4968 Share Price | Arakawa Chemical Industries Ltd. Stock Analysis & Recommendation

Price Point

High/Low

1Day

52 Week

Valuation

Technical

Day's Volume

CASH

N/A

Shareholding

FII

N/A

DII

N/A

Promoter

N/A

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Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Dashboard

Poor Management Efficiency with a low ROCE of 1.91%

The company has been able to generate a Return on Capital Employed (avg) of 1.91% signifying low profitability per unit of total capital (equity and debt)

Low ability to service debt as the company has a high Debt to EBITDA ratio of 5.02 times

Poor long term growth as Net Sales has grown by an annual rate of 3.40% and Operating profit at -11.95% over the last 5 years

With a growth in Net Profit of 48.97%, the company declared Very Positive results in Jun 26

With ROE of 0.59%, it has a very attractive valuation with a 0.64 Price to Book Value

Mojo Parameters

Stock DNA

Industry

Specialty Chemicals

Market cap

JPY 42,771 Million (Small Cap)

P/E

110.00

Industry P/E

Dividend Yield

0.00%

Debt Equity

0.48

Return on Equity

1.10%

Price to Book

0.69

Revenue and Profits:

Net Sales:

22,282 Million

(Quarterly Results - Jun 2026)

Net Profit:

885 Million

Total Returns

Total Returns (Price + Dividend)

TimePeriod

Price Return

Dividend Return

Total Return

3 Months

8.82%

6 Months

85.0%

1 Year

113.79%

2 Years

93.44%

3 Years

127.26%

4 Years

137.29%

5 Years

87.15%

Arakawa Chemical Industries Ltd. for the last several years.

Risk Adjusted Returns v/s

News & Corporate Actions

News

No Recent News for the Company

Announcements

No announcement available

Corporate Actions

No corporate action available

Key Factors

Quality key factors

Factor

Value

Sales Growth (5y)

3.40%

EBIT Growth (5y)

-11.95%

EBIT to Interest (avg)

0.47

Debt to EBITDA (avg)

7.08

Net Debt to Equity (avg)

0.51

Sales to Capital Employed (avg)

0.79

Tax Ratio

72.30%

Dividend Payout Ratio

45.07%

Pledged Shares

Institutional Holding

ROCE (avg)

1.44%

ROE (avg)

1.96%

Valuation key factors

Factor

Value

P/E Ratio

110

Industry P/E

Price to Book Value

0.64

EV to EBIT

48.29

EV to EBITDA

9.43

EV to Capital Employed

0.77

EV to Sales

0.88

PEG Ratio

0.39

Dividend Yield

ROCE (Latest)

1.60%

ROE (Latest)

0.59%

Technicals key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Shareholding

Shareholding Snapshot

No data for shareholding present.

Shareholding Compare (%holding)

No data for shareholding present.

Financial

[
  {
    "link": "quarterly",
    "btn_text": "All Quarterly Results",
    "header": "Quarterly Results Snapshot (Consolidated) - Jun'26 - QoQ",
    "rhs": [
      {
        "prefix": "Net Sales ",
        "suffix": "QoQ Growth in quarter ended Jun 2026 is 7.32% vs -1.16% in Mar 2026",
        "dir": 1
      },
      {
        "prefix": "Consolidated Net Profit ",
        "suffix": "QoQ Growth in quarter ended Jun 2026 is 74.56% vs 203.59% in Mar 2026",
        "dir": -1
      }
    ],
    "table": {
      "header": [
        "Jun'26",
        "Mar'26",
        "Change(%)"
      ],
      "body": [
        {
          "field": "Net Sales",
          "val1": "22,282.00",
          "val2": "20,762.00",
          "chgp": "7.32%",
          "chgp_class": "positive"
        },
        {
          "field": "Operating Profit (PBDIT) excl Other Income",
          "val1": "2,865.00",
          "val2": "2,131.00",
          "chgp": "34.44%",
          "chgp_class": "positive"
        },
        {
          "field": "Interest",
          "val1": "128.00",
          "val2": "128.00",
          "chgp": "",
          "chgp_class": "neutral"
        },
        {
          "field": "Exceptional Items",
          "val1": "0.00",
          "val2": "139.00",
          "chgp": "-100.00%",
          "chgp_class": "negative"
        },
        {
          "field": "Consolidate Net Profit",
          "val1": "885.00",
          "val2": "507.00",
          "chgp": "74.56%",
          "chgp_class": "positive"
        },
        {
          "field": "Operating Profit Margin (Excl OI)",
          "val1": "69.10%",
          "val2": "27.50%",
          "chgp": "4.16%",
          "chgp_class": "positive"
        }
      ]
    }
  },
  {
    "link": "annual",
    "btn_text": "All Annual Results",
    "header": "Annual Results Snapshot (Consolidated) - Mar'26",
    "rhs": [
      {
        "prefix": "Net Sales ",
        "suffix": "YoY Growth in year ended Mar 2026 is 2.37% vs 11.10% in Mar 2025",
        "dir": -1
      },
      {
        "prefix": "Consolidated Net Profit ",
        "suffix": "YoY Growth in year ended Mar 2026 is -37.29% vs 145.08% in Mar 2025",
        "dir": -1
      }
    ],
    "table": {
      "header": [
        "Mar'26",
        "Mar'25",
        "Change(%)"
      ],
      "body": [
        {
          "field": "Net Sales",
          "val1": "82,135.00",
          "val2": "80,236.00",
          "chgp": "2.37%",
          "chgp_class": "positive"
        },
        {
          "field": "Operating Profit (PBDIT) excl Other Income",
          "val1": "8,088.00",
          "val2": "6,777.00",
          "chgp": "19.34%",
          "chgp_class": "positive"
        },
        {
          "field": "Interest",
          "val1": "479.00",
          "val2": "417.00",
          "chgp": "14.87%",
          "chgp_class": "negative"
        },
        {
          "field": "Exceptional Items",
          "val1": "-321.00",
          "val2": "0.00",
          "chgp": "",
          "chgp_class": "neutral"
        },
        {
          "field": "Consolidate Net Profit",
          "val1": "666.00",
          "val2": "1,062.00",
          "chgp": "-37.29%",
          "chgp_class": "negative"
        },
        {
          "field": "Operating Profit Margin (Excl OI)",
          "val1": "25.60%",
          "val2": "8.20%",
          "chgp": "1.74%",
          "chgp_class": "positive"
        }
      ]
    }
  }
]