Bodal Chemicals Ltd

Bodal Chemicals Ltd has a debt-to-equity ratio of 0.82, indicating a moderate level of leverage, and a current ratio of 1.17, suggesting limited short-term liquidity cushion. The company's liquidity position is assessed as medium risk, with net cash negative after subtracting total debt. Free cash flow stands at INR 405.05 million, while capital expenditure is negative at INR 46.45 million, indicating potential asset sales or non-cash capital outflows. Profitability metrics show a return on equity (ROE) of 1.67% and a return on assets (ROA) of 0.79%, both below the typical thresholds for industry-leading performance. The company's operating income of INR 918.48 million and net income of INR 185.02 million reflect a narrow margin structure, with gross profit at INR 4.74 billion. These figures suggest a need for cost optimization or pricing power enhancement to align with industry benchmarks. The company's revenue is derived from five business divisions: dye intermediates, dyestuff, sulphur & bulk chemicals, water purification, and chlor alkali. The dye intermediate division produces approximately 25 variants, with VINYL SUPHONE as the core product, while the dyestuff division produces 175 variants used in textiles, leather, and paper industries. The geographic exposure and customer concentration are not explicitly disclosed, but the company's product applications suggest broad industrial use across sectors. Outlook for the current fiscal year indicates a stable revenue trajectory, with no significant growth or contraction expected. The company's revenue of INR 17.45 billion is in line with analyst estimates, and no numeric deltas are provided for the next fiscal year. The absence of a clear growth trajectory suggests a conservative or maintenance mode of operations. Risk factors include medium liquidity risk and low dilution risk. The company's capital structure is supported by INR 9.11 billion in long-term debt and INR 11.05 billion in total equity. No dilution sources are identified in the risk assessment, and the dilution potential is assessed as low. Recent events include the latest financial filing, which shows a revenue of INR 17.45 billion and an EPS of INR 1.57. No significant regulatory or operational events are disclosed in the latest filings, and the company's risk profile remains stable.