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Last Updated on: 05 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo
Stock Ticker - BSE: 530871 | NSE: CHEMBOND

Chembond Chemicals Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: December 4, 2024, 10:17 pm

Market Cap 779 Cr.
Current Price 578
High / Low746/436
Stock P/E19.1
Book Value 282
Dividend Yield0.61 %
ROCE15.6 %
ROE11.6 %
Face Value 5.00
PEG Ratio1.16

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

View Share Price Target for Chembond Chemicals Ltd

Competitors of Chembond Chemicals Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
HP Adhesives Ltd 775 Cr. 84.1131/75.037.7 19.20.36 %17.7 %12.6 % 2.00
Haryana Leather Chemicals Ltd 43.9 Cr. 89.4124/55.59.71 87.21.12 %8.96 %7.25 % 10.0
Hardcastle & Waud Mfg Co Ltd 61.6 Cr. 9061,355/44832.2 6630.00 %7.00 %5.98 % 10.0
Grauer & Weil (India) Ltd 4,725 Cr. 104120/60.129.5 19.20.48 %26.1 %19.6 % 1.00
DMCC Speciality Chemicals Ltd 976 Cr. 393403/24573.6 85.40.25 %10.8 %5.68 % 10.0
Industry Average13,076.20 Cr966.4759.59181.120.31%13.11%9.99%6.77

All Competitor Stocks of Chembond Chemicals Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales77.7183.7693.4894.0397.65110.14110.62122.03113.54112.02114.60121.83108.95
Expenses72.1879.8188.8291.0796.66100.9399.46108.81104.5997.51100.44110.1599.88
Operating Profit5.533.954.662.960.999.2111.1613.228.9514.5114.1611.689.07
OPM %7.12%4.72%4.99%3.15%1.01%8.36%10.09%10.83%7.88%12.95%12.36%9.59%8.32%
Other Income3.503.450.561.100.401.101.461.673.019.313.561.383.94
Interest0.090.270.150.180.140.190.210.500.260.460.320.130.33
Depreciation1.091.131.141.111.051.081.071.311.061.471.381.631.57
Profit before tax7.856.003.932.770.209.0411.3413.0810.6421.8916.0211.3011.11
Tax %38.47%21.83%39.95%23.83%770.00%14.05%26.72%22.48%17.39%29.79%16.04%40.62%28.17%
Net Profit4.824.702.362.11-1.347.778.2510.198.7815.3513.496.707.98
EPS in Rs3.563.491.751.55-1.025.756.147.586.5111.4810.044.995.93

Last Updated: September 12, 2024, 1:19 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: September 12, 2024, 1:19 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales262274299270291327301268274349440462457
Expenses243253273259274304275258256332405412408
Operating Profit18212611172326101817354949
OPM %7%8%9%4%6%7%8%4%7%5%8%11%11%
Other Income51118918114315951718
Interest5442111101111
Depreciation3344444454566
Profit before tax16152019530282482921346060
Tax %50%40%28%20%24%16%19%61%28%32%26%26%
Net Profit891415623242032014254444
EPS in Rs5.475.809.31114.6614.3716.3412.881.3915.1210.3518.6633.0232.44
Dividend Payout %26%26%16%4%11%11%16%144%15%48%16%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)12.50%55.56%1014.29%-85.26%4.35%-16.67%-85.00%566.67%-30.00%78.57%76.00%
Change in YoY Net Profit Growth (%)0.00%43.06%958.73%-1099.54%89.60%-21.01%-68.33%651.67%-596.67%108.57%-2.57%

Chembond 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:5%
5 Years:9%
3 Years:19%
TTM:2%
Compounded Profit Growth
10 Years:18%
5 Years:18%
3 Years:25%
TTM:-4%
Stock Price CAGR
10 Years:15%
5 Years:22%
3 Years:42%
1 Year:17%
Return on Equity
10 Years:8%
5 Years:7%
3 Years:8%
Last Year:12%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 1:31 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital7777777777777
Reserves758089200223242255262286297315355373
Borrowings29332511997322779
Other Liabilities71868372826854505956747977
Total Liabilities182205203289321325322322354361402447466
Fixed Assets4754514749108109124122121116122128
CWIP533221200112137
Investments1118815076585173756592104
Other Assets130148147152120140153147160165208220226
Total Assets182205203289321325322322354361402447466

