Vikas Ecotech Ltd (VIKASECO) 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

Vipul Organics

Indian Toners

India Gelatine

Aarti Surfactant

HP Adhesives

Chembond Materi.

Multibase India

Dynemic Products

Diamines & Chem.

Vikas Ecotech

Dhariwalcorp

Why is Vikas Ecotech Ltd ?

Weak Long Term Fundamental Strength with a -38.76% 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 3.02 times
The company has been able to generate a Return on Equity (avg) of 5.45% signifying low profitability per unit of shareholders funds

With a fall in Operating Profit of -16.75%, the company declared Very Negative results in Sep 25

PAT(9M) At Rs 8.42 cr has Grown at -45.78%
PBT LESS OI(Q) At Rs 0.17 cr has Fallen at -85.2% (vs previous 4Q average)
INTEREST(9M) At Rs 3.60 cr has Grown at 25.44%

With ROE of 2, it has a Very Expensive valuation with a 0.7 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -53.98%, its profits have fallen by 0%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -53.98% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

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 Specialty Chemicals)

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

Is Vikas Ecotech for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Vikas Ecotech

-53.69%

-1.47

36.63%

Sensex

4.66%

0.40

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-3.20%

EBIT Growth (5y)

-38.76%

EBIT to Interest (avg)

1.62

Debt to EBITDA (avg)

2.16

Net Debt to Equity (avg)

0.09

Sales to Capital Employed (avg)

0.72

Tax Ratio

14.73%

Dividend Payout Ratio

14.07%

Pledged Shares

0.04%

Institutional Holding

0.05%

ROCE (avg)

2.09%

ROE (avg)

5.45%

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

0.70

EV to EBIT

48.34

EV to EBITDA

25.40

EV to Capital Employed

0.73

EV to Sales

0.88

PEG Ratio

Dividend Yield

ROCE (Latest)

1.50%

ROE (Latest)

1.98%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

OBV

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-20What is not working for the Company

PAT(9M)

At Rs 8.42 cr has Grown at -45.78%

PBT LESS OI(Q)

At Rs 0.17 cr has Fallen at -85.2% (vs previous 4Q average

INTEREST(9M)

At Rs 3.60 cr has Grown at 25.44%

ROCE(HY)

Lowest at 2.51%

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 2.30 cr

DEBT-EQUITY RATIO(HY)

Highest at 0.06 times

NET SALES(Q)

Lowest at Rs 64.72 cr

NON-OPERATING INCOME(Q)

is 92.51 % of Profit Before Tax (PBT

Loading Valuation Snapshot...

Here's what is not working for Vikas Ecotech

Net Sales - Quarterly

At Rs 64.72 cr has Fallen at -31.9% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 95.04 Cr

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 0.17 cr has Fallen at -85.2% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 1.15 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Latest six months

At Rs 4.12 cr has Grown at -68.86%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Interest - Nine Monthly

At Rs 3.60 cr has Grown at 25.44%

over preceding nine months period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Net Sales - Quarterly

Lowest at Rs 64.72 cr

in the last five quarters

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Non Operating Income - Quarterly

is 92.51 % 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

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 2.30 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio - Half Yearly

Highest at 0.06 times

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