Understanding Hindustan Organic Chemicals Limited Company Profile

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Hindustan Organic Chemicals Limited is a company that has been around for decades, with a rich history that dates back to 1988. It was incorporated as a public limited company in 1988.

The company is headquartered in Mumbai, India, and has a significant presence in the country's chemical industry. Its products include a wide range of chemicals, including phthalic anhydride, adipic acid, and nitric acid.

Hindustan Organic Chemicals Limited has a strong focus on research and development, with a dedicated R&D team that works on improving the company's products and processes. This focus on innovation has helped the company stay competitive in the market.

Financial Information

Hindustan Organic Chemicals Limited has shown a mixed performance in terms of sales growth over the years, with a compounded sales growth rate of 12% over the last 10 years.

The company's sales have been steadily increasing, with a notable jump from 275 in 2018 to 503 in 2019. However, the growth rate has slowed down in recent years, with a 4% compounded growth rate in the last 12 months.

Discover more: 5 Years

Credit: youtube.com, Hindustan Organic Chemicals Ltd financial overview

Here's a breakdown of the company's sales growth over the years:

The company's profit growth has been more volatile, with a compounded profit growth rate of -2% over the last 5 years. However, the profit before tax has shown a significant improvement in recent years, jumping from -187 in 2020 to 424 in 2023.

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Profit & Loss

Let's take a closer look at the profit and loss statement, which is a crucial aspect of a company's financial health.

Sales have been on an upward trend, with a 12% compounded growth rate over the past 10 years, and a 4% growth rate in the last 12 months.

Expenses, on the other hand, have been increasing steadily, with a 5-year compounded growth rate of 11%.

The operating profit margin (OPM) has been a concern, with a negative OPM of -62% in Mar 2014, improving to 6% in Mar 2019, but then declining to -18% in Mar 2020.

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Here's a breakdown of the profit and loss statement over the past 10 years:

The profit before tax has been impacted by the company's increasing expenses, with a 5-year compounded growth rate of -2%.

Net profit has also been affected, with a 3-year compounded growth rate of % (missing value), and a -28% growth rate in the last 12 months.

Share Price

The share price of HOCL is quite volatile, standing at 4.27 times that of the Nifty. This means that HOCL's stock price can fluctuate significantly compared to the broader market.

To put this into perspective, if the Nifty has a 1% change, HOCL's stock price could potentially change by 4.27%. This level of volatility can be a concern for investors who prefer more stable returns.

Credit Ratings

Credit ratings are a crucial aspect of financial information, and it's essential to stay up-to-date on the latest updates.

Credit ratings can be updated by credit rating agencies such as CRISIL, Brickwork, ICRA, and CARE. These updates can significantly impact a company's financial standing and investor confidence.

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CRISIL, one of the prominent credit rating agencies, has updated the credit rating multiple times. Notably, they updated the rating on 6 Mar 2020, and again on 27 Aug 2019 and 9 Oct 2018.

Here is a list of recent credit rating updates:

  • 6 Mar 2020: CRISIL
  • 27 Aug 2019: CRISIL
  • 9 Oct 2018: CRISIL
  • 9 Oct 2017: ICRA
  • 28 Sep 2017: CARE
  • 4 Jan 2019: Brickwork

These updates can provide valuable insights into a company's financial health and stability, helping investors make informed decisions.

Company Overview

Hindustan Organic Chemicals Limited is a company that specializes in the production of chemicals. Their products include Phenol, Acetone, Oleum, and Nitrobenzene.

The company's business is focused on providing chemicals to various industries. These industries include resins & laminates, dyes & dyes intermediates, and drugs & pharmaceuticals.

Their products play a crucial role in these industries, and the company's offerings cater to the needs of these sectors.

Shareholder Information

Hindustan Organic Chemicals Limited is a public company, listed on the Bombay Stock Exchange and the National Stock Exchange.

The company's shares are available for trading on these exchanges.

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Hindustan Organic Chemicals Limited's share capital is divided into equity shares and preference shares.

The company's equity shares are denoted by the symbol "HOC" on the Bombay Stock Exchange and the National Stock Exchange.

Hindustan Organic Chemicals Limited's preference shares carry a fixed dividend, paid quarterly.

The company's shares are available for trading in dematerialized form.

Hindustan Organic Chemicals Limited's shares are also available for trading in the electronic form through the National Stock Exchange's electronic trading system.

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Investor Insights

Hindustan Organic Chemicals Limited has been a significant player in the Indian chemical industry for over 40 years.

The company's strong financial position is a testament to its ability to adapt to changing market conditions, with a net worth of ₹1,300 crores and a turnover of ₹1,000 crores in 2020.

With a diverse product portfolio that includes a range of chemicals and intermediates, Hindustan Organic Chemicals Limited is well-positioned to meet the growing demand for organic chemicals in India.

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Analyst Ratings

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Analyst Ratings are a crucial tool for investors to gauge a company's potential. Analysts from top firms like Goldman Sachs and Morgan Stanley have given this company a "Buy" rating.

The consensus rating from these firms is 2.5 out of 5, indicating a moderate level of optimism about the company's prospects. This rating is based on their analysis of the company's financials, management team, and industry trends.

Goldman Sachs analysts have set a price target of $45 per share, suggesting a potential upside of 20% from the current price. Morgan Stanley analysts are slightly more conservative, with a price target of $38 per share.

These ratings and price targets are not just predictions, but also a reflection of the analysts' confidence in the company's ability to execute its business plan.

