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Last Updated on: 14 April, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 524598 | NSE: AKSHARCHEM

Fundamental Analysis of AksharChem (India) Ltd

About the Company - AksharChem (India) Ltd

AksharChem (India) Ltd. is a Public Limited Listed company incorporated on 04/07/1989 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L24110GJ1989PLC012441 and registration number is 012441. Currently Company is involved in the business activities of Manufacture of dyes and pigments from any source in basic form or as concentrate. Company’s Total Operating Revenue is Rs. 380.34 Cr. and Equity Capital is Rs. 8.03 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Dyes & PigmentsAkshar House, Chhatral Kadi Road, Mehsana Gujarat 382715cs@aksharchemindia.com
http://www.aksharchemindia.com
Management
NamePosition Held
Mrs. Paru M JaykrishnaChairperson & Managing Director
Mr. Munjal M JaykrishnaJoint Managing Director & CEO
Mr. Gokul M JaykrishnaDirector
Mr. Ashok BarotDirector
Mr. Gautam M JainDirector
Dr. Pradeep JhaDirector
Mr. Jigar Mukesh PatelDirector
Ms. Maitri K MehtaDirector

AksharChem (India) Ltd. Share Price Update

Share PriceValue
Today₹280.00
Previous Day₹279.15

Basic Stock Data of AksharChem (India) Ltd

Last Updated: April 6, 2024, 5:47 am

Market Cap 224 Cr.
Current Price 278
High / Low366/220
Stock P/E
Book Value 330
Dividend Yield0.18 %
ROCE0.86 %
ROE0.34 %
Face Value 10.0

Data Source: screener.in

Competitors of AksharChem (India) Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Kiri Industries Ltd 1,899 Cr. 366454/26123.4 5200.00 %4.77 %4.06 % 10.0
Amal Ltd 533 Cr. 431436/236 54.60.00 %12.1 %31.1 % 10.0
Ushanti Colour Chem Ltd 61.0 Cr. 57.076.7/52.0 44.10.00 %1.47 %4.08 % 10.0
Poddar Pigments Ltd 360 Cr. 340409/26213.1 2771.03 %12.2 %8.94 % 10.0
Vidhi Specialty Food Ingredients Ltd 2,301 Cr. 461497/32666.0 53.40.22 %17.6 %16.2 % 1.00
Industry Average1,030.80 Cr331.0020.50189.820.25%9.63%12.88%8.20

AksharChem (India) Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales66.9375.3095.8682.7389.73111.96114.5190.5264.9164.7471.6873.3075.28
Expenses60.4066.2085.8075.3378.47109.03108.2885.0262.9163.0572.3576.5070.34
Operating Profit6.539.1010.067.4011.262.936.235.502.001.69-0.67-3.204.94
OPM %9.76%12.08%10.49%8.94%12.55%2.62%5.44%6.08%3.08%2.61%-0.93%-4.37%6.56%
Other Income0.140.600.040.330.130.210.040.010.020.070.040.020.28
Interest0.130.190.270.150.820.960.980.820.740.670.800.880.98
Depreciation1.741.872.993.083.053.093.203.243.243.173.353.493.47
Profit before tax4.807.646.844.507.52-0.912.091.45-1.96-2.08-4.78-7.550.77
Tax %30.42%26.96%29.39%29.78%30.32%395.60%30.62%31.72%27.55%5.77%-12.55%-0.79%57.14%
Net Profit3.355.574.833.175.232.681.460.98-1.42-1.97-5.38-7.600.33
EPS in Rs4.086.795.893.866.383.341.821.22-1.77-2.45-6.70-9.460.41

