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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Talbros Engg.

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Munjal Showa

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Z F Steering

Hind.Composites

PPAP Automotive

Jay Ushin

Veljan Denison

Kinetic Engg.

CLN Energy

Why is Veljan Denison Ltd ?

Poor long term growth as Net Sales has grown by an annual rate of 10.21% and Operating profit at 16.97% over the last 5 years

Negative results in Dec 25

PAT(Q) At Rs 5.06 cr has Fallen at -23.8% (vs previous 4Q average)
INVENTORY TURNOVER RATIO(HY) Lowest at 2.02 times
PBT LESS OI(Q) At Rs 6.67 cr has Fallen at -19.9% (vs previous 4Q average)

Below par performance in long term as well as near term

Along with generating -15.13% 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 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 Veljan Denison for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Veljan Denison

-15.13%

-0.38

40.26%

Sensex

-5.47%

-0.43

12.65%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.21%

EBIT Growth (5y)

16.97%

EBIT to Interest (avg)

28.50

Debt to EBITDA (avg)

0.27

Net Debt to Equity (avg)

-0.16

Sales to Capital Employed (avg)

0.60

Tax Ratio

27.74%

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

1.57

EV to EBIT

10.37

EV to EBITDA

8.64

EV to Capital Employed

1.68

EV to Sales

2.10

PEG Ratio

2.07

Dividend Yield

1.02%

ROCE (Latest)

17.03%

ROE (Latest)

11.16%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

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

ROCE(HY)

Highest at 14.97%

-12What is not working for the Company

PAT(Q)

At Rs 5.06 cr has Fallen at -23.8% (vs previous 4Q average

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.02 times

PBT LESS OI(Q)

At Rs 6.67 cr has Fallen at -19.9% (vs previous 4Q average

NET SALES(Q)

Lowest at Rs 36.92 cr

PBDIT(Q)

Lowest at Rs 8.44 cr.

EPS(Q)

Lowest at Rs 11.24

Loading Valuation Snapshot...

Here's what is not working for Veljan Denison

Profit After Tax (PAT) - Quarterly

At Rs 5.06 cr has Fallen at -23.8% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 6.64 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 6.67 cr has Fallen at -19.9% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 8.32 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

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

Net Sales - Quarterly

Lowest at Rs 36.92 cr

in the last five quarters

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Net Sales - Quarterly

At Rs 36.92 cr has Fallen at -9.2% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 40.68 Cr

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 8.44 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 6.67 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs 11.24

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)