.71 cr has Grown at 352.2% (vs previous 4Q average

PAT(Q)

At Rs 5.39 cr has Grown at 598.3% (vs previous 4Q average

NET SALES(Q)

Highest at Rs 143.89 cr

PBDIT(Q)

Highest at Rs 20.70 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 14.39%

-13What is not working for the Company

INTEREST(Latest six months)

At Rs 10.99 cr has Grown at 67.02%

DEBT-EQUITY RATIO(HY)

Highest at 1.85 times

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 16.24 cr

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Here's what is working for Vaswani Industri

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 9.71 cr has Grown at 352.2% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 2.15 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 5.39 cr has Grown at 598.3% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 0.77 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Net Sales - Quarterly

Highest at Rs 143.89 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Net Sales - Quarterly

At Rs 143.89 cr has Grown at 31.1% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 109.72 Cr

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 20.70 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 14.39%

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 9.71 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Here's what is not working for Vaswani Industri

Interest - Quarterly

At Rs 6.79 cr has Grown at 61.67%

Quarter on Quarter (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Debt-Equity Ratio - Half Yearly

Highest at 1.85 times and Grown

each half year 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

Interest - Quarterly

Highest at Rs 6.79 cr

in the last five quarters and Increased by 61.67 % (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 16.24 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents