NACL Industries Ltd (NACLIND) 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

Bhagiradha Chem.

Sumitomo Chemi.

Bayer CropSci.

NACL Industries

GSP Crop Science

Sharda Cropchem

Rallis India

Bharat Rasayan

Dhanuka Agritech

Insecticid.India

P I Industries

Why is NACL Industries Ltd ?

Weak Long Term Fundamental Strength with a -5.81% CAGR growth in Operating Profits over the last 5 years

Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.03 times
The company has been able to generate a Return on Equity (avg) of 6.65% signifying low profitability per unit of shareholders funds

With a growth in Net Profit of 57.88%, the company declared Very Positive results in Jun 26

The company has declared positive results for the last 2 consecutive quarters
PAT(Latest six months) Higher at Rs 19.98 cr
ROCE(HY) Highest at 7.39%
OPERATING PROFIT TO INTEREST(Q) Highest at 6.82 times

With ROCE of 7.4, it has a Expensive valuation with a 4.6 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -37.46%, its profits have risen by 122% ; the PEG ratio of the company is 1.8

Despite the size of the company, domestic mutual funds hold only 0% of the company

Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to NACL Industries should be less than 10%
Overall Portfolio exposure to Pesticides & Agrochemicals should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pesticides & Agrochemicals)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is NACL Industries for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

NACL Industries

-37.46%

-0.65

57.79%

Sensex

-2.63%

-0.19

13.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.75%

EBIT Growth (5y)

-5.81%

EBIT to Interest (avg)

1.42

Debt to EBITDA (avg)

4.53

Net Debt to Equity (avg)

0.41

Sales to Capital Employed (avg)

1.56

Tax Ratio

38.09%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

1.41%

ROCE (avg)

4.95%

ROE (avg)

6.65%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

216

Industry P/E

Price to Book Value

6.11

EV to EBIT

61.18

EV to EBITDA

41.92

EV to Capital Employed

4.63

EV to Sales

2.93

PEG Ratio

1.79

Dividend Yield

ROCE (Latest)

7.38%

ROE (Latest)

1.68%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Bullish

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

25What is working for the Company

PAT(Latest six months)

Higher at Rs 19.98 cr

ROCE(HY)

Highest at 7.39%

OPERATING PROFIT TO INTEREST(Q)

Highest at 6.82 times

DEBT-EQUITY RATIO(HY)

Lowest at 0.46 times

OPERATING PROFIT TO NET SALES(Q)

Highest at 10.80%

PBT LESS OI(Q)

Highest at Rs 26.44 cr.

EPS(Q)

Highest at Rs 0.89

-2What is not working for the Company

NET SALES(Q)

At Rs 383.33 cr has Fallen at -14.50%

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Here's what is working for NACL Industries

Operating Profit to Interest - Quarterly

Highest at 6.82 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 26.44 cr has Grown at 57.85%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 20.84 cr has Grown at 59.8%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 10.80%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 26.44 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 20.84 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 0.89

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Debt-Equity Ratio - Half Yearly

Lowest at 0.46 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

Here's what is not working for NACL Industries

Net Sales - Quarterly

At Rs 383.33 cr has Fallen at -14.50%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Non Operating Income - Quarterly

Highest at Rs 1.89 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income