Why is Sukhjit Starch & Chemicals Ltd ?
1
Poor long term growth as Net Sales has grown by an annual rate of 13.26% and Operating profit at 0.61% over the last 5 years
2
Positive results in Jun 26
- OPERATING PROFIT TO INTEREST(Q) Highest at 4.50 times
- PAT(Q) At Rs 12.15 cr has Grown at 79.8% (vs previous 4Q average)
- PBDIT(Q) Highest at Rs 30.15 cr.
3
With ROCE of 5.9, it has a Very Attractive valuation with a 0.9 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 -5.34%, its profits have risen by 9.7% ; the PEG ratio of the company is 1.5
4
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
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -5.34% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods
How much should you hold?
- Overall Portfolio exposure to Sukhjit Starch should be less than 10%
- Overall Portfolio exposure to Other Agricultural Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Agricultural Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Sukhjit Starch for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Sukhjit Starch
-5.34%
-0.12
44.47%
Sensex
-3.21%
-0.24
13.52%
Quality key factors
Factor
Value
Sales Growth (5y)
13.26%
EBIT Growth (5y)
0.61%
EBIT to Interest (avg)
3.19
Debt to EBITDA (avg)
2.92
Net Debt to Equity (avg)
0.45
Sales to Capital Employed (avg)
1.62
Tax Ratio
24.70%
Dividend Payout Ratio
7.82%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
12.36%
ROE (avg)
10.67%
Valuation Key Factors 
Factor
Value
P/E Ratio
15
Industry P/E
44
Price to Book Value
0.88
EV to EBIT
12.62
EV to EBITDA
8.05
EV to Capital Employed
0.92
EV to Sales
0.52
PEG Ratio
1.50
Dividend Yield
0.63%
ROCE (Latest)
5.86%
ROE (Latest)
4.76%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bearish
No Trend
Technical Movement
20What is working for the Company
OPERATING PROFIT TO INTEREST(Q)
Highest at 4.50 times
PAT(Q)
At Rs 12.15 cr has Grown at 79.8% (vs previous 4Q average
PBDIT(Q)
Highest at Rs 30.15 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 7.62%
PBT LESS OI(Q)
Highest at Rs 14.85 cr.
-1What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Loading Valuation Snapshot...
Here's what is working for Sukhjit Starch
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 14.85 cr has Grown at 250.6% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 4.24 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Operating Profit to Interest - Quarterly
Highest at 4.50 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Profit After Tax (PAT) - Quarterly
At Rs 12.15 cr has Grown at 79.8% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 6.76 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 30.15 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 7.62%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 14.85 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)






