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DIAMINESQ

OVERVALUED

Diamines & Chemicals Limited

Chemicals · NSE

↓ 22.1% vs fair value

52W Low

₹208

+13.5% from low

52W High

₹458

-48.5% from high

News sentiment (1 articles)

0 bull0 neutral1 bear

✦

Analyst Note

Today

Diamines & Chemicals is trading at ₹236, roughly 27% above its fair value of ₹193.29, signaling overvaluation with medium confidence. The company faces significant operational headwinds: revenue declined 56.4% year-over-year, five-year earnings growth is negative at -45.3%, and return metrics are weak with ROE at 6.9% and ROCE deteriorating at 3.1%. Sentiment remains consistently bearish, and the Piotroski score of 4 indicates poor financial health with earnings quality concerns. This stock suits risk-averse investors seeking established plays with stronger fundamentals.

Valuation Gauge

OVERVALUED-22.1% Margin of Safety

OVERVALUEDFAIRLY VALUEDUNDERVALUED

Current Price

₹236

Fair Value

₹193

Fair Value Analysis

₹193

Based on free cash flow projections and balance sheet strength analysis and earnings growth potential for Chemicals sector companies | CAUTION: ROCE declining (latest 3.4%) — returns on capital are falling; verify this isn't a value trap. | Growth capped at 7.9% (ROE 6.9%×1.15) — historical CAGR exceeds sustainable rate or COVID period unverifiable.

Medium confidence

Cash Flow Analysis

50% weight

₹199

Balance Sheet Value

30% weight

₹197

Growth Valuation

20% weight

₹174

Price vs Market

DIAMINESQ

Nifty 50

Shareholding Pattern

Stock Health Score

Mixed Signals

5 / 10

Profitability

6/10

ROE of 6.9% is below the Chemicals sector benchmark of 15%

Debt & Leverage

10/10

D/E ratio of 0.1x is well within the Chemicals sector norm of 0.8x — strong balance sheet

Valuation vs Peers

10/10

P/E of 22.5x trades at a 65% discount to Chemicals sector median (64x) — attractively valued

Cash Flow

1/10

Negative FCF of ₹-9 Cr — company is consuming more cash than it generates

Earnings Growth

1/10

5yr EPS CAGR of -45.3% — severe earnings decline

Dividend

4/10

Dividend yield of 0.4% is symbolic — low but positive

Sentiment Trend — Last 30 Days

Historical Returns

Key Ratios & Growth

FCF Yield

4.0%

Free cash flow / market cap

Revenue Growth (YoY)

+74.6%

Year-on-year revenue change

Profit Growth (YoY)

-371.4%

Year-on-year PAT change

Operating Cash Flow

₹-5 Cr

TTM cash from operations

Key Financials

EPS (TTM)

₹10.9

P/E Ratio

22.5x

P/B Ratio

1.6x

ROE

6.9%

ROCE

3.1%

Debt / Equity

0.06x

Beta

0.21

Div Yield

0.4%

FCF (Cr)

₹-9 Cr

Revenue (Cr)

₹69 Cr

EPS Growth 5Y

-45.3%

Mkt Cap (Cr)

₹245 Cr

52W High

₹458

52W Low

₹208

Book Value/Share

₹157.8

Financial History

Period	Revenue	Op Profit	OPM%	PAT	EPS
TTM	₹47 Cr	₹-9 Cr	-19.1%	₹-9 Cr	₹-9.30
2025-03-31	₹71 Cr	₹5 Cr	7.7%	₹3 Cr	₹2.79
2024-03-31	₹104 Cr	₹23 Cr	21.8%	₹15 Cr	₹15.81
2023-03-31	₹110 Cr	₹56 Cr	50.4%	₹42 Cr	₹42.83
2022-03-31	₹66 Cr	₹22 Cr	33.5%	₹17 Cr	₹17.08
2021-03-31	₹63 Cr	₹26 Cr	40.8%	₹21 Cr	₹21.46
2016-03-31	₹36 Cr	₹4 Cr	12.5%	₹0 Cr	₹0.26
2015-03-31	₹39 Cr	₹5 Cr	12.6%	₹-2 Cr	₹-1.63
2014-03-31	₹44 Cr	₹6 Cr	13.3%	₹0 Cr	₹0.40
2013-03-31	₹57 Cr	₹8 Cr	13.5%	₹1 Cr	₹1.38
2012-03-31	₹67 Cr	₹10 Cr	15.4%	₹4 Cr	₹3.60

Compounded Growth Rates

Sales Growth

3Y-24.7%

5Y-5.6%

10Y-3.4%

Profit Growth

3Y—

5Y—

10Y—

EPS Growth

3Y—

5Y—

10Y—

Peer Comparison

Chemicals

Stock	Price	Fair Value	MoS%	P/E	ROE	Signal
MADRASFERT Madras Fertilizers Limited	₹60	₹246.1	+75.6%	130.7	451.3%	UNDERVALUED
OSWALSEEDS ShreeOswal Seeds And Chemicals Limited	₹10.8	₹41.2	+73.8%	26.9	11.8%	UNDERVALUED
KOTHARIPET Kothari Petrochemicals Limited	₹117.5	₹310.2	+62.1%	9	86.4%	UNDERVALUED
KOTARISUG Kothari Sugars And Chemicals Limited	₹24.1	₹45.6	+47.0%	37.2	12.9%	UNDERVALUED
AGROPHOS Agro Phos India Limited	₹31	₹54.2	+42.8%	11.2	13.9%	UNDERVALUED
ARIES Aries Agro Limited	₹358.4	₹620.4	+42.2%	10.3	9.9%	UNDERVALUED
EPIGRAL Epigral Limited	₹905	₹1,514.2	+40.2%	11.3	14.8%	UNDERVALUED
DEEPAKFERT Deepak Fertilizers and Petrochemicals Corporation Limited	₹982.5	₹1,402	+29.9%	14.3	13.5%	UNDERVALUED