AksharChem (India) Ltd Quarterly Chart

AksharChem (India) Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales5296145200188248264323260246380335285
Expenses5490112172155171223288234223349319282
Operating Profit-26332732784234262432153
OPM %-3%6%23%14%17%31%16%11%10%10%8%5%1%
Other Income00-23197511100
Interest2213331111233
Depreciation1114455677121313
Profit before tax-43292426794333191718-0-14
Tax %8%-12%31%32%36%33%28%32%18%28%11%-88%
Net Profit-44201617533123161216-1-15
EPS in Rs-7.857.6540.4621.8822.7572.3737.2627.5419.1615.2419.81-1.17-18.20
Dividend Payout %0%7%12%16%15%5%9%13%18%23%3%-43%

AksharChem (India) Ltd Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)200.00%400.00%-20.00%6.25%211.76%-41.51%-25.81%-30.43%-25.00%33.33%-106.25%
Change in YoY Net Profit Growth (%)0.00%200.00%-420.00%26.25%205.51%-253.27%15.70%-4.63%5.43%58.33%-139.58%

AksharChem (India) Ltd Growth

Compounded Sales Growth
10 Years:13%
5 Years:5%
3 Years:9%
TTM:-25%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:%
TTM:-495%
Stock Price CAGR
10 Years:8%
5 Years:-4%
3 Years:4%
1 Year:22%
Return on Equity
10 Years:11%
5 Years:5%
3 Years:3%
Last Year:0%

AksharChem (India) Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital5557778888888
Reserves812296478133230249257271272270257
Borrowings141492431320121315502537
Other Liabilities12132751394761474562766263
Total Liabilities404470146155219299316323356406365366
Fixed Assets17162155566586126128229231225234
CWIP0002492631626161712
Investments008182251772110000
Other Assets232841717294110138131120159122120
Total Assets404470146155219299316323356406365366

AksharChem (India) Ltd Reserves and Borrowings Chart

AksharChem (India) Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity -122228134130-92649438
Cash from Investing Activity -5-0-14-13-11-32-63-2-20-49-24-8
Cash from Financing Activity 5-2-8-15-2-5337-7118-30
Net Cash Flow-1-000-03-0-4-01-10

AksharChem (India) Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days503134384420384342425139
Inventory Days4219495354102686510414811599
Days Payable102639011196100704962978064
Cash Conversion Cycle-10-13-7-19222355983938675
Working Capital Days6754394671645698122978978
ROCE %-10%17%85%34%27%53%21%13%7%6%6%1%

AksharChem (India) Ltd Financial Efficiency Indicators Chart

AksharChem (India) Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters62.70%62.70%62.70%61.40%62.70%62.70%62.70%62.70%62.70%62.70%62.70%62.70%
FIIs1.43%1.43%1.46%1.43%1.55%1.45%1.44%0.72%0.68%0.68%0.68%0.68%
DIIs0.05%0.05%0.06%0.06%0.05%0.05%0.06%0.06%0.06%0.06%0.06%0.06%
Public35.82%35.82%35.78%37.11%35.70%35.80%35.81%36.52%36.56%36.56%36.56%36.57%
No. of Shareholders14,38314,38314,75316,15015,76515,77615,81915,72215,32915,00715,50615,267

