Why is Akzo Nobel India Ltd ?
1
Poor long term growth as Net Sales has grown by an annual rate of 12.42% and Operating profit at 17.31% over the last 5 years
2
Negative results in Sep 25
- OPERATING CF(Y) Lowest at Rs 310.80 Cr
- ROCE(HY) Lowest at 22.13%
- PAT(Q) At Rs 83.46 cr has Fallen at -17.8% (vs previous 4Q average)
3
Reducing Promoter Confidence
- Promoters have decreased their stake in the company by -5% over the previous quarter and currently hold 69.76% of the company
- Promoters decreasing their stake may signify reduced confidence in the future of the business
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 Paints)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Akzo Nobel for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Akzo Nobel
-25.53%
-0.12
30.78%
Sensex
8.49%
0.44
11.83%
Quality key factors
Factor
Value
Sales Growth (5y)
12.42%
EBIT Growth (5y)
17.31%
EBIT to Interest (avg)
39.24
Debt to EBITDA (avg)
0.13
Net Debt to Equity (avg)
-0.09
Sales to Capital Employed (avg)
2.48
Tax Ratio
16.29%
Dividend Payout Ratio
79.99%
Pledged Shares
0
Institutional Holding
29.24%
ROCE (avg)
48.80%
ROE (avg)
24.90%
Valuation Key Factors 
Factor
Value
P/E Ratio
33
Industry P/E
50
Price to Book Value
5.74
EV to EBIT
26.04
EV to EBITDA
22.30
EV to Capital Employed
6.24
EV to Sales
3.27
PEG Ratio
NA
Dividend Yield
6.70%
ROCE (Latest)
23.95%
ROE (Latest)
17.36%
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Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
No Trend
Technical Movement
3What is working for the Company
DEBTORS TURNOVER RATIO(HY)
Highest at 7.29 times
-8What is not working for the Company
ROCE(HY)
Lowest at 22.13%
CASH AND CASH EQUIVALENTS(HY)
Lowest at Rs 282.80 cr
NET SALES(Q)
At Rs 907.70 cr has Fallen at -7.0% (vs previous 4Q average
EPS(Q)
Lowest at Rs 16.33
Loading Valuation Snapshot...
Here's what is working for Akzo Nobel
Debtors Turnover Ratio- Half Yearly
Highest at 7.29 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 Akzo Nobel
Net Sales - Quarterly
At Rs 907.70 cr has Fallen at -7.0% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 975.65 CrMOJO Watch
Near term sales trend is negative
Net Sales (Rs Cr)
Earnings per Share (EPS) - Quarterly
Lowest at Rs 16.33
in the last five quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)
Cash and Cash Equivalents - Half Yearly
Lowest at Rs 282.80 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Non Operating Income - Quarterly
Highest at Rs 14.70 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income