TECHNO-FUNDA
ANALYSIS
BY -
AANCHAL BENGERI . 01 . MSC FIN II
INTRODUCTION
A combined approach using both Technical Analysis and
Fundamental Analysis for investment decisions.
• Provides a holistic view by capturing both short-term trends
and long-term growth potential.
• Reduces limitations of using only one method
• Improves timing of buy/sell decisions and risk management.
• Leads to more informed and balanced investment strategies
INDUSTRY & COMPANIES
The chemical industry produces essential materials for various sectors, including pharmaceuticals,
agriculture, and manufacturing. It is highly sensitive to factors like raw material costs, environmental
regulations, and technological advancements.
1
pIDILITE (1959) 2
BASF INDIA (1943) 3
GODREJ (1897)
Adhesives & Agricultural One of the holding
sealants, Solutions, Materials, companies of Godrej
construction Industrial solutions, Group. It is one of the
chemicals, DIY Surface Technologies, leading
products and Nutrition & Care and manufacturers of
polymer emulsions, Chemicals oleochemicals
craftsmen products (derived from natural
etc. fats and oils)
PIDILITE - FUNDAMENTALS
• Company is almost debt free.
Particulars Sept 2023 Sept 2024
• Healthy dividend payout of
44.4% Sales 3,076 3,235
• WC req - 41.8 to 24.3 days
• Stock is trading at 18.4 times Expenses 2,398 2,467
its book value
• Market Cap - ₹ 1,60,839 Cr. Operating Profit 678 768
• ROCE has gone 24% to 30%.
Interest 13 12
• Investment of INR 50M in
Installco Wify Tech Pvt Ltd. Profit Before Tax 622 725
Net Profit 459 540
PIDILITE - TECHNICALS
BASF - FUNDAMENTALS
• Company is almost debt free. Particulars June 2023 June 2024
• Good profit growth of 79.6%
CAGR over last 5 years Sales 3,375 3,967
• WC requirements have reduced
from 47 to 24 days. Expenses 3,177 3,654
• Market Cap - ₹ 31,644 Cr.
Operating Profit 198 312
• ROCE inc from 20% to 25%.
• Announced new global Interest 8 5
corporate strategy and
potential IPO. Profit Before Tax 152 297
Net Profit 113 221
BASF - TECHNICALS
GODREJ - FUNDAMENTALS
• Repeated profits, but no Particulars June 2023 June 2024
dividend pay out.
Sales 4,506 4,248
• Low interest coverage ratio.
• Low ROE of 6.83% over last 3
Expenses 4,264 3,914
years.
• Earnings include an other income Operating Profit 242 334
of Rs.2,385 Cr.
• Tax rate of 121% last quarter. Interest 303 433
• Market Cap - ₹ 34,152 Cr.
Profit Before Tax 386 873
• ICRA and CRISIL upgrade rating
to AA+. Net Profit 291 641
GODREJ - TECHNICALS
KEY TAKEAWAYS
In conclusion, the techno-funda analysis of these three chemical
companies reveals solid foundational strength and strong positions in the
market. Their fundamentals underscore their resilience and long-term
potential in the industry, particularly in a sector heavily impacted by
economic cycles.
However, from a technical perspective, only one company currently
exhibits strong momentum, while the others show room for improvement in
market sentiment and profitability metrics. Enhancing operational efficiencies
and capitalizing on market trends could improve their technical positioning
and unlock greater profitability.
THANK
YOU
