ScoreWhy is SMT Engineering Ltd ?
1
Poor Management Efficiency with a low ROCE of 2.40%
- The company has been able to generate a Return on Capital Employed (avg) of 2.40% signifying low profitability per unit of total capital (equity and debt)
2
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 0.78
- Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 0.78
- The company has been able to generate a Return on Equity (avg) of 7.25% signifying low profitability per unit of shareholders funds
3
With ROCE of 12, it has a Very Expensive valuation with a 5.9 Enterprise value to Capital Employed
- 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 2607.03%, its profits have risen by 402.3% ; the PEG ratio of the company is 0.3
4
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
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to SMT Engineering should be less than 10%
- Overall Portfolio exposure to Trading & Distributors should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Trading & Distributors)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is SMT Engineering for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
SMT Engineering
2607.03%
53.26
48.95%
Sensex
-5.06%
-0.49
12.94%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
176.73%
EBIT Growth (5y)
109.91%
EBIT to Interest (avg)
1.83
Debt to EBITDA (avg)
0.97
Net Debt to Equity (avg)
0.59
Sales to Capital Employed (avg)
0.27
Tax Ratio
35.21%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
-4.21%
ROE (avg)
4.71%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
32
Industry P/E
23
Price to Book Value
6.11
EV to EBIT
20.45
EV to EBITDA
19.94
EV to Capital Employed
4.22
EV to Sales
4.98
PEG Ratio
0.34
Dividend Yield
NA
ROCE (Latest)
20.62%
ROE (Latest)
19.15%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Sideways
Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Dow Theory
No Trend
No Trend
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend40What is working for the Company
ROCE(HY)
Highest at 19.72%
DEBTORS TURNOVER RATIO(HY)
Highest at 4.77 times
NET SALES(Q)
Highest at Rs 74.10 cr
PBDIT(Q)
Highest at Rs 21.04 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 28.39%
PBT LESS OI(Q)
Highest at Rs 19.51 cr.
PAT(Q)
Highest at Rs 12.06 cr.
EPS(Q)
Highest at Rs 7.21
-4What is not working for the Company
INTEREST(Latest six months)
At Rs 2.82 cr has Grown at 84.31%
Loading Valuation Snapshot...
Here's what is working for SMT Engineering
Net Sales - Quarterly
At Rs 74.10 cr has Grown at 173.9% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 27.06 CrMOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 19.51 cr has Grown at 326.0% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 4.58 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 12.06 cr has Grown at 266.9% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 3.29 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Net Sales - Quarterly
Highest at Rs 74.10 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 21.04 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 28.39%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 19.51 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 12.06 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 7.21
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Debtors Turnover Ratio- Half Yearly
Highest at 4.77 times
in the last five half yearly periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio
Here's what is not working for SMT Engineering
Interest - Latest six months
At Rs 2.82 cr has Grown at 84.31%
over previous Half yearly periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
