ScoreWhy is Polychem Ltd ?
1
Weak Long Term Fundamental Strength with a 3.18% CAGR growth in Operating Profits over the last 5 years
- The company has been able to generate a Return on Capital Employed (avg) of 9.80% signifying low profitability per unit of total capital (equity and debt)
2
Negative results in Dec 24
- PAT(9M) At Rs 1.93 cr has Grown at -60.21%
- NET SALES(9M) At Rs 31.07 cr has Grown at -20.39%
- ROCE(HY) Lowest at 18.10%
3
Stock is technically in a Bearish range
- The technical trend has deteriorated from Mildly Bearish on 31-Jan-25 and has generated -24.17% returns since then
- Multiple factors for the stock are Bearish like MACD, Bollinger Band and KST
4
With ROE of 12.1, it has a Expensive valuation with a 1.8 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -28.45%, its profits have fallen by -32.5%
5
Underperformed the market in the last 1 year
- Even though the market (BSE 500) generated negative returns of -1.02% in the last 1 year, its fall in the stock was much higher with a return of -28.45%
Real-Time Research ReportHow 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 Chemicals)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Polychem for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Polychem
-28.45%
-0.50
56.64%
SENSEX
0.45%
0.02
14.48%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
4.60%
EBIT Growth (5y)
3.18%
EBIT to Interest (avg)
3.01
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
1.28
Tax Ratio
17.75%
Dividend Payout Ratio
16.83%
Pledged Shares
0
Institutional Holding
2.98%
ROCE (avg)
10.27%
ROE (avg)
10.34%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
17
Industry P/E
41
Price to Book Value
1.75
EV to EBIT
15.19
EV to EBITDA
12.39
EV to Capital Employed
1.90
EV to Sales
1.46
PEG Ratio
NA
Dividend Yield
1.63%
ROCE (Latest)
15.31%
ROE (Latest)
12.10%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend3What is working for the Company
DEBTORS TURNOVER RATIO(HY)
Highest at 8.23 times
CASH AND CASH EQUIVALENTS(HY)
Highest at Rs 7.43 cr
-18What is not working for the Company
PAT(9M)
At Rs 1.93 cr has Grown at -60.21%
NET SALES(9M)
At Rs 31.07 cr has Grown at -20.39%
ROCE(HY)
Lowest at 18.10%
Loading Valuation Snapshot...
Here's what is working for Polychem
Debtors Turnover Ratio- Half Yearly
Highest at 8.23 times and Grown
each half year in the last five half yearly periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio
Cash and Cash Equivalents - Half Yearly
Highest at Rs 7.43 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 Polychem
Net Sales - Quarterly
At Rs 10.47 cr has Fallen at -21.10%
Year on Year (YoY)MOJO Watch
Near term sales trend is very negative
Net Sales (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 0.88 cr has Fallen at -49.4%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
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