Why is Acknit Industries Ltd ?
1
Weak Long Term Fundamental Strength with a 13.08% 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 2.69 times
2
Flat results in Dec 24
- OPERATING PROFIT TO NET SALES(Q) Lowest at 6.68%
- PBDIT(Q) Lowest at Rs 3.69 cr.
- PBT LESS OI(Q) Lowest at Rs 2.23 cr.
3
Stock is technically in a Bearish range
- The technical trend has deteriorated from Mildly Bearish on 09-Apr-25
- Multiple factors for the stock are Bearish like MACD, Bollinger Band and KST
4
Underperformed the market in the last 1 year
- Even though the market (BSE 500) generated negative returns of -1.05% in the last 1 year, its fall in the stock was much higher with a return of -13.73%
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 Textile )
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Acknit Indus. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Acknit Indus.
-13.73%
-0.24
56.12%
SENSEX
0.45%
0.03
14.48%
Quality key factors
Factor
Value
Sales Growth (5y)
6.59%
EBIT Growth (5y)
13.08%
EBIT to Interest (avg)
4.60
Debt to EBITDA (avg)
3.60
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
1.88
Tax Ratio
26.00%
Dividend Payout Ratio
5.33%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
10.34%
ROE (avg)
11.43%
Valuation Key Factors 
Factor
Value
P/E Ratio
8
Industry P/E
18
Price to Book Value
0.83
EV to EBIT
7.65
EV to EBITDA
6.23
EV to Capital Employed
0.89
EV to Sales
0.46
PEG Ratio
0.51
Dividend Yield
0.67%
ROCE (Latest)
11.81%
ROE (Latest)
10.80%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
No Trend
Technical Movement
0What is working for the Company
NO KEY POSITIVE TRIGGERS
-5What is not working for the Company
OPERATING PROFIT TO NET SALES(Q)
Lowest at 6.68%
PBDIT(Q)
Lowest at Rs 3.69 cr.
PBT LESS OI(Q)
Lowest at Rs 2.23 cr.
EPS(Q)
Lowest at Rs 5.82
Loading Valuation Snapshot...
Here's what is not working for Acknit Indus.
Operating Profit Margin - Quarterly
Lowest at 6.68% and Fallen
each quarter in the last five quartersMOJO Watch
Company's efficiency has deteriorated
Operating Profit to Sales
Operating Profit (PBDIT) - Quarterly
Lowest at Rs 3.69 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Lowest at Rs 2.23 cr.
in the last five quartersMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
Earnings per Share (EPS) - Quarterly
Lowest at Rs 5.82
in the last five quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)