Zuari Agro Chemicals Ltd (ZUARI) 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

Krishana Phosch.

Aries Agro

SPIC

Rama Phosphates

Khaitan Chemical

Indogulf Cropsci

Natl.Fertilizer

Madras Fertilize

Zuari Agro Chem.

Kothari Indl

Balaji Phos.

Why is Zuari Agro Chemicals Ltd ?

High Debt company with Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of -0.80% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at 2.72 times
The company has been able to generate a Return on Capital Employed (avg) of 9.58% signifying low profitability per unit of total capital (equity and debt)
NET SALES(Q) At Rs 343.70 cr has Fallen at -71.9% (vs previous 4Q average)
PBT LESS OI(Q) At Rs 31.46 cr has Fallen at -73.3% (vs previous 4Q average)
PAT(Q) At Rs 42.58 cr has Fallen at -46.6% (vs previous 4Q average)

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

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 Fertilizers)

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

Is Zuari Agro Chem. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Zuari Agro Chem.

6.88%

0.12

57.54%

Sensex

-2.38%

-0.19

12.70%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.80%

EBIT Growth (5y)

44.70%

EBIT to Interest (avg)

1.48

Debt to EBITDA (avg)

6.51

Net Debt to Equity (avg)

0.21

Sales to Capital Employed (avg)

1.40

Tax Ratio

17.65%

Dividend Payout Ratio

4.95%

Pledged Shares

21.51%

Institutional Holding

2.80%

ROCE (avg)

9.45%

ROE (avg)

13.53%

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

0.33

EV to EBIT

4.94

EV to EBITDA

3.84

EV to Capital Employed

0.45

EV to Sales

0.35

PEG Ratio

0.07

Dividend Yield

ROCE (Latest)

11.81%

ROE (Latest)

12.61%

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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

Bearish

Bullish

Dow Theory

No Trend

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

11What is working for the Company

PAT(Latest six months)

At Rs 188.14 cr has Grown at 38.58%

ROCE(HY)

Highest at 20.80%

DEBT-EQUITY RATIO(HY)

Lowest at 0.24 times

-17What is not working for the Company

NET SALES(Q)

At Rs 343.70 cr has Fallen at -71.9% (vs previous 4Q average

PBT LESS OI(Q)

At Rs 31.46 cr has Fallen at -73.3% (vs previous 4Q average

PAT(Q)

At Rs 42.58 cr has Fallen at -46.6% (vs previous 4Q average

OPERATING PROFIT TO INTEREST (Q)

Lowest at 0.52 times

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 64.07 cr

PBDIT(Q)

Lowest at Rs 9.27 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 2.70%

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Here's what is working for Zuari Agro Chem.

Debt-Equity Ratio - Half Yearly

Lowest at 0.24 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

Here's what is not working for Zuari Agro Chem.

Net Sales - Quarterly

At Rs 343.70 cr has Fallen at -71.9% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 1,221.20 Cr

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 31.46 cr has Fallen at -73.3% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 117.90 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 42.58 cr has Fallen at -46.6% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 79.73 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Operating Profit to Interest - Quarterly

Lowest at 0.52 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales - Quarterly

Lowest at Rs 343.70 cr

in the last five quarters

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 9.27 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at 2.70%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 64.07 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents