Primo Chemicals Ltd (PRIMO) 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

Mangalam Organic

Primo Chemicals

Transpek Inds.

Sr.Rayala.Hypo

Indo Borax & Ch.

POCL Enterprises

Tuticorin Alkali

Vikram Thermo

Chemfab Alka.

Sadhana Nitro

OCCL

Why is Primo Chemicals Ltd ?

Poor long term growth as Net Sales has grown by an annual rate of 11.63% over the last 5 years

PBT LESS OI(Q) At Rs 2.16 cr has Grown at 1083.6% (vs previous 4Q average)
DEBT-EQUITY RATIO(HY) Lowest at 0.32 times
OPERATING PROFIT TO INTEREST(Q) Highest at 4.90 times

With ROCE of 2.9, it has a Fair valuation with a 1.4 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 0.80%, its profits have risen by 336.8% ; the PEG ratio of the company is 0.1

Majority shareholders : Non Institution

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Primo Chemicals should be less than 10%
Overall Portfolio exposure to Commodity Chemicals should be less than 30%

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

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

Is Primo Chemicals for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Primo Chemicals

0.8%

0.02

44.45%

Sensex

-3.33%

-0.25

13.43%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.63%

EBIT Growth (5y)

70.54%

EBIT to Interest (avg)

5.77

Debt to EBITDA (avg)

4.63

Net Debt to Equity (avg)

0.39

Sales to Capital Employed (avg)

1.08

Tax Ratio

37.22%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

2.00%

ROCE (avg)

12.80%

ROE (avg)

14.79%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.49

EV to EBIT

46.50

EV to EBITDA

10.70

EV to Capital Employed

1.37

EV to Sales

1.30

PEG Ratio

0.12

Dividend Yield

ROCE (Latest)

2.95%

ROE (Latest)

3.83%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Dow Theory

Mildly Bullish

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

17What is working for the Company

PBT LESS OI(Q)

At Rs 2.16 cr has Grown at 1083.6% (vs previous 4Q average

DEBT-EQUITY RATIO(HY)

Lowest at 0.32 times

OPERATING PROFIT TO INTEREST(Q)

Highest at 4.90 times

DEBTORS TURNOVER RATIO(HY)

Highest at 17.66 times

PAT(Q)

Highest at Rs 6.06 cr.

EPS(Q)

Highest at Rs 0.25

-3What is not working for the Company

PAT(9M)

At Rs 11.27 cr has Grown at -23.88%

NON-OPERATING INCOME(Q)

is 72.34 % of Profit Before Tax (PBT

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Here's what is working for Primo Chemicals

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 2.16 cr has Grown at 1083.6% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 0.18 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 6.06 cr has Grown at 173.1% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 2.22 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Operating Profit to Interest - Quarterly

Highest at 4.90 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Debt-Equity Ratio - Half Yearly

Lowest at 0.32 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

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

Debt-Equity Ratio

Profit After Tax (PAT) - Quarterly

Highest at Rs 6.06 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 0.25

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Debtors Turnover Ratio- Half Yearly

Highest at 17.66 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 Primo Chemicals

Non Operating Income - Quarterly

is 72.34 % 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

Non Operating Income - Quarterly

Highest at Rs 5.65 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income