Rel. Chemotex

Market Cap: Micro Cap
Industry: Textile
ISIN: INE750D01016
NSEID: RELCHEMQ
BSEID: 503162

INR

159.40

7.9 (5.21%)

BSENSE

Apr 11, 12:53 PM

BSE+NSE Vol: 5.35 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

Fiberweb (India)

Vippy Spinpro

K P R Mill Ltd

Vardhman Textile

Suryalak. Cott.

Welspun Living

Trident

Rel. Chemotex

Swan Energy

TCI Industries

Loyal Textile

Why is Reliance Chemotex Industries Ltd ?

Weak Long Term Fundamental Strength with a -6.17% CAGR growth in Operating Profits over the last 5 years

Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.14 times
The company has been able to generate a Return on Equity (avg) of 7.76% signifying low profitability per unit of shareholders funds

Flat results in Dec 24

PAT(Q) At Rs 0.19 cr has Fallen at -70.0% (vs previous 4Q average)
INTEREST(9M) At Rs 18.28 cr has Grown at 23.43%
INVENTORY TURNOVER RATIO(HY) Lowest at 6.26 times

Stock is technically in a Bearish range

The technical trend has deteriorated from Mildly Bearish on 01-Jan-25 and has generated -24.42% returns since then
Multiple factors for the stock are Bearish like MACD, Bollinger Band and KST

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -32.66% 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 Textile )

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

Is Rel. Chemotex for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Rel. Chemotex

-32.66%

-0.83

39.20%

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)

3.98%

EBIT Growth (5y)

-6.17%

EBIT to Interest (avg)

1.62

Debt to EBITDA (avg)

5.13

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

1.29

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

23.55%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

10.65%

ROE (avg)

7.76%

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

0.85

EV to EBIT

22.96

EV to EBITDA

12.52

EV to Capital Employed

0.95

EV to Sales

0.95

PEG Ratio

Dividend Yield

0.69%

ROCE (Latest)

3.97%

ROE (Latest)

1.97%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bearish

Bullish

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

10What is working for the Company

PAT(HY)

At Rs 1.61 cr has Grown at 209.62%

OPERATING PROFIT TO INTEREST(Q)

Highest at 1.52 times

PBDIT(Q)

Highest at Rs 8.96 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 9.71%

-9What is not working for the Company

PAT(Q)

At Rs 0.19 cr has Fallen at -70.0% (vs previous 4Q average

INTEREST(9M)

At Rs 18.28 cr has Grown at 23.43%

INVENTORY TURNOVER RATIO(HY)

Lowest at 6.26 times

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 22.81 cr

DEBTORS TURNOVER RATIO(HY)

Lowest at 25.97 times

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Here's what is working for Rel. Chemotex

Operating Profit to Interest - Quarterly

Highest at 1.52 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit (PBDIT) - Quarterly

Highest at Rs 8.96 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 9.71%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Here's what is not working for Rel. Chemotex

Profit After Tax (PAT) - Quarterly

At Rs 0.19 cr has Fallen at -70.0% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 0.63 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Inventory Turnover Ratio- Half Yearly

Lowest at 6.26 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

Interest - Nine Monthly

At Rs 18.28 cr has Grown at 23.43%

over preceding nine months period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 22.81 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio- Half Yearly

Lowest at 25.97 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio