Stovec Inds.

Market Cap: Micro Cap
Industry: Textile - Machinery
ISIN: INE755D01015
NSEID:
BSEID: 504959

INR

2,502.00

7.9 (0.32%)

BSENSE

Apr 11, 12:52 PM

BSE+NSE Vol: 170

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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

Candour Techtex

Bajaj Steel Inds

Meera Industries

Integra Engg.

Stovec Inds.

Lakshmi Engg.

LMW

Indian CardCloth

Gujarat Hy-Spin

MPIL Corporation

Shree Karni

Why is Stovec Industries Ltd ?

Poor long term growth as Operating profit has grown by an annual rate -14.96% of over the last 5 years

The company has declared negative results in Dec'2024 after 4 consecutive positive quarters

PBT LESS OI(Q) At Rs 1.69 cr has Fallen at -58.4% (vs previous 4Q average)
PAT(Q) At Rs 1.53 cr has Fallen at -60.4% (vs previous 4Q average)
NET SALES(Q) At Rs 56.02 cr has Fallen at -5.3% (vs previous 4Q average)

Stock is technically in a Mildly Bearish range

Multiple factors for the stock are Bearish like MACD, Bollinger Band and KST

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

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -4.73% returns in the last 1 year, the stock has also underperformed BSE 500 in each of the last 3 annual periods

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 Textile - Machinery)

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

Is Stovec Inds. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Stovec Inds.

-4.64%

-0.11

44.33%

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)

3.88%

EBIT Growth (5y)

-14.96%

EBIT to Interest (avg)

17.20

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

1.38

Tax Ratio

25.67%

Dividend Payout Ratio

402.03%

Pledged Shares

Institutional Holding

0.05%

ROCE (avg)

36.22%

ROE (avg)

13.60%

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

3.72

EV to EBIT

34.47

EV to EBITDA

23.51

EV to Capital Employed

4.59

EV to Sales

2.08

PEG Ratio

0.93

Dividend Yield

5.29%

ROCE (Latest)

6.67%

ROE (Latest)

9.25%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

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

2What is working for the Company

PAT(9M)

At Rs 8.21 cr has Grown at 24.39%

-12What is not working for the Company

PBT LESS OI(Q)

At Rs 1.69 cr has Fallen at -58.4% (vs previous 4Q average

PAT(Q)

At Rs 1.53 cr has Fallen at -60.4% (vs previous 4Q average

NET SALES(Q)

At Rs 56.02 cr has Fallen at -5.3% (vs previous 4Q average

PBDIT(Q)

Lowest at Rs 3.35 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 5.98%

EPS(Q)

Lowest at Rs 7.32

Loading Valuation Snapshot...

Here's what is not working for Stovec Inds.

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 1.69 cr has Fallen at -58.4% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 4.06 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 1.53 cr has Fallen at -60.4% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 3.86 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Net Sales - Quarterly

Lowest at Rs 56.02 cr

in the last five quarters

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Net Sales - Quarterly

At Rs 56.02 cr has Fallen at -5.3% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 59.13 Cr

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 3.35 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at 5.98%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 1.69 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs 7.32

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)