Why is Universal Starch Chem Allied Ltd ?
1
Weak Long Term Fundamental Strength with a 12.99% CAGR growth in Operating Profits over the last 5 years
- Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 2.11
2
With a growth in Net Profit of 83.78%, the company declared Very Positive results in Mar 26
- The company has declared positive results for the last 2 consecutive quarters
- OPERATING PROFIT TO INTEREST(Q) Highest at 9.98 times
- NET SALES(Q) Highest at Rs 152.36 cr
- PBDIT(Q) Highest at Rs 16.37 cr.
3
Stock is technically in a Bullish range
- The technical trend has improved from Mildly Bullish on 05-Jun-26 and has generated 7.29% returns since then
- Multiple factors for the stock are Bullish like MACD, Bollinger Band and KST
4
With ROCE of 9.4, it has a Very Attractive valuation with a 1.1 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 27.32%, its profits have risen by 310% ; the PEG ratio of the company is 0
How much should you hold?
- Overall Portfolio exposure to Universal Starch should be less than 10%
- Overall Portfolio exposure to Other Agricultural Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Agricultural Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Universal Starch for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Universal Starch
27.32%
0.42
64.47%
Sensex
-4.95%
-0.37
13.26%
Quality key factors
Factor
Value
Sales Growth (5y)
10.52%
EBIT Growth (5y)
12.99%
EBIT to Interest (avg)
2.11
Debt to EBITDA (avg)
3.22
Net Debt to Equity (avg)
0.84
Sales to Capital Employed (avg)
3.97
Tax Ratio
27.94%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
13.78%
ROE (avg)
12.22%
Valuation Key Factors 
Factor
Value
P/E Ratio
7
Industry P/E
42
Price to Book Value
1.24
EV to EBIT
5.84
EV to EBITDA
4.50
EV to Capital Employed
1.13
EV to Sales
0.30
PEG Ratio
0.02
Dividend Yield
NA
ROCE (Latest)
9.40%
ROE (Latest)
18.80%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
Bearish
No Signal
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
Technical Movement
25What is working for the Company
OPERATING PROFIT TO INTEREST(Q)
Highest at 9.98 times
NET SALES(Q)
Highest at Rs 152.36 cr
PBDIT(Q)
Highest at Rs 16.37 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 10.74%
PBT LESS OI(Q)
Highest at Rs 12.92 cr.
PAT(Q)
Highest at Rs 9.63 cr.
EPS(Q)
Highest at Rs 22.93
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Loading Valuation Snapshot...
Here's what is working for Universal Starch
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 12.92 cr has Grown at 620.8% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 1.79 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 9.63 cr has Grown at 499.1% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 1.61 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Operating Profit to Interest - Quarterly
Highest at 9.98 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Net Sales - Quarterly
Highest at Rs 152.36 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Net Sales - Quarterly
At Rs 152.36 cr has Grown at 28.5% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 118.60 CrMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 16.37 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 10.74%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 12.92 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 9.63 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 22.93
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)