Is CDG Petchem overvalued or undervalued?

As of August 14, 2024, CDG Petchem's valuation has shifted from attractive to risky due to severe operational challenges reflected in its negative PE ratio of -12.33 and ROE of -170.00%, making it an unfavorable investment compared to peers like Supreme Industries and Finolex Industries, alongside a disappointing year-to-date return of -19.25%.

As of 14 August 2024, CDG Petchem's valuation grade has moved from attractive to risky, indicating a significant deterioration in its financial health. The company appears to be overvalued, particularly given its troubling headline ratios, including a PE ratio of -12.33, an EV to EBIT of -18.03, and a ROE of -170.00%. These figures suggest severe operational challenges and negative profitability, which are concerning for potential investors.<BR><BR>In comparison to its peers, CDG Petchem stands out unfavorably; for instance, Supreme Industries has a PE ratio of 57.34 and EV to EBITDA of 37.87, while Finolex Industries shows a PE of 28.37 and EV to EBITDA of 24.37. This stark contrast highlights CDG Petchem's underperformance in the industry. Additionally, the company's recent stock performance has been lackluster, with a year-to-date return of -19.25%, significantly trailing the Sensex's gain of 5.59%. Overall, the current metrics suggest that CDG Petchem is not a viable investment at this time.

What is the technical trend for CDG Petchem?

As of March 27, 2025, CDG Petchem's technical trend is mildly bearish, with mixed signals from MACD and moving averages, showing bullish tendencies on the weekly but bearish on the monthly.

As of 27 March 2025, the technical trend for CDG Petchem has changed from bearish to mildly bearish. The weekly MACD is bullish, but the monthly MACD indicates a mildly bearish stance. The Bollinger Bands are showing a mildly bullish trend on both weekly and monthly time frames, while the daily moving averages are mildly bearish. The KST is mildly bullish on the weekly chart but mildly bearish on the monthly. There is no clear trend indicated by Dow Theory for either time frame. Overall, the current technical stance is mildly bearish, driven primarily by the mixed signals from MACD and moving averages.

Who are in the management team of CDG Petchem?

As of March 2023, the management team of CDG Petchem includes Manoj Kumar Dugar (Chairman & Managing Director), Renu Dugar (Non-Executive Director), Rajesh Kumar Dugar (Executive Director), and three Independent Non-Executive Directors: Arvind Surana, Manoj Kumar, and Manoj Kumar Baid. They oversee the company's operations and strategic direction.

As of March 2023, the management team of CDG Petchem includes the following individuals:<BR><BR>1. Manoj Kumar Dugar - Chairman & Managing Director<BR>2. Renu Dugar - Non-Executive & Non-Independent Director<BR>3. Rajesh Kumar Dugar - Executive Director (Non-Independent)<BR>4. Arvind Surana - Independent Non-Executive Director<BR>5. Manoj Kumar - Independent Non-Executive Director<BR>6. Manoj Kumar Baid - Independent Non-Executive Director<BR><BR>This team is responsible for overseeing the company's operations and strategic direction.

What does CDG Petchem do?

CDG Petchem Ltd manufactures knitted fabrics, mattresses, and pillows, and trades in minerals and chemicals. Incorporated in 2011, it has a market cap of INR 16 Cr and reported net sales of 54 Cr with a net profit of -1 Cr for December 2024.

Overview: <BR>CDG Petchem Ltd is a diversified company engaged in the manufacture of knitted fabrics, mattresses, and pillows, as well as the trading and distribution of minerals, plasticizers, construction materials, plastic raw materials, and pharma chemicals, operating within the plastic products - industrial industry and classified as a micro-cap.<BR><BR>History: <BR>CDG Petchem Ltd was incorporated on February 07, 2011, originally under the name 'Urbaknitt Fabs Limited' and later changed its name to CDG Petchem Limited on December 30, 2019. The latest quarterly results reported net sales and net profit for the period ending December 2024.<BR><BR>Financial Snapshot: <BR>Net Sales: 54 Cr (Quarterly Results - Dec 2024) <BR>Net Profit: -1 Cr (Quarterly Results - Dec 2024) <BR>Market-cap: INR 16 Cr (Micro Cap) <BR><BR>Key Metrics: <BR>P/E: N/A <BR>Industry P/E: 223 <BR>Dividend Yield: 0.00% <BR>Debt-Equity: 2.61 <BR>Return on Equity: -170.00% <BR>Price to Book: 16.19 <BR><BR>Contact Details: <BR>Address: Plot 10 & 11 Pattaggadda Road, MCH No 1-8-304 to 307/10 Secunderabad Telangana : 500003 <BR>Tel: 91-40-27897743/44 <BR>Email: hyd1_pankaj@sancharnet.in <BR>Website: http://www.procurepoint.in

Who are the top shareholders of the CDG Petchem?

The top shareholders of CDG Petchem include Taradevi Dugar with 12.0%, Anisha Fincap Consultants LLP at 10.44%, and individual investors collectively owning 21.41%. There are no pledged promoter holdings or shares held by mutual funds or foreign institutional investors.

The top shareholders of CDG Petchem include the promoters, with Taradevi Dugar holding the largest individual stake at 12.0%. The highest public shareholder is Anisha Fincap Consultants LLP, which holds 10.44%. Additionally, individual investors collectively own 21.41% of the company's shares. Notably, there are no pledged promoter holdings, and the company does not have any mutual funds or foreign institutional investors holding shares.

When is the next results date for CDG Petchem?

The next results date for CDG Petchem is 14 November 2025.

The next results date for CDG Petchem is scheduled for 14 November 2025.

Why is CDG Petchem falling/rising?

As of 13-Nov, CDG Petchem Ltd is priced at 52.60 with no change, reflecting erratic trading and significant financial challenges, including negative results for three consecutive quarters and a high debt-to-equity ratio. The stock has underperformed year-to-date, declining 19.25%, in contrast to the Sensex's gain of 8.11%.

As of 13-Nov, CDG Petchem Ltd is currently priced at 52.60, showing no change (0.00%). The stock has experienced erratic trading, not having traded on 5 out of the last 20 days, which may contribute to its current flat price movement. Despite trading higher than its moving averages over various periods, the company faces significant challenges, including weak long-term fundamentals, as it has not declared results in the last six months. The company has reported negative results for the last three consecutive quarters, with net sales falling by 49.91%, and a high debt-to-equity ratio of 5.67 times, indicating financial instability. Additionally, the stock has generated a return of only 3.65% over the past year, while profits have decreased by 6%, suggesting a lack of growth.<BR><BR>In the broader market context, the Sensex has shown a positive return of 1.40% over the past week and 2.61% over the past month, indicating a generally favorable market environment. However, CDG Petchem's year-to-date performance is significantly worse, with a decline of 19.25%, contrasting sharply with the Sensex's gain of 8.11%. This underperformance highlights the stock's struggles relative to the benchmark, further emphasizing the risks associated with investing in CDG Petchem amidst its current financial difficulties.

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Should I buy, sell or hold CDG Petchem?