Why is Shree Ajit Pulp and Paper Ltd ?
1
Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.04 times
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.04 times
- The company has been able to generate a Return on Equity (avg) of 9.39% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Net Sales has grown by an annual rate of 13.61% and Operating profit at 3.24% over the last 5 years
3
Flat results in Dec 24
- DEBT-EQUITY RATIO(HY) Highest at 1.08 times
- INTEREST(Q) Highest at Rs 5.80 cr
4
Stock is technically in a Mildly Bearish range
- The stocks MACD and KST technical factors are also Bearish
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -11.86% returns in the last 1 year, the stock has also underperformed BSE 500 in each of the last 3 annual periods
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 Paper & Paper Products)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Sh. Ajit Pulp for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Sh. Ajit Pulp
-10.21%
-0.25
46.94%
SENSEX
0.45%
0.02
14.48%
Quality key factors
Factor
Value
Sales Growth (5y)
13.61%
EBIT Growth (5y)
3.24%
EBIT to Interest (avg)
6.44
Debt to EBITDA (avg)
4.00
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
1.21
Tax Ratio
19.57%
Dividend Payout Ratio
2.59%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
12.57%
ROE (avg)
9.39%
Valuation Key Factors 
Factor
Value
P/E Ratio
22
Industry P/E
9
Price to Book Value
0.74
EV to EBIT
18.43
EV to EBITDA
11.31
EV to Capital Employed
0.88
EV to Sales
0.96
PEG Ratio
0.80
Dividend Yield
NA
ROCE (Latest)
3.73%
ROE (Latest)
3.31%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
No Trend
Technical Movement
12What is working for the Company
NET SALES(Q)
Highest at Rs 120.75 cr
PBDIT(Q)
Highest at Rs 12.56 cr.
-9What is not working for the Company
DEBT-EQUITY RATIO(HY)
Highest at 1.08 times
INTEREST(Q)
Highest at Rs 5.80 cr
Loading Valuation Snapshot...
Here's what is working for Sh. Ajit Pulp
Net Sales - Quarterly
Highest at Rs 120.75 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Net Sales - Quarterly
At Rs 120.75 cr has Grown at 27.0% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 95.06 CrMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 12.56 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Here's what is not working for Sh. Ajit Pulp
Interest - Quarterly
At Rs 5.80 cr has Grown at 26.36%
Quarter on Quarter (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Debt-Equity Ratio - Half Yearly
Highest at 1.08 times and Grown
each half year in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Interest - Quarterly
Highest at Rs 5.80 cr
in the last five quarters and Increased by 26.36 % (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)