Chemplast Sanmar Ltd (CHEMPLASTS) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Blue Pearl Agri

Fischer Medical

India Glycols

Tanfac Inds.

GHCL

Tata Chemicals

Chemplast Sanmar

Gujarat Alkalies

Grauer & Weil

Thirumalai Chem.

TruAlt Bioenergy

Why is Chemplast Sanmar Ltd ?

Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.30 times

Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.30 times
The company has been able to generate a Return on Equity (avg) of 9.03% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -3.77% and Operating profit at -154.13% over the last 5 years

Flat results in Sep 25

CASH AND CASH EQUIVALENTS(HY) Lowest at Rs 569.39 cr
DEBT-EQUITY RATIO(HY) Highest at 0.97 times

Risky - Negative Operating Profits

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -45.72%, its profits have fallen by -70.7%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -45.72% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

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 Chemplast Sanmar for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Chemplast Sanmar

-46.22%

-1.44

31.70%

Sensex

4.25%

0.36

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-3.77%

EBIT Growth (5y)

-154.13%

EBIT to Interest (avg)

1.56

Debt to EBITDA (avg)

10.62

Net Debt to Equity (avg)

0.68

Sales to Capital Employed (avg)

1.66

Tax Ratio

23.27%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

38.77%

ROCE (avg)

33.19%

ROE (avg)

9.03%

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

2.22

EV to EBIT

-66.35

EV to EBITDA

43.78

EV to Capital Employed

1.73

EV to Sales

1.30

PEG Ratio

Dividend Yield

ROCE (Latest)

-2.60%

ROE (Latest)

-11.18%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

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

6What is working for the Company

OPERATING PROFIT TO INTEREST(Q)

Highest at 0.72 times

DEBTORS TURNOVER RATIO(HY)

Highest at 58.50 times

PBDIT(Q)

Highest at Rs 43.25 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 4.19%

PBT LESS OI(Q)

Highest at Rs -69.18 cr.

-3What is not working for the Company

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 569.39 cr

DEBT-EQUITY RATIO(HY)

Highest at 0.97 times

Loading Valuation Snapshot...

Here's what is working for Chemplast Sanmar

Operating Profit to Interest - Quarterly

Highest at 0.72 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit (PBDIT) - Quarterly

Highest at Rs 43.25 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 4.19%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs -69.18 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Debtors Turnover Ratio- Half Yearly

Highest at 58.50 times

in the last five half yearly periods

MOJO Watch

Company has been able to settle its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Chemplast Sanmar

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 569.39 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio - Half Yearly

Highest at 0.97 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