Primo Chemicals Ltd Stock Analysis

BSE: 506852 | NSE: PUNALKALI | Chemicals | Small Cap

BSE Share Price 24-Mar-2023 18:03
68.34 -1.50 (-2.15%)

DeciZen - Make an Informed Decision on Primo Chemicals

Overall Rating

1. Quality

2. Valuation


3. Price Trend

Primo Chemicals Price Chart

P/E Ratio ( SA) :
Market Cap :
1,656.2 Cr.
52-wk low :
52-wk high :
Bole Toh?

1. Is Primo Chemicals Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Primo Chemicals Ltd is a average quality company.

2. Is Primo Chemicals Ltd undervalued or overvalued?

The key valuation ratios of Primo Chemicals Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is Primo Chemicals Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Primo Chemicals Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Primo Chemicals:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Primo Chemicals Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

ROCE % 4.8%-6.4%-9.5%-10.1%-26.2%24.7%75.8%5.3%4.3%25.9%-
Value Creation Index -0.7-1.5NANA-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 286265267241268334376290226454721
YoY Gr. Rt. %--7.3%0.6%-9.5%11.2%24.5%12.6%-22.7%-22.1%100.6%-
Adj EPS 0.3-1-1.3-1.4-
YoY Gr. Rt. %--469.2%NANANANA2063.2%-97.1%-75%6766.7%-
BVPS (₹) 1.40.1-1-2.422.
Adj Net Profit 2.7-9.8-13-14.4-24.32.555.81.60.549.8159
Cash Flow from Ops.
Debt/CF from Ops. 1.16.821.623.


CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 5.3%11.1%6.5%100.6%
Adj EPS 25.9%NA-20.6%6766.7%
BVPS 23.736.985.9158
Share Price 34.3% 56.8% 144.9% -23%

Key Financial Parameters

Performance Ratio Colour Code Guide

Return on Equity % 2.6-10.3-16.4-23.1-52.66.7109.52.40.726.954.2
Op. Profit Mgn % 7.1-0.5-2.5-3.1-5.88.620.95.5-5.519.130.3
Net Profit Mgn % 0.9-3.7-4.9-6-9.10.814.90.60.21122
Debt to Equity 3.442.3-5-
Working Cap Days 544942474332293857570
Cash Conv. Cycle 131-12-20-18-14-17-22-13-60

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 54.20%

Sales growth is good in last 4 quarters at 104.38%

Sales growth has been subdued in last 3 years 6.52%

Net Profit has been subdued in last 3 years -20.57%

Latest Financials - Primo Chemicals Ltd.

Standalone Consolidated
TTM EPS (₹) 6.6 6.8
TTM Sales (₹ Cr.) 721 721
BVPS (₹.) 14.5 14.6
Reserves (₹ Cr.) 305 307
P/BV 4.73 4.70
PE 10.44 10.07
From the Market
52 Week Low / High (₹) 60.10 / 100.90
All Time Low / High (₹) 0.43 / 100.90
Market Cap (₹ Cr.) 1,656
Equity (₹ Cr.) 48.5
Face Value (₹) 2
Industry PE 30.2

Management X-Ray of Primo Chemicals :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.0031.3431.3431.3431.3431.3431.340.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Primo Chemicals

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)


Primo Chemicals Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Primo Chemicals on 24-Mar-2023 18:03 is : 68.34.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 24-Mar-2023 18:03 the market cap of Primo Chemicals stood at ₹ 1,656.2.
The latest PE ratio of Primo Chemicals as of 24-Mar-2023 18:03 is 10.44.
The latest PB ratio of Primo Chemicals as of 24-Mar-2023 18:03 is 4.73
The 52-week high of Primo Chemicals is ₹ 100.9 and the 52-week low is ₹ 60.10.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue / sales of Primo Chemicals is ₹ 720.6 ( Cr.) .

About Primo Chemicals Ltd

The Company was Incorporated on December 1,1975 as a Public Limited Company under the name Punjab Alkalies . The name of the Company was subsequently changed to Punjab Alkalies & Chemicals and a 'Fresh Certificate of Incorporation Consequent on Change of Name' dated 29th April 1983 was obtained from the Registrar of Companies, Punjab, HP & Chandigarh, Jalandhar. 

Punjab Alkalies & Chemicals (PACL) Company has been promoted by the Punjab State Industrial Development Corporation Limited (PSIDC), a wholly owned Punjab Government Company.

The company's plant is located at Naya Nangal in District Ropar, Punjab (India). The location is ideal in terms of being connected by rail and road. Being so close to the Bhakra Nangal Dam, the plant has an assured and continuous good quality power supply - which is a major input for Caustic Soda.The plant is located in the heart of North India, which is a burgeoning market for all its end-products.

PACL is marching ahead to upgrade its facilities. Having setup a new 100 TPD Membrane Cell Caustic Soda Plant in 1995, PACL has converted Mercury Cell Caustic Soda Plant into a 200 TPD Membrane Cell Caustic Soda Plant based on the state-of-the-art, energy efficient, eco-friendly HOECHST-UHDE Membrane Cell Technology at an investment of Rs.86 Crores in 1998. The present  total installed capacity of Caustic Soda stands at 99,000 tonnes per annum.

Product range of the company includes:

  • Caustic Soda Lye
  • Caustic Soda Flakes
  • Liquid Chlorine
  • Hydrochloric Acid
  • Sodium Hypochlorite
  • Hydrogen Gas


  • January, 1984 Commenced operations (with an installed capacity of 37,059 TPA of Caustic Soda and 16,500 TPA of Liquid Chlorine
  • September, 1987 Caustic Soda Concentration & Flaking Unit Commissioned
  • 1988 Changeover from Graphite Anodes to Dimensionally Stable Metal Anodes and installed an Anode Control and Protection Device 
  • October, 1991 Installed capacity of Caustic Soda Lye and Liquid Chlorine increased to 41,152 TPA and 29,700 TPA respectively
  • End 1992 Installed capacity of Caustic Soda Lye increased to 50,820 TPA
  • August, 1995 100 TPD, grassroot plant,  based on the HOECHST - UHDE Membrane Cell Technology was commissioned. Installed capacity of Caustic Soda Lye  increased to 83,820 TPA and Chlorine to 52,800 TPA respectively.
  • 1998 Conversion of existing 170 TPD Mercury Cell Plant to 200 TPD Membrane Cell Plant

Achievements/ recognition:

  • Jawaharlal Nehru Memorial National Award' for excellence in Industry, National Award for Excellence in Energy Conservation
  • Punjab State Safety Award for Largest Reduction in Frequency Rate of Accidents in Chemical Industry (more than 5 lac manhour group).
  • Their employees have got 'Vishwakarma Rashtriya Puruskar' from Government of India
  • 'Kirt Shromani' & 'Kirt Veer' Awards in the field of Safety & Productivity from Government of Punjab.
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