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +71024-275-12-122425-10128
Cash from Investing Activity +-7-6-352-01914-12-11-21-22
Cash from Financing Activity +-8-4-18-24-3-4-6-11-2-4-2-5
Net Cash Flow-8-03123-5112-1601

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-11.00-12.001.000.008.0014.0019.007.0016.0015.0028.0042.00

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 Days100116105788490110112111949695
Inventory Days697460465946587782675354
Days Payable95113968695968496120768188
Cash Conversion Cycle747770384940849473846762
Working Capital Days75816910453538910285797570
ROCE %17%15%18%22%12%11%9%3%10%7%10%16%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters66.00%66.05%66.28%66.28%67.49%67.55%67.55%67.54%67.54%67.55%67.55%67.56%
FIIs0.28%0.56%0.69%0.57%0.57%0.57%0.58%0.57%0.59%1.10%0.94%0.66%
DIIs0.67%0.83%0.83%0.83%0.83%0.83%0.69%0.69%0.69%0.98%1.18%1.21%
Public33.05%32.56%32.20%32.32%31.10%31.05%31.18%31.20%31.18%30.36%30.32%30.56%
No. of Shareholders8,44310,00210,44010,55811,08610,0369,4839,4589,4809,81810,14510,840

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
FaceValue5.005.005.005.005.00
Basic EPS (Rs.)33.0218.3610.3515.131.39
Diluted EPS (Rs.)33.0218.3610.3515.131.39
Cash EPS (Rs.)37.0821.7713.7318.565.53
Book Value[Excl.RevalReserv]/Share (Rs.)269.75240.37226.99218.95203.69
Book Value[Incl.RevalReserv]/Share (Rs.)269.75240.37226.99218.95203.69
Revenue From Operations / Share (Rs.)343.53327.51259.82204.08199.32
PBDIT / Share (Rs.)49.5129.1619.1124.919.68
PBIT / Share (Rs.)45.3925.8115.7821.536.45
PBT / Share (Rs.)44.5125.0415.2721.215.87
Net Profit / Share (Rs.)32.9518.4210.4015.182.29
NP After MI And SOA / Share (Rs.)33.0218.4110.3515.131.39
PBDIT Margin (%)14.418.907.3512.204.85
PBIT Margin (%)13.217.886.0710.543.23
PBT Margin (%)12.957.645.8710.392.94
Net Profit Margin (%)9.595.624.007.431.15
NP After MI And SOA Margin (%)9.615.623.987.410.69
Return on Networth / Equity (%)12.287.694.576.930.69
Return on Capital Employeed (%)16.7110.686.919.763.14
Return On Assets (%)9.936.163.855.740.58
Total Debt / Equity (X)0.010.020.000.010.01
Asset Turnover Ratio (%)1.090.160.150.140.20
Current Ratio (X)3.072.733.593.173.50
Quick Ratio (X)2.672.292.962.662.91
Inventory Turnover Ratio (X)6.110.961.131.041.92
Dividend Payout Ratio (NP) (%)9.0827.150.000.00287.21
Dividend Payout Ratio (CP) (%)8.0722.970.000.0086.47
Earning Retention Ratio (%)90.9272.850.000.00-187.21
Cash Earning Retention Ratio (%)91.9377.030.000.0013.53
Interest Coverage Ratio (X)56.5937.6637.3079.4216.63
Interest Coverage Ratio (Post Tax) (X)38.6624.7921.3049.374.94
Enterprise Value (Cr.)612.05328.75224.11233.11193.26
EV / Net Operating Revenue (X)1.320.740.640.840.72
EV / EBITDA (X)9.198.388.726.9614.84
MarketCap / Net Operating Revenue (X)1.390.770.680.930.73
Retention Ratios (%)90.9172.840.000.00-187.21
Price / BV (X)1.781.060.790.870.73
Price / Net Operating Revenue (X)1.390.770.680.930.73
EarningsYield0.060.070.050.070.01

