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Check Before You Invest : Daikaffil Chemicals India Ltd

BSE: 530825 NSE: ISIN: INE789B01018
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Pesticides & Agrochemicals

Snapshot

Q.1 Which industry/sub-sector does Daikaffil Chemicals India Ltd belong to?
Daikaffil Chemicals India Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Pesticides & Agrochemicals segment.
Q.2 Is Daikaffil Chemicals India Ltd a good quality company?
Daikaffil Chemicals India Ltd is a quality company, based on a multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Daikaffil Chemicals India Ltd undervalued or overvalued?
Daikaffil Chemicals India Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings - -
Price to Book 2.63 2.43
Price to Sales 1.29 1.83
EV to EBITDA -14.54 -19.67
Q.4 Is Daikaffil Chemicals India Ltd a good buy now?
Daikaffil Chemicals India Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Daikaffil Chemicals India Ltd?
Daikaffil Chemicals India Ltd revenue growth is 0% for FY-2025, which is above its 5-year CAGR of -13.76%, indicating faster growth.

Q.2 Gross Profit margin of Daikaffil Chemicals India Ltd?
Daikaffil Chemicals India Ltd Gross profit margin which is the profit after deduction of direct costs, is -17.8% for FY-2025, which is in line with its 5-year median of -17.8%, indicating stable margins.

Q.3 Operating Profit Margin of Daikaffil Chemicals India Ltd?
Daikaffil Chemicals India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -23.88% for FY-2025, which is in line with its 5-year median of -23.88% indicating stable margins.

Q.4 Net Profit Margin of Daikaffil Chemicals India Ltd?
Daikaffil Chemicals India Ltd Net Profit Margin is -21.2% for FY-2025, is in line with its 5-year median of -21.2%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) -17.8 -17.8
Operating Profit Margin (%) -23.88 -23.88
Net Profit Margin (%) -21.2 -21.2

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Daikaffil Chemicals India Ltd?
Daikaffil Chemicals India Ltd Return on Asset is -12.17%, which is below its 5-year historical median of -10.94%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Daikaffil Chemicals India Ltd?
Daikaffil Chemicals India Ltd Return on capital employed is -16.46% for FY-2025, which is in line with its 5-year historical median of -16.43%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Daikaffil Chemicals India Ltd?
Daikaffil Chemicals India Ltd Return on equity is -16.4% for FY-2025, which is in line with its 5-year historical median of -15.78%, indicating the business is making similar use of its shareholders capital.

C: How much debt does the business have and is it at a sustainable level?

Q.8 Debt to Equity ratio of Daikaffil Chemicals India Ltd?
Daikaffil Chemicals India Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.27, indicating lower debt levels in the industry.

Q.9 Debt to cash flow from operations of Daikaffil Chemicals India Ltd?
Daikaffil Chemicals India Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Daikaffil Chemicals India Ltd?

Q.1 Promoter shareholding and pledge status of Daikaffil Chemicals India Ltd?
Promoters hold 52.65% of the Daikaffil Chemicals India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Daikaffil Chemicals India Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Daikaffil Chemicals India Ltd vs industry peers?
Daikaffil Chemicals India Ltd revenue CAGR is -13.76%, compared to the industry median CAGR of 8.45%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) - 8.5
Gross Profit Growth (%) 0 13.9
Operating Profit Growth (%) 0 14
Net Profit Growth (%) 0 14.9
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.57 1.19
ROE (%) -16.4 13.63
ROCE (%) -16.46 16.98
Cash Conversion Cycle (days) 158.8 93

Valuation & price assessment

Q.1 Stock return of Daikaffil Chemicals India Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of -0.5% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
-0.5% 1.3% 7.4% -80%
Q.2 Valuation ratios of Daikaffil Chemicals India Ltd vs historical?
The current P/E ratio of 0 is in line with than its historical median of , indicating that the stock is trading near its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings - - 24.78
Price to Book 2.63 2.43 2.67
Price to Sales 1.29 1.83 1.43
EV to EBITDA -14.54 -19.67 12.86

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MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

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