Bhagiradha Chemicals & Industries Ltd (BHAGCHEM) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Sharda Cropchem

India Pesticides

Dhanuka Agritech

Insecticid.India

Rallis India

Bayer CropSci.

NACL Industries

Bharat Rasayan

Astec Lifescienc

Bhagiradha Chem.

GSP Crop Science

Why is Bhagiradha Chemicals & Industries Ltd ?

Poor long term growth as Operating profit has grown by an annual rate -1.30% of over the last 5 years

Flat results in Mar 26

OPERATING PROFIT TO INTEREST (Q) Lowest at 2.76 times
DEBT-EQUITY RATIO(HY) Highest at 0.34 times
INTEREST(Q) Highest at Rs 7.05 cr

With ROCE of 4, it has a Very Expensive valuation with a 3.7 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -18.85%, its profits have risen by 31.1% ; the PEG ratio of the company is 5.6

Despite the size of the company, domestic mutual funds hold only 0% of the company

Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business

Underperformed the market in the last 1 year

Even though the market (BSE500) generated negative returns of -0.16% in the last 1 year, its fall in the stock was much higher with a return of -18.85%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pesticides & Agrochemicals)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Bhagiradha Chem. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Bhagiradha Chem.

-19.19%

-0.46

41.26%

Sensex

-6.63%

-0.52

12.94%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.01%

EBIT Growth (5y)

-1.30%

EBIT to Interest (avg)

5.91

Debt to EBITDA (avg)

1.95

Net Debt to Equity (avg)

0.31

Sales to Capital Employed (avg)

1.04

Tax Ratio

13.88%

Dividend Payout Ratio

5.71%

Pledged Shares

Institutional Holding

3.16%

ROCE (avg)

11.89%

ROE (avg)

8.46%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

174

Industry P/E

Price to Book Value

4.54

EV to EBIT

93.46

EV to EBITDA

59.23

EV to Capital Employed

3.70

EV to Sales

6.32

PEG Ratio

5.61

Dividend Yield

0.06%

ROCE (Latest)

3.96%

ROE (Latest)

2.60%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

No Trend

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

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

17What is working for the Company

PAT(Latest six months)

At Rs 8.69 cr has Grown at 220.66%

OPERATING PROFIT TO NET SALES(Q)

Highest at 12.29%

NET SALES(Q)

Highest at Rs 158.10 cr

PBDIT(Q)

Highest at Rs 19.43 cr.

-13What is not working for the Company

OPERATING PROFIT TO INTEREST (Q)

Lowest at 2.76 times

DEBT-EQUITY RATIO(HY)

Highest at 0.34 times

INTEREST(Q)

Highest at Rs 7.05 cr

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Here's what is working for Bhagiradha Chem.

Profit After Tax (PAT) - Latest six months

At Rs 8.69 cr has Grown at 220.66%

Year on Year (YoY)

MOJO Watch

PAT trend is very positive

PAT (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 12.29% and Grown

each quarter in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Net Sales - Quarterly

Highest at Rs 158.10 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Net Sales - Quarterly

At Rs 158.10 cr has Grown at 26.4% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 125.12 Cr

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 19.43 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Here's what is not working for Bhagiradha Chem.

Interest - Quarterly

At Rs 7.05 cr has Grown at 127.42%

Quarter on Quarter (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Operating Profit to Interest - Quarterly

Lowest at 2.76 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest - Quarterly

Highest at Rs 7.05 cr

in the last five quarters and Increased by 127.42 % (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Debt-Equity Ratio - Half Yearly

Highest at 0.34 times

in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio