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Check Before You Invest : Hindustan Organic Chemicals Ltd

BSE: 500449 NSE: HOCL ISIN: INE048A01011
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Chemicals

Snapshot

Q.1 Which industry/sub-sector does Hindustan Organic Chemicals Ltd belong to?
Hindustan Organic Chemicals Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.
Q.2 Is Hindustan Organic Chemicals Ltd a good quality company?
Hindustan Organic Chemicals Ltd is a average quality company, based on a somewhat consistent 10 year financial track record.
Q.3 Is Hindustan Organic Chemicals Ltd undervalued or overvalued?
Hindustan Organic Chemicals Ltd appears Fair, as its key valuation ratios are in line with their past averages.
Q.4 Is Hindustan Organic Chemicals Ltd a good buy now?
Hindustan Organic Chemicals 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

Q.1 Revenue growth of Hindustan Organic Chemicals Ltd?
Hindustan Organic Chemicals Ltd revenue growth is -23.9% for FY-2025 , which is below its 5 year CAGR of 12.3% , indicating slower growth.
Q.2 Gross Profit margin of Hindustan Organic Chemicals Ltd?
Hindustan Organic Chemicals Ltd Gross profit margin which is the profit after deduction of direct costs, is -19.8% for FY-2025 , which is below its 5 year median of -7.7% , indicating decreasing margins.
Q.3 Operating Profit Margin of Hindustan Organic Chemicals Ltd?
Hindustan Organic Chemicals Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -16.07% for FY-2025 , which is below its 5 year median of 1.15% indicating decreasing margins.
Q.4 Net Profit Margin of Hindustan Organic Chemicals Ltd?
Hindustan Organic Chemicals Ltd Net Profit Margin is 73.07% for FY-2025 , is above with its 5 year median of -6.04%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin -19.8 -7.7
Operating Profit Margin -16.07 1.15
Net Profit Margin 73.07 -6.04
Q.5 Return on Asset of Hindustan Organic Chemicals Ltd?
Hindustan Organic Chemicals Ltd Return on Asset is 25.05%, which is above its 5 year historical median of -1.84%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Hindustan Organic Chemicals Ltd?
Hindustan Organic Chemicals Ltd Return on equity is 0% for FY-2025 , which is in line with its historical median of 0%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Hindustan Organic Chemicals Ltd?
Hindustan Organic Chemicals Ltd Return on capital employed is 1936.05% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of Hindustan Organic Chemicals Ltd?
Hindustan Organic Chemicals Ltd Cash conversion cycle is 21 days, above its historical median of 20 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.34 0.34
ROE - -
ROCE 1936.05 -
Cash Conversion Cycle 21 days 20 days
Q.9 Debt to Equity ratio of Hindustan Organic Chemicals Ltd?
Hindustan Organic Chemicals Ltd Debt-to-Equity ratio is 0.80 , which is above with the industry average of 0.13 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Hindustan Organic Chemicals Ltd?
Hindustan Organic Chemicals Ltd Debt to cash flow from operations is 0.18 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Hindustan Organic Chemicals Ltd?
Promoters hold 58.78% of the Hindustan Organic Chemicals Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Hindustan Organic Chemicals Ltd vs industry peers?
Hindustan Organic Chemicals Ltd revenue CAGR is 12.30% , compared to the industry median CAGR of 7.7% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 535.9 202
Gross Profit -106.1 23.6
Operating Profit -86 24
Net Profit 392 12
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.34 0.93
ROE - 10.18
ROCE 1936.05 13.07
Cash Conversion Cycle (days) 21.35 62

Valuation & price assessment

Q.1 Stock return of Hindustan Organic Chemicals Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 6.4% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 6.4% -4.2% 5.1% -24%
Q.3 Valuation ratios of Hindustan Organic 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 0.4 0.00 41.15
Price to Book 1.73 6.23 2.38
Price to Sales 0.35 0.34 1.93
EV to EBITDA -2.12 0.00 13.71

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