AGARIND: A Promising Petrochemicals Player with Robust Financial
Agarwal Industrial Corporation Ltd (AGARIND) is a diversified industrial conglomerate primarily engaged in the manufacturing and trading of petrochemicals, logistics of bitumen and liquefied Petroleum Gas, and energy generation through Wind Mills. Let's dive into the company's financial performance and technical analysis to assess its investment potential.
Financial Analysis:
Agarwal Industrial's consolidated financial performance has been impressive over the years. The company has reported consistent growth in sales, with the top line increasing from Rs. 821 crores in FY2012 to Rs. 2,008 crores in FY2022, a CAGR of around 10%. The operating profit margin has remained in the range of 6-10% during this period, showcasing the company's ability to maintain profitability.
The net profit has also grown steadily, from Rs. 23 crores in FY2012 to Rs. 100 crores in FY2022, translating to an EPS of Rs. 66.52. The company's balance sheet is robust, with a healthy debt-to-equity ratio of around 0.4x as of March 2022. The working capital management has also improved, with the cash conversion cycle reducing from 70 days in FY2012 to 40 days in FY2022.
Technical Analysis:
From a technical standpoint, the AGARIND stock has been trading in a well-defined uptrend, with the price bouncing back from a strong support line at around Rs. 770. The stock has recently broken out of a consolidation phase, indicating a potential continuation of the uptrend.
The 200-day moving average (DMA) is currently placed at Rs. 860, and the stock is trading above this crucial long-term indicator, suggesting a bullish sentiment. The relative strength index (RSI) is currently at 58, indicating that the stock is neither overbought nor oversold, providing an opportune entry point for investors.
Conclusion:
Agarwal Industrial Corporation Ltd's diversified business model, robust financial performance, and favorable technical setup make it an attractive investment proposition. The company's focus on the growing petrochemicals and energy sectors, coupled with its strong balance sheet and efficient working capital management, position it well to capitalize on the industry's growth opportunities. Investors may consider adding AGARIND to their portfolios for long-term gains.
Financial Analysis:
Agarwal Industrial's consolidated financial performance has been impressive over the years. The company has reported consistent growth in sales, with the top line increasing from Rs. 821 crores in FY2012 to Rs. 2,008 crores in FY2022, a CAGR of around 10%. The operating profit margin has remained in the range of 6-10% during this period, showcasing the company's ability to maintain profitability.
The net profit has also grown steadily, from Rs. 23 crores in FY2012 to Rs. 100 crores in FY2022, translating to an EPS of Rs. 66.52. The company's balance sheet is robust, with a healthy debt-to-equity ratio of around 0.4x as of March 2022. The working capital management has also improved, with the cash conversion cycle reducing from 70 days in FY2012 to 40 days in FY2022.
Technical Analysis:
From a technical standpoint, the AGARIND stock has been trading in a well-defined uptrend, with the price bouncing back from a strong support line at around Rs. 770. The stock has recently broken out of a consolidation phase, indicating a potential continuation of the uptrend.
The 200-day moving average (DMA) is currently placed at Rs. 860, and the stock is trading above this crucial long-term indicator, suggesting a bullish sentiment. The relative strength index (RSI) is currently at 58, indicating that the stock is neither overbought nor oversold, providing an opportune entry point for investors.
Conclusion:
Agarwal Industrial Corporation Ltd's diversified business model, robust financial performance, and favorable technical setup make it an attractive investment proposition. The company's focus on the growing petrochemicals and energy sectors, coupled with its strong balance sheet and efficient working capital management, position it well to capitalize on the industry's growth opportunities. Investors may consider adding AGARIND to their portfolios for long-term gains.