Veljan Denison 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

Remsons Ind.

Veljan Denison

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Why is Veljan Denison Ltd ?

Company has a low Debt to Equity ratio (avg) at 0 times

Poor long term growth as Net Sales has grown by an annual rate of 13.24% over the last 5 years

Flat results in Sep 25

INVENTORY TURNOVER RATIO(HY) Lowest at 2.02 times
DPS(Y) Lowest at Rs 8.50
DPR(Y) Lowest at 17.02%

With ROE of 11.2, it has a Expensive valuation with a 2.3 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -27.83%, its profits have risen by 18.3% ; the PEG ratio of the company is 1.1

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

Below par performance in long term as well as near term

Along with generating -27.83% 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 Veljan Denison should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

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

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

Is Veljan Denison for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Veljan Denison

-27.28%

-0.63

43.90%

Sensex

4.86%

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)

13.24%

EBIT Growth (5y)

23.90%

EBIT to Interest (avg)

26.99

Debt to EBITDA (avg)

0.27

Net Debt to Equity (avg)

-0.16

Sales to Capital Employed (avg)

0.60

Tax Ratio

26.74%

Dividend Payout Ratio

16.13%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

14.44%

ROE (avg)

10.03%

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

2.27

EV to EBIT

14.82

EV to EBITDA

12.49

EV to Capital Employed

2.52

EV to Sales

3.09

PEG Ratio

1.11

Dividend Yield

0.71%

ROCE (Latest)

17.03%

ROE (Latest)

11.16%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bullish

Bollinger Bands

Sideways

Mildly Bearish

Moving Averages

Bullish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

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

6What is working for the Company

OPERATING CF(Y)

Highest at Rs 19.39 Cr

PAT(Latest six months)

At Rs 13.98 cr has Grown at 25.49%

ROCE(HY)

Highest at 14.97%

-4What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.02 times

DPS(Y)

Lowest at Rs 8.50

DPR(Y)

Lowest at 17.02%

Loading Valuation Snapshot...

Here's what is working for Veljan Denison

Profit After Tax (PAT) - Latest six months

At Rs 13.98 cr has Grown at 25.49%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Operating Cash Flow - Annually

Highest at Rs 19.39 Cr

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (Rs Cr)

Here's what is not working for Veljan Denison

Inventory Turnover Ratio- Half Yearly

Lowest at 2.02 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Dividend per Share (DPS) - Annually

Lowest at Rs 8.50

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (Rs)

Dividend Payout Ratio (DPR) - Annually

Lowest at 17.02%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)