Why is Sukhjit Starch & Chemicals Ltd ?
1
Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.23 times
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.23 times
2
Poor long term growth as Net Sales has grown by an annual rate of 13.11% and Operating profit at 8.64% over the last 5 years
3
Negative results in Dec 24
- PAT(Q) At Rs 10.78 cr has Fallen at -20.5 %
- PBDIT(Q) Lowest at Rs 29.30 cr.
- OPERATING PROFIT TO NET SALES (Q) Lowest at 7.81%
4
Stock is technically in a Bearish range
- The technical trend has deteriorated from Mildly Bearish on 07-Apr-25 and has generated 5.4% returns since then
- Multiple factors for the stock are Bearish like MACD, Bollinger Band and KST
5
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
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 Sukhjit Starch for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Sukhjit Starch
-14.54%
-0.37
39.05%
SENSEX
0.45%
0.03
14.48%
Quality key factors
Factor
Value
Sales Growth (5y)
13.11%
EBIT Growth (5y)
8.64%
EBIT to Interest (avg)
3.22
Debt to EBITDA (avg)
3.55
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
1.48
Tax Ratio
28.77%
Dividend Payout Ratio
25.01%
Pledged Shares
0
Institutional Holding
0.01%
ROCE (avg)
12.10%
ROE (avg)
11.08%
Valuation Key Factors 
Factor
Value
P/E Ratio
12
Industry P/E
41
Price to Book Value
1.14
EV to EBIT
9.44
EV to EBITDA
6.88
EV to Capital Employed
1.09
EV to Sales
0.58
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
12.51%
ROE (Latest)
10.22%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bullish
No Trend
Technical Movement
0What is working for the Company
NO KEY POSITIVE TRIGGERS
-10What is not working for the Company
PAT(Q)
At Rs 10.78 cr has Fallen at -20.5 %
PBDIT(Q)
Lowest at Rs 29.30 cr.
OPERATING PROFIT TO NET SALES (Q)
Lowest at 7.81%
PBT LESS OI(Q)
Lowest at Rs 12.62 cr.
EPS(Q)
Lowest at Rs 3.45
Loading Valuation Snapshot...
Here's what is not working for Sukhjit Starch
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 12.62 cr has Fallen at -25.4 %
over average PBT of the previous four quarters of Rs 16.92 CrMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 10.78 cr has Fallen at -20.5 %
over average PAT of the previous four quarters of Rs 13.57 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Lowest at Rs 29.30 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Lowest at 7.81%
in the last five quartersMOJO Watch
Company's efficiency has deteriorated
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Lowest at Rs 12.62 cr.
in the last five quartersMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
Earnings per Share (EPS) - Quarterly
Lowest at Rs 3.45
in the last five quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)