MoneyWorks4Me

Check Before You Invest : Petro Carbon And Chemicals Ltd

BSE: 0 NSE: PCCL ISIN: INE998U01015
  |   Sector:  Oil & Gas   |   Industry:  Industrial Gases & Fuels

Snapshot

Q.1 Which industry/sub-sector does Petro Carbon And Chemicals Ltd belong to?
Petro Carbon And Chemicals Ltd belongs to the Oil & Gas sector, operating specifically within the Industrial Gases & Fuels segment.
Q.2 Is Petro Carbon And Chemicals Ltd a good quality company?
Petro Carbon And Chemicals Ltd is a weak quality company, based on a inconsistent 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 Petro Carbon And Chemicals Ltd undervalued or overvalued?
Petro Carbon And Chemicals Ltd appears Somewhat overvalued, as its key valuation ratios are higher 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 0-year
Historic Median
Price to Earnings 42.28 34.39
Price to Book 8.48 0.36
Price to Sales 1.88 -
EV to EBITDA 21.33 27.49
Q.4 Is Petro Carbon And Chemicals Ltd a good buy now?
Petro Carbon And Chemicals 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.

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

Q.1 Debt to Equity ratio of Petro Carbon And Chemicals Ltd?
Petro Carbon And Chemicals Ltd Debt-to-Equity ratio is 1.12, which is above the industry average of , indicating higher debt levels in the industry.

Q.2 Debt to cash flow from operations of Petro Carbon And Chemicals Ltd?
Petro Carbon And Chemicals Ltd Debt to cash flow from operations is 11.58, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Petro Carbon And Chemicals Ltd?

Q.1 Promoter shareholding and pledge status of Petro Carbon And Chemicals Ltd?
Promoters hold 73.21% of the Petro Carbon And Chemicals Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Petro Carbon And Chemicals Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Petro Carbon And Chemicals Ltd vs industry peers?
Petro Carbon And Chemicals Ltd revenue CAGR is %, compared to the industry median CAGR of 0%, indicating stable growth and maintaining its market share.
Profit Metrics
Current Level 0-year
Industry Median
Revenue Growth (%) - -
Gross Profit Growth (%) - 14.9
Operating Profit Growth (%) - 15.8
Net Profit Growth (%) - 15.3
Operating Efficiency
Current Level 0-year
Industry Median
Asset Turnover (x) 0.71 0.49
ROE (%) - 5.11
ROCE (%) - 7.74
Cash Conversion Cycle (days) - 37

Valuation & price assessment

Q.1 Stock return of Petro Carbon And Chemicals Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of 156.56% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - 156.6%
Q.2 Valuation ratios of Petro Carbon And Chemicals Ltd vs historical?
The current P/E ratio of 42.28 is higher than its historical median of 34.39, indicating that the stock is trading above its historical average valuation.
Q.3 How do the current valuation ratios compare with 0-year historical median and industry numbers?
Valuation Ratios Current 0-year
Historic Median
0-year
Industry Median
Price to Earnings 42.28 34.39 -
Price to Book 8.48 0.36 -
Price to Sales 1.88 - -
EV to EBITDA 21.33 27.49 -

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