Yash Chemex Ltd is Rated Hold by MarketsMOJO

Understanding the Current Rating

The 'Hold' rating assigned to Yash Chemex Ltd indicates a neutral stance for investors, suggesting that the stock is expected to perform in line with the market or sector averages in the near term. This rating reflects a balanced view of the company’s strengths and weaknesses across several key parameters, including quality, valuation, financial trends, and technical indicators. Investors should interpret this as a signal to maintain existing positions rather than aggressively buy or sell the stock at this stage.

Quality Assessment

As of 07 January 2026, Yash Chemex Ltd’s quality grade is assessed as below average. The company exhibits weak long-term fundamental strength, with an average Return on Capital Employed (ROCE) of 6.39%. This modest ROCE suggests limited efficiency in generating profits from its capital base. Furthermore, operating profit growth has been sluggish, expanding at an annual rate of just 2.95% over the past five years. The company’s ability to service its debt is also a concern, with an average EBIT to interest coverage ratio of 1.94, indicating a relatively tight margin to cover interest expenses. These factors collectively temper the company’s quality profile and contribute to the cautious 'Hold' rating.

Valuation Perspective

Currently, Yash Chemex Ltd holds a fair valuation grade. The stock trades at an Enterprise Value to Capital Employed ratio of 1.7, which is considered reasonable and suggests that the market is not overpaying for the company’s capital base. The ROCE of 4.4 further supports this valuation stance. Notably, the stock is trading at a discount compared to its peers’ average historical valuations, which may offer some appeal to value-conscious investors. The company’s Price/Earnings to Growth (PEG) ratio stands at a low 0.1, reflecting strong profit growth relative to its price, which is an encouraging sign despite the fair valuation grade.

Financial Trend and Performance

The financial trend for Yash Chemex Ltd is very positive as of 07 January 2026. The company has demonstrated robust growth in net sales, with a 57.95% increase reported in the latest quarter ending September 2025. This marks the highest quarterly net sales figure at ₹38.65 crores. Profitability metrics have also improved, with PBDIT reaching ₹1.23 crores and PBT less other income at ₹0.89 crores, both at their highest quarterly levels. The company has declared positive results for four consecutive quarters, signalling consistent operational improvement. Over the past year, the stock has delivered a remarkable 48.86% return, significantly outperforming the broader market benchmark BSE500, which returned 7.74% over the same period. Additionally, profits have surged by 227% in the last year, underscoring a strong upward financial trajectory.

Technical Outlook

From a technical standpoint, Yash Chemex Ltd is mildly bullish. The stock’s recent price movements show some positive momentum, with a one-day gain of 2.15% as of 07 January 2026. However, short-term trends have been mixed, with declines over one week (-3.48%), one month (-15.65%), and three months (-24.20%), offset by a strong six-month gain of 40.59%. This suggests some volatility in the stock price, but the overall technical indicators lean towards a cautiously optimistic outlook. The mild bullishness supports the 'Hold' rating, indicating that while the stock may not be a strong buy, it is not currently signalling a sell either.

Market Capitalisation and Shareholding

Yash Chemex Ltd is classified as a microcap company within the miscellaneous sector. The majority shareholding is held by promoters, which often implies a stable ownership structure. However, microcap stocks can be subject to higher volatility and liquidity risks, factors that investors should consider alongside the company’s fundamentals and technicals.

Implications for Investors

For investors, the 'Hold' rating on Yash Chemex Ltd suggests a wait-and-watch approach. The company’s improving financial performance and fair valuation provide some grounds for optimism, but the below-average quality metrics and mixed technical signals counsel caution. Investors currently holding the stock may consider maintaining their positions to benefit from the ongoing positive financial trends, while new investors might prefer to monitor the stock for clearer signs of sustained improvement before committing capital.

Summary of Key Metrics as of 07 January 2026

The Mojo Score for Yash Chemex Ltd stands at 53.0, reflecting a moderate overall assessment. The stock’s one-year return of 48.86% significantly outpaces the market, highlighting strong recent performance. Despite this, the company’s long-term growth and debt servicing capabilities remain areas of concern. The fair valuation and positive quarterly results balance these weaknesses, resulting in the current 'Hold' recommendation.

Conclusion

Yash Chemex Ltd’s current 'Hold' rating by MarketsMOJO, last updated on 04 August 2025, is supported by a nuanced analysis of its quality, valuation, financial trends, and technical outlook as of 07 January 2026. While the company shows promising financial momentum and reasonable valuation, its fundamental quality and some technical volatility suggest a cautious stance. Investors should weigh these factors carefully in the context of their portfolio objectives and risk tolerance.

Unlock special upgrade rates for a limited period. Start Saving Now →