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Last Updated on: 23 February, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: | NSE:

Fundamental Analysis of Ushanti Colour Chem Ltd

About the Company - Ushanti Colour Chem Ltd

Ushanti Colour Chem Ltd. is a Public Limited Listed company incorporated on 12/05/1993 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L24231GJ1993PLC019444 and registration number is 019444. Currently company belongs to the Industry of Dyes & Pigments. Company’s Total Operating Revenue is Rs. 47.75 Cr. and Equity Capital is Rs. 7.30 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Dyes & PigmentsNo. 88/8 GIDC, Phase I, Vatva, Ahmedabad Gujarat 382445admin@ushanti.com
http://www.ushanti.com
Management
NamePosition Held
Mr. Shantilal Bhailal GandhiChairman, Non Ind & Non Exe Director
Mr. Minku Shantilal GandhiJoint Managing Director
Mr. Maunal Shantilal GandhiJoint Managing Director
Mr. Purvi Tapan TrivediIndependent Director
Ms. Hanisha Jinish PatelIndependent Director
Mr. Tejas Pravinkumar ShahIndependent Director

Ushanti Colour Chem Ltd. Share Price Update

Share PriceValue
Today₹61.00
Previous Day₹60.00

Basic Stock Data of Ushanti Colour Chem Ltd

Market Cap 65.3 Cr.
Current Price 61.0
High / Low76.7/52.0
Stock P/E
Book Value 44.1
Dividend Yield0.00 %
ROCE1.47 %
ROE4.08 %
Face Value 10.0

Data Source: screener.in

Competitors of Ushanti Colour Chem Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Vidhi Specialty Food Ingredients Ltd 2,180 Cr. 436473/31962.5 53.40.23 %17.6 %16.2 % 1.00
Poddar Pigments Ltd 384 Cr. 362408/24413.9 2770.99 %12.2 %8.94 % 10.0
Bodal Chemicals Ltd 1,026 Cr. 81.694.4/55.0142 85.30.12 %5.08 %3.50 % 2.00
Prolife Industries Ltd 106 Cr. 260338/18912.6 91.20.12 %30.0 %23.9 % 10.0
Mahickra Chemicals Ltd 116 Cr. 142159/78.252.8 40.60.46 %13.7 %10.9 % 10.0
Industry Average121.8 Cr256.3256.76109.50.38%15.72%12.69%6.6

Ushanti Colour Chem Ltd Quarterly Results

MonthMar 2020Sep 2020Mar 2021Sep 2021Mar 2022Sep 2022Mar 2023Sep 2023
Sales21.7112.6022.5521.1126.6327.0016.9920.73
Expenses19.7011.2719.0219.2524.7926.2217.8320.01
Operating Profit2.011.333.531.861.840.78-0.840.72
OPM %9.26%10.56%15.65%8.81%6.91%2.89%-4.94%3.47%
Other Income0.250.160.320.190.210.332.890.54
Interest0.410.370.240.320.480.330.240.84
Depreciation0.810.650.760.710.920.850.821.16
Profit before tax1.040.472.851.020.65-0.070.99-0.74
Tax %26.92%27.66%27.02%26.47%38.46%71.43%-2.02%-109.46%
Net Profit0.770.342.080.750.41-0.031.01-1.55
EPS in Rs1.050.472.851.030.56-0.040.98-1.50

Ushanti Colour Chem Ltd Quarterly Chart

Ushanti Colour Chem Ltd Profit & Loss

MonthMar 2020Mar 2021Mar 2022Mar 2023TTM
Sales46.0335.1547.7343.9937.72
Expenses40.9130.3143.9943.9937.84
Operating Profit5.124.843.740.00-0.12
OPM %11.12%13.77%7.84%0.00%-0.32%
Other Income0.520.480.403.223.43
Interest0.830.600.840.621.08
Depreciation1.601.411.631.681.98
Profit before tax3.213.311.670.920.25
Tax %26.17%27.19%31.14%-6.52%
Net Profit2.372.411.150.98-0.54
EPS in Rs3.253.301.590.95-0.52
Dividend Payout %6.17%0.00%0.00%0.00%

Ushanti Colour Chem Ltd Profit & Loss Yearly Chart

YoY Net Profit Growth
Year2020-20212021-20222022-2023
YoY Net Profit Growth (%)1.69%-52.28%-14.78%
Change in YoY Net Profit Growth (%)0.00%-53.97%37.50%

Ushanti Colour Chem Ltd Growth

Compounded Sales Growth
10 Years:%
5 Years:%
3 Years:-2%
TTM:-30%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:%
TTM:-242%
Stock Price CAGR
10 Years:%
5 Years:7%
3 Years:20%
1 Year:-10%
Return on Equity
10 Years:%
5 Years:%
3 Years:2%
Last Year:-4%

Ushanti Colour Chem Ltd Balance Sheet

MonthMar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital7.317.307.3010.3010.30
Reserves17.5619.9921.1536.3135.10
Borrowings10.8913.2716.5440.4845.66
Other Liabilities4.835.3515.4013.1317.17
Total Liabilities40.5945.9160.39100.22108.23
Fixed Assets18.9618.9119.7422.3465.52
CWIP0.662.8010.3938.200.13
Investments0.130.130.130.000.00
Other Assets20.8424.0730.1339.6842.58
Total Assets40.5945.9160.39100.22108.23

