Why is IL&FS Engineering & Construction Co Ltd ?
1
With a Negative Book Value, the company has a Weak Long Term Fundamental Strength
- Poor long term growth as Net Sales has grown by an annual rate of -12.00% and Operating profit at 0% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at 0 times
2
Stock is technically in a Mildly Bearish range
- The technical trend has deteriorated from Mildly Bullish on 01-Apr-25 and has generated -4% returns since then
- Multiple factors for the stock are Bearish like MACD, Bollinger Band and KST
3
Risky - Negative EBITDA
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of -2.69%, its profits have fallen by -8.7%
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 Capital Goods)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is IL&FS Engg. for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
IL&FS Engg.
3.4%
-0.06
46.34%
SENSEX
0.45%
0.03
14.48%
Quality key factors
Factor
Value
Sales Growth (5y)
-12.00%
EBIT Growth (5y)
-10.88%
EBIT to Interest (avg)
0
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
0
Tax Ratio
Tax Ratio is Negative%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
1.15%
ROCE (avg)
37.84%
ROE (avg)
0
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
33
Price to Book Value
-0.15
EV to EBIT
-19.77
EV to EBITDA
-20.71
EV to Capital Employed
-3.34
EV to Sales
9.35
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
Negative Capital Employed
ROE (Latest)
Negative BV
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Movement
10What is working for the Company
PAT(Q)
At Rs 1.49 cr has Grown at 104.4%
NET SALES(9M)
At Rs 219.32 cr has Grown at 26.13%
DEBTORS TURNOVER RATIO(HY)
Highest at 8.53 times
PBDIT(Q)
Highest at Rs -4.28 cr.
PBT LESS OI(Q)
Highest at Rs -6.15 cr.
-2What is not working for the Company
CASH AND CASH EQUIVALENTS(HY)
Lowest at Rs 323.50 cr
NON-OPERATING INCOME(Q)
is 510.00 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for IL&FS Engg.
Profit After Tax (PAT) - Quarterly
At Rs 1.49 cr has Grown at 104.4%
over average PAT of the previous four quarters of Rs -33.96 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Net Sales - Nine Monthly
At Rs 219.32 cr has Grown at 26.13%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs -4.28 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs -6.15 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 1.49 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Debtors Turnover Ratio- Half Yearly
Highest at 8.53 times
in the last five half yearly periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio
Here's what is not working for IL&FS Engg.
Non Operating Income - Quarterly
is 510.00 % 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
Cash and Cash Equivalents - Half Yearly
Lowest at Rs 323.50 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents