Bodal Chemicals (BODALCHEM)
CyclicalFairStock Score: 36/100 — MIXED
Score breakdown: P/E: 2/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹68.48 |
| Market Cap | ₹862.47 Cr |
| P/E Ratio | 12.57 |
| ROCE | 5.51% |
| ROE | 2.39% |
| Dividend Yield | 0% |
| Profit Growth | 217.1% |
| Debt/Equity | 0.7 |
| Sales Growth | 56.1% |
| Promoter Holding | 57% |
| 52-Week Range | ₹42.81 — ₹189.45 |
| Sector | Chemicals & Petrochemicals |
| Book Value | ₹92.07 |
Strengths
- Trading at 0.76 price-to-book, a 24% discount to book value of ₹91.43.
- Sales growth of 10.40% shows resilience in topline despite sector headwinds.
- Promoter holding of 57% aligns management interests with minority shareholders.
- Debt-to-equity of 0.77 is manageable, no excessive leverage.
Concerns
- Net profit in latest quarter is ₹0 Cr and profit growth has collapsed by 96.16%.
- ROE of 2.39% and ROCE of 5.51% are far below acceptable return thresholds.
- Zero dividend yield provides no cash return to shareholders.
- Piotroski F-score of 4/9 and FairStock Score of 27/100 signal financial weakness.
AI Analysis
Bodal Chemicals presents a classic value-investing puzzle: the stock trades at ₹69.35, just 76% of its book value of ₹91.43. That looks cheap, but Graham warned us that a bargain price means little if the business can't earn a fair return on its net assets. Here, ROE is a meager 2.39% and ROCE only 5.51%. The latest quarter's ₹490 crore of sales produced roughly zero net profit, and profit growth has collapsed by 96%. This is not the kind of earning power that validates book value. Sales are growing at 10.40%, showing demand isn't dead, but the company isn't converting that into shareholder profit. With no dividend, a Piotroski F-score of 4/9, and a FairStock Score of 27/100, I see red flags. The debt-to-equity ratio of 0.77 is not extreme, and promoter holding at 57% does give some comfort. However, at a P/E of 19.49 with near-zero current earnings, the price-to-earnings multiple is meaningless. In cyclical industries like dyes and pigments, times like these can be buying opportunities if the balance sheet survives and profits return. But I need evidence: sustained positive quarterly profits, improving ROCE, and a clear path to margins. Until then, buying this stock would be speculating on a turnaround, not investing with a margin of safety. I will keep it on my watchlist, not my wallet.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer