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Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 506405 | NSE: DMCC

DMCC Speciality Chemicals Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 8:42 pm

Market Cap 733 Cr.
Current Price 292
High / Low380/245
Stock P/E55.3
Book Value 85.4
Dividend Yield0.34 %
ROCE10.8 %
ROE5.68 %
Face Value 10.0
PEG Ratio-2.60

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for DMCC Speciality Chemicals Ltd

Competitors of DMCC Speciality Chemicals Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
HP Adhesives Ltd 699 Cr. 76.2131/75.334.0 19.20.39 %17.7 %12.6 % 2.00
Haryana Leather Chemicals Ltd 41.8 Cr. 85.2124/48.79.25 87.21.17 %8.96 %7.25 % 10.0
Hardcastle & Waud Mfg Co Ltd 54.4 Cr. 7991,355/44228.5 6630.00 %7.00 %5.98 % 10.0
Grauer & Weil (India) Ltd 4,634 Cr. 102120/58.328.9 19.20.49 %26.1 %19.6 % 1.00
DMCC Speciality Chemicals Ltd 733 Cr. 292380/24555.3 85.40.34 %10.8 %5.68 % 10.0
Industry Average12,153.36 Cr898.8055.54181.120.34%13.12%10.00%6.77

All Competitor Stocks of DMCC Speciality Chemicals Ltd

Quarterly Result

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Sales72.5381.48101.64113.39104.7171.9196.5085.5776.5280.5383.9585.32102.70
Expenses65.4570.0190.4598.49101.1170.8380.2174.6066.9973.4176.5576.4787.40
Operating Profit7.0811.4711.1914.903.601.0816.2910.979.537.127.408.8515.30
OPM %9.76%14.08%11.01%13.14%3.44%1.50%16.88%12.82%12.45%8.84%8.81%10.37%14.90%
Other Income0.850.243.100.720.400.910.770.880.810.679.290.210.31
Interest0.730.832.462.291.843.163.293.472.883.563.853.012.77
Depreciation1.811.832.623.324.924.804.543.553.903.914.334.164.25
Profit before tax5.399.059.2110.01-2.76-5.979.234.833.560.328.511.898.59
Tax %32.10%28.73%59.50%37.96%0.00%-45.23%27.63%34.99%33.71%6.25%32.20%26.46%32.36%
Net Profit3.666.463.736.22-2.77-3.286.683.142.360.295.781.395.80
EPS in Rs1.472.591.502.49-1.11-1.322.681.260.950.122.320.562.33

Last Updated: November 6, 2024, 6:53 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales86101120108175178227188200326385328326
Expenses818610191145155174160165286351292293
Operating Profit4152016302353283641343633
OPM %5%15%16%15%17%13%24%15%18%12%9%11%10%
Other Income376-1011168651011
Interest3221543225111413
Depreciation5322445678181616
Profit before tax33161413211647263434101714
Tax %0%0%0%9%21%21%2%-22%4%37%35%33%
Net Profit3316141217124631332171210
EPS in Rs15.647.556.585.637.794.9218.4712.6313.068.562.754.643.95
Dividend Payout %0%0%0%0%0%10%8%0%15%6%0%22%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-51.52%-12.50%-14.29%41.67%-29.41%283.33%-32.61%6.45%-36.36%-66.67%71.43%
Change in YoY Net Profit Growth (%)0.00%39.02%-1.79%55.95%-71.08%312.75%-315.94%39.06%-42.82%-30.30%138.10%

DMCC Speciality Chemicals Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:12%
5 Years:8%
3 Years:18%
TTM:7%
Compounded Profit Growth
10 Years:1%
5 Years:-24%
3 Years:-29%
TTM:49%
Stock Price CAGR
10 Years:31%
5 Years:23%
3 Years:-2%
1 Year:-1%
Return on Equity
10 Years:18%
5 Years:12%
3 Years:7%
Last Year:6%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 4:37 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital21212121252525252525252525
Reserves-29-13113354891120148168173184188
Borrowings363835273025222535931016560
Other Liabilities82533234595951425597101102116
Total Liabilities110998894149156188212263383400377389
Fixed Assets34262426838799101108174230238233
CWIP1115331938631169
Investments0000243311111
Other Assets7572636360628698116146159132147
Total Assets110998894149156188212263383400377389

