Organic Coatings Ltd () 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

Vikram Aroma

Machhar Industri

C J Gelatine

Vellora Impact

AMS Polymers

Organic Coatings

Indo Euro Indch.

Daikaffil Chem

Seya Industries

Chemiesynth(Vapi

Omkar Spl.Chem.

Why is Organic Coatings Ltd ?

With HIgh Debt (Debt-Equity Ratio at 9.19 times)- the company has a Weak Long Term Fundamental Strength

Poor long term growth as Operating profit has grown by an annual rate -186.56% of over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) of 6.82 times
The company has been able to generate a Return on Capital Employed (avg) of 2.61% signifying low profitability per unit of total capital (equity and debt)

Risky - Negative EBITDA

The company has recorded a negative EBITDA of Rs. -1.25 cr
Over the past year, while the stock has generated a return of 10.16%, its profits have risen by 14%
The stock is trading risky as compared to its average historical valuations

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 Specialty Chemicals)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Organic Coatings for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Organic Coatings

10.16%

0.18

57.67%

Sensex

-10.5%

-0.78

13.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.33%

EBIT Growth (5y)

-187.06%

EBIT to Interest (avg)

-0.62

Debt to EBITDA (avg)

4.58

Net Debt to Equity (avg)

9.19

Sales to Capital Employed (avg)

2.07

Tax Ratio

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.50%

ROCE (avg)

-4.75%

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

17.95

EV to EBIT

-12.45

EV to EBITDA

-21.72

EV to Capital Employed

2.95

EV to Sales

0.84

PEG Ratio

Dividend Yield

ROCE (Latest)

-28.88%

ROE (Latest)

-277.00%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

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

15What is working for the Company

NET SALES(Q)

Highest at Rs 11.22 cr

PBDIT(Q)

Highest at Rs 0.03 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 0.27%

PBT LESS OI(Q)

Highest at Rs -0.37 cr.

PAT(Q)

Highest at Rs -0.36 cr.

EPS(Q)

Highest at Rs -0.36

-4What is not working for the Company

ROCE(HY)

Lowest at -25.05%

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.49 times

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Here's what is working for Organic Coatings

Net Sales - Quarterly

At Rs 11.22 cr has Grown at 59.8% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 7.02 Cr

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Net Sales - Quarterly

Highest at Rs 11.22 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 0.03 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 0.27%

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 -0.37 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 -0.36 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 -0.36

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Here's what is not working for Organic Coatings

Debtors Turnover Ratio- Half Yearly

Lowest at 3.49 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio