Competent Auto Stock Price Analysis and Quick Research Report. Is Competent Auto an attractive stock to invest in?

The Indian Auto Industry comes in the top 5 largest auto industries of the world. India is also a prominent auto exporter and has strong export growth expectations for the near future. The support from the government is providing the auto companies with a boost needed in their development. But will it sustain?
We can look into more details and dig a little deeper into the analysis of the stock of this sector. Let’s look at how Competent Auto is performing and if it is the right time to buy the stock of Competent Auto with detailed analysis.

• The mainstream of revenue for Auto Sector is their sales, Competent Auto has reported outstanding sales growth of 39.014777462956 % and in the latest quarter sales was Rs 669.301 Cr. To judge whether the company’s inventory is being sold or not and the sales picture is true, inventory turnover ratio plays a major role, which is 19.1262887793627 times for Competent Auto . It is managing its inventory poorly .
   
• Competent Auto reported Profit growth of 27.1160043792694 % over the year, where the latest year profit is Rs 24.7308 Cr compared to the previous year of Rs 19.4553 Cr. The new permits by governments and increasing demand will lead to an increase in profits in the coming year.
   
• The operating profit of Competent Auto in the latest quarter is Rs 21.013 Cr. It helps in measuring the company’s operating performance which is used to make financing decisions.
   
• Competent Auto has a poor ROE of 8.29987731815575 %. The ROE is an important financial parameter because Auto companies work with high equity investments. Also, they have to take huge debt to incur the research and manufacturing work so their Debt to Equity ratio should be evaluated. Competent Auto has a low Debt to Equity ratio of 0.5409.
   
• Competent Auto pays a dividend of 1 Rs per share. It tells us that a company dislikes to share profits with its shareholders. The dividend yield is low at 0.1745 %.
   
• The share of promoter in Competent Auto is high at 74.92 %, where the pledging is 0 %.
   
• What the market is willing to pay for the company for its earnings can be determined by PE multiple. Current PE of Competent Auto is 13.0482091719896 compared to the 5 year average PE of 4.67149613039636 .
   
• Share Price: - The current share price of Competent Auto is Rs 573.2. One can use valuation calculators of ticker to know if Competent Auto share price is undervalued or overvalued.