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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

AVI Polymers

India Gelatine

Narmada Gelatine

Indian Toners

Aarti Surfactant

HP Adhesives

Dai-ichi Karkari

Multibase India

Diamines & Chem.

Vikas Ecotech

Bhatia Colour

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 Net Sales of -22.71%, the company declared Very Negative results in Dec 25

The company has declared negative results for the last 2 consecutive quarters
NET SALES(Q) At Rs 68.72 cr has Fallen at -22.7% (vs previous 4Q average)
PAT(Q) At Rs -1.66 cr has Fallen at -184.4% (vs previous 4Q average)
ROCE(HY) Lowest at 2.51%

With ROE of 2, it has a Very Expensive valuation with a 0.5 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 -50.41%, its profits have fallen by 0%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -50.41% 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

-50.41%

-1.35

37.32%

Sensex

-3.52%

-0.27

12.93%

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)

1.57

Debt to EBITDA (avg)

2.16

Net Debt to Equity (avg)

0.09

Sales to Capital Employed (avg)

0.72

Tax Ratio

26.63%

Dividend Payout Ratio

14.07%

Pledged Shares

0.04%

Institutional Holding

0.00%

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

0.53

EV to EBIT

32.80

EV to EBITDA

18.93

EV to Capital Employed

0.57

EV to Sales

0.73

PEG Ratio

Dividend Yield

ROCE (Latest)

1.50%

ROE (Latest)

1.98%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-23What is not working for the Company

NET SALES(Q)

At Rs 68.72 cr has Fallen at -22.7% (vs previous 4Q average

PAT(Q)

At Rs -1.66 cr has Fallen at -184.4% (vs previous 4Q average

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

INTEREST(Q)

Highest at Rs 1.55 cr

NON-OPERATING INCOME(Q)

is 127.89 % of Profit Before Tax (PBT

EPS(Q)

Lowest at Rs -0.01

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Here's what is not working for Vikas Ecotech

Net Sales - Quarterly

At Rs 68.72 cr has Fallen at -22.7% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 88.91 Cr

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs -1.66 cr has Fallen at -184.4% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 1.97 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Interest - Quarterly

At Rs 1.55 cr has Grown at 35.96%

Quarter on Quarter (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Interest - Quarterly

Highest at Rs 1.55 cr

in the last five quarters and Increased by 35.96 % (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Non Operating Income - Quarterly

is 127.89 % 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 -0.01

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 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