Why is Sukhjit Starch & Chemicals Ltd ?
1
Low ability to service debt as the company has a high Debt to EBITDA ratio of 2.52 times
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 2.52 times
2
Poor long term growth as Operating profit has grown by an annual rate 0.21% of over the last 5 years
3
The company has declared Negative results for the last 5 consecutive quarters
- PBT LESS OI(Q) At Rs 2.46 cr has Fallen at -42.1% (vs previous 4Q average)
- PAT(Q) At Rs 3.13 cr has Fallen at -45.3% (vs previous 4Q average)
- INTEREST(Latest six months) At Rs 16.86 cr has Grown at 27.73%
4
With ROCE of 5.4, it has a Attractive valuation with a 1 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 -1.46%, its profits have fallen by -68.9%
5
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
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, Low Return
Absolute
Risk Adjusted
Volatility
Sukhjit Starch
-1.46%
-0.04
41.59%
Sensex
8.53%
0.73
11.73%
Quality key factors
Factor
Value
Sales Growth (5y)
16.63%
EBIT Growth (5y)
0.21%
EBIT to Interest (avg)
3.11
Debt to EBITDA (avg)
2.94
Net Debt to Equity (avg)
0.58
Sales to Capital Employed (avg)
1.57
Tax Ratio
21.89%
Dividend Payout Ratio
7.82%
Pledged Shares
0
Institutional Holding
0.02%
ROCE (avg)
12.49%
ROE (avg)
11.12%
Valuation Key Factors 
Factor
Value
P/E Ratio
37
Industry P/E
38
Price to Book Value
1.04
EV to EBIT
24.13
EV to EBITDA
12.08
EV to Capital Employed
1.02
EV to Sales
0.64
PEG Ratio
NA
Dividend Yield
0.55%
ROCE (Latest)
5.39%
ROE (Latest)
4.16%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bearish
Moving Averages
Bullish (Daily)
KST
Bullish
Bearish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Movement
1What is working for the Company
CASH AND CASH EQUIVALENTS(HY)
Highest at Rs 16.09 cr
-18What is not working for the Company
PBT LESS OI(Q)
At Rs 2.46 cr has Fallen at -42.1% (vs previous 4Q average
PAT(Q)
At Rs 3.13 cr has Fallen at -45.3% (vs previous 4Q average
INTEREST(Latest six months)
At Rs 16.86 cr has Grown at 27.73%
ROCE(HY)
Lowest at 6.21%
NON-OPERATING INCOME(Q)
is 41.15 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for Sukhjit Starch
Cash and Cash Equivalents - Half Yearly
Highest at Rs 16.09 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Here's what is not working for Sukhjit Starch
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 2.46 cr has Fallen at -42.1% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 4.25 CrMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 3.13 cr has Fallen at -45.3% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 5.72 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Interest - Latest six months
At Rs 16.86 cr has Grown at 27.73%
over previous Half yearly periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Non Operating Income - Quarterly
is 41.15 % 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






