Why is Super Tannery Ltd ?
1
Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 6.30%
- Poor long term growth as Net Sales has grown by an annual rate of 10.39% and Operating profit at 4.62% over the last 5 years
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.20 times
2
Stock is technically in a Bearish range
- The technical trend has deteriorated from Mildly Bearish on 17-Feb-25 and has generated -12.19% returns since then
- Multiple factors for the stock are Bearish like MACD, Bollinger Band and KST
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 Leather)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Super Tannery for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Super Tannery
4.43%
0.08
57.51%
SENSEX
0.45%
0.02
14.48%
Quality key factors
Factor
Value
Sales Growth (5y)
10.39%
EBIT Growth (5y)
4.62%
EBIT to Interest (avg)
2.04
Debt to EBITDA (avg)
4.76
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
1.32
Tax Ratio
34.39%
Dividend Payout Ratio
8.55%
Pledged Shares
0
Institutional Holding
0.00%
ROCE (avg)
6.28%
ROE (avg)
5.67%
Valuation Key Factors 
Factor
Value
P/E Ratio
15
Industry P/E
52
Price to Book Value
1.02
EV to EBIT
12.07
EV to EBITDA
7.75
EV to Capital Employed
1.01
EV to Sales
0.56
PEG Ratio
0.69
Dividend Yield
0.53%
ROCE (Latest)
7.43%
ROE (Latest)
6.14%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
No Trend
Technical Movement
11What is working for the Company
PAT(9M)
At Rs 4.79 cr has Grown at 30.52%
NET SALES(HY)
At Rs 151.53 cr has Grown at 28.61%
ROCE(HY)
Highest at 8.58%
INVENTORY TURNOVER RATIO(HY)
Highest at 4.68 times
CASH AND CASH EQUIVALENTS(HY)
Highest at Rs 13.81 cr
-4What is not working for the Company
INTEREST(Q)
At Rs 1.75 cr has Grown at 50.86%
OPERATING PROFIT TO INTEREST (Q)
Lowest at 3.01 times
Loading Valuation Snapshot...
Here's what is working for Super Tannery
Net Sales - Half Yearly
At Rs 151.53 cr has Grown at 28.61%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Inventory Turnover Ratio- Half Yearly
Highest at 4.68 times and Grown
each half year in the last five half yearly periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Profit After Tax (PAT) - Nine Monthly
At Rs 4.79 cr has Grown at 30.52%
Year on Year (YoY)MOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Cash and Cash Equivalents - Half Yearly
Highest at Rs 13.81 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Here's what is not working for Super Tannery
Interest - Quarterly
At Rs 1.75 cr has Grown at 50.86%
Quarter on Quarter (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Operating Profit to Interest - Quarterly
Lowest at 3.01 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest