BSE:532626

Stock Analysis Report

Pondy Oxides And Chemicals

Executive Summary

Pondy Oxides And Chemicals Limited produces and sells lead and lead alloys, and zinc metal and zinc oxides in India.

Rewards

Trading at 46.1% below its fair value

Risk Analysis

Debt is not well covered by operating cash flow

Unstable dividend track record

Highly volatile share price over past 3 months

Profit margins (1.6%) are lower than last year (3.4%)

+ 1 more risk


Snowflake Analysis

Undervalued with adequate balance sheet and pays a dividend.

Share Price & News

How has Pondy Oxides And Chemicals's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 532626's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.0%

532626

-1.2%

IN Chemicals

-2.5%

IN Market


1 Year Return

-58.7%

532626

8.4%

IN Chemicals

5.0%

IN Market

Return vs Industry: 532626 underperformed the Indian Chemicals industry which returned 8.4% over the past year.

Return vs Market: 532626 underperformed the Indian Market which returned 5% over the past year.


Shareholder returns

532626IndustryMarket
7 Day-2.0%-1.2%-2.5%
30 Day-8.5%-3.1%-1.3%
90 Day-21.2%4.8%5.7%
1 Year-57.6%-58.7%11.0%8.4%7.0%5.0%
3 Year-36.4%-39.0%50.7%44.6%30.3%23.4%
5 Year433.1%264.6%113.7%97.8%42.1%29.3%

Price Volatility Vs. Market

How volatile is Pondy Oxides And Chemicals's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Pondy Oxides And Chemicals undervalued compared to its fair value and its price relative to the market?

46.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 532626 (₹152.4) is trading below our estimate of fair value (₹282.75)

Significantly Below Fair Value: 532626 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 532626 is good value based on its PE Ratio (4.9x) compared to the Chemicals industry average (10.3x).

PE vs Market: 532626 is good value based on its PE Ratio (4.9x) compared to the Indian market (12.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 532626's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 532626 is good value based on its PB Ratio (0.6x) compared to the IN Chemicals industry average (1.1x).


Next Steps

Future Growth

How is Pondy Oxides And Chemicals forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

17.4%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Pondy Oxides And Chemicals has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Pondy Oxides And Chemicals performed over the past 5 years?

30.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 532626 has high quality earnings.

Growing Profit Margin: 532626's current net profit margins (1.6%) are lower than last year (3.4%).


Past Earnings Growth Analysis

Earnings Trend: 532626's earnings have grown significantly by 30.3% per year over the past 5 years.

Accelerating Growth: 532626's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 532626 had negative earnings growth (-51.7%) over the past year, making it difficult to compare to the Chemicals industry average (10.4%).


Return on Equity

High ROE: 532626's Return on Equity (13.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Pondy Oxides And Chemicals's financial position?


Financial Position Analysis

Short Term Liabilities: 532626's short term assets (₹2.4B) exceed its short term liabilities (₹1.5B).

Long Term Liabilities: 532626's short term assets (₹2.4B) exceed its long term liabilities (₹30.8M).


Debt to Equity History and Analysis

Debt Level: 532626's debt to equity ratio (100%) is considered high.

Reducing Debt: 532626's debt to equity ratio has reduced from 227.3% to 100% over the past 5 years.

Debt Coverage: 532626's debt is not well covered by operating cash flow (17.7%).

Interest Coverage: 532626's interest payments on its debt are well covered by EBIT (4x coverage).


Balance Sheet

Inventory Level: 532626 has a high level of physical assets or inventory.

Debt Coverage by Assets: 532626's debt is covered by short term assets (assets are 1.9x debt).


Next Steps

Dividend

What is Pondy Oxides And Chemicals's current dividend yield, its reliability and sustainability?

2.62%

Current Dividend Yield


Dividend Yield vs Market

company2.6%marketbottom25%0.6%markettop25%2.5%industryaverage0.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 532626's dividend (2.62%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: 532626's dividend (2.62%) is in the top 25% of dividend payers in the Indian market (2.53%)


Stability and Growth of Payments

Stable Dividend: 532626's dividend payments have been volatile in the past 10 years.

Growing Dividend: 532626's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (13%), 532626's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Pondy Oxides And Chemicals's salary, the management and board of directors tenure and is there insider trading?

4.7yrs

Average board tenure


CEO

Ashish Bansal (38yo)

4.5yrs

Tenure

₹23,541,000

Compensation

Mr. Ashish Bansal, MBA has been Managing Director of Pondy Oxides & Chemicals Limited since June 1, 2015. Mr. Bansal served as the President of Operations at Pondy Oxides & Chemicals Limited from April 1,  ...


CEO Compensation Analysis

Compensation vs Market: Ashish's total compensation ($USD331.41K) is above average for companies of similar size in the Indian market ($USD50.68K).

Compensation vs Earnings: Ashish's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Age and Tenure

4.7yrs

Average Tenure

66yo

Average Age

Experienced Board: 532626's board of directors are considered experienced (4.7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • K. Kumaravel (55yo)

    GM of Finance

    • Tenure: 0yrs
    • Compensation: ₹2.77m
  • Rajendra Bansal (73yo)

    Whole Time Director

    • Tenure: 24.8yrs
    • Compensation: ₹11.63m
  • Ashish Bansal (38yo)

    MD & Whole Time Director

    • Tenure: 4.5yrs
    • Compensation: ₹23.54m
  • Anil Bansal (66yo)

    Executive Chairman

    • Tenure: 4.5yrs
    • Compensation: ₹11.42m
  • Usha Sankar (57yo)

    Chief Financial Officer

    • Tenure: 3.1yrs
    • Compensation: ₹1.93m
  • I. Rao (67yo)

    President of Marketing

    • Tenure: 0yrs

Board Members

  • Anil Sachdev (66yo)

    Independent & Non-Executive Director

    • Tenure: 24.3yrs
    • Compensation: ₹70.00k
  • Rajendra Bansal (73yo)

    Whole Time Director

    • Tenure: 24.8yrs
    • Compensation: ₹11.63m
  • Ashish Bansal (38yo)

    MD & Whole Time Director

    • Tenure: 4.5yrs
    • Compensation: ₹23.54m
  • Anil Bansal (66yo)

    Executive Chairman

    • Tenure: 4.5yrs
    • Compensation: ₹11.42m
  • Shoba Ramakrishnan (65yo)

    Woman Independent Director

    • Tenure: 4.7yrs
    • Compensation: ₹45.00k
  • G. Venkateswaran (76yo)

    Independent Director

    • Tenure: 4.1yrs
    • Compensation: ₹85.00k
  • A. Anand (63yo)

    Non Executive & Independent Director

    • Tenure: 1yrs
    • Compensation: ₹40.00k

Company Information

Pondy Oxides And Chemicals Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Pondy Oxides And Chemicals Limited
  • Ticker: 532626
  • Exchange: BSE
  • Founded: 1995
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: ₹848.666m
  • Shares outstanding: 5.58m
  • Website: https://www.pocl.co.in

Number of Employees


Location

  • Pondy Oxides And Chemicals Limited
  • KRM Centre
  • 4th Floor
  • Chennai
  • Tamil Nadu
  • 600031
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532626BSE (Mumbai Stock Exchange)YesEquity SharesININRApr 2004

Biography

Pondy Oxides And Chemicals Limited produces and sells lead and lead alloys, and zinc metal and zinc oxides in India. It also provides master, tin, and babbit alloys, as well as PVC additives. The company p ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 12:51
End of Day Share Price2019/12/10 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.