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Check Before You Invest : Tuticorin Alkali Chemicals and Fertilizers Ltd

BSE: 506808 NSE: TUTICORALK ISIN: INE400A01014
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Chemicals

Snapshot

Q.1 Which industry/sub-sector does Tuticorin Alkali Chemicals and Fertilizers Ltd belong to?
Tuticorin Alkali Chemicals and Fertilizers Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.
Q.2 Is Tuticorin Alkali Chemicals and Fertilizers Ltd a good quality company?
Tuticorin Alkali Chemicals and Fertilizers 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 Tuticorin Alkali Chemicals and Fertilizers Ltd undervalued or overvalued?
Tuticorin Alkali Chemicals and Fertilizers Ltd appears 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 5-year
Historic Median
Price to Earnings 20.35 9.67
Price to Book -24.87 -6.57
Price to Sales 2.18 2.63
EV to EBITDA 11.55 12.89
Q.4 Is Tuticorin Alkali Chemicals and Fertilizers Ltd a good buy now?
Tuticorin Alkali Chemicals and Fertilizers 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.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Tuticorin Alkali Chemicals and Fertilizers Ltd?
Tuticorin Alkali Chemicals and Fertilizers Ltd revenue growth is -3.4% for FY-2025, which is below its 5-year CAGR of 14.59%, indicating slower growth.

Q.2 Gross Profit margin of Tuticorin Alkali Chemicals and Fertilizers Ltd?
Tuticorin Alkali Chemicals and Fertilizers Ltd Gross profit margin which is the profit after deduction of direct costs, is 20.5% for FY-2025, which is above its 5-year median of 16.1%, indicating increasing margins.

Q.3 Operating Profit Margin of Tuticorin Alkali Chemicals and Fertilizers Ltd?
Tuticorin Alkali Chemicals and Fertilizers Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 20.08% for FY-2025, which is above its 5-year median of 19.07% indicating increasing margins.

Q.4 Net Profit Margin of Tuticorin Alkali Chemicals and Fertilizers Ltd?
Tuticorin Alkali Chemicals and Fertilizers Ltd Net Profit Margin is 20.09% for FY-2025, is in line with its 5-year median of 19.8%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 20.5 16.1
Operating Profit Margin (%) 20.08 19.07
Net Profit Margin (%) 20.09 19.8

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Tuticorin Alkali Chemicals and Fertilizers Ltd?
Tuticorin Alkali Chemicals and Fertilizers Ltd Return on Asset is 13.26%, which is in line with its 5-year historical median of 13.26%, indicating stable asset utilization efficiency.

Q.6 Cash conversion cycle of Tuticorin Alkali Chemicals and Fertilizers Ltd?
Tuticorin Alkali Chemicals and Fertilizers Ltd Cash conversion cycle is -9 days, above its 5-year historical median of -58 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

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

Q.7 Debt to Equity ratio of Tuticorin Alkali Chemicals and Fertilizers Ltd?
Tuticorin Alkali Chemicals and Fertilizers Ltd Debt-to-Equity ratio is -1.70, which is lower the industry average of 0.13, indicating lower debt levels in the industry.

Q.8 Debt to cash flow from operations of Tuticorin Alkali Chemicals and Fertilizers Ltd?
Tuticorin Alkali Chemicals and Fertilizers Ltd Debt to cash flow from operations is -12.84, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Tuticorin Alkali Chemicals and Fertilizers Ltd?

Q.1 Promoter shareholding and pledge status of Tuticorin Alkali Chemicals and Fertilizers Ltd?
Promoters hold 75.00% of the Tuticorin Alkali Chemicals and Fertilizers Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Tuticorin Alkali Chemicals and Fertilizers Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Tuticorin Alkali Chemicals and Fertilizers Ltd vs industry peers?
Tuticorin Alkali Chemicals and Fertilizers Ltd revenue CAGR is 14.59%, compared to the industry median CAGR of 7.53%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -3.4 7.5
Gross Profit Growth (%) -16 12.1
Operating Profit Growth (%) -17.3 11.7
Net Profit Growth (%) -11.4 9.7
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.66 0.93
ROE (%) - 10.17
ROCE (%) - 12.96
Cash Conversion Cycle (days) -8.94 62

Valuation & price assessment

Q.1 Stock return of Tuticorin Alkali Chemicals and Fertilizers Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 22.7% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
22.7% 36.6% 3.7% -20.4%
Q.2 Valuation ratios of Tuticorin Alkali Chemicals and Fertilizers Ltd vs historical?
The current P/E ratio of 20.35 is higher than its historical median of 9.67, 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 20.35 9.67 28.17
Price to Book -24.87 -6.57 2.22
Price to Sales 2.18 2.63 1.93
EV to EBITDA 11.55 12.89 14.20

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