Bodal Chemical Share Price Analysis-Is it a risky investment?

As you can see Bodal Chemicals is currently trading at Rs 57.70 but our experts suggest to wait till it goes above 60 and for the downside one can take position at Rs41.50.

The latest balance sheet data shows that Bodal Chemicals had liabilities of ₹8.04b due within a year, and liabilities of ₹2.66b falling due after that. On the other hand, it had cash of ₹151.5m and ₹5.95b worth of receivables due within a year. So its liabilities outweigh the sum of its cash and (near-term) receivables by ₹4.59b.

Bodal Chemicals has a market capitalization of ₹11.7b, so it could very likely raise cash to ameliorate its balance sheet, if the need arose. But it’s clear that we should definitely closely examine whether it can manage its debt without dilution.

Let us look at the Fundamentals

Profit & Loss

Consolidated Figures in Rs. Crores / View Standalone

	Mar 2011	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	TTM
Sales +	573	614	527	960	1,043	908	1,233	1,142	1,424	1,375	1,226	2,051	1,768
Expenses +	512	610	508	770	859	758	1,007	946	1,187	1,237	1,140	1,831	1,608
Operating Profit	61	4	20	189	184	150	226	196	236	138	87	220	160
OPM %	11%	1%	4%	20%	18%	16%	18%	17%	17%	10%	7%	11%	9%
Other Income +	1	6	4	-70	5	19	15	8	13	10	16	-1	10
Interest	23	35	40	47	27	12	9	5	9	19	17	29	36
Depreciation	14	16	16	25	22	26	29	12	21	28	30	47	50
Profit before tax	25	-41	-33	47	139	131	204	186	219	101	55	142	84
Tax %	33%	27%	30%	35%	34%	34%	35%	33%	35%	15%	28%	31%
Net Profit	17	-30	-23	30	92	86	133	122	141	86	40	99	64
EPS in Rs	1.67	-2.73	-2.12	2.76	8.41	7.88	12.18	10.03	11.72	7.12	3.43	8.79	5.50
Dividend Payout %	32%	0%	0%	0%	0%	8%	7%	8%	7%	11%	23%	9%

Compounded Sales Growth
10 Years:	13%
5 Years:	11%
3 Years:	13%
TTM:	-6%

Compounded Profit Growth
10 Years:	18%
5 Years:	-4%
3 Years:	-8%
TTM:	-38%

Stock Price CAGR
10 Years:	26%
5 Years:	-16%
3 Years:	11%
1 Year:	-47%

Return on Equity
10 Years:	17%
5 Years:	12%
3 Years:	8%
Last Year:	11%

Balance Sheet

Consolidated Figures in Rs. Crores / View StandaloneCORPORATE ACTIONS

	Mar 2011	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Sep 2022
Share Capital +	20	22	37	47	47	22	22	24	25	24	24	24	25
Reserves	48	36	13	43	135	213	341	673	805	907	957	1,031	1,049
Borrowings +	259	345	348	372	209	143	151	181	171	257	454	676	644
Other Liabilities +	222	172	90	156	169	132	193	194	290	267	314	382	357
Total Liabilities	549	575	473	593	534	510	707	1,072	1,290	1,455	1,749	2,113	2,074
Fixed Assets +	272	279	265	168	190	192	222	437	609	656	804	817	803
CWIP	1	2	0	9	3	0	9	19	26	7	14	70	274
Investments	1	0	1	1	2	2	17	17	6	3	6	0	0
Other Assets +	275	294	207	415	339	316	459	599	650	789	924	1,227	997
Total Assets	549	575	473	593	534	510	707	1,072	1,290	1,455	1,749	2,113	2,074