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Last Updated on: 04 March, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Oriental Carbon & Chemicals Ltd

About the Company - Oriental Carbon & Chemicals Ltd

Oriental Carbon & Chemicals Ltd. is a Public Limited Listed company incorporated on 19/06/1978 and has its registered office in the State of West Bengal, India. Company’s Corporate Identification Number(CIN) is L24297GJ1978PLC133845 and registration number is 031539. Currently Company is involved in the business activities of Manufacture of organic and inorganic chemical compounds. Company’s Total Operating Revenue is Rs. 387.79 Cr. and Equity Capital is Rs. 9.99 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Carbon BlackDUNCAN HOUSE 31, Netaji Subhas Road Kolkata West Bengal 700001investorfeedback@occlindia.com
http://www.occlindia.com
Management
NamePosition Held
Mr. Jagdish Prasad GoenkaChairman
Mr. Arvind GoenkaManaging Director
Mr. Akshat GoenkaJoint Managing Director
Mr. Suman Jyoti KhaitanIndependent Director
Mr. Om Prakash DubeyIndependent Director
Mr. Brij Behari TandonIndependent Director
Mr. Kailasam RaghuramanIndependent Director
Mrs. Runa MukherjeeIndependent Director
Ms. Kiran SahdevNominee Director

Oriental Carbon & Chemicals Ltd. Share Price Update

Share PriceValue
Today₹738.95
Previous Day₹737.25

Basic Stock Data of Oriental Carbon & Chemicals Ltd

Market Cap 771 Cr.
Current Price 771
High / Low939/660
Stock P/E17.3
Book Value 622
Dividend Yield1.82 %
ROCE10.8 %
ROE8.46 %
Face Value 10.0

Data Source: screener.in

Competitors of Oriental Carbon & Chemicals Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
PCBL Ltd 11,075 Cr. 293344/10823.0 82.61.85 %16.9 %15.7 % 1.00
Industry Average11,075.00 Cr293.0023.0082.601.85%16.90%15.70%1.00

Oriental Carbon & Chemicals Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales90.50119.45118.4792.20113.08109.51126.40152.91140.91119.75122.29124.80111.43
Expenses58.0176.0580.3773.3988.1487.82106.76123.15115.9792.8294.2690.8987.89
Operating Profit32.4943.4038.1018.8124.9421.6919.6429.7624.9426.9328.0333.9123.54
OPM %35.90%36.33%32.16%20.40%22.06%19.81%15.54%19.46%17.70%22.49%22.92%27.17%21.13%
Other Income3.020.852.655.331.660.471.741.641.030.170.291.830.57
Interest1.781.371.451.191.231.362.993.123.563.233.093.133.02
Depreciation5.315.416.075.625.815.946.827.147.347.737.207.467.59
Profit before tax28.4237.4733.2317.3319.5614.8611.5721.1415.0716.1418.0325.1513.50
Tax %22.38%21.06%7.43%23.89%28.17%18.91%40.36%24.46%26.41%20.69%23.96%31.25%27.70%
Net Profit22.0629.5730.7513.2014.0512.056.8915.9811.0912.8013.7217.309.76
EPS in Rs21.2629.0427.7812.8213.3511.325.6214.989.4411.6212.6416.318.97

Oriental Carbon & Chemicals Ltd Quarterly Chart

Oriental Carbon & Chemicals Ltd Profit & Loss

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales287331347307332369432387384444536478
Expenses231261277228245266304282257356425366
Operating Profit577069798610312810512688110112
OPM %20%21%20%26%26%28%30%27%33%20%21%24%
Other Income9712464693823
Interest151410879910781312
Depreciation121316171718202122242930
Profit before tax38505559698010683100637073
Tax %26%19%18%22%30%29%28%9%17%27%24%
Net Profit284145464857777583465454
EPS in Rs26.8439.3346.9048.1049.7655.1975.2073.2179.0843.1148.6949.54
Dividend Payout %19%18%18%18%20%18%16%14%18%32%29%

