Why is Hindustan Organic Chemicals Ltd ?
1
With a Operating Losses, the company has a Weak Long Term Fundamental Strength
- Poor long term growth as Operating profit has grown by an annual rate -196.86% of over the last 5 years
- Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -0.70
2
Risky - Negative EBITDA
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of 2.44%, its profits have risen by 81.6%
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Commodity Chemicals)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Hind.Organ.Chem. for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Hind.Organ.Chem.
8.21%
0.05
46.83%
Sensex
-3.04%
-0.49
12.94%
Quality key factors
Factor
Value
Sales Growth (5y)
7.63%
EBIT Growth (5y)
-160.03%
EBIT to Interest (avg)
-0.60
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
0.03
Sales to Capital Employed (avg)
2.33
Tax Ratio
26.36%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0.43%
ROCE (avg)
-3.25%
ROE (avg)
0
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
44
Price to Book Value
0.25
EV to EBIT
-226.13
EV to EBITDA
296.23
EV to Capital Employed
0.28
EV to Sales
0.59
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-1.83%
ROE (Latest)
-1.92%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Mildly Bullish
Dow Theory
Mildly Bullish
Mildly Bearish
Technical Movement
15What is working for the Company
PAT(Q)
At Rs 3.65 cr has Grown at 173.7% (vs previous 4Q average
DEBTORS TURNOVER RATIO(HY)
Highest at 68.30 times
-9What is not working for the Company
DEBT-EQUITY RATIO(HY)
Highest at 0.28 times
NET SALES(Q)
Lowest at Rs 96.00 cr
NON-OPERATING INCOME(Q)
is 121.19 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for Hind.Organ.Chem.
Profit After Tax (PAT) - Quarterly
At Rs 3.65 cr has Grown at 173.7% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs -4.96 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Debtors Turnover Ratio- Half Yearly
Highest at 68.30 times
in the last five half yearly periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio
Here's what is not working for Hind.Organ.Chem.
Net Sales - Quarterly
At Rs 96.00 cr has Fallen at -33.1% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 143.44 CrMOJO Watch
Near term sales trend is very negative
Net Sales (Rs Cr)
Debt-Equity Ratio - Half Yearly
Highest at 0.28 times and Grown
each half year in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Net Sales - Quarterly
Lowest at Rs 96.00 cr
in the last five quartersMOJO Watch
Near term sales trend is negative
Net Sales (Rs Cr)
Non Operating Income - Quarterly
is 121.19 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT