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

Titan Biotech

Nitta Gelatin

Indo Amines

Platinum Industr

Excel Industries

Fairchem Organic

Vidhi Specialty

Jyoti Resins

Oriental Aromat.

Paushak

Gem Aromatics

Why is Oriental Aromatics Ltd ?

Weak Long Term Fundamental Strength with a -15.52% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 5.75% signifying low profitability per unit of shareholders funds

The company has declared Negative results for the last 4 consecutive quarters

PAT(Q) At Rs -1.92 cr has Fallen at -126.9%
INTEREST(9M) At Rs 27.09 cr has Grown at 27.06%
OPERATING PROFIT TO INTEREST (Q) Lowest at 1.42 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

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -2.75% 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 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.

-2.75%

-0.06

44.83%

Sensex

8.52%

0.74

11.46%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.65%

EBIT Growth (5y)

-15.52%

EBIT to Interest (avg)

7.06

Debt to EBITDA (avg)

3.17

Net Debt to Equity (avg)

0.60

Sales to Capital Employed (avg)

1.04

Tax Ratio

89.44%

Dividend Payout Ratio

4.90%

Pledged Shares

Institutional Holding

0.03%

ROCE (avg)

8.62%

ROE (avg)

5.75%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

1342

Industry P/E

Price to Book Value

1.50

EV to EBIT

37.27

EV to EBITDA

20.47

EV to Capital Employed

1.31

EV to Sales

1.39

PEG Ratio

Dividend Yield

0.17%

ROCE (Latest)

4.54%

ROE (Latest)

1.48%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-19What is not working for the Company

PAT(Q)

At Rs -1.92 cr has Fallen at -126.9%

INTEREST(9M)

At Rs 27.09 cr has Grown at 27.06%

OPERATING PROFIT TO INTEREST (Q)

Lowest at 1.42 times

PBDIT(Q)

Lowest at Rs 13.22 cr.

PBT LESS OI(Q)

Lowest at Rs -3.90 cr.

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 3.57 cr

DEBT-EQUITY RATIO(HY)

Highest at 0.60 times

OPERATING PROFIT TO NET SALES (Q)

Lowest at 5.26%

EPS(Q)

Lowest at Rs -0.57

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Here's what is not working for Oriental Aromat.

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs -3.90 cr has Fallen at -139.84%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs -1.92 cr has Fallen at -126.9%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Operating Profit to Interest - Quarterly

Lowest at 1.42 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 13.22 cr. and Fallen

each quarter in the last five quarters

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs -3.90 cr. and Fallen

each quarter in the last five quarters

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Interest - Nine Monthly

At Rs 27.09 cr has Grown at 27.06%

over preceding nine months period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Operating Profit Margin - Quarterly

Lowest at 5.26%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Earnings per Share (EPS) - Quarterly

Lowest at Rs -0.57

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 3.57 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio - Half Yearly

Highest at 0.60 times

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