Oriental Carbon & Chemicals Ltd Profit & Loss Yearly Chart

Oriental Carbon & Chemicals Ltd Growth

Compounded Sales Growth
10 Years:6%
5 Years:8%
3 Years:11%
TTM:-14%
Compounded Profit Growth
10 Years:7%
5 Years:-3%
3 Years:-12%
TTM:7%
Stock Price CAGR
10 Years:19%
5 Years:-8%
3 Years:-6%
1 Year:6%
Return on Equity
10 Years:15%
5 Years:13%
3 Years:10%
Last Year:8%

Oriental Carbon & Chemicals Ltd Balance Sheet

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital101010101010101010101010
Reserves165197234273326371399455523551592611
Borrowings13412010786111122132154185189167129
Other Liabilities777888827985917896115117114
Total Liabilities386405439451527589631697814865886864
Fixed Assets218222215207327328361354342453478471
CWIP324403403251134113
Investments5112716386193133185181225214
Other Assets160169193189159160174185173190181175
Total Assets386405439451527589631697814865886864

Oriental Carbon & Chemicals Ltd Reserves and Borrowings Chart

Oriental Carbon & Chemicals Ltd Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 325370708294931159161105
Cash from Investing Activity -4-21-31-40-82-74-49-85-129-41-54
Cash from Financing Activity -29-34-34-38-2-12-50-1016-21-52
Net Cash Flow-0-25-9-28-620-21-0-1

Oriental Carbon & Chemicals Ltd Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days7271717293807567777156
Inventory Days170157149197162169152134168151118
Days Payable7973837794916361887044
Cash Conversion Cycle162155137193160158165140156152130
Working Capital Days7366617078667370868474
ROCE %18%19%18%18%18%22%15%16%9%11%

Oriental Carbon & Chemicals Ltd Financial Efficiency Indicators Chart

Oriental Carbon & Chemicals Ltd Share Holding Pattern

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Promoters51.76%51.76%51.76%51.76%51.76%51.76%51.76%51.76%51.76%51.76%51.76%51.76%
FIIs0.70%0.68%0.75%0.79%1.02%1.18%1.36%1.40%1.28%1.29%0.69%0.74%
DIIs18.91%17.15%15.58%15.23%14.58%14.58%14.23%14.14%13.77%13.14%12.84%11.75%
Public28.62%30.40%31.91%32.22%32.64%32.48%32.64%32.70%33.19%33.81%34.72%35.74%
No. of Shareholders15,44017,45218,54919,98919,71519,84719,80419,77119,54919,28819,06519,952

Oriental Carbon & Chemicals Ltd Shareholding Pattern Chart

No. of Oriental Carbon & Chemicals Ltd Shareholders

Oriental Carbon & Chemicals Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
HDFC Small Cap Fund - Regular Plan5457900.1641.28
HDFC Large and Mid Cap Fund - Regular Plan2622000.1519.83
HDFC Retirement Savings Fund - Hybrid Equity - Regular Plan594000.374.49
HDFC Retirement Savings Fund - Equity - Regular Plan562600.114.26
HDFC Retirement Savings Fund - Hybrid Debt - Regular Plan26000.130.2

