Lowest valued stock in Aluminium, should you buy it?

Low PE

Price to Earning is an equity valuation multiple. It defines how many times you are paying compared to the profit of the company.

Hind Aluminum - manufacturer aluminum grills, sections, railing, etc was promoted by Lalit Kumar Daga. The company`s main product - aluminum grills, is jointly promoted with Hindalco Industries and is sold under Decogrille brand name.

CMP - Rs.51.50

EPS - 6.78

PE - 7.6

But should you buy it

Sales of the company decreased from 118cr in sept 2013 to 100cr in sept 2014.

NPM of the company decreased from 1.6% to 1.46% YOY

Debt to equity ratio is 1.02 which is decent.

Decreasing sales & eps can be a problem for short term investors.

Fundamentally, the company is good. With industry expected to recover can be positive for the company. Technically, it is wait and watch for sometime as the stock is moving sideways for last 6 months.