Why is HOV Services Ltd ?
1
Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 8.90%
- Poor long term growth as Net Sales has grown by an annual rate of 14.27% over the last 5 years
- Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 1.20
2
Stock is technically in a Bearish range
- The technical trend has deteriorated from Mildly Bearish on 31-Jan-25 and has generated -27.8% returns since then
- Multiple factors for the stock are Bearish like MACD, Bollinger Band and KST
3
Below par performance in long term as well as near term
- Along with generating -35.77% 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 IT - Software )
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is HOV Services for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
HOV Services
-35.77%
-0.67
53.49%
SENSEX
0.45%
0.03
14.48%
Quality key factors
Factor
Value
Sales Growth (5y)
14.27%
EBIT Growth (5y)
25.63%
EBIT to Interest (avg)
1.20
Debt to EBITDA (avg)
0.80
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
0.39
Tax Ratio
21.23%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
7.47%
ROE (avg)
8.90%
Valuation Key Factors 
Factor
Value
P/E Ratio
15
Industry P/E
26
Price to Book Value
2.44
EV to EBIT
20.77
EV to EBITDA
15.34
EV to Capital Employed
2.70
EV to Sales
2.52
PEG Ratio
0.35
Dividend Yield
NA
ROCE (Latest)
12.46%
ROE (Latest)
12.91%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
No Trend
No Trend
Technical Movement
16What is working for the Company
NET SALES(Q)
At Rs 5.80 cr has Grown at 108.1 %
PAT(Q)
Highest at Rs 1.32 cr.
EPS(Q)
Highest at Rs 1.05
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Loading Valuation Snapshot...
Here's what is working for HOV Services
Net Sales - Quarterly
At Rs 5.80 cr has Grown at 108.1 %
over average Net Sales of the previous four quarters of Rs 2.79 CrMOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Net Sales - Quarterly
Highest at Rs 5.80 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 1.32 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 1.05
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)