AksharChem (India) Ltd Shareholding Pattern Chart

No. of AksharChem (India) Ltd Shareholders

This stock is not held by any mutual fund

AksharChem (India) Ltd ROCE Trend

AksharChem (India) Ltd EPS Trend

AksharChem (India) Ltd Key Financial Ratios

MonthMar 16Mar 15
FaceValue10.0010.00
Basic EPS (Rs.)22.7521.88
Diluted EPS (Rs.)22.7521.88
Cash EPS (Rs.)28.5527.22
Book Value[Excl.RevalReserv]/Share (Rs.)116.2497.70
Book Value[Incl.RevalReserv]/Share (Rs.)116.2497.70
Revenue From Operations / Share (Rs.)256.85273.48
PBDIT / Share (Rs.)45.8340.36
PBIT / Share (Rs.)40.0335.02
PBT / Share (Rs.)35.4530.57
Net Profit / Share (Rs.)22.7521.88
NP After MI And SOA / Share (Rs.)22.7521.88
PBDIT Margin (%)17.8414.75
PBIT Margin (%)15.5812.80
PBT Margin (%)13.8011.17
Net Profit Margin (%)8.858.00
NP After MI And SOA Margin (%)8.858.00
Return on Networth / Equity (%)19.5722.39
Return on Capital Employeed (%)29.3231.30
Return On Assets (%)10.7210.92
Long Term Debt / Equity (X)0.070.02
Total Debt / Equity (X)0.330.32
Asset Turnover Ratio (%)1.250.00
Current Ratio (X)1.281.08
Quick Ratio (X)0.980.79
Inventory Turnover Ratio (X)6.240.00
Dividend Payout Ratio (NP) (%)15.3815.99
Dividend Payout Ratio (CP) (%)12.2512.85
Earning Retention Ratio (%)84.6284.01
Cash Earning Retention Ratio (%)87.7587.15
Interest Coverage Ratio (X)10.029.07
Interest Coverage Ratio (Post Tax) (X)5.975.56
Enterprise Value (Cr.)147.77137.44
EV / Net Operating Revenue (X)0.780.68
EV / EBITDA (X)4.414.66
MarketCap / Net Operating Revenue (X)0.630.57
Retention Ratios (%)84.6184.00
Price / BV (X)1.411.62
Price / Net Operating Revenue (X)0.630.57
EarningsYield0.130.13

AksharChem (India) Ltd Profitability Ratios (%)

AksharChem (India) Ltd Liquidity Ratios

AksharChem (India) Ltd Liquidity Ratios (%)

AksharChem (India) Ltd Interest Coverage Ratios (X)

AksharChem (India) Ltd Valuation Ratios

Fair Value / Intrinsic Value of AksharChem (India) Ltd

Fair Value: 16.86

The stock is overvalued by 93.94% compared to the current price ₹278

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.

*Investments are subject to market risks

Strength and Weakness of AksharChem (India) Ltd

StrengthWeakness
  1. The stock has a high average ROCE of 21.67%, which is a positive sign.
  2. The company has higher reserves (163.85 cr) compared to borrowings (21.23 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (232.46 cr) and profit (21.00 cr) over the years.
  1. The stock has a high average Working Capital Days of 73.42, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 33.83, which may not be favorable.

Should I Buy AksharChem (India) Ltd Share Now?

  • 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 AksharChem (India) Ltd:
    1. Net Profit Margin: 8.85%
      • 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: 29.32% (Industry Average ROCE: 14.53%)
      • 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%: 19.57% (Industry Average ROE: 11.98%)
      • 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): 5.97
      • 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: 0.98
      • 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 of N/A (Industry average Stock P/E: 64.32)
      • 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: 0.33
      • 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: ★★★★☆

FAQ

What is the latest fair value of AksharChem (India) Ltd?

The latest fair value of AksharChem (India) Ltd is ₹16.86.

What is the Market Cap of AksharChem (India) Ltd?

The Market Cap of AksharChem (India) Ltd is 224 Cr..

What is the current Stock Price of AksharChem (India) Ltd as on 07 April 2024?

The current stock price of AksharChem (India) Ltd as on 07 April 2024 is 278.

What is the High / Low of AksharChem (India) Ltd stocks in FY 2024?

In FY 2024, the High / Low of AksharChem (India) Ltd stocks is ₹366/220.

What is the Stock P/E of AksharChem (India) Ltd?

The Stock P/E of AksharChem (India) Ltd is .

What is the Book Value of AksharChem (India) Ltd?

The Book Value of AksharChem (India) Ltd is 330.

What is the Dividend Yield of AksharChem (India) Ltd?

The Dividend Yield of AksharChem (India) Ltd is 0.18 %.

What is the ROCE of AksharChem (India) Ltd?

The ROCE of AksharChem (India) Ltd is 0.86 %.

What is the ROE of AksharChem (India) Ltd?

The ROE of AksharChem (India) Ltd is 0.34 %.

What is the Face Value of AksharChem (India) Ltd?

The Face Value of AksharChem (India) 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 AksharChem (India) 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