ScoreWhy is GHCL Ltd ?
1
High Management Efficiency with a high ROE of 19.81%
2
Company has a Debt to Equity ratio (avg) of 0.04 times
3
Poor long term growth as Net Sales has grown by an annual rate of 0.99% and Operating profit at 0.86% over the last 5 years
4
Flat results in Jun 26
- ROCE(HY) Lowest at 18.09%
- DPS(Y) Lowest at Rs 12.00
- CASH AND CASH EQUIVALENTS(HY) Lowest at Rs 89.92 cr
5
With ROE of 13.3, it has a Attractive valuation with a 1.1 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -21.80%, its profits have fallen by -21.8%
6
High Institutional Holdings at 33.65%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
7
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -21.80% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to GHCL should be less than 10%
- Overall Portfolio exposure to Commodity Chemicals should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Commodity Chemicals)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is GHCL for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
GHCL
-21.7%
-0.80
27.10%
Sensex
-6.26%
-0.46
13.44%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
0.99%
EBIT Growth (5y)
0.86%
EBIT to Interest (avg)
37.72
Debt to EBITDA (avg)
0.36
Net Debt to Equity (avg)
-0.29
Sales to Capital Employed (avg)
0.99
Tax Ratio
26.45%
Dividend Payout Ratio
23.04%
Pledged Shares
1.10%
Institutional Holding
33.65%
ROCE (avg)
29.71%
ROE (avg)
19.81%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
8
Industry P/E
44
Price to Book Value
1.12
EV to EBIT
5.11
EV to EBITDA
4.29
EV to Capital Employed
1.17
EV to Sales
0.96
PEG Ratio
NA
Dividend Yield
2.77%
ROCE (Latest)
22.96%
ROE (Latest)
13.30%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
No Trend
No Trend
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend6What is working for the Company
DPR(Y)
Highest at 23.04%
PBDIT(Q)
Highest at Rs 208.86 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 26.98%
PBT LESS OI(Q)
Highest at Rs 180.16 cr.
PAT(Q)
Highest at Rs 151.37 cr.
EPS(Q)
Highest at Rs 20.75
-4What is not working for the Company
ROCE(HY)
Lowest at 18.09%
DPS(Y)
Lowest at Rs 12.00
CASH AND CASH EQUIVALENTS(HY)
Lowest at Rs 89.92 cr
Loading Valuation Snapshot...
Here's what is working for GHCL
Operating Profit (PBDIT) - Quarterly
Highest at Rs 208.86 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 26.98%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 180.16 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 151.37 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 20.75
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Dividend Payout Ratio (DPR) - Annually
Highest at 23.04%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Here's what is not working for GHCL
Cash and Cash Equivalents - Half Yearly
Lowest at Rs 89.92 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Dividend per Share (DPS) - Annually
Lowest at Rs 12.00
in the last five yearsMOJO Watch
Company is distributing lower dividend than previous years
DPS (Rs)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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