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Check Before You Invest : Lords Chloro Alkali Ltd

BSE: 500284 NSE: LORDSCHLO ISIN: INE846D01012
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Chemicals

Snapshot

Q.1 Which industry/sub-sector does Lords Chloro Alkali Ltd belong to?
Lords Chloro Alkali Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.
Q.2 Is Lords Chloro Alkali Ltd a good quality company?
Lords Chloro Alkali Ltd is a average quality company, based on a somewhat consistent 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 Lords Chloro Alkali Ltd undervalued or overvalued?
Lords Chloro Alkali Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than 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 15.57 13.72
Price to Book 1.67 2.21
Price to Sales 1.12 1.44
EV to EBITDA 8.51 12.15
Q.4 Is Lords Chloro Alkali Ltd a good buy now?
Lords Chloro Alkali Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. 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 Lords Chloro Alkali Ltd?
Lords Chloro Alkali Ltd revenue growth is 22.2% for FY-2025, which is above its 5-year CAGR of 5.82%, indicating faster growth.

Q.2 Gross Profit margin of Lords Chloro Alkali Ltd?
Lords Chloro Alkali Ltd Gross profit margin which is the profit after deduction of direct costs, is 7.4% for FY-2025, which is in line with its 5-year median of 7.4%, indicating stable margins.

Q.3 Operating Profit Margin of Lords Chloro Alkali Ltd?
Lords Chloro Alkali Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 8.94% for FY-2025, which is in line with its 5-year median of 8.94% indicating stable margins.

Q.4 Net Profit Margin of Lords Chloro Alkali Ltd?
Lords Chloro Alkali Ltd Net Profit Margin is 2.29% for FY-2025, is in line with its 5-year median of 2.29%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 7.4 7.4
Operating Profit Margin (%) 8.94 8.94
Net Profit Margin (%) 2.29 2.29

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Lords Chloro Alkali Ltd?
Lords Chloro Alkali Ltd Return on Asset is 1.94%, which is in line with its 5-year historical median of 1.94%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Lords Chloro Alkali Ltd?
Lords Chloro Alkali Ltd Return on capital employed is 5.46% for FY-2025, which is in line with its 5-year historical median of 5.46%. 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 Lords Chloro Alkali Ltd?
Lords Chloro Alkali Ltd Return on equity is 3.68% for FY-2025, which is in line with its 5-year historical median of 3.68%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Lords Chloro Alkali Ltd?
Lords Chloro Alkali Ltd Cash conversion cycle is 66 days, above its 5-year historical median of 53 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.85 0.87
ROE (%) 3.68 3.68
ROCE (%) 5.46 5.46
Cash Conversion Cycle 66 days 53 days

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

Q.9 Debt to Equity ratio of Lords Chloro Alkali Ltd?
Lords Chloro Alkali Ltd Debt-to-Equity ratio is 0.74, which is above the industry average of 0.13, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Lords Chloro Alkali Ltd?
Lords Chloro Alkali Ltd Debt to cash flow from operations is 13.76, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Lords Chloro Alkali Ltd?

Q.1 Promoter shareholding and pledge status of Lords Chloro Alkali Ltd?
Promoters hold 74.97% of the Lords Chloro Alkali Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Lords Chloro Alkali Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Lords Chloro Alkali Ltd vs industry peers?
Lords Chloro Alkali Ltd revenue CAGR is 5.82%, compared to the industry median CAGR of 7.53%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 22.2 7.5
Gross Profit Growth (%) 900 12.1
Operating Profit Growth (%) 2,300 11.7
Net Profit Growth (%) 0 9.7
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.85 0.93
ROE (%) 3.68 10.17
ROCE (%) 5.46 12.96
Cash Conversion Cycle (days) 65.88 62

Valuation & price assessment

Q.1 Stock return of Lords Chloro Alkali Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 18% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
18% 32.2% -8% 3.6%
Q.2 Valuation ratios of Lords Chloro Alkali Ltd vs historical?
The current P/E ratio of 15.57 is higher than its historical median of 13.72, indicating that the stock is trading above 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 15.57 13.72 28.17
Price to Book 1.67 2.21 2.22
Price to Sales 1.12 1.44 1.93
EV to EBITDA 8.51 12.15 14.20

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