ScoreWhy is Azad Engineering Ltd ?
1
Company has a low Debt to Equity ratio (avg) at 0.09 times
2
Healthy long term growth as Net Sales has grown by an annual rate of 32.60%
3
The company has declared Positive results for the last 7 consecutive quarters
- PAT(Latest six months) At Rs 62.46 cr has Grown at 63.81%
- NET SALES(Latest six months) At Rs 282.72 cr has Grown at 34.66%
- PBDIT(Q) Highest at Rs 52.55 cr.
4
With ROE of 7.5, it has a Very Expensive valuation with a 7.2 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -4.97%, its profits have risen by 51% ; the PEG ratio of the company is 2.5
5
High Institutional Holdings at 25.6%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
- Their stake has increased by 0.54% over the previous quarter.
6
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -4.97% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you buy?
- Overall Portfolio exposure to Azad Engineering should be less than 10%
- Overall Portfolio exposure to Heavy Electrical Equipment should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Heavy Electrical Equipment)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Azad Engineering for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Azad Engineering
31.23%
-0.11
43.83%
Sensex
-5.12%
0.44
11.83%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
33.02%
EBIT Growth (5y)
34.01%
EBIT to Interest (avg)
4.93
Debt to EBITDA (avg)
2.35
Net Debt to Equity (avg)
0.19
Sales to Capital Employed (avg)
0.38
Tax Ratio
28.69%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
26.46%
ROCE (avg)
12.51%
ROE (avg)
8.01%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
105
Industry P/E
36
Price to Book Value
9.15
EV to EBIT
82.75
EV to EBITDA
63.34
EV to Capital Employed
7.85
EV to Sales
23.67
PEG Ratio
2.01
Dividend Yield
NA
ROCE (Latest)
9.48%
ROE (Latest)
8.70%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Dow Theory
No Trend
No Trend
OBV
Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend16What is working for the Company
NET SALES(Q)
Highest at Rs 161.54 cr
PAT(Q)
Highest at Rs 35.99 cr.
EPS(Q)
Highest at Rs 5.57
-10What is not working for the Company
OPERATING PROFIT TO INTEREST(Q)
Lowest at 6.22 times
INTEREST(Q)
Highest at Rs 9.86 cr
Loading Valuation Snapshot...
Here's what is working for Azad Engineering
Net Sales - Quarterly
Highest at Rs 161.54 cr and Grown
each quarter in the last five quartersMOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 35.99 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 5.57
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for Azad Engineering
Operating Profit to Interest - Quarterly
Lowest at 6.22 times and Fallen
each quarter in the last five quartersMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest - Quarterly
Highest at Rs 9.86 cr
in the last five quarters and Increased by 18.23 % (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Non Operating Income - Quarterly
Highest at Rs 16.58 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
