ScoreWhy is Kanco Tea & Industries Ltd ?
1
Weak Long Term Fundamental Strength with a -177.75% CAGR growth in Operating Profits over the last 5 years
- Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -0.55
- The company has been able to generate a Return on Equity (avg) of 5.44% signifying low profitability per unit of shareholders funds
2
Flat results in Jun 26
- DPR(Y) Lowest at 0.00%
- DEBT-EQUITY RATIO(HY) Highest at 0.96 times
- INTEREST(Q) Highest at Rs 1.30 cr
3
Stock is technically in a Mildly Bearish range
- The stocks MACD and KST technical factors are also Bearish
4
Risky - Negative EBITDA
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of -18.22%, its profits have risen by 26.9%
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -18.22% 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 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 FMCG)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Kanco Tea for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Kanco Tea
-12.54%
-0.33
55.11%
Sensex
-11.8%
-0.48
13.44%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-1.28%
EBIT Growth (5y)
-177.75%
EBIT to Interest (avg)
-0.55
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
0.74
Sales to Capital Employed (avg)
0.73
Tax Ratio
27.04%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0.40%
ROCE (avg)
-0.56%
ROE (avg)
5.44%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
47
Price to Book Value
0.51
EV to EBIT
-15.93
EV to EBITDA
-40.76
EV to Capital Employed
0.72
EV to Sales
0.91
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-4.98%
ROE (Latest)
-9.77%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Sideways
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend6What is working for the Company
OPERATING CF(Y)
Highest at Rs 1.57 Cr
NET SALES(9M)
At Rs 45.69 cr has Grown at 26.29%
CASH AND CASH EQUIVALENTS(HY)
Highest at Rs 11.80 cr
-5What is not working for the Company
DPR(Y)
Lowest at 0.00%
DEBT-EQUITY RATIO(HY)
Highest at 0.96 times
INTEREST(Q)
Highest at Rs 1.30 cr
Loading Valuation Snapshot...
Here's what is working for Kanco Tea
Operating Cash Flow - Annually
Highest at Rs 1.57 Cr and Grown
each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (Rs Cr)
Net Sales - Nine Monthly
At Rs 45.69 cr has Grown at 26.29%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Cash and Cash Equivalents - Half Yearly
Highest at Rs 11.80 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 Kanco Tea
Interest - Quarterly
Highest at Rs 1.30 cr
in the last five quarters and Increased by 18.18 % (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Debt-Equity Ratio - Half Yearly
Highest at 0.96 times
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
Dividend Payout Ratio (DPR) - Annually
Lowest at 0.00%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
