DMCC Speciality Chemicals Ltd (DMCC) 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

Nitta Gelatin

DMCC Speciality

Valiant Organics

Sudarshan Pharma

Black Rose Indus

Kronox Lab

Jayant Agro Org.

Chemcon Special.

Bhatia Colour

Sacheerome

Gem Aromatics

Why is DMCC Speciality Chemicals Ltd ?

Poor long term growth as Operating profit has grown by an annual rate 18.91% of over the last 5 years

Falling Participation by Institutional Investors

Institutional investors have decreased their stake by -0.8% over the previous quarter and collectively hold 1.67% of the company
These investors have better capability and resources to analyse fundamentals of companies than most retail investors

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -29.39% 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 Specialty Chemicals)

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

Is DMCC Speciality for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

DMCC Speciality

-29.39%

-0.62

47.15%

Sensex

4.83%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

23.05%

EBIT Growth (5y)

18.91%

EBIT to Interest (avg)

4.90

Debt to EBITDA (avg)

1.58

Net Debt to Equity (avg)

0.16

Sales to Capital Employed (avg)

1.31

Tax Ratio

30.36%

Dividend Payout Ratio

28.96%

Pledged Shares

Institutional Holding

1.67%

ROCE (avg)

11.07%

ROE (avg)

8.81%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.79

EV to EBIT

14.63

EV to EBITDA

10.82

EV to Capital Employed

2.54

EV to Sales

1.39

PEG Ratio

0.21

Dividend Yield

0.96%

ROCE (Latest)

17.39%

ROE (Latest)

11.89%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

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

18What is working for the Company

PAT(Latest six months)

At Rs 13.51 cr has Grown at 88.16%

NET SALES(Latest six months)

At Rs 253.07 cr has Grown at 34.58%

ROCE(HY)

Highest at 17.77%

DEBT-EQUITY RATIO(HY)

Lowest at 0.17 times

DPR(Y)

Highest at 28.96%

-4What is not working for the Company

PBDIT(Q)

Lowest at Rs 14.01 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 11.12%

PBT LESS OI(Q)

Lowest at Rs 7.98 cr.

EPS(Q)

Lowest at Rs 2.31

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Here's what is working for DMCC Speciality

Profit After Tax (PAT) - Latest six months

At Rs 13.51 cr has Grown at 88.16%

Year on Year (YoY)

MOJO Watch

PAT trend is very positive

PAT (Rs Cr)

Debt-Equity Ratio - Half Yearly

Lowest at 0.17 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Net Sales - Quarterly

At Rs 126.03 cr has Grown at 22.68%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Dividend Payout Ratio (DPR) - Annually

Highest at 28.96%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for DMCC Speciality

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 14.01 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at 11.12%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 7.98 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs 2.31

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)