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-201322172918212732513038
Cash from Investing Activity +4211-1-7-8-9-13-17-40-98-21-10
Cash from Financing Activity +-21-24-19-10-19-9-8-6345-10-27
Net Cash Flow002120-05-4-2-11

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-32.00-23.00-15.00-11.000.00-2.0031.003.001.00-52.00-67.00-29.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days506144444545484858564951
Inventory Days425262104607380113151797880
Days Payable136126761151291147968116131121118
Cash Conversion Cycle-45-122933-2544993943613
Working Capital Days4151-7-15-6468147151513
ROCE %-1%34%34%24%35%21%43%18%19%16%7%11%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters53.35%53.35%53.84%53.84%53.85%53.84%53.84%53.84%53.84%53.84%53.84%53.84%
FIIs0.00%0.00%0.03%0.00%0.06%0.10%0.05%0.00%0.00%0.00%0.00%0.06%
DIIs1.24%1.24%1.24%1.25%1.24%1.24%1.24%1.24%1.24%1.26%1.24%1.24%
Public45.40%45.40%44.89%44.91%44.84%44.82%44.85%44.90%44.91%44.90%44.91%44.85%
No. of Shareholders21,47420,98621,45522,55322,66322,25521,59522,32221,77121,39620,57920,732

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)4.652.788.5613.0612.62
Diluted EPS (Rs.)4.652.788.5613.0612.62
Cash EPS (Rs.)10.959.8411.7915.8015.09
Book Value[Excl.RevalReserv]/Share (Rs.)84.0279.4977.6469.4458.09
Book Value[Incl.RevalReserv]/Share (Rs.)84.0279.4977.6469.4458.09
Revenue From Operations / Share (Rs.)131.50154.26130.8380.2575.25
PBDIT / Share (Rs.)18.7315.5518.4817.3513.65
PBIT / Share (Rs.)12.438.4915.2514.6111.18
PBT / Share (Rs.)6.924.2513.6913.6510.37
Net Profit / Share (Rs.)4.652.788.5613.0612.62
NP After MI And SOA / Share (Rs.)4.652.788.5613.0612.62
PBDIT Margin (%)14.2410.0714.1221.6118.14
PBIT Margin (%)9.455.5011.6518.2014.85
PBT Margin (%)5.262.7510.4617.0013.77
Net Profit Margin (%)3.531.806.5416.2716.76
NP After MI And SOA Margin (%)3.531.806.5416.2716.76
Return on Networth / Equity (%)5.533.4911.0218.8121.71
Return on Capital Employeed (%)11.477.8815.1018.6816.88
Return On Assets (%)3.071.725.5612.3514.84
Long Term Debt / Equity (X)0.270.340.280.090.10
Total Debt / Equity (X)0.310.400.400.140.10
Asset Turnover Ratio (%)0.840.981.010.840.93
Current Ratio (X)1.081.040.951.682.13
Quick Ratio (X)0.660.630.641.131.53
Inventory Turnover Ratio (X)4.035.485.092.943.58
Dividend Payout Ratio (NP) (%)0.0035.985.8411.689.35
Dividend Payout Ratio (CP) (%)0.0010.164.249.657.81
Earning Retention Ratio (%)0.0064.0294.1688.3290.65
Cash Earning Retention Ratio (%)0.0089.8495.7690.3592.19
Interest Coverage Ratio (X)3.403.6711.8418.0316.76
Interest Coverage Ratio (Post Tax) (X)1.841.666.4814.5716.49
Enterprise Value (Cr.)745.75677.05982.66815.55177.20
EV / Net Operating Revenue (X)2.271.763.014.070.94
EV / EBITDA (X)15.9617.4621.3218.855.20
MarketCap / Net Operating Revenue (X)2.091.562.783.960.89
Retention Ratios (%)0.0064.0194.1588.3190.64
Price / BV (X)3.273.024.694.581.16
Price / Net Operating Revenue (X)2.091.562.783.960.89
EarningsYield0.010.010.020.040.18

