Primo Chemicals

Market Cap: Micro Cap
Industry: Chemicals
ISIN: INE607A01022
NSEID: PUNALKALI
BSEID: 506852

INR

27.10

0.95 (3.63%)

BSENSE

Apr 11, 12:53 PM

BSE+NSE Vol: 31.75 k

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Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Solar Industries

Sumitomo Chemi.

DMCC Speciality

Godrej Industrie

Primo Chemicals

Nitta Gelatin

Gujarat Fluoroch

Chemcon Special.

Sukhjit Starch

Deepak Nitrite

Stallion India

Why is Primo Chemicals Ltd ?

Poor long term growth as Operating profit has grown by an annual rate -12.38% of over the last 5 years

Stock is technically in a Bearish range

The technical trend has deteriorated from Mildly Bearish on 17-Dec-24 and has generated -32.03% returns since then
Multiple factors for the stock are Bearish like MACD, Bollinger Band and KST

Risky - Negative Operating Profits

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -37.90%, its profits have risen by 174.6% ; the PEG ratio of the company is 0.3

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -37.90% returns in the last 1 year, the stock has also underperformed BSE 500 in each of the last 3 annual periods

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 Chemicals)

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

Is Primo Chemicals for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Primo Chemicals

-37.56%

-0.78

48.50%

SENSEX

0.45%

0.03

14.48%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.89%

EBIT Growth (5y)

-12.38%

EBIT to Interest (avg)

7.43

Debt to EBITDA (avg)

5.87

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

1.11

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

2.05%

ROCE (avg)

17.39%

ROE (avg)

18.88%

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

1.63

EV to EBIT

-183.68

EV to EBITDA

17.40

EV to Capital Employed

1.44

EV to Sales

1.59

PEG Ratio

0.33

Dividend Yield

ROCE (Latest)

-3.16%

ROE (Latest)

-1.65%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

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

28What is working for the Company

PAT(Q)

At Rs 2.29 cr has Grown at 242.7% (vs previous 4Q average

OPERATING PROFIT TO INTEREST(Q)

Highest at 3.14 times

NET SALES(Q)

At Rs 143.85 cr has Grown at 27.8% (vs previous 4Q average

PBDIT(Q)

Highest at Rs 18.66 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 12.97%

PBT LESS OI(Q)

Highest at Rs -0.32 cr.

-4What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 16.67 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 10.74 times

NON-OPERATING INCOME(Q)

is 107.24 % of Profit Before Tax (PBT

Loading Valuation Snapshot...

Here's what is working for Primo Chemicals

Profit After Tax (PAT) - Quarterly

At Rs 2.29 cr has Grown at 242.7% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs -1.61 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Net Sales - Quarterly

Highest at Rs 143.85 cr and Grown

each quarter in the last five quarters

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Operating Profit to Interest - Quarterly

Highest at 3.14 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales - Quarterly

At Rs 143.85 cr has Grown at 27.8% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 112.55 Cr

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 18.66 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 12.97%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs -0.32 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Here's what is not working for Primo Chemicals

Inventory Turnover Ratio- Half Yearly

Lowest at 16.67 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Non Operating Income - Quarterly

is 107.24 % 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

Debtors Turnover Ratio- Half Yearly

Lowest at 10.74 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio