Permanent Magnet

Market Cap: Micro Cap
Industry: Engineering
ISIN: INE418E01018
NSEID: PERMAGNET
BSEID: 504132

INR

714.00

5.1 (0.72%)

BSENSE

Apr 11, 12:51 PM

BSE+NSE Vol: 327

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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

Shraddha Prime

Josts Engg. Co.

Tube Investments

Triveni Turbine

Gensol Engineer.

AIA Engineering

Ircon Intl.

Rail Vikas

Permanent Magnet

Ganesh Infra.

Megatherm

Why is Permanent Magnets Ltd ?

Poor long term growth as Operating profit has grown by an annual rate -0.45% of over the last 5 years

Negative results in Dec 24

PAT(Q) At Rs 2.04 cr has Fallen at -46.9%
ROCE(HY) Lowest at 16.90%
INTEREST(Q) At Rs 1.03 cr has Grown at 102,999,900.00%

Stock is technically in a Bearish range

The technical trend has deteriorated from Mildly Bearish on 12-Feb-25 and has generated -16.12% returns since then
Multiple factors for the stock are Bearish like MACD, Bollinger Band and KST

With ROE of 11.8, it has a Expensive valuation with a 4.3 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -42.67%, its profits have fallen by -39.6%

Despite the size of the company, domestic mutual funds hold only 0% of the company

Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business

Underperformed the market in the last 1 year

Even though the market (BSE 500) generated negative returns of -0.94% in the last 1 year, its fall in the stock was much higher with a return of -42.67%

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 Engineering)

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

Is Permanent Magnet for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Permanent Magnet

-42.67%

-1.00

42.57%

SENSEX

0.45%

0.03

14.48%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.86%

EBIT Growth (5y)

-0.45%

EBIT to Interest (avg)

19.74

Debt to EBITDA (avg)

0.27

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

1.60

Tax Ratio

28.93%

Dividend Payout Ratio

6.81%

Pledged Shares

Institutional Holding

0.52%

ROCE (avg)

34.97%

ROE (avg)

22.87%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.34

EV to EBIT

28.79

EV to EBITDA

20.45

EV to Capital Employed

4.79

EV to Sales

2.85

PEG Ratio

Dividend Yield

0.25%

ROCE (Latest)

17.72%

ROE (Latest)

11.84%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

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

1What is working for the Company

NO KEY POSITIVE TRIGGERS

-16What is not working for the Company

PAT(Q)

At Rs 2.04 cr has Fallen at -46.9%

ROCE(HY)

Lowest at 16.90%

INTEREST(Q)

At Rs 1.03 cr has Grown at 102,999,900.00%

DEBT-EQUITY RATIO(HY)

Highest at 0.17 times

NET SALES(Q)

Lowest at Rs 49.35 cr

PBDIT(Q)

Lowest at Rs 6.29 cr.

PBT LESS OI(Q)

Lowest at Rs 2.09 cr.

NON-OPERATING INCOME(Q)

is 33.65 % of Profit Before Tax (PBT

EPS(Q)

Lowest at Rs 2.37

Loading Valuation Snapshot...

Here's what is not working for Permanent Magnet

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 2.09 cr has Fallen at -48.40%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 2.04 cr has Fallen at -46.9%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Interest - Quarterly

At Rs 1.03 cr has Grown at 102,999,900.00%

Quarter on Quarter (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Net Sales - Quarterly

Lowest at Rs 49.35 cr

in the last five quarters

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 6.29 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 2.09 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 33.65 % 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 2.37

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Debt-Equity Ratio - Half Yearly

Highest at 0.17 times

in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio