MoneyWorks4Me

Check Before You Invest : Universal Starch-Chem Allied Ltd

BSE: 524408 NSE: ISIN: INE113E01015
  |   Sector:  FMCG   |   Industry:  Consumer Food

Snapshot

Q.1 Which industry/sub-sector does Universal Starch-Chem Allied Ltd belong to?
Universal Starch-Chem Allied Ltd belongs to the FMCG sector, operating specifically within the Consumer Food segment.
Q.2 Is Universal Starch-Chem Allied Ltd a good quality company?
Universal Starch-Chem Allied 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 Universal Starch-Chem Allied Ltd undervalued or overvalued?
Universal Starch-Chem Allied 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 0-year
Historic Median
Price to Earnings - 38.43
Price to Book - 5.28
Price to Sales - 6.98
EV to EBITDA - 25.12
Q.4 Is Universal Starch-Chem Allied Ltd a good buy now?
Universal Starch-Chem Allied 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.

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

Q.1 Debt to Equity ratio of Universal Starch-Chem Allied Ltd?
Universal Starch-Chem Allied Ltd Debt-to-Equity ratio is 0.00, which is in line with the industry average of , indicating similar to debt levels in the industry.

Q.2 Debt to cash flow from operations of Universal Starch-Chem Allied Ltd?
Universal Starch-Chem Allied Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Universal Starch-Chem Allied Ltd?

Q.1 Promoter shareholding and pledge status of Universal Starch-Chem Allied Ltd?
Promoters hold 53.86% of the Universal Starch-Chem Allied Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Universal Starch-Chem Allied Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Universal Starch-Chem Allied Ltd vs industry peers?
Universal Starch-Chem Allied 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 (%) - 11.2
Operating Profit Growth (%) - 9.7
Net Profit Growth (%) - 11.9
Operating Efficiency
Current Level 0-year
Industry Median
Asset Turnover (x) - 0.74
ROE (%) - 9.19
ROCE (%) - 11.11
Cash Conversion Cycle (days) - 81

Valuation & price assessment

Q.1 Stock return of Universal Starch-Chem Allied Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 18.4% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
18.4% 14.2% 5.7% 33.6%
Q.2 Valuation ratios of Universal Starch-Chem Allied Ltd vs historical?
The current P/E ratio of 0 is lower than its historical median of 38.43, indicating that the stock is trading below 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 - 38.43 -
Price to Book - 5.28 -
Price to Sales - 6.98 -
EV to EBITDA - 25.12 -

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