Why is Hindustan Organic Chemicals Ltd ?
1
With a Operating Losses, the company has a Weak Long Term Fundamental Strength
- Poor long term growth as Operating profit has grown by an annual rate -62.57% of over the last 5 years
- Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -1.06
2
Flat results in Sep 25
- OPERATING PROFIT TO INTEREST (Q) Lowest at -3.26 times
- DEBT-EQUITY RATIO(HY) Highest at 0.23 times
- NET SALES(Q) Lowest at Rs 126.27 cr
3
Risky - Negative EBITDA
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of -31.77%, its profits have fallen by -12.7%
4
Below par performance in long term as well as near term
- Along with generating -31.77% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months
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 Hind.Organ.Chem. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Hind.Organ.Chem.
-31.77%
-0.59
54.26%
Sensex
4.67%
0.39
11.83%
Quality key factors
Factor
Value
Sales Growth (5y)
10.38%
EBIT Growth (5y)
-62.57%
EBIT to Interest (avg)
-1.06
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
-0.02
Sales to Capital Employed (avg)
2.37
Tax Ratio
0.79%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0.02%
ROCE (avg)
-2.35%
ROE (avg)
0
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
40
Price to Book Value
0.20
EV to EBIT
-1.96
EV to EBITDA
-2.00
EV to Capital Employed
0.19
EV to Sales
0.31
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-9.46%
ROE (Latest)
-8.81%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
No Trend
No Trend
Technical Movement
6What is working for the Company
OPERATING CF(Y)
Highest at Rs 631.40 Cr
NET SALES(Latest six months)
At Rs 290.16 cr has Grown at 23.96%
DEBTORS TURNOVER RATIO(HY)
Highest at 53.38 times
-7What is not working for the Company
OPERATING PROFIT TO INTEREST (Q)
Lowest at -3.26 times
DEBT-EQUITY RATIO(HY)
Highest at 0.23 times
NET SALES(Q)
Lowest at Rs 126.27 cr
Loading Valuation Snapshot...
Here's what is working for Hind.Organ.Chem.
Operating Cash Flow - Annually
Highest at Rs 631.40 Cr
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (Rs Cr)
Debtors Turnover Ratio- Half Yearly
Highest at 53.38 times
in the last five half yearly periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio
Here's what is not working for Hind.Organ.Chem.
Net Sales - Quarterly
At Rs 126.27 cr has Fallen at -21.1% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 160.10 CrMOJO Watch
Near term sales trend is very negative
Net Sales (Rs Cr)
Operating Profit to Interest - Quarterly
Lowest at -3.26 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Net Sales - Quarterly
Lowest at Rs 126.27 cr
in the last five quartersMOJO Watch
Near term sales trend is negative
Net Sales (Rs Cr)
Debt-Equity Ratio - Half Yearly
Highest at 0.23 times
in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio






