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Last Updated on: 23 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Punjab Chemicals & Crop Protection Ltd

Basic Stock Data

Last Updated: June 22, 2024, 10:28 pm

Market Cap 1,732 Cr.
Current Price 1,413
High / Low1,450/833
Stock P/E32.3
Book Value 269
Dividend Yield0.21 %
ROCE22.7 %
ROE17.5 %
Face Value 10.0
PEG Ratio0.85

Competitors of Punjab Chemicals & Crop Protection Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Meghmani Organics Ltd 2,170 Cr. 85.3104/71.4 60.11.64 %3.08 %6.63 % 1.00
Sharda Cropchem Ltd 4,026 Cr. 446578/318126 2481.34 %3.36 %1.43 % 10.0
Insecticides India Ltd 2,121 Cr. 717732/41020.7 3420.42 %13.2 %10.6 % 10.0
UPL Ltd 41,659 Cr. 555696/448 3701.80 %3.31 %3.82 % 2.00
Rallis India Ltd 6,480 Cr. 333348/19443.9 94.10.75 %11.2 %8.30 % 1.00
Industry Average10,154.04 Cr880.8635.47188.020.67%13.06%16.03%6.88

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales209.51210.95208.79255.04258.68272.12278.60260.45195.04281.36242.18214.16196.53
Expenses186.23174.05177.79218.34224.48236.70247.53225.52173.89243.54206.53188.13183.30
Operating Profit23.2836.9031.0036.7034.2035.4231.0734.9321.1537.8235.6526.0313.23
OPM %11.11%17.49%14.85%14.39%13.22%13.02%11.15%13.41%10.84%13.44%14.72%12.15%6.73%
Other Income0.141.200.060.210.350.151.700.580.920.261.301.300.50
Interest2.062.372.763.034.183.443.924.036.643.576.586.534.16
Depreciation4.143.914.214.274.284.564.734.764.965.145.525.476.03
Profit before tax17.2231.8224.0929.6126.0927.5724.1226.7210.4729.3724.8515.333.54
Tax %39.08%23.66%25.53%26.11%25.83%26.51%27.11%24.93%69.44%25.57%27.08%26.94%31.92%
Net Profit10.4924.2917.9421.8819.3520.2617.5820.063.2021.8618.1211.202.41
EPS in Rs8.5519.8114.6317.8415.7816.5214.3416.362.6117.8314.789.131.97

Last Updated: June 9, 2024, 8:17 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 26, 2024, 11:14 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales2455145645375254936435506789331,006934
Expenses242473517497509450576507583793883821
Operating Profit44147411644674296140123113
OPM %1%8%8%8%3%9%10%8%14%15%12%12%
Other Income111521401212-2132133
Interest193535503118171813121821
Depreciation81619171614191515171922
Profit before tax-1341414-19242922691128973
Tax %0%0%4%4%-4%29%42%51%29%25%31%27%
Net Profit-1311413-2017171149836154
EPS in Rs-10.300.7811.5810.83-16.2514.0113.708.7740.0368.0649.8343.70
Dividend Payout %0%0%0%0%0%11%11%17%5%4%6%7%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)107.69%1300.00%-7.14%-253.85%185.00%0.00%-35.29%345.45%69.39%-26.51%-11.48%
Change in YoY Net Profit Growth (%)0.00%1192.31%-1307.14%-246.70%438.85%-185.00%-35.29%380.75%-276.07%-95.89%15.03%

Growth

Compounded Sales Growth
10 Years:6%
5 Years:8%
3 Years:11%
TTM:-7%
Compounded Profit Growth
10 Years:29%
5 Years:20%
3 Years:3%
TTM:-13%
Stock Price CAGR
10 Years:32%
5 Years:13%
3 Years:-5%
1 Year:28%
Return on Equity
10 Years:%
5 Years:27%
3 Years:27%
Last Year:18%

Last Updated: June 16, 2024, 4:57 pm

Balance Sheet

MonthSep 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital12121212121212121212121212
Reserves-39-50-46-474946627985132213268305
Borrowings3823563653211911511179199889394102
Other Liabilities171163164196205229165189197219238241239
Total Liabilities526482496482457439356371394451557616658
Fixed Assets249258242232235224177180168189212222240
CWIP241037464715167205
Investments7640011111128
Other Assets247207247243219207174184210245337372405
Total Assets526482496482457439356371394451557616658

Reserves and Borrowings Chart

Punjab Chemicals & Crop Protection Ltd Cash Flow

MonthSep 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 18723385710562616834433458
Cash from Investing Activity -72-3-1-028-5-18-20-15-9-27-38
Cash from Financing Activity -86-54-20-72-141-61-43-4-19-24-11-20
Net Cash Flow29-3417-14-8-4145110-30

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-352.00-324.00-274.00-150.00-135.00-73.00-24.00-57.008.0047.0029.00-10.00

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

Punjab Chemicals & Crop Protection Ltd Financial Efficiency Indicators

MonthSep 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days2810451485244313632454452
Inventory Days47186108957885837597919997
Days Payable733089478761481331031001028580
Cash Conversion Cycle3-18646454-19-19728345869
Working Capital Days-17-6110-24-3-48-628133849
ROCE %3%13%13%14%5%20%29%17%38%45%31%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters39.22%39.22%39.22%39.22%39.22%39.22%39.22%39.22%39.22%39.22%39.22%39.22%
FIIs2.94%3.04%3.00%2.99%2.99%3.05%2.99%2.99%2.97%2.99%2.98%3.00%
DIIs0.34%0.52%0.91%1.07%0.75%0.80%1.02%0.98%0.20%0.15%0.15%0.42%
Government1.00%1.00%1.00%1.00%1.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Public56.50%56.23%55.88%55.73%56.04%56.94%56.79%56.82%57.60%57.65%57.65%57.36%
No. of Shareholders15,32719,39919,38319,41919,96220,50421,23921,02921,94622,16821,18321,336

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.)43.7049.8468.0740.038.77
Diluted EPS (Rs.)43.7049.8468.0740.038.77
Cash EPS (Rs.)61.7865.3481.6752.1521.29
Book Value[Excl.RevalReserv]/Share (Rs.)269.30228.89184.03117.8979.73
Book Value[Incl.RevalReserv]/Share (Rs.)269.30228.89184.03117.8979.73
Revenue From Operations / Share (Rs.)762.01820.73761.39553.16448.25
PBDIT / Share (Rs.)94.68102.71114.7079.3945.33
PBIT / Share (Rs.)76.6187.20101.1067.2732.81
PBT / Share (Rs.)59.6172.5091.0356.2918.01
Net Profit / Share (Rs.)43.7049.8468.0840.038.77
NP After MI And SOA / Share (Rs.)43.7049.8468.0840.038.77
PBDIT Margin (%)12.4212.5115.0614.3510.11
PBIT Margin (%)10.0510.6213.2712.167.31
PBT Margin (%)7.828.8311.9510.174.01
Net Profit Margin (%)5.736.078.947.231.95
NP After MI And SOA Margin (%)5.736.078.947.231.95
Return on Networth / Equity (%)16.2221.7736.9933.9510.99
Return on Capital Employeed (%)23.2928.8040.2934.7124.13
Return On Assets (%)8.379.9114.9710.882.72
Long Term Debt / Equity (X)0.150.210.240.480.40
Total Debt / Equity (X)0.370.310.380.510.90
Asset Turnover Ratio (%)1.491.681.811.571.40
Current Ratio (X)1.591.481.291.090.86
Quick Ratio (X)1.030.790.670.610.48
Inventory Turnover Ratio (X)3.674.074.564.213.81
Dividend Payout Ratio (NP) (%)0.006.022.933.7417.11
Dividend Payout Ratio (CP) (%)0.004.592.442.877.04
Earning Retention Ratio (%)0.0093.9897.0796.2682.89
Cash Earning Retention Ratio (%)0.0095.4197.5697.1392.96
Interest Coverage Ratio (X)5.576.9811.407.233.06
Interest Coverage Ratio (Post Tax) (X)3.574.397.764.651.59
Enterprise Value (Cr.)1317.321092.441862.191133.61452.95
EV / Net Operating Revenue (X)1.411.091.991.670.82
EV / EBITDA (X)11.358.6813.2411.658.15
MarketCap / Net Operating Revenue (X)1.291.011.911.580.67
Retention Ratios (%)0.0093.9797.0696.2582.88
Price / BV (X)3.653.627.927.423.78
Price / Net Operating Revenue (X)1.291.011.911.580.67
EarningsYield0.040.060.040.040.02

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 1,523.72

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.

Undervalued: 7.84% compared to the current price 1413

Intrinsic Value: 2,100.88

Calculation basis:

  • Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 48.68% compared to the current price ₹1413

Last 5 Year EPS CAGR: 37.88%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 19.00%, which is a positive sign.
  2. The stock has a low average Working Capital Days of -3.25, which is a positive sign.
  3. The company has shown consistent growth in sales (551.42 cr) and profit (34.83 cr) over the years.
  1. The stock has a high average Cash Conversion Cycle of 27.08, which may not be favorable.
  2. The company has higher borrowings (174.08) compared to reserves (92.42), which may suggest financial risk.

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 Punjab Chemicals & Crop Protection Ltd:
    1. Net Profit Margin: 5.73%
      • 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: 23.29% (Industry Average ROCE: %)
      • 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%: 16.22% (Industry Average ROE: %)
      • 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): 3.57
      • 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: 1.03
      • 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: 32.3 (Industry average Stock P/E: )
      • 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: 0.37
      • 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

Punjab Chemicals and Crop Protection Ltd. is a Public Limited Listed company incorporated on 19/11/1975 and has its registered office in the State of Chandigarh, India. Company’s Corporate Identification Number(CIN) is L24231PB1975PLC047063 and registration number is 003603. Currently Company is involved in the business activities of Manufacture of organic and inorganic chemical compounds. Company’s Total Operating Revenue is Rs. 930.57 Cr. and Equity Capital is Rs. 12.26 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Agro Chemicals/PesticidesMilestone 18, Ambala Kalka Road, Mohali Punjab 140201info@punjabchemicals.com
http://www.punjabchemicals.com
Management
NamePosition Held
Mr. Ghattu Ramanna NarayanChairman Emeritus
Mr. Mukesh Dahyabhai PatelChairman
Mr. Shalil Shashikumar ShroffManaging Director
Mr. Vijay Dilbagh RaiDirector
Mr. Sheo Prasad SinghDirector
Mr. Shivshankar Shripal TiwariDirector
Mr. Avtar SinghDirector
Capt.(Retd.) Surjit Singh ChopraDirector
Mrs. Aruna R BhingeDirector

FAQ

What is the latest fair value of Punjab Chemicals & Crop Protection Ltd?

The latest fair value of Punjab Chemicals & Crop Protection Ltd is ₹1523.72.

What is the Market Cap of Punjab Chemicals & Crop Protection Ltd?

The Market Cap of Punjab Chemicals & Crop Protection Ltd is 1,732 Cr..

What is the current Stock Price of Punjab Chemicals & Crop Protection Ltd as on 23 June 2024?

The current stock price of Punjab Chemicals & Crop Protection Ltd as on 23 June 2024 is ₹1,413.

What is the High / Low of Punjab Chemicals & Crop Protection Ltd stocks in FY 2024?

In FY 2024, the High / Low of Punjab Chemicals & Crop Protection Ltd stocks is 1,450/833.

What is the Stock P/E of Punjab Chemicals & Crop Protection Ltd?

The Stock P/E of Punjab Chemicals & Crop Protection Ltd is 32.3.

What is the Book Value of Punjab Chemicals & Crop Protection Ltd?

The Book Value of Punjab Chemicals & Crop Protection Ltd is 269.

What is the Dividend Yield of Punjab Chemicals & Crop Protection Ltd?

The Dividend Yield of Punjab Chemicals & Crop Protection Ltd is 0.21 %.

What is the ROCE of Punjab Chemicals & Crop Protection Ltd?

The ROCE of Punjab Chemicals & Crop Protection Ltd is 22.7 %.

What is the ROE of Punjab Chemicals & Crop Protection Ltd?

The ROE of Punjab Chemicals & Crop Protection Ltd is 17.5 %.

What is the Face Value of Punjab Chemicals & Crop Protection Ltd?

The Face Value of Punjab Chemicals & Crop Protection 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 Punjab Chemicals & Crop Protection 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