ScoreWhy is Zuari Agro Chemicals Ltd ?
1
High Debt company with Weak Long Term Fundamental Strength
- Poor long term growth as Net Sales has grown by an annual rate of 8.83% 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)
2
With a growth in Net Profit of 1108.86%, the company declared Outstanding results in Sep 25
- The company has declared positive results for the last 2 consecutive quarters
- OPERATING CF(Y) Highest at Rs 511.47 Cr
- PBT LESS OI(Q) At Rs 217.73 cr has Grown at 148.4% (vs previous 4Q average)
- ROCE(HY) Highest at 20.80%
3
With ROCE of 11.8, it has a Very Attractive valuation with a 0.6 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 15.26%, its profits have risen by 78.2% ; the PEG ratio of the company is 0.1
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Zuari Agro Chem. should be less than 10%
- Overall Portfolio exposure to Fertilizers should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Fertilizers)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Zuari Agro Chem. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Zuari Agro Chem.
15.15%
0.28
54.70%
Sensex
4.83%
0.41
11.83%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
8.83%
EBIT Growth (5y)
40.92%
EBIT to Interest (avg)
1.36
Debt to EBITDA (avg)
6.51
Net Debt to Equity (avg)
0.21
Sales to Capital Employed (avg)
1.40
Tax Ratio
18.96%
Dividend Payout Ratio
4.95%
Pledged Shares
8.02%
Institutional Holding
2.94%
ROCE (avg)
9.45%
ROE (avg)
13.53%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
4
Industry P/E
24
Price to Book Value
0.49
EV to EBIT
4.91
EV to EBITDA
3.84
EV to Capital Employed
0.58
EV to Sales
0.36
PEG Ratio
0.05
Dividend Yield
NA
ROCE (Latest)
11.81%
ROE (Latest)
12.61%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend35What is working for the Company
OPERATING CF(Y)
Highest at Rs 511.47 Cr
PBT LESS OI(Q)
At Rs 217.73 cr has Grown at 148.4% (vs previous 4Q average
ROCE(HY)
Highest at 20.80%
DEBT-EQUITY RATIO(HY)
Lowest at 0.24 times
OPERATING PROFIT TO INTEREST(Q)
Highest at 5.43 times
NET SALES(Q)
Highest at Rs 1,422.63 cr
PBDIT(Q)
Highest at Rs 173.76 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 12.21%
PAT(Q)
Highest at Rs 145.56 cr.
EPS(Q)
Highest at Rs 191.67
-1What is not working for the Company
CASH AND CASH EQUIVALENTS(HY)
Lowest at Rs 64.07 cr
Loading Valuation Snapshot...
Here's what is working for Zuari Agro Chem.
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 217.73 cr has Grown at 148.4% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 87.66 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 145.56 cr has Grown at 128.7% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 63.65 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Operating Cash Flow - Annually
Highest at Rs 511.47 Cr and Grown
each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (Rs Cr)
Operating Profit to Interest - Quarterly
Highest at 5.43 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Debt-Equity Ratio - Half Yearly
Lowest at 0.24 times and Fallen
each half year in the last five half yearly periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Net Sales - Quarterly
Highest at Rs 1,422.63 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Net Sales - Quarterly
At Rs 1,422.63 cr has Grown at 24.1% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 1,146.37 CrMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 173.76 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 12.21%
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 217.73 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 145.56 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 191.67
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for Zuari Agro Chem.
Cash and Cash Equivalents - Half Yearly
Lowest at Rs 64.07 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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