Chemfab Alkalis Ltd (CHEMFAB) 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

Kanoria Chem.

Primo Chemicals

Mangalam Organic

Sr.Rayala.Hypo

Vikram Thermo

POCL Enterprises

Tuticorin Alkali

Transpek Inds.

Chemfab Alka.

Sadhana Nitro

OCCL

Why is Chemfab Alkalis Ltd ?

Poor long term growth as Operating profit has grown by an annual rate -182.98% of over the last 5 years

The company has declared Negative results for the last 12 consecutive quarters

INTEREST(9M) At Rs 6.11 cr has Grown at 40.78%
ROCE(HY) Lowest at 1.49%
DEBT-EQUITY RATIO(HY) Highest at 0.34 times

Risky - Negative Operating Profits

The company has recorded a negative EBIT of Rs. -1.2 cr
Over the past year, while the stock has generated a return of -49.26%, its profits have fallen by -216.3%
The stock is trading risky as compared to its average historical valuations

Despite the size of the company, domestic mutual funds hold only 0.25% 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 -1.44% in the last 1 year, its fall in the stock was much higher with a return of -49.26%

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 Commodity Chemicals)

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

Is Chemfab Alka. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Chemfab Alka.

-50.59%

-1.19

42.58%

Sensex

-8.4%

-0.65

12.97%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.46%

EBIT Growth (5y)

-182.98%

EBIT to Interest (avg)

30.90

Debt to EBITDA (avg)

1.27

Net Debt to Equity (avg)

0.30

Sales to Capital Employed (avg)

0.79

Tax Ratio

100.00%

Dividend Payout Ratio

-25.87%

Pledged Shares

Institutional Holding

0.21%

ROCE (avg)

10.51%

ROE (avg)

7.16%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.59

EV to EBIT

-591.09

EV to EBITDA

26.06

EV to Capital Employed

1.46

EV to Sales

2.28

PEG Ratio

Dividend Yield

0.29%

ROCE (Latest)

-0.25%

ROE (Latest)

-0.91%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-10What is not working for the Company

INTEREST(9M)

At Rs 6.11 cr has Grown at 40.78%

ROCE(HY)

Lowest at 1.49%

DEBT-EQUITY RATIO(HY)

Highest at 0.34 times

NET SALES(Q)

At Rs 74.78 cr has Fallen at -9.0% (vs previous 4Q average

NON-OPERATING INCOME(Q)

is 227.64 % of Profit Before Tax (PBT

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Here's what is not working for Chemfab Alka.

Interest - Nine Monthly

At Rs 6.11 cr has Grown at 40.78%

over preceding nine months period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Debt-Equity Ratio - Half Yearly

Highest at 0.34 times and Grown

each half year 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

Net Sales - Quarterly

At Rs 74.78 cr has Fallen at -9.0% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 82.14 Cr

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Non Operating Income - Quarterly

is 227.64 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT

Non Operating Income - Quarterly

Highest at Rs 2.80 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income