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Chembond Chemicals Ltd as of December 5, 2024 is: 628.61

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 December 5, 2024, Chembond Chemicals Ltd is Undervalued by 8.76% compared to the current share price 578.00

Intrinsic Value of Chembond Chemicals Ltd as of December 5, 2024 is: 732.30

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 December 5, 2024, Chembond Chemicals Ltd is Undervalued by 26.70% compared to the current share price 578.00

Last 5 Year EPS CAGR: 16.49%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (234.77 cr) compared to borrowings (11.77 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (328.77 cr) and profit (41.54 cr) over the years.
  1. The stock has a low average ROCE of 12.50%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 77.92, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 67.67, 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 Chembond Chemicals Ltd:
    1. Net Profit Margin: 9.59%
      • 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: 16.71% (Industry Average ROCE: 13.11%)
      • 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%: 12.28% (Industry Average ROE: 9.66%)
      • 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): 38.66
      • 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: 2.67
      • 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: 19.1 (Industry average Stock P/E: 49.66)
      • 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: 0.01
      • 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

Chembond Chemicals Ltd. is a Public Limited Listed company incorporated on 22/03/1975 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L24100MH1975PLC018235 and registration number is 018235. Currently Company is involved in the business activities of Manufacture of other chemical products. Company’s Total Operating Revenue is Rs. 46.17 Cr. and Equity Capital is Rs. 6.72 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Chemicals - Speciality - OthersChembond Centre, EL71, MIDC Mahape, New Mumbai Maharashtra 400710info@chembondindia.com
http://www.chembondindia.com
Management
NamePosition Held
Mr. Sameer V ShahChairman & Managing Director
Mr. Nirmal V ShahVice Chairman & Mng.Director
Mr. Ashwin R NagarwadiaNon Executive Director
Mr. Mahendra K GhelaniIndependent Director
Dr. Prakash D TrivediIndependent Director
Mrs. Saraswati SankarIndependent Director
Mr. Sushil U LakhaniIndependent Director
Mr. Jayesh P ShahAddnl.Independent Director

FAQ

What is the latest intrinsic value of Chembond Chemicals Ltd?

The latest intrinsic value of Chembond Chemicals Ltd as on 05 December 2024 is ₹628.61, which is 8.76% higher than the current market price of ₹578.00. The stock has a market capitalization of 779 Cr. and recorded a high/low of ₹746/436 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹373 Cr and total liabilities of ₹466 Cr.

What is the Market Cap of Chembond Chemicals Ltd?

The Market Cap of Chembond Chemicals Ltd is 779 Cr..

What is the current Stock Price of Chembond Chemicals Ltd as on 05 December 2024?

The current stock price of Chembond Chemicals Ltd as on 05 December 2024 is 578.

What is the High / Low of Chembond Chemicals Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Chembond Chemicals Ltd stocks is 746/436.

What is the Stock P/E of Chembond Chemicals Ltd?

The Stock P/E of Chembond Chemicals Ltd is 19.1.

What is the Book Value of Chembond Chemicals Ltd?

The Book Value of Chembond Chemicals Ltd is 282.

What is the Dividend Yield of Chembond Chemicals Ltd?

The Dividend Yield of Chembond Chemicals Ltd is 0.61 %.

What is the ROCE of Chembond Chemicals Ltd?

The ROCE of Chembond Chemicals Ltd is 15.6 %.

What is the ROE of Chembond Chemicals Ltd?

The ROE of Chembond Chemicals Ltd is 11.6 %.

What is the Face Value of Chembond Chemicals Ltd?

The Face Value of Chembond Chemicals Ltd is 5.00.

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 Chembond 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