Eternal Ltd

Market Cap: Large Cap
Industry: IT - Software
ISIN: INE758T01015
NSEID: ETERNAL
BSEID: 543320

INR

217.70

6.2 (2.93%)

BSENSE

Apr 11, 12:53 PM

BSE+NSE Vol: 1.69 cr

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Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

HCL Technologies

Wipro

Persistent Sys

TCS

Infosys

LTI Mindtree

Tech Mahindra

Info Edg.(India)

Oracle Fin.Serv.

Eternal Ltd

Swiggy

Why is Eternal Ltd ?

Low ability to service debt as the company has a high Debt to EBITDA ratio of -1.00 times

Low ability to service debt as the company has a high Debt to EBITDA ratio of -1.00 times
The company has reported losses. Due to this company has reported negative ROCE

Flat results in Dec 24

PAT(Q) At Rs 59.00 cr has Fallen at -68.2 %
CASH AND CASH EQUIVALENTS(HY) Lowest at Rs 506.00 cr
DEBTORS TURNOVER RATIO(HY) Lowest at 11.53 times

Stock is technically in a Mildly Bearish range

The stocks MACD and KST technical factors are also Bearish

Risky - Negative Operating Profits

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 10.21%, its profits have risen by 5534.4% ; the PEG ratio of the company is 0.1

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 IT - Software)

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

Is Eternal Ltd for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Eternal Ltd

10.62%

0.24

41.89%

SENSEX

0.45%

0.04

14.48%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

69.77%

EBIT Growth (5y)

25.18%

EBIT to Interest (avg)

-45.97

Debt to EBITDA (avg)

2.25

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

0.39

Tax Ratio

12.88%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

67.92%

ROCE (avg)

-8.53%

ROE (avg)

1.16%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

308

Industry P/E

Price to Book Value

9.57

EV to EBIT

-3128.97

EV to EBITDA

312.42

EV to Capital Employed

9.87

EV to Sales

11.32

PEG Ratio

0.06

Dividend Yield

ROCE (Latest)

-0.28%

ROE (Latest)

3.48%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

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

17What is working for the Company

NET SALES(9M)

At Rs 14,410.00 cr has Grown at 68.50 %

PAT(9M)

Higher at Rs 488.00 Cr

-13What is not working for the Company

PAT(Q)

At Rs 59.00 cr has Fallen at -68.2 %

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 506.00 cr

DEBTORS TURNOVER RATIO(HY)

Lowest at 11.53 times

PBT LESS OI(Q)

Lowest at Rs -128.00 cr.

NON-OPERATING INCOME(Q)

is 203.23 % of Profit Before Tax (PBT

EPS(Q)

Lowest at Rs 0.07

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Here's what is working for Eternal Ltd

Net Sales - Quarterly

Highest at Rs 5,405.00 cr and Grown

each quarter in the last five quarters

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Net Sales - Quarterly

At Rs 5,405.00 cr has Grown at 36.4 %

over average Net Sales of the previous four quarters of Rs 3,963.75 Cr

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Here's what is not working for Eternal Ltd

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs -128.00 cr has Fallen at -241.3 %

over average PBT of the previous four quarters of Rs -37.50 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 59.00 cr has Fallen at -68.2 %

over average PAT of the previous four quarters of Rs 185.50 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs -128.00 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Non Operating Income - Quarterly

is 203.23 % 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 0.07

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 506.00 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio- Half Yearly

Lowest at 11.53 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio

Non Operating Income - Quarterly

Highest at Rs 252.00 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income