Ushanti Colour Chem Ltd Reserves and Borrowings Chart

Ushanti Colour Chem Ltd Cash Flow

MonthMar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 0.461.392.874.79
Cash from Investing Activity -0.25-3.14-9.69-40.31
Cash from Financing Activity -0.061.786.8536.26
Net Cash Flow0.150.030.030.73

Ushanti Colour Chem Ltd Financial Efficiency Indicators

MonthMar 2020Mar 2021Mar 2022Mar 2023
Debtor Days72.6497.4080.7587.79
Inventory Days67.14124.26102.4080.49
Days Payable37.8768.0097.6684.21
Cash Conversion Cycle101.91153.6585.5084.07
Working Capital Days78.27118.90107.98165.53
ROCE %10.11%5.87%-1.47%

Ushanti Colour Chem Ltd Financial Efficiency Indicators Chart

Ushanti Colour Chem Ltd Share Holding Pattern

MonthMar 2019Sep 2019Mar 2020Sep 2020Mar 2021Sep 2021Mar 2022Sep 2022Nov 2022Mar 2023Sep 2023Oct 2023
Promoters74.33%74.33%74.33%74.33%74.53%74.56%74.80%74.80%67.87%70.49%70.49%67.86%
Public25.66%25.67%25.67%25.66%25.48%25.45%25.21%25.20%32.13%29.51%29.51%32.14%
No. of Shareholders280257254254242245245279284280315317

Ushanti Colour Chem Ltd Shareholding Pattern Chart

No. of Ushanti Colour Chem Ltd Shareholders

This stock is not held by any mutual fund

Ushanti Colour Chem Ltd ROCE Trend

Ushanti Colour Chem Ltd EPS Trend

Ushanti Colour Chem Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.00
Basic EPS (Rs.)1.191.593.313.25
Diluted EPS (Rs.)1.191.593.313.25
Cash EPS (Rs.)2.583.815.245.44
Book Value[Excl.RevalReserv]/Share (Rs.)45.2444.8437.3834.03
Book Value[Incl.RevalReserv]/Share (Rs.)45.2444.8437.3834.03
Revenue From Operations / Share (Rs.)42.7065.3748.1362.96
PBDIT / Share (Rs.)3.075.617.297.72
PBIT / Share (Rs.)1.443.385.365.52
PBT / Share (Rs.)0.892.294.544.39
Net Profit / Share (Rs.)0.951.583.313.25
NP After MI And SOA / Share (Rs.)0.951.593.313.25
PBDIT Margin (%)7.188.5815.1512.25
PBIT Margin (%)3.375.1711.148.77
PBT Margin (%)2.083.509.436.97
Net Profit Margin (%)2.222.416.865.15
NP After MI And SOA Margin (%)2.232.436.865.15
Return on Networth / Equity (%)2.103.558.849.54
Return on Capital Employeed (%)1.966.0412.0415.40
Return On Assets (%)0.971.925.255.85
Long Term Debt / Equity (X)0.610.240.190.05
Total Debt / Equity (X)0.860.500.460.41
Asset Turnover Ratio (%)0.541.000.840.00
Current Ratio (X)1.381.301.621.29
Quick Ratio (X)1.110.891.180.96
Inventory Turnover Ratio (X)3.593.833.190.00
Dividend Payout Ratio (NP) (%)0.000.000.007.43
Dividend Payout Ratio (CP) (%)0.000.000.004.43
Earning Retention Ratio (%)0.000.000.0092.57
Cash Earning Retention Ratio (%)0.000.000.0095.57
Interest Coverage Ratio (X)5.585.148.856.81
Interest Coverage Ratio (Post Tax) (X)2.732.455.013.87
Enterprise Value (Cr.)109.3057.1934.5024.56
EV / Net Operating Revenue (X)2.481.200.980.53
EV / EBITDA (X)34.5613.956.484.35
MarketCap / Net Operating Revenue (X)1.590.850.740.37
Retention Ratios (%)0.000.000.0092.56
Price / BV (X)1.501.250.960.70
Price / Net Operating Revenue (X)1.590.850.740.37
EarningsYield0.010.020.090.13

Ushanti Colour Chem Ltd Profitability Ratios (%)

Ushanti Colour Chem Ltd Liquidity Ratios

Ushanti Colour Chem Ltd Liquidity Ratios (%)

Ushanti Colour Chem Ltd Interest Coverage Ratios (X)

Ushanti Colour Chem Ltd Valuation Ratios

Fair Value / Intrinsic Value of Ushanti Colour Chem Ltd

Fair Value: ₹27.53

The stock is overvalued by 54.87% compared to the current price ₹61

*Investments are subject to market risks

Strength and Weakness of Ushanti Colour Chem Ltd

StrengthWeakness
  1. The company has higher reserves (26.02 cr) compared to borrowings (25.37 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (42.12 cr) and profit (1.87 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 3.93 and average Dividend Yield of 7.11%.
  2. The stock has a low average ROCE of 3.63%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 117.67, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 106.28, which may not be favorable.

Should I Buy Ushanti Colour Chem Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Ushanti Colour Chem Ltd:
    1. Net Profit Margin: 2.22%
      • 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: 1.96% (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. Interest Coverage Ratio (Post Tax): 2.73
      • 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: 1.11
      • 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 of N/A (Industry average Stock P/E: 63.2)
      • 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: 0.86
      • 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 Ushanti Colour Chem 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