ScoreWhy is Primo Chemicals Ltd ?
1
Poor long term growth as Net Sales has grown by an annual rate of 5.46% and Operating profit at -30.88% over the last 5 years
- PBT LESS OI(Q) At Rs 2.16 cr has Grown at 1083.6% (vs previous 4Q average)
- DEBT-EQUITY RATIO(HY) Lowest at 0.32 times
- OPERATING PROFIT TO INTEREST(Q) Highest at 4.90 times
2
Technical trend is Sideways signifying no clear price momentum
- The technical trend has deteriorated from Mildly Bullish on 20-May-26 and has generated -3.34% returns since then
3
With ROCE of 2.9, it has a Attractive valuation with a 1.2 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -13.73%, its profits have risen by 336.8% ; the PEG ratio of the company is 0.1
4
Majority shareholders : Non Institution
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -13.73% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Primo Chemicals should be less than 10%
- Overall Portfolio exposure to Commodity Chemicals should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Commodity Chemicals)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Primo Chemicals for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Primo Chemicals
11.65%
-0.29
46.62%
Sensex
-11.8%
-0.49
12.94%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-0.22%
EBIT Growth (5y)
-39.61%
EBIT to Interest (avg)
5.28
Debt to EBITDA (avg)
4.63
Net Debt to Equity (avg)
0.31
Sales to Capital Employed (avg)
1.08
Tax Ratio
40.08%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
2.24%
ROCE (avg)
12.80%
ROE (avg)
11.90%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
37
Industry P/E
42
Price to Book Value
1.47
EV to EBIT
46.07
EV to EBITDA
10.56
EV to Capital Employed
1.36
EV to Sales
1.30
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
2.95%
ROE (Latest)
3.83%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Mildly Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend23What is working for the Company
DEBT-EQUITY RATIO(HY)
Lowest at 0.32 times
OPERATING PROFIT TO INTEREST(Q)
Highest at 5.64 times
DEBTORS TURNOVER RATIO(HY)
Highest at 17.66 times
PBDIT(Q)
Highest at Rs 20.81 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 14.83%
PBT LESS OI(Q)
Highest at Rs 3.62 cr.
PAT(Q)
At Rs 4.68 cr has Grown at 21.9% (vs previous 4Q average
-1What is not working for the Company
NON-OPERATING INCOME(Q)
is 59.14 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for Primo Chemicals
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 3.62 cr has Grown at 619.0% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs -0.70 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Operating Profit to Interest - Quarterly
Highest at 5.64 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Debt-Equity Ratio - Half Yearly
Lowest at 0.32 times and Fallen
each half year in the last five half yearly periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Operating Profit (PBDIT) - Quarterly
Highest at Rs 20.81 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 14.83%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 3.62 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 4.68 cr has Grown at 21.9% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 3.84 CrMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Debtors Turnover Ratio- Half Yearly
Highest at 17.66 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 Primo Chemicals
Non Operating Income - Quarterly
is 59.14 % 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
