EICL Ltd Stock Analysis

BSE: 526560 | NSE: | Mining & Minerals | Small Cap

BSE Share Price
Not Listed

DeciZen - Make an Informed Decision on EICL

Overall Rating
M-Cap below 500cr. High Risk from low Liquidity

2. Valuation

Undervalued
P/E P/S EV/EBITDA

3. Price Trend

FAQ's

1. Is EICL Ltd. a good quality company?

Data is not available for this company.

2. Is EICL Ltd. undervalued or overvalued?

No data found

3. Is EICL Ltd. a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of EICL 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 EICL:

Analysis of Financial Track Record

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.

Value Creation

Value Creation Index Colour Code Guide
Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
ROCE % 10.6%7.7%9.9%12.2%12.8%12.6%15.2%6.7%-2.6%-3.4%-
Value Creation Index -0.3-0.5-0.3-0.1-0.1-0.10.1-0.5-1.2-1.3-

Growth Parameters

Growth Parameters Colour Code Guide
Sales 378422463460459482441280202104104
YoY Gr. Rt. %-11.5%9.8%-0.6%-0.2%5%-8.7%-36.4%-27.8%-48.4%-
Adj EPS 3.31.83.34.95.45.46.12.3-2.3-2.3-2.3
YoY Gr. Rt. %--45.9%86%47.8%10%-0.7%13.2%-62.5%-199.1%NA-
BVPS (₹) 24.726.128.230.433.136.740.741.237.134.928.2
Adj Net Profit 16.6916.724.727.22730.611.5-11.4-11.4-12
Cash Flow from Ops. 41.444.141.650.360.355.453.138.55.9-9.1-
Debt/CF from Ops. 3.6332.21.41.60.41.24.6-4.5-

CAGR

CAGR Colour Code Guide
9 Years 5 Years 3 Years 1 Years
Sales -13.3%-25.6%-38.1%-48.4%
Adj EPS -195.9%-184.1%-172%NA
BVPS 3.91.1-4.9-5.9
Share Price - - - -

Key Financial Parameters

Performance Ratio Colour Code Guide
Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity % 11.15.710.11414.413.815.35.6-5.8-6.3-7.3
Op. Profit Mgn % 14.811.812.114.614.713.61411.9-0.4-111.9
Net Profit Mgn % 4.42.13.65.45.95.66.94.1-5.6-10.9-11.1
Debt to Equity 10.80.70.60.40.50.10.20.10.20.2
Working Cap Days 11811511312412111111920326740592
Cash Conv. Cycle 464748525145373018370

Recent Performance Summary

No data to display

Return on Equity has declined versus last 3 years average to %

Sales growth has been subdued in last 3 years %

Sales growth is not so good in last 4 quarters at %

Latest Financials - EICL Ltd.

Standalone Consolidated
TTM EPS (₹) -2.3 -2.4
TTM Sales (₹ Cr.) 104 104
BVPS (₹.) 28.2 13.4
Reserves (₹ Cr.) 132 58
P/BV 1.67 3.51
PE 0.00 0.00
From the Market
52 Week Low / High (₹) 46.55 / 49.50
All Time Low / High (₹) 1.33 / 318.46
Market Cap (₹ Cr.) 237
Equity (₹ Cr.) 10.1
Face Value (₹) 2
Industry PE 7.7

Management X-Ray of EICL :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

Analyst's Notes

News

About EICL Ltd

English Indian Clays Limited was incorporated on November 18, 1963, in technical and financial collaboration with English China Clays Limited (EECL), UK (now known as ECC Group plc, UK) .The company is engaged mainly in two business segments viz clay business and starch business. In 2012 the company announced the change of name of the Company from English Indian Clays ltd. to "EICL LIMITED".

The collaboration with ECC ceased in the year 1992. EICL has since been actively engaged in the manufacture and processing of china clay of different grades for use as a coating agent and filling agent. The company has its clay manufacturing units at Veli, Thonnakkal and Kollam located in Thiruvananthapuram, Kerala. The installed capacity of the plants was 36,000 MT per annum initially and it has since been increased to 2,13,600 MT per annum as of date.

The starch business has two manufacturing divisions at Yamunanagar in Haryana and Puducherry. The starch division at Yamunanagar can trace its origins back to 1937 when Late Lala Karam Chand Thapar promoted a company by the name of Indian Starch & Chemicals Limited. The name of this company was later changed to Bharat Starch Industries limited. The starch division at Puducherry was set up in 1994-95 to manufacture modified starches for industrial uses. The divisions have the distinction of being the only starch company in India to have acquired ISO-9002 certification and DSIR recognised R & D centre. Current starch producing capacity of the company is 1,01,040 MT per annum. The company acquired the starch business of erstwhile Bharat Starch Industries Limited (BSIL) with effect from April 1, 2001.

As a pigment and extender, china clay it is used extensively in the paper and paints industry. As filler, it is used in the manufacture of plastics, detergents, rubber goods and paper; as raw material, it is used by glass and ceramic industries for making fiberglass and porcelain respectively. As additive, it is used by the soap industry and it is also used by the paper industry for specialty coating purposes as well in order to impart strength and shine and water repellent characteristics to the paper.

Starch is used in the paper industry to increase the strength of paper-sheet & to improve the drainage, make paper less porous, for giving gloss, whiteness & smoothness to the paper. It is used to provide brightness & sharpness to the print and it is used as a bonding agent. In the textile industry, it is used to impart an abrasion resistance capacity to yarn and yarn to loom. It is an excellent fibre binder, both for natural and for synthetic fibre, gives high colour yield with sharp and bright prints, imparts weights to the fabrics, compatible to thermoses resins and acts as a good finishing agent for cotton and blended yarns. In food industry it acts as thickener or body developer, improves the texture of the food products. Corn syrup and allied products are used in production of hard-boiled candies, soft candies, chewing gums, bubble-gums, toffees, lozenges, and in breweries as a good fermentation medium and flavour and texture provider. In pharmaceutical industry it acts as a carrier of the medicines. In tablets it is the main filler and acts as a Tablet disintegrate. The main use of the byproducts is as cattle feed.

Strong R&D with well equipped application laboratories are there at all the three manufacturing locations i.e Thiruvananthapuram, Yamunanagar and Puducherry. The lab has Paper, Paint, Rubber, Cement and Ceramic industry specialists, supported by the most modern equipments, who constantly thrive for offering proactive solutions to the respective industries.

EICL products offer distinct techno-commercial advantage in Africa, South East Asia, Far East and Middle-East markets due to its geographical location.

Product range of the company includes

  • Clay- The company manufactures varieties of superior grade China Clay for diversified applications such as pigments, extender, filler and as raw material in different industries. Superior Coating Grade Kaolin is produced under the trade marks ‘Supercoat’, ‘Higloss’, ‘Hibrite’ and ‘BCK’ in the form of lumps, powder, and pre-dispersed Spray Dried Powder, Filler and Coating Grade Clay under trade mark ‘KCG’ as lumps, powder, and pre-dispersed Spray Dried Powder. Calcined Clay, used as a substitute for Titanium Dioxide in Paints, Paper, Detergents, and other grades, is also manufactured by EICL to cater to niche markets.
  • Starch- EICL’s starch division has expanded its capacity and diversified its product mix to emerge as the market leader for certain products. At its Yamunanagar unit, the company manufactures different products viz. - Maize Starch, IP/BP/PFP, Thintrite, Papyrox, Synthosize, Amylospray, Amylosize, Amylocot, Fiberloc, Bondex, corn Syrup, Maltodextrine, High maltose corn syrup, Fructose corn syrup, Refined corn oil, Gluten, Maize oil cake, Mixed fiber, Corn steep liquor and at Puducherry unit – Texoplast, Carbojet, Jetsize, PGS, Drilling Starch and Aqua Starch.

Over the last 10 years, EICL products have established themselves in the international market. With Hydrous and Calcined Clays of quality comparable with the best grades available in the world, EICL products offer distinct techno-commercial advantage in Africa, South East Asia, Far East and Middle-East markets due to its geographical location.

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