Why is Deco-Mica Ltd ?
1
Weak Long Term Fundamental Strength with a 19.23% 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 3.61 times
- The company has been able to generate a Return on Equity (avg) of 8.04% signifying low profitability per unit of shareholders funds
2
Flat results in Dec 24
- DEBTORS TURNOVER RATIO(HY) Lowest at 2.21 times
3
Stock is technically in a Bearish range
- The technical trend has deteriorated from Mildly Bearish on 17-Feb-25 and has generated -16.63% returns since then
- Multiple factors for the stock are Bearish like MACD, Bollinger Band and KST
4
Below par performance in long term as well as near term
- Along with generating -15.30% returns in the last 1 year, the stock has also underperformed BSE 500 in the last 3 years, 1 year and 3 months
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 Wood & Wood Products)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Deco-Mica for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Deco-Mica
-16.01%
-0.19
79.09%
SENSEX
0.45%
0.03
14.48%
Quality key factors
Factor
Value
Sales Growth (5y)
12.43%
EBIT Growth (5y)
19.23%
EBIT to Interest (avg)
1.98
Debt to EBITDA (avg)
3.83
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
1.58
Tax Ratio
33.65%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0.65%
ROCE (avg)
9.64%
ROE (avg)
8.04%
Valuation Key Factors 
Factor
Value
P/E Ratio
9
Industry P/E
42
Price to Book Value
1.03
EV to EBIT
8.04
EV to EBITDA
6.33
EV to Capital Employed
1.02
EV to Sales
0.56
PEG Ratio
0.15
Dividend Yield
NA
ROCE (Latest)
11.38%
ROE (Latest)
10.89%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
No Trend
Technical Movement
0What is working for the Company
NO KEY POSITIVE TRIGGERS
-2What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 2.21 times
Loading Valuation Snapshot...
Here's what is not working for Deco-Mica
Debtors Turnover Ratio- Half Yearly
Lowest at 2.21 times and Fallen
each half year in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio