Zuari Industries Ltd (ZUARIIND) 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

Dwarikesh Sugar

Ugar Sugar Works

DCM Shriram Inds

Dhampur Sugar

Dhampur Bio

Avadh Sugar

M.V.K. Agro

Uttam Sug.Mills

Zuari Industries

Magadh Sugar

Davangere Sugar

Why is Zuari Industries Ltd ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 0.29%

Poor long term growth as Net Sales has grown by an annual rate of 4.62% and Operating profit at 10.38% over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 36.76 times

Flat results in Mar 26

PBT LESS OI(Q) At Rs -39.43 cr has Fallen at -642.6% (vs previous 4Q average)
PAT(Q) At Rs -34.82 cr has Fallen at -206.1% (vs previous 4Q average)
CASH AND CASH EQUIVALENTS(HY) Lowest at Rs 407.75 cr

Underperformed the market in the last 1 year

Even though the market (BSE500) generated negative returns of -5.03% in the last 1 year, its fall in the stock was much higher with a return of -15.21%

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 Sugar)

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

Is Zuari Industries for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Zuari Industries

-15.21%

-0.30

50.69%

Sensex

-10.21%

-0.78

13.06%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.62%

EBIT Growth (5y)

10.38%

EBIT to Interest (avg)

0.06

Debt to EBITDA (avg)

46.93

Net Debt to Equity (avg)

0.59

Sales to Capital Employed (avg)

0.15

Tax Ratio

13.46%

Dividend Payout Ratio

0.42%

Pledged Shares

Institutional Holding

2.41%

ROCE (avg)

0.29%

ROE (avg)

3.21%

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

0.20

EV to EBIT

70.87

EV to EBITDA

40.64

EV to Capital Employed

0.50

EV to Sales

2.75

PEG Ratio

0.02

Dividend Yield

0.41%

ROCE (Latest)

0.70%

ROE (Latest)

3.23%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

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

12What is working for the Company

ROCE(HY)

Highest at 6.02%

OPERATING PROFIT TO INTEREST(Q)

Highest at 0.68 times

PAT(9M)

Higher at Rs 117.09 Cr

NET SALES(Q)

Highest at Rs 283.56 cr

PBDIT(Q)

Highest at Rs 42.34 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 14.93%

-9What is not working for the Company

PBT LESS OI(Q)

At Rs -39.43 cr has Fallen at -642.6% (vs previous 4Q average

PAT(Q)

At Rs -34.82 cr has Fallen at -206.1% (vs previous 4Q average

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 407.75 cr

DEBT-EQUITY RATIO(HY)

Highest at 0.72 times

EPS(Q)

Lowest at Rs -10.41

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Here's what is working for Zuari Industries

Operating Profit to Interest - Quarterly

Highest at 0.68 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales - Quarterly

Highest at Rs 283.56 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 42.34 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 14.93%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Here's what is not working for Zuari Industries

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs -39.43 cr has Fallen at -642.6% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 7.27 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs -34.82 cr has Fallen at -206.1% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 32.81 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs -10.41

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 407.75 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 0.72 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