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of DMCC Speciality Chemicals Ltd as of November 21, 2024 is: 269.16

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 21, 2024, DMCC Speciality Chemicals Ltd is Overvalued by 7.82% compared to the current share price 292.00

Intrinsic Value of DMCC Speciality Chemicals Ltd as of November 21, 2024 is: 211.91

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 21, 2024, DMCC Speciality Chemicals Ltd is Overvalued by 27.43% compared to the current share price 292.00

Last 5 Year EPS CAGR: -21.27%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 21.75%, which is a positive sign.
  2. The stock has a low average Working Capital Days of 17.42, which is a positive sign.
  3. The company has higher reserves (86.69 cr) compared to borrowings (45.54 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (211.38 cr) and profit (22.69 cr) over the years.
  1. The stock has a high average Cash Conversion Cycle of 20.17, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in DMCC Speciality Chemicals Ltd:
    1. Net Profit Margin: 3.53%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 11.47% (Industry Average ROCE: 13.12%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 5.53% (Industry Average ROE: 10%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 1.84
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.66
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 55.3 (Industry average Stock P/E: 55.54)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.31
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

DMCC Speciality Chemicals Ltd. is a Public Limited Listed company incorporated on 12/09/1919 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L24110MH1919PLC000564 and registration number is 000564. Currently Company is involved in the business activities of Manufacture of other chemical products. Company’s Total Operating Revenue is Rs. 326.30 Cr. and Equity Capital is Rs. 24.94 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Chemicals - Speciality - OthersProspect Chambers, 317/321, Dr. Dadabhoy Naoroji Road, Mumbai Maharashtra 400001investors@dmcc.com
http://www.dmcc.com
Management
NamePosition Held
Mr. Laxmikumar Narottam GoculdasChairman
Ms. Mitika Laxmikumar GoculdasVice Chairperson
Mr. Bimal Lalitsingh GoculdasManaging Director & CEO
Mr. Kuldeep Kumar TiwariExecutive Director - Operations
Mr. Mukul Manoharlal TalyInd. Non-Executive Director
Mr. Sanjeev Vishwanath JoshiInd. Non-Executive Director
Mr. Madhu Thakorlal AnkleshwariaInd. Non-Executive Director
Dr.(Mrs.) Janaki Ashwin PatwardhanInd. Non-Executive Director
Mr. Haren Devidas ParekhInd. Non-Executive Director

FAQ

What is the latest intrinsic value of DMCC Speciality Chemicals Ltd?

The latest intrinsic value of DMCC Speciality Chemicals Ltd as on 21 November 2024 is ₹269.16, which is 7.82% lower than the current market price of ₹292.00.

What is the Market Cap of DMCC Speciality Chemicals Ltd?

The Market Cap of DMCC Speciality Chemicals Ltd is 733 Cr..

What is the current Stock Price of DMCC Speciality Chemicals Ltd as on 21 November 2024?

The current stock price of DMCC Speciality Chemicals Ltd as on 21 November 2024 is ₹292.

What is the High / Low of DMCC Speciality Chemicals Ltd stocks in FY 2024?

In FY 2024, the High / Low of DMCC Speciality Chemicals Ltd stocks is 380/245.

What is the Stock P/E of DMCC Speciality Chemicals Ltd?

The Stock P/E of DMCC Speciality Chemicals Ltd is 55.3.

What is the Book Value of DMCC Speciality Chemicals Ltd?

The Book Value of DMCC Speciality Chemicals Ltd is 85.4.

What is the Dividend Yield of DMCC Speciality Chemicals Ltd?

The Dividend Yield of DMCC Speciality Chemicals Ltd is 0.34 %.

What is the ROCE of DMCC Speciality Chemicals Ltd?

The ROCE of DMCC Speciality Chemicals Ltd is 10.8 %.

What is the ROE of DMCC Speciality Chemicals Ltd?

The ROE of DMCC Speciality Chemicals Ltd is 5.68 %.

What is the Face Value of DMCC Speciality Chemicals Ltd?

The Face Value of DMCC Speciality Chemicals Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in DMCC Speciality Chemicals Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE