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Check Before You Invest : Pondy Oxides & Chemicals Ltd

BSE: 532626 NSE: POCL ISIN: INE063E01053
  |   Sector:  Metals & Mining   |   Industry:  Metal - Non Ferrous

Snapshot

Q.1 Which industry/sub-sector does Pondy Oxides & Chemicals Ltd belong to?
Pondy Oxides & Chemicals Ltd belongs to the Metals & Mining sector, operating specifically within the Metal - Non Ferrous segment.
Q.2 Is Pondy Oxides & Chemicals Ltd a good quality company?
Pondy Oxides & Chemicals Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Pondy Oxides & Chemicals Ltd undervalued or overvalued?
Pondy Oxides & Chemicals Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Pondy Oxides & Chemicals Ltd a good buy now?
Pondy Oxides & Chemicals Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Pondy Oxides & Chemicals Ltd?
Pondy Oxides & Chemicals Ltd revenue growth is 33% for FY-2025 , which is above its 5 year CAGR of 10.7% , indicating faster growth.
Q.2 Gross Profit margin of Pondy Oxides & Chemicals Ltd?
Pondy Oxides & Chemicals Ltd Gross profit margin which is the profit after deduction of direct costs, is 4.7% for FY-2025 , which is in line with its 5 year median of 4.7% , indicating stable margins.
Q.3 Operating Profit Margin of Pondy Oxides & Chemicals Ltd?
Pondy Oxides & Chemicals Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 5.2% for FY-2025 , which is in line with its 5 year median of 5.2% indicating stable margins.
Q.4 Net Profit Margin of Pondy Oxides & Chemicals Ltd?
Pondy Oxides & Chemicals Ltd Net Profit Margin is 3.21% for FY-2025 , is in line with with its 5 year median of 3.21%, indicating stable margins.
Current Level Historic Median
Gross Profit Margin 4.7 4.7
Operating Profit Margin 5.2 5.2
Net Profit Margin 3.21 3.21
Q.5 Return on Asset of Pondy Oxides & Chemicals Ltd?
Pondy Oxides & Chemicals Ltd Return on Asset is 10.91(x), which is in line with its 5 year historical median of 10.91(x), indicating stable asset utilization efficiency.
Q.6 Return on Equity (ROE) of Pondy Oxides & Chemicals Ltd?
Pondy Oxides & Chemicals Ltd Return on equity is 14.2% for FY-2025 , which is in line with its historical median of 14.2%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Pondy Oxides & Chemicals Ltd?
Pondy Oxides & Chemicals Ltd Return on capital employed is 16.88% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of Pondy Oxides & Chemicals Ltd?
Pondy Oxides & Chemicals Ltd Cash conversion cycle is 50 , below its historical median of 56 , indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 3.4 3.74
ROE 14.2 14.2
ROCE 16.88 16.88
Cash Conversion Cycle 50 56
Q.9 Debt to Equity ratio of Pondy Oxides & Chemicals Ltd?
Pondy Oxides & Chemicals Ltd Debt-to-Equity ratio is 0.18 , which is lower with the industry average of 0.37 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Pondy Oxides & Chemicals Ltd?
Pondy Oxides & Chemicals Ltd Debt to cash flow from operations is -1.3 , which is at a unhealthy level, indicating the business is not able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Pondy Oxides & Chemicals Ltd?
Promoters hold 39.34% of the Pondy Oxides & Chemicals Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Pondy Oxides & Chemicals Ltd vs industry peers?
Pondy Oxides & Chemicals Ltd revenue CAGR is 10.70% , compared to the industry median CAGR of 1.76% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 2,028.3 156.7
Gross Profit 95.3 4.2
Operating Profit 105 4.1
Net Profit 65 2.2
Operating Efficiency
Current Level Industry Median
Asset Turnover 3.4 2.44
ROE 14.2 5.38
ROCE 16.88 9.07
Cash Conversion Cycle 49.73 54

Valuation & price assessment

Q.1 Stock return of Pondy Oxides & Chemicals Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of 45.9% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 45.9% 86.3% 91.4% 93.4%
Q.3 Valuation ratios of Pondy Oxides & Chemicals Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 31.07 8.01 24.79
Price to Book 5.03 0.96 2.38
Price to Sales 1.46 0.13 0.58
EV to EBITDA 19.6 4.73 11.82

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