ScoreWhy is Zuari Agro Chemicals Ltd ?
1
High Debt company with Weak Long Term Fundamental Strength
- Poor long term growth as Net Sales has grown by an annual rate of 8.83% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at 2.72 times
- The company has been able to generate a Return on Capital Employed (avg) of 9.58% signifying low profitability per unit of total capital (equity and debt)
2
With a growth in Net Profit of 1108.86%, the company declared Outstanding results in Sep 25
- The company has declared positive results for the last 2 consecutive quarters
- OPERATING CF(Y) Highest at Rs 511.47 Cr
- PBT LESS OI(Q) At Rs 217.73 cr has Grown at 148.4% (vs previous 4Q average)
- ROCE(HY) Highest at 20.80%
3
With ROCE of 11.8, it has a Very Attractive valuation with a 0.5 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 1.65%, its profits have risen by 78.2% ; the PEG ratio of the company is 0
Real-Time Research ReportHow 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 Fertilizers)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Zuari Agro Chem. for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Zuari Agro Chem.
-0.47%
0.03
55.39%
Sensex
-4.3%
0.44
11.83%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-0.80%
EBIT Growth (5y)
44.70%
EBIT to Interest (avg)
1.48
Debt to EBITDA (avg)
6.51
Net Debt to Equity (avg)
0.21
Sales to Capital Employed (avg)
1.40
Tax Ratio
17.65%
Dividend Payout Ratio
4.95%
Pledged Shares
21.51%
Institutional Holding
2.80%
ROCE (avg)
9.45%
ROE (avg)
13.53%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
3
Industry P/E
21
Price to Book Value
0.33
EV to EBIT
4.98
EV to EBITDA
3.87
EV to Capital Employed
0.45
EV to Sales
0.35
PEG Ratio
0.07
Dividend Yield
NA
ROCE (Latest)
11.81%
ROE (Latest)
12.61%
Loading Valuation Snapshot...
TechnicalsTechnical 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
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend11What is working for the Company
PAT(Latest six months)
At Rs 188.14 cr has Grown at 38.58%
ROCE(HY)
Highest at 20.80%
DEBT-EQUITY RATIO(HY)
Lowest at 0.24 times
-17What is not working for the Company
PBT LESS OI(Q)
At Rs 31.46 cr has Fallen at -73.3% (vs previous 4Q average
PAT(Q)
At Rs 42.58 cr has Fallen at -46.6% (vs previous 4Q average
OPERATING PROFIT TO INTEREST (Q)
Lowest at 0.52 times
CASH AND CASH EQUIVALENTS(HY)
Lowest at Rs 64.07 cr
NET SALES(Q)
Lowest at Rs 343.70 cr
PBDIT(Q)
Lowest at Rs 9.27 cr.
OPERATING PROFIT TO NET SALES (Q)
Lowest at 2.70%
Loading Valuation Snapshot...
Here's what is working for Zuari Agro Chem.
Debt-Equity Ratio - Half Yearly
Lowest at 0.24 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
Here's what is not working for Zuari Agro Chem.
Net Sales - Quarterly
At Rs 343.70 cr has Fallen at -71.9% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 1,221.20 CrMOJO Watch
Near term sales trend is very negative
Net Sales (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 31.46 cr has Fallen at -73.3% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 117.90 CrMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 42.58 cr has Fallen at -46.6% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 79.73 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Operating Profit to Interest - Quarterly
Lowest at 0.52 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Net Sales - Quarterly
Lowest at Rs 343.70 cr
in the last five quartersMOJO Watch
Near term sales trend is negative
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Lowest at Rs 9.27 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Lowest at 2.70%
in the last five quartersMOJO Watch
Company's efficiency has deteriorated
Operating Profit to Sales
Cash and Cash Equivalents - Half Yearly
Lowest at Rs 64.07 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
