ScoreWhy is Prakash Steelage Ltd ?
1
Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 17.13%
- Poor long term growth as Operating profit has grown by an annual rate 19.72% of over the last 5 years
- Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 1.25
2
Negative results in Jun 26
- NET SALES(Q) At Rs 16.81 cr has Fallen at -25.9% (vs previous 4Q average)
- ROCE(HY) Lowest at 11.97%
- DEBTORS TURNOVER RATIO(HY) Lowest at 5.22 times
3
Stock is technically in a Bearish range
- The technical trend has deteriorated from Mildly Bearish on 29-Jun-26 and has generated -11.19% returns since then
- Multiple factors for the stock are Bearish like RSI, MACD, Bollinger Band and KST
4
With ROE of 6.4, it has a Expensive valuation with a 6.8 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 -33.98%, its profits have fallen by -61.3%
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -33.98% 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 Iron & Steel Products)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Prakash Steelage for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Prakash Steelage
-32.63%
-0.77
44.11%
Sensex
-11.86%
-0.48
13.44%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
25.26%
EBIT Growth (5y)
19.72%
EBIT to Interest (avg)
1.25
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
-0.03
Sales to Capital Employed (avg)
-0.93
Tax Ratio
34.02%
Dividend Payout Ratio
0
Pledged Shares
0.10%
Institutional Holding
0
ROCE (avg)
-2.76%
ROE (avg)
108.93%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
97
Industry P/E
22
Price to Book Value
6.21
EV to EBIT
60.09
EV to EBITDA
34.73
EV to Capital Employed
6.37
EV to Sales
0.66
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
8.90%
ROE (Latest)
6.37%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
Bullish
Bearish
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
No Trend
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend0What is working for the Company
NO KEY POSITIVE TRIGGERS
-6What is not working for the Company
NET SALES(Q)
At Rs 16.81 cr has Fallen at -25.9% (vs previous 4Q average
ROCE(HY)
Lowest at 11.97%
DEBTORS TURNOVER RATIO(HY)
Lowest at 5.22 times
Loading Valuation Snapshot...
Here's what is not working for Prakash Steelage
Net Sales - Quarterly
At Rs 16.81 cr has Fallen at -25.9% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 22.69 CrMOJO Watch
Near term sales trend is very negative
Net Sales (Rs Cr)
Debtors Turnover Ratio- Half Yearly
Lowest at 5.22 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
