Kanoria Chemicals & Industries Ltd (KANORICHEM) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Alufluoride

Lords Chloro

Mangalam Organic

Kesar Petroprod.

Kanoria Chem.

National Perox.

Andhra Petrochem

Hind.Organ.Chem.

OCCL

DCM Shriram Fine

ZR2 Bioenergy

Why is Kanoria Chemicals & Industries Ltd ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 1.64%

Poor long term growth as Net Sales has grown by an annual rate of 2.67% and Operating profit at 5.74% over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 8.11 times

29.57% of Promoter Shares are Pledged

In falling markets, high promoter pledged shares puts additional downward pressure on the stock prices

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -17.71% 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 Kanoria Chem. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kanoria Chem.

-17.71%

-0.41

43.50%

Sensex

8.53%

0.73

11.73%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.67%

EBIT Growth (5y)

5.74%

EBIT to Interest (avg)

0.29

Debt to EBITDA (avg)

8.98

Net Debt to Equity (avg)

0.53

Sales to Capital Employed (avg)

1.25

Tax Ratio

38.48%

Dividend Payout Ratio

Pledged Shares

29.57%

Institutional Holding

0.07%

ROCE (avg)

0.93%

ROE (avg)

1.89%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

196

Industry P/E

Price to Book Value

0.58

EV to EBIT

31.71

EV to EBITDA

9.59

EV to Capital Employed

0.72

EV to Sales

0.53

PEG Ratio

1.84

Dividend Yield

ROCE (Latest)

1.75%

ROE (Latest)

1.49%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

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

23What is working for the Company

PAT(Latest six months)

At Rs 96.99 cr has Grown at 5,571.93%

PBT LESS OI(Q)

At Rs 3.34 cr has Grown at 117.7% (vs previous 4Q average

NET SALES(Latest six months)

At Rs 475.66 cr has Grown at 33.27%

OPERATING PROFIT TO INTEREST(Q)

Highest at 2.60 times

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 46.03 cr

DEBT-EQUITY RATIO(HY)

Lowest at 0.62 times

DEBTORS TURNOVER RATIO(HY)

Highest at 9.01 times

PBDIT(Q)

Highest at Rs 19.88 cr.

-5What is not working for the Company

PAT(Q)

At Rs 3.55 cr has Fallen at -84.0% (vs previous 4Q average

NON-OPERATING INCOME(Q)

is 41.71 % of Profit Before Tax (PBT

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Here's what is working for Kanoria Chem.

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 3.34 cr has Grown at 117.7% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs -18.89 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Operating Profit to Interest - Quarterly

Highest at 2.60 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales - Latest six months

At Rs 475.66 cr has Grown at 33.27%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 19.88 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 46.03 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio - Half Yearly

Lowest at 0.62 times

in the last five half yearly periods

MOJO Watch

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

Debt-Equity Ratio

Debtors Turnover Ratio- Half Yearly

Highest at 9.01 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 Kanoria Chem.

Profit After Tax (PAT) - Quarterly

At Rs 3.55 cr has Fallen at -84.0% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 22.18 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Non Operating Income - Quarterly

is 41.71 % 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