Oriental Carbon & Chemicals Ltd ROCE Trend

Oriental Carbon & Chemicals Ltd EPS Trend

Oriental Carbon & Chemicals Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)48.6979.0879.0873.2173.45
Diluted EPS (Rs.)48.6979.0879.0873.2173.45
Cash EPS (Rs.)83.0770.46105.0096.1696.73
Book Value[Excl.RevalReserv]/Share (Rs.)626.15579.79548.10475.56417.96
Book Value[Incl.RevalReserv]/Share (Rs.)626.15579.79548.10475.56417.96
Revenue From Operations / Share (Rs.)536.39444.15373.66386.59431.78
PBDIT / Share (Rs.)112.9093.47128.94115.31134.60
PBIT / Share (Rs.)83.4769.26106.8993.88114.35
PBT / Share (Rs.)70.4663.38100.3582.56105.62
Net Profit / Share (Rs.)53.6446.2482.9474.7376.48
NP After MI And SOA / Share (Rs.)48.6943.1178.9573.1075.09
PBDIT Margin (%)21.0421.0434.5029.8231.17
PBIT Margin (%)15.5615.5928.6024.2826.48
PBT Margin (%)13.1314.2726.8521.3524.46
Net Profit Margin (%)10.0010.4122.1919.3317.71
NP After MI And SOA Margin (%)9.079.7021.1218.9017.39
Return on Networth / Equity (%)8.077.6714.8115.7418.38
Return on Capital Employeed (%)11.199.7315.4815.6021.96
Return On Assets (%)5.484.979.7010.4911.90
Long Term Debt / Equity (X)0.120.160.210.200.17
Total Debt / Equity (X)0.260.320.280.290.26
Asset Turnover Ratio (%)0.540.470.440.520.64
Current Ratio (X)2.131.862.522.892.24
Quick Ratio (X)1.631.422.132.451.75
Inventory Turnover Ratio (X)2.792.641.971.872.31
Dividend Payout Ratio (NP) (%)28.7539.4312.6416.3915.06
Dividend Payout Ratio (CP) (%)17.9225.249.8812.6711.86
Earning Retention Ratio (%)71.2560.5787.3683.6184.94
Cash Earning Retention Ratio (%)82.0874.7690.1287.3388.14
Interest Coverage Ratio (X)8.6815.9119.7212.0615.41
Interest Coverage Ratio (Post Tax) (X)5.128.8713.689.009.76
Enterprise Value (Cr.)841.58992.151077.61563.121252.91
EV / Net Operating Revenue (X)1.572.242.881.462.90
EV / EBITDA (X)7.4610.628.354.889.30
MarketCap / Net Operating Revenue (X)1.241.802.451.452.64
Retention Ratios (%)71.2460.5687.3583.6084.93
Price / BV (X)1.101.431.721.202.79
Price / Net Operating Revenue (X)1.241.802.451.452.64
EarningsYield0.070.050.080.130.06

Oriental Carbon & Chemicals Ltd Profitability Ratios (%)

Oriental Carbon & Chemicals Ltd Liquidity Ratios

Oriental Carbon & Chemicals Ltd Liquidity Ratios (%)

Oriental Carbon & Chemicals Ltd Interest Coverage Ratios (%)

Oriental Carbon & Chemicals Ltd Valuation Ratios

Fair Value / Intrinsic Value of Oriental Carbon & Chemicals Ltd

Fair Value: ₹926.92

The stock is undervalued by 20.22% compared to the current price ₹771

*Investments are subject to market risks

Strength and Weakness of Oriental Carbon & Chemicals Ltd

StrengthWeakness
  1. The company has higher reserves (391.42 cr) compared to borrowings (136.33 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (386.17 cr) and profit (70.50 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 93.57 and average Dividend Yield of 22.10%.
  2. The stock has a low average ROCE of 14.91%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 72.82, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 155.27, which may not be favorable.

Should I Buy Oriental Carbon & Chemicals Ltd?

  • Considering various financial indicators, investors might exercise caution regarding investment in Oriental Carbon & Chemicals Ltd:
    1. Net Profit Margin: 10.00%
      • 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: 11.19% (Industry Average ROCE: 16.9%)
      • 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. Interest Coverage Ratio (Post Tax): 5.12
      • 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.
    4. Quick Ratio: 1.63
      • 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.
    5. ✓ Stock P/E: 16.8 (Industry average Stock P/E: 23.6)
      • 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.
    6. ✓ Total Debt / Equity: 0.26
      • 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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 Oriental Carbon & 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