Why is LWS Knitwear Ltd ?
1
Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 7.21%
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 5.96 times
2
Flat results in Sep 25
- DEBTORS TURNOVER RATIO(HY) Lowest at 2.47 times
3
Below par performance in long term as well as near term
- Along with generating -38.63% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months
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 Trading & Distributors)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is LWS Knitwear for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
LWS Knitwear
-12.53%
-0.82
46.83%
Sensex
-4.3%
0.44
11.83%
Quality key factors
Factor
Value
Sales Growth (5y)
21.24%
EBIT Growth (5y)
44.41%
EBIT to Interest (avg)
1.85
Debt to EBITDA (avg)
5.44
Net Debt to Equity (avg)
0.55
Sales to Capital Employed (avg)
2.86
Tax Ratio
25.51%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
6.51%
ROE (avg)
6.17%
Valuation Key Factors 
Factor
Value
P/E Ratio
9
Industry P/E
20
Price to Book Value
0.74
EV to EBIT
7.14
EV to EBITDA
7.06
EV to Capital Employed
0.83
EV to Sales
0.36
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
10.79%
ROE (Latest)
8.24%
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Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
No Trend
No Trend
Technical Movement
5What is working for the Company
NET SALES(Latest six months)
At Rs 50.57 cr has Grown at 20.49%
INVENTORY TURNOVER RATIO(HY)
Highest at 8.15 times
OPERATING PROFIT TO NET SALES(Q)
Highest at 9.45%
-4What is not working for the Company
NET SALES(Q)
At Rs 17.68 cr has Fallen at -36.7% (vs previous 4Q average
DEBTORS TURNOVER RATIO(HY)
Lowest at 2.47 times
Loading Valuation Snapshot...
Here's what is working for LWS Knitwear
Inventory Turnover Ratio- Half Yearly
Highest at 8.15 times and Grown
each half year in the last five half yearly periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Operating Profit Margin - Quarterly
Highest at 9.45%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Here's what is not working for LWS Knitwear
Net Sales - Quarterly
At Rs 17.68 cr has Fallen at -36.7% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 27.92 CrMOJO Watch
Near term sales trend is very negative
Net Sales (Rs Cr)
Debtors Turnover Ratio- Half Yearly
Lowest at 2.47 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio