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
342.93%
53.26
48.95%
Sensex
-11.8%
-0.49
12.94%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
178.02%
EBIT Growth (5y)
112.58%
EBIT to Interest (avg)
2.34
Debt to EBITDA (avg)
0.97
Net Debt to Equity (avg)
0.59
Sales to Capital Employed (avg)
0.27
Tax Ratio
34.46%
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
23
Industry P/E
22
Price to Book Value
4.61
EV to EBIT
14.91
EV to EBITDA
14.49
EV to Capital Employed
3.28
EV to Sales
3.78
PEG Ratio
3.30
Dividend Yield
NA
ROCE (Latest)
20.62%
ROE (Latest)
19.15%
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TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend23What is working for the Company
NET SALES(Latest six months)
At Rs 105.03 cr has Grown at 122.43%
PAT(Latest six months)
Higher at Rs 15.87 cr
ROCE(HY)
Highest at 19.72%
DEBTORS TURNOVER RATIO(HY)
Highest at 4.77 times
-16What is not working for the Company
NET SALES(Q)
At Rs 30.93 cr has Fallen at -23.7% (vs previous 4Q average
PBT LESS OI(Q)
At Rs 4.63 cr has Fallen at -47.3% (vs previous 4Q average
PAT(Q)
At Rs 3.81 cr has Fallen at -34.0% (vs previous 4Q average
INTEREST(Q)
Highest at Rs 1.65 cr
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Here's what is working for SMT Engineering
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
Net Sales - Quarterly
At Rs 30.93 cr has Fallen at -23.7% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 40.56 CrMOJO Watch
Near term sales trend is very negative
Net Sales (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 4.63 cr has Fallen at -47.3% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 8.78 CrMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 3.81 cr has Fallen at -34.0% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 5.77 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Interest - Quarterly
At Rs 1.65 cr has Grown at 35.25%
Quarter on Quarter (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Interest - Quarterly
Highest at Rs 1.65 cr
in the last five quarters and Increased by 35.25 % (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
