Why is Dhanlaxmi Fabrics Ltd ?
1
With a Operating Losses, the company has a Weak Long Term Fundamental Strength
- Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -2.45
- The company has been able to generate a Return on Equity (avg) of 1.06% signifying low profitability per unit of shareholders funds
2
Negative results in Sep 25
- OPERATING CF(Y) Lowest at Rs 0.19 Cr
- NET SALES(9M) At Rs 10.15 cr has Grown at -20.89%
- PAT(9M) At Rs -1.91 cr has Grown at -20.89%
3
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 -9.23%, its profits have risen by 59.3%
4
Underperformed the market in the last 1 year
- Even though the market (BSE500) has generated returns of 2.37% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -9.23% returns
How 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 Garments & Apparels)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Dhanlaxmi Fabric for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Dhanlaxmi Fabric
-2.99%
-0.15
63.11%
Sensex
8.49%
0.44
11.83%
Quality key factors
Factor
Value
Sales Growth (5y)
-14.36%
EBIT Growth (5y)
-222.60%
EBIT to Interest (avg)
-2.76
Debt to EBITDA (avg)
1.47
Net Debt to Equity (avg)
-0.01
Sales to Capital Employed (avg)
0.75
Tax Ratio
5.11%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
-4.94%
ROE (avg)
1.06%
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
20
Price to Book Value
1.15
EV to EBIT
-13.96
EV to EBITDA
-15.89
EV to Capital Employed
1.15
EV to Sales
2.38
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-10.80%
ROE (Latest)
-4.68%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Sideways
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
Technical Movement
14What is working for the Company
NET SALES(Q)
Highest at Rs 11.60 cr
OPERATING PROFIT TO NET SALES(Q)
Highest at -4.31%
PAT(Q)
Highest at Rs -0.11 cr.
-2What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 3.25 times
Loading Valuation Snapshot...
Here's what is working for Dhanlaxmi Fabric
Net Sales - Quarterly
Highest at Rs 11.60 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit Margin - Quarterly
Highest at -4.31%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit After Tax (PAT) - Quarterly
Highest at Rs -0.11 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Here's what is not working for Dhanlaxmi Fabric
Debtors Turnover Ratio- Half Yearly
Lowest at 3.25 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio