Sudarshan Chemical Industries Ltd (SUDARSCHEM) 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

Sh.Pushkar Chem.

Bhageria Indust.

Ultramarine Pig.

Sudarshan Colora

Bodal Chemicals

Poddar Pigments

Sudarshan Chem

Asahi Songwon

Kiri Industries

Ducol Organics

Renol Polychem

Why is Sudarshan Chemical Industries Ltd ?

Poor long term growth as Operating profit has grown by an annual rate -4.15% of over the last 5 years

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

OPERATING PROFIT TO INTEREST(Q) Lowest at 1.04 times
PAT(Q) At Rs -69.90 cr has Fallen at -1909.7%
INTEREST(Latest six months) At Rs 80.00 cr has Grown at 22.96%

Underperformed the market in the last 1 year

Even though the market (BSE500) generated negative returns of -3.31% in the last 1 year, its fall in the stock was much higher with a return of -24.54%

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 Dyes And Pigments)

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

Is Sudarshan Chem for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sudarshan Chem

-24.54%

-0.71

34.48%

Sensex

-5.47%

-0.43

12.65%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

36.89%

EBIT Growth (5y)

-4.15%

EBIT to Interest (avg)

4.88

Debt to EBITDA (avg)

3.24

Net Debt to Equity (avg)

0.35

Sales to Capital Employed (avg)

1.29

Tax Ratio

100.00%

Dividend Payout Ratio

63.42%

Pledged Shares

Institutional Holding

32.81%

ROCE (avg)

9.72%

ROE (avg)

10.08%

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

1.71

EV to EBIT

53.66

EV to EBITDA

14.86

EV to Capital Employed

1.53

EV to Sales

0.87

PEG Ratio

Dividend Yield

0.59%

ROCE (Latest)

5.05%

ROE (Latest)

1.72%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

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

14What is working for the Company

NET SALES(Q)

At Rs 2,103.00 cr has Grown at 215.56%

DEBTORS TURNOVER RATIO(HY)

Highest at 5.73 times

-21What is not working for the Company

OPERATING PROFIT TO INTEREST(Q)

Lowest at 1.04 times

PAT(Q)

At Rs -69.90 cr has Fallen at -1909.7%

INTEREST(Latest six months)

At Rs 80.00 cr has Grown at 22.96%

OPERATING PROFIT TO NET SALES(Q)

Lowest at 1.80%

DEBT-EQUITY RATIO(HY)

Highest at 0.72 times

PBDIT(Q)

Lowest at Rs 37.90 cr.

PBT LESS OI(Q)

Lowest at Rs -91.60 cr.

EPS(Q)

Lowest at Rs -14.69

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Here's what is working for Sudarshan Chem

Net Sales - Quarterly

At Rs 2,103.00 cr has Grown at 215.56%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Debtors Turnover Ratio- Half Yearly

Highest at 5.73 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 Sudarshan Chem

Operating Profit to Interest - Quarterly

Lowest at 1.04 times and Fallen

each quarter in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs -91.60 cr has Fallen at -395.20%

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 -69.90 cr has Fallen at -1909.7%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at 1.80% and Fallen

each quarter in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Interest - Latest six months

At Rs 80.00 cr has Grown at 22.96%

over previous Half yearly period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 37.90 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs -91.60 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs -14.69

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Debt-Equity Ratio - Half Yearly

Highest at 0.72 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