Why is Narmada Gelatines Ltd ?
1
High Management Efficiency with a high ROCE of 16.07%
2
Company has a low Debt to Equity ratio (avg) at 0.05 times
3
Positive results in Dec 25
- PBDIT(Q) Highest at Rs 10.67 cr.
- OPERATING PROFIT TO NET SALES(Q) Highest at 18.81%
- PBT LESS OI(Q) Highest at Rs 10.73 cr.
4
Stock is technically in a Bullish range
- The technical trend has improved from Mildly Bullish on 17-Apr-26 and has generated 9.95% returns since then
- Multiple factors for the stock are Bullish like MACD, Bollinger Band and KST
5
With ROE of 19.4, it has a Very Attractive valuation with a 1.9 Price to Book Value
- The stock is trading at a fair value compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 27.75%, its profits have risen by 42.3% ; the PEG ratio of the company is 0.2
How much should you buy?
- Overall Portfolio exposure to Narmada Gelatine should be less than 10%
- Overall Portfolio exposure to Specialty Chemicals should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Specialty Chemicals)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Narmada Gelatine for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Narmada Gelatine
20.63%
0.78
35.75%
Sensex
-11.8%
-0.49
12.94%
Quality key factors
Factor
Value
Sales Growth (5y)
9.07%
EBIT Growth (5y)
47.12%
EBIT to Interest (avg)
22.33
Debt to EBITDA (avg)
0.52
Net Debt to Equity (avg)
0.06
Sales to Capital Employed (avg)
1.47
Tax Ratio
25.48%
Dividend Payout Ratio
21.28%
Pledged Shares
0
Institutional Holding
0.01%
ROCE (avg)
17.39%
ROE (avg)
14.73%
Valuation Key Factors 
Factor
Value
P/E Ratio
7
Industry P/E
42
Price to Book Value
1.83
EV to EBIT
6.27
EV to EBITDA
5.86
EV to Capital Employed
1.79
EV to Sales
1.18
PEG Ratio
0.11
Dividend Yield
2.57%
ROCE (Latest)
25.78%
ROE (Latest)
22.40%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bullish
Mildly Bearish
Technical Movement
17What is working for the Company
OPERATING CF(Y)
Highest at Rs 24.56 Cr
PAT(Latest six months)
At Rs 19.54 cr has Grown at 62.70%
NET SALES(Latest six months)
At Rs 118.07 cr has Grown at 23.58%
ROCE(HY)
Highest at 26.28%
-3What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 7.42 times
DPR(Y)
Lowest at 21.28%
Loading Valuation Snapshot...
Here's what is working for Narmada Gelatine
Profit After Tax (PAT) - Latest six months
At Rs 19.54 cr has Grown at 62.70%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Operating Cash Flow - Annually
Highest at Rs 24.56 Cr and Grown
each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (Rs Cr)
Net Sales - Latest six months
At Rs 118.07 cr has Grown at 23.58%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Here's what is not working for Narmada Gelatine
Debtors Turnover Ratio- Half Yearly
Lowest at 7.42 times and Fallen
each half year in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
Dividend Payout Ratio (DPR) - Annually
Lowest at 21.28%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)