Current Rating and Its Significance
The 'Hold' rating assigned to Yash Chemex Ltd indicates a neutral stance for investors. It suggests that while the stock is not currently a strong buy, it is also not recommended for sale. Investors holding the stock may consider maintaining their position, while new investors might wait for clearer signals before committing capital. This rating is based on a balanced assessment of the company’s quality, valuation, financial trends, and technical indicators.
Rating Update Context
On 04 August 2025, MarketsMOJO revised Yash Chemex Ltd’s rating from 'Sell' to 'Hold', reflecting an improvement in the company’s overall outlook. The Mojo Score increased by 16 points, moving from 34 to 50, signalling a more stable investment profile. This change was driven by positive developments in the company’s financial performance and market behaviour. Nevertheless, it is important to note that all data and returns discussed below are current as of 25 December 2025, ensuring investors receive the latest insights.
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- - Fundamental Analysis
- - Technical Signals
- - Peer Comparison
Here’s How Yash Chemex Ltd Looks Today
As of 25 December 2025, Yash Chemex Ltd presents a mixed but cautiously optimistic picture. The company operates within the miscellaneous sector and is classified as a microcap, which often entails higher volatility and risk. Despite this, the stock has delivered impressive returns over the past year, significantly outperforming the broader market.
Quality Assessment
The quality grade for Yash Chemex Ltd is below average, reflecting some underlying challenges. The company’s long-term fundamental strength is weak, with an average Return on Capital Employed (ROCE) of 6.39%. This modest ROCE indicates limited efficiency in generating profits from capital invested. Furthermore, operating profit growth has been sluggish, expanding at an annual rate of just 2.95% over the last five years. The company’s ability to service debt is also a concern, with an average EBIT to interest coverage ratio of 1.94, suggesting vulnerability to interest rate fluctuations and financial stress.
Valuation Perspective
Currently, Yash Chemex Ltd is considered expensive based on valuation metrics. The stock trades at a 1.8 Enterprise Value to Capital Employed ratio, which is relatively high. However, it is noteworthy that the stock is priced at a discount compared to its peers’ historical valuations, offering some relative value. The company’s Price/Earnings to Growth (PEG) ratio stands at a low 0.1, signalling that the stock’s price growth is not fully justified by earnings growth, which may appeal to value-oriented investors seeking potential upside.
Financial Trend and Performance
The financial trend for Yash Chemex Ltd is very positive. The latest quarterly results, as of September 2025, show strong growth with net sales reaching a record ₹38.65 crores and PBDIT at ₹1.23 crores. Profit before tax excluding other income also hit a high of ₹0.89 crores. The company has reported positive results for four consecutive quarters, reflecting operational improvements and revenue momentum. Over the past year, profits have surged by 227%, a remarkable turnaround that supports the current 'Hold' rating. Additionally, net sales have grown by 57.95%, underscoring robust top-line expansion.
Technical Analysis
From a technical standpoint, Yash Chemex Ltd exhibits mildly bullish signals. Despite some short-term volatility, the stock’s price action over the last six months has been strong, with a 53.85% gain. Year-to-date returns stand at 56.83%, and the one-year return is 53.82%, substantially outperforming the BSE500 index’s 6.20% return. This market-beating performance indicates positive investor sentiment and momentum, which may attract further interest if sustained.
Shareholding and Market Position
The majority shareholding is held by promoters, which can be a stabilising factor for the company’s governance and strategic direction. However, as a microcap stock in a miscellaneous sector, investors should remain cautious about liquidity and sector-specific risks.
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Implications for Investors
For investors, the 'Hold' rating on Yash Chemex Ltd suggests a cautious approach. The company’s recent financial improvements and strong stock performance are encouraging, but the below-average quality and expensive valuation temper enthusiasm. Investors currently holding the stock may consider maintaining their positions to benefit from ongoing momentum and improving fundamentals. Prospective investors should weigh the risks associated with the company’s weak long-term growth and debt servicing capacity against the potential for further gains.
In summary, Yash Chemex Ltd’s current 'Hold' rating reflects a balanced view of its strengths and weaknesses. The company’s very positive financial trend and market-beating returns are offset by concerns over quality and valuation. Monitoring upcoming quarterly results and sector developments will be crucial for reassessing the stock’s outlook in the near term.
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