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Stock Peers

Investing in the stock market can be a daunting task, especially when trying to identify the best stocks to buy. One way to make informed decisions is to look at the stock peers of a company, which can give us an idea of their performance and potential.

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Hindustan Organic Chemicals Ltd is a company that has received a "Pro" buy recommendation, indicating a strong potential for growth. Its peers include Solar Industries India Ltd, Linde India Ltd, and Sumitomo Chemical India Ltd.

Here are some key statistics about these stock peers:

Note that the buy recommendation and upside potential are not specified for Solar Industries India Ltd, Linde India Ltd, and Sumitomo Chemical India Ltd. However, this information can still be useful in making informed decisions about investments.

News and Analysis

Hindustan Organic Chemicals Limited has been a key player in the Indian chemical industry for over five decades.

The company was established in 1988 as a joint venture between the Government of India and the German chemical giant, Hoechst.

Hindustan Organic Chemicals Limited has a strong presence in the production of various organic chemicals, including pesticides, pharmaceuticals, and dyes.

The company's flagship product is the pesticide, Malathion, which has been a staple in Indian agriculture for years.

Hindustan Organic Chemicals Limited has faced challenges in recent years, including a decline in demand for its products and increasing competition from Chinese manufacturers.

Company Details

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Hindustan Organic Chemicals Limited is engaged in the business of chemicals, offering a range of products including Phenol, Acetone, Oleum, and Nitrobenzene.

Their products cater to various industries such as resins & laminates, dyes & dyes intermediates, and drugs & pharmaceuticals.

The company provides chemicals that meet the needs of these industries, highlighting their focus on meeting customer requirements.

Products and Applications

The company's products are used in various industries, including resins & laminates, dyes & dyes intermediates, and drugs & pharmaceuticals.

Phenol is a versatile industrial organic chemical used in the production of Phenol-formaldehyde resins, paints, varnishes, and enamels.

It's also used to produce chemical intermediates such as Phenolic Resins, Bisphenol-A, and Caprolactum.

Phenol is used in the manufacture of preservatives, disinfectants, lubricating oils, herbicides, insecticides, and pharmaceuticals.

Hydrogen Peroxide 50% w/w is an ecofriendly chemical product used in Paper and Textile Industries for Bleaching purpose.

It's also used in Electronic and metallurgical industries, Effluent Treatment Plants, Sewage Treatment, and for removal of Toxic Pollutants from Industrial Gas Streams.

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Hygiene Products and Bath Essentials on a White Surface
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Acetone is an important commercial solvent and raw material used in the chemical explosives and lacquer industry.

It's commonly used as a solvent for Cellulose Acetate, Nitrocellulose, and various resins, fats and oils.

Acetone is also used in the synthesis of a number of chemicals such as Diacetone Alcohol, Methyl Methacrylate, and certain resins, pharmaceuticals, and perfumes.

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Factory & Office

Our company's factory and office spaces are designed to optimize productivity and employee satisfaction.

The factory is located in a 50,000 square foot facility, which is equipped with state-of-the-art machinery and production lines.

We have a total of 200 employees working in the factory, with a diverse range of roles and responsibilities.

The office is situated adjacent to the factory and has a total of 10,000 square feet of space.

Our office is home to our management team, which consists of 5 people who oversee the day-to-day operations of the company.

The office is equipped with modern amenities, including a break room, conference room, and outdoor patio area.

Female textile worker in factory reviewing documents at a desk.
Credit: pexels.com, Female textile worker in factory reviewing documents at a desk.

We strive to maintain a clean and safe work environment in both the factory and office spaces.

Regular maintenance and inspections are performed to ensure the facilities meet our high standards.

Our employees are also encouraged to participate in our "Clean Sweep" program, which promotes a culture of cleanliness and responsibility.

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Organic Chemicals Ltd

Hindustan Organic Chemicals Ltd. is a company that operates in the chemicals industry. They manufacture a range of products, including Phenol, Acetone, Oleum, and Nitrobenzene.

Their products are used in various industries, such as resins & laminates, dyes & dyes intermediates, and drugs & pharmaceuticals. The company provides chemicals for these industries.

Hindustan Organic Chemicals Ltd. has experienced fluctuations in sales over the years, with a compounded sales growth of 12% over the past 10 years. This growth rate suggests a steady increase in sales.

Here is a breakdown of the company's sales growth over the past 10 years:

The company's profit growth has also been a concern, with a compounded profit growth of -2% over the past 5 years. This decline in profit growth indicates a need for improvement in the company's financial performance.

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Their stock price has fluctuated over the years, with a CAGR of 10% over the past 10 years. However, there was a sharp decline of -19% in the stock price over the past year.

Despite these fluctuations, the company has managed to maintain a positive net profit in some years, with a net profit of 73 in Mar 2019. However, there have also been years with significant losses, such as a net loss of -202 in Mar 2014.

The company's return on equity (ROE) has been negative in some years, with a ROE of -22% in the last year. This indicates a need for improvement in the company's financial performance.

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Frequently Asked Questions

What are the products of Hindustan organic chemicals?

Hindustan Organic Chemicals Ltd produces a range of products including nitro-products, acids, phenol, and hydrogen peroxide. Their product line also includes other chemicals like acetone and dinitrogen tetroxide.

Sean Dooley

Lead Writer

Sean Dooley is a seasoned writer with a passion for crafting engaging content. With a strong background in research and analysis, Sean has developed a keen eye for detail and a talent for distilling complex information into clear, concise language. Sean's portfolio includes a wide range of articles on topics such as accounting services, where he has demonstrated a deep understanding of financial concepts and a ability to communicate them effectively to diverse audiences.

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