Gujarat Alkalies & Chemicals Ltd (GUJALKALI) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Fischer Medical

India Glycols

Tanfac Inds.

Blue Pearl Agri

J.G.Chemicals

GHCL

TruAlt Bioenergy

Grauer & Weil

Chemplast Sanmar

Gujarat Alkalies

Thirumalai Chem.

Why is Gujarat Alkalies & Chemicals Ltd ?

Poor long term growth as Operating profit has grown by an annual rate -65.17% of over the last 5 years

Flat results in Sep 25

INTEREST(9M) At Rs 47.63 cr has Grown at 47.23%
PBT LESS OI(Q) At Rs -45.75 cr has Fallen at -40.5% (vs previous 4Q average)
DEBT-EQUITY RATIO(HY) Highest at 0.11 times

With ROE of 0, it has a Expensive valuation with a 0.6 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 -31.33%, its profits have risen by 100.1% ; the PEG ratio of the company is 232.3

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -31.33% 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 Gujarat Alkalies for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Gujarat Alkalies

-31.65%

-0.95

33.40%

Sensex

7.07%

0.61

11.53%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.47%

EBIT Growth (5y)

-65.17%

EBIT to Interest (avg)

37.23

Debt to EBITDA (avg)

1.56

Net Debt to Equity (avg)

0.04

Sales to Capital Employed (avg)

0.59

Tax Ratio

100.00%

Dividend Payout Ratio

-42.95%

Pledged Shares

Institutional Holding

5.71%

ROCE (avg)

4.83%

ROE (avg)

3.21%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

23245

Industry P/E

Price to Book Value

0.63

EV to EBIT

3732.18

EV to EBITDA

9.28

EV to Capital Employed

0.64

EV to Sales

0.87

PEG Ratio

232.30

Dividend Yield

3.33%

ROCE (Latest)

0.02%

ROE (Latest)

0.00%

Loading Valuation Snapshot...

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

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

2What is working for the Company

NO KEY POSITIVE TRIGGERS

-12What is not working for the Company

PAT(Q)

At Rs -19.95 cr has Fallen at -53300.0% (vs previous 4Q average

DEBT-EQUITY RATIO(HY)

Highest at 0.11 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 14.57 times

INTEREST(Q)

Highest at Rs 18.48 cr

NON-OPERATING INCOME(Q)

is 795.56 % of Profit Before Tax (PBT

EPS(Q)

Lowest at Rs -2.72

Loading Valuation Snapshot...

Here's what is not working for Gujarat Alkalies

Profit After Tax (PAT) - Quarterly

At Rs -19.95 cr has Fallen at -53300.0% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 0.04 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Debt-Equity Ratio - Half Yearly

Highest at 0.11 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

Interest - Quarterly

Highest at Rs 18.48 cr

in the last five quarters and Increased by 17.18 % (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Non Operating Income - Quarterly

is 795.56 % 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

Earnings per Share (EPS) - Quarterly

Lowest at Rs -2.72

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Debtors Turnover Ratio- Half Yearly

Lowest at 14.57 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio