Oriental Aromatics Ltd (OAL) 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

Sunshield Chem.

Nitta Gelatin

Indo Amines

Platinum Industr

Jyoti Resins

Paushak

Oriental Aromat.

Excel Industries

Vidhi Specialty

S H Kelkar & Co.

Indokem

Why is Oriental Aromatics Ltd ?

Weak Long Term Fundamental Strength with a -23.01% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 3.82% signifying low profitability per unit of shareholders funds

Flat results in Mar 26

PAT(9M) At Rs 2.81 cr has Grown at -87.96%
INTEREST(9M) At Rs 27.68 cr has Grown at 20.09%
DEBT-EQUITY RATIO(HY) Highest at 0.61 times

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

Underperformed the market in the last 1 year

Even though the market (BSE500) generated negative returns of -2.24% in the last 1 year, its fall in the stock was much higher with a return of -14.42%

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 Oriental Aromat. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Oriental Aromat.

-14.42%

-0.33

44.02%

Sensex

-7.55%

-0.58

13.06%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.77%

EBIT Growth (5y)

-23.01%

EBIT to Interest (avg)

4.58

Debt to EBITDA (avg)

3.71

Net Debt to Equity (avg)

0.58

Sales to Capital Employed (avg)

1.03

Tax Ratio

69.36%

Dividend Payout Ratio

4.90%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

6.75%

ROE (avg)

3.82%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

331

Industry P/E

Price to Book Value

1.65

EV to EBIT

40.15

EV to EBITDA

21.81

EV to Capital Employed

1.41

EV to Sales

1.44

PEG Ratio

Dividend Yield

0.15%

ROCE (Latest)

3.51%

ROE (Latest)

0.50%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

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

9What is working for the Company

PAT(Q)

At Rs 3.99 cr has Grown at 181.0%

OPERATING PROFIT TO INTEREST(Q)

Highest at 2.25 times

NET SALES(Q)

Highest at Rs 282.37 cr

PBDIT(Q)

Highest at Rs 19.46 cr.

EPS(Q)

Highest at Rs 1.19

-14What is not working for the Company

PAT(9M)

At Rs 2.81 cr has Grown at -87.96%

INTEREST(9M)

At Rs 27.68 cr has Grown at 20.09%

DEBT-EQUITY RATIO(HY)

Highest at 0.61 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.09 times

NON-OPERATING INCOME(Q)

is 58.25 % of Profit Before Tax (PBT

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Here's what is working for Oriental Aromat.

Profit After Tax (PAT) - Quarterly

At Rs 3.99 cr has Grown at 181.0%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Operating Profit to Interest - Quarterly

Highest at 2.25 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales - Quarterly

Highest at Rs 282.37 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 19.46 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 3.99 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 1.19

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 Oriental Aromat.

Debt-Equity Ratio - Half Yearly

Highest at 0.61 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 - Nine Monthly

At Rs 27.68 cr has Grown at 20.09%

over preceding nine months period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Non Operating Income - Quarterly

is 58.25 % 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

Debtors Turnover Ratio- Half Yearly

Lowest at 4.09 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio

Non Operating Income - Quarterly

Highest at Rs 4.27 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income