Punjab Chemicals & Crop Protection Ltd (PUNJABCHEM) 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

Best Agrolife

Punjab Chemicals

Advance Agrolife

Dharmaj Crop

GSP Crop Science

Bharat Rasayan

Meghmani Organi.

Insecticid.India

India Pesticides

Astec Lifescienc

Heranba Inds

Why is Punjab Chemicals & Crop Protection Ltd ?

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.31 times

Poor long term growth as Operating profit has grown by an annual rate -0.12% of over the last 5 years

Positive results in Jun 26

OPERATING PROFIT TO INTEREST(Q) Highest at 9.93 times
NET SALES(Q) Highest at Rs 347.24 cr
PBDIT(Q) Highest at Rs 40.81 cr.

With ROCE of 15.8, it has a Fair valuation with a 2.7 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 -21.83%, its profits have risen by 36.8% ; the PEG ratio of the company is 0.6

Increasing Participation by Institutional Investors

Institutional investors have increased their stake by 2.87% over the previous quarter and collectively hold 6.5% of the company
These investors have better capability and resources to analyse fundamentals of companies than most retail investors

Below par performance in long term as well as near term

Along with generating -21.83% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Punjab Chemicals 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 Punjab Chemicals for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Punjab Chemicals

-21.83%

-0.50

43.92%

Sensex

-3.2%

-0.24

13.59%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.92%

EBIT Growth (5y)

-0.12%

EBIT to Interest (avg)

5.70

Debt to EBITDA (avg)

1.04

Net Debt to Equity (avg)

0.33

Sales to Capital Employed (avg)

2.31

Tax Ratio

24.58%

Dividend Payout Ratio

9.45%

Pledged Shares

Institutional Holding

6.50%

ROCE (avg)

25.19%

ROE (avg)

20.38%

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

3.21

EV to EBIT

15.82

EV to EBITDA

12.07

EV to Capital Employed

2.66

EV to Sales

1.42

PEG Ratio

0.55

Dividend Yield

0.27%

ROCE (Latest)

15.82%

ROE (Latest)

15.47%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

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

14What is working for the Company

OPERATING PROFIT TO INTEREST(Q)

Highest at 9.93 times

NET SALES(Q)

Highest at Rs 347.24 cr

PBDIT(Q)

Highest at Rs 40.81 cr.

PBT LESS OI(Q)

Highest at Rs 29.38 cr.

PAT(Q)

Highest at Rs 22.07 cr.

EPS(Q)

Highest at Rs 18.00

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Loading Valuation Snapshot...

Here's what is working for Punjab Chemicals

Operating Profit to Interest - Quarterly

Highest at 9.93 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 29.38 cr has Grown at 62.7% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 18.06 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Net Sales - Quarterly

Highest at Rs 347.24 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Net Sales - Quarterly

At Rs 347.24 cr has Grown at 34.9% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 257.45 Cr

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 40.81 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 29.38 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 22.07 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 22.07 cr has Grown at 34.8% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 16.38 Cr

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 18.00

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)