Bodal Chemicals Limited (BODALCHEM) AI Stock Analysis

• Market Cap: ₹5.54B
• Dividend Yield: N/A
• Average Volume (3M): 9.69K
• Price to Earnings (P/E): 697.5
• Beta (1Y): 1.44
• Revenue Growth: 15.56%
• EPS Growth: 2114.71%
• Country: IN
• Employees: 2,133
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.02
• Shares Outstanding: 125,944,060
• 10 Day Avg. Volume: 13,655
• 30 Day Avg. Volume: 9,685
• PEG Ratio: 0.22
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 0.45
• P/FCF Ratio: -93.18
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 4.6
• Revenue Forecast (FY): ₹20.01B

• Rating: 60 Neutral
• Price Target: ₹46.00 ▼(-14.91% Downside)
• Action: Reiterated Date: 02/04/26
• Date: Action: Reiterated 02/04/26

The score is driven primarily by mixed financials: strong revenue growth and improved operating margins are offset by very low net profitability and negative free cash flow. Technicals are also mixed (short-term strength but longer-term downtrend with negative MACD), while valuation appears broadly reasonable on P/E but lacks dividend yield support.

Positive Factors

Revenue & Margin Improvement

Sustained double-digit revenue growth with materially higher gross and EBIT margins indicates improved operating efficiency or a shift to higher-value products. These structural improvements, if maintained, support more durable earnings and better ability to absorb cost swings over months.

Moderate Leverage

A debt/equity near 0.82 and an equity ratio close to 47% signal a balanced capital structure that reduces refinancing and solvency risk. This financial flexibility supports ongoing operations, working capital and measured capex without forcing aggressive deleveraging.

Cash Conversion Quality

Generating roughly twice as much operating cash as accounting profit shows strong cash conversion and earnings quality. This structural cash resilience helps fund operations and cushions liquidity needs even if net accounting profits stay muted in the near-to-medium term.

Negative Factors

Weak Net Profitability

Very low net margins and minimal ROE indicate the company struggles to convert operating gains into bottom-line returns. Persistently weak profitability limits internal reinvestment, constrains ability to build retained earnings, and reduces resilience to negative shocks.

Negative Free Cash Flow

A negative free cash flow year reflects capex or working-capital consumption that outstrips operating cash generation, pressuring liquidity. If FCF remains negative, the company may need external financing or asset sales, reducing strategic optionality over months.

Input Cost & End‑Market Concentration

Revenue tied to dyes and intermediates and sensitivity to raw-material and energy spreads creates structural margin volatility. Concentration in textile-related end markets amplifies cyclical demand risks, making margins and volume durability more vulnerable over the medium term.

Bodal Chemicals Limited Business Overview & Revenue Model

Company Description

Bodal Chemicals Limited manufactures and sells dyestuffs, dyes intermediates, and other chemicals in India. The company's dye intermediates primarily include vinyl sulphone ester, ortho anisidine vinyl sulphone, meta ureido aniline, H. acid, Bronner's vinyl sulphone, vinyl sulphone paracresidine base, 6-nitro 1-diazo-2naphthol 4-sulphonic acid, sulpho para vinyl sulphone, sulpho tobias acid, vinyl sulphone ester of 2:5 di methoxy aniline, sulpho ortho anisidine vinyl sulphone, F.C. acid, 1:2:4 diazo, K–acid, benzedine di sulphonic acid, benzanilide vinyl sulphone, and gamma acid. It also provides reactive, acid, and direct dyes for textile, leather, and paper industries; and sulphuric acid, chloro sulphonic acid, liquid SO3, oleums, beta napthol, linear alkyl benzene sulphonic acid, and acetanilide that are used as raw materials for the production of dye intermediates. Bodal Chemicals Limited also exports its products. The company was formerly known as Dintex Dyechem Limited and changed its name to Bodal Chemicals Limited in May 2006. Bodal Chemicals Limited was incorporated in 1986 and is headquartered in Ahmedabad, India.

How the Company Makes Money

Bodal Chemicals makes money primarily by manufacturing and selling chemical products, with revenue largely driven by (1) sales of dyes (finished colorants sold to textile processors and other industrial users) and (2) sales of dye intermediates (chemical building blocks sold to other chemical/dye manufacturers or used internally for downstream dye production). Earnings are a function of sales volumes, product mix (higher-value specialty dyes vs. commoditized intermediates), and pricing spreads versus key raw-material and energy costs. Additional monetization can come from export sales to overseas customers and from supplying across the textile chemical supply chain; however, specific customer/partner concentration, contract structure, and segment revenue split are null (not available in the provided prompt).

Bodal Chemicals Limited Financial Statement Overview

Summary

Revenue growth is strong (+25.12%) and gross/EBIT margins improved (38.71% and 5.65%), but profitability remains weak (net margin 1.06%, ROE 1.67%) and free cash flow was negative in 2025, tempering the overall financial quality.

Income Statement

Bodal Chemicals has shown a mixed performance in its income statement. The company experienced a solid revenue growth rate of 25.12% from the previous year to 2025. However, its net profit margin is relatively low at 1.06%, reflecting challenges in converting revenues into profits. The gross profit margin improved significantly to 38.71% in 2025, indicating better cost management. The EBIT margin of 5.65% also shows a positive trend from prior years, suggesting operational efficiency improvements. Despite these positives, the low net profit margin remains a concern.

Balance Sheet

The balance sheet reveals a stable financial structure for Bodal Chemicals. The debt-to-equity ratio stands at 0.82, indicating a balanced approach to leveraging. The company's equity ratio of 46.94% suggests a strong equity base, although there is room for improvement. Return on equity (ROE) is low at 1.67%, highlighting inefficiencies in generating profits from equity. Overall, Bodal Chemicals maintains a stable financial position with manageable debt levels.

Cash Flow

The cash flow statement shows Bodal Chemicals facing challenges in generating free cash flow, with a negative free cash flow in 2025. The operating cash flow to net income ratio is positive at 2.06, indicating that the company generates more cash than accounting profits, which is a positive sign. However, the negative free cash flow growth rate from 2024 to 2025 reflects ongoing capital expenditure pressures. The free cash flow to net income ratio is negative, pointing to potential liquidity issues if not addressed.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	17.77B	17.45B	13.95B	15.63B	20.27B	12.21B
Gross Profit	8.33B	6.76B	1.68B	6.70B	5.42B	3.29B
EBITDA	1.84B	1.69B	1.19B	1.45B	2.16B	1.00B
Net Income	292.10M	185.02M	64.69M	380.33M	1.04B	419.82M
Balance Sheet
Total Assets	0.00	23.53B	22.88B	21.21B	21.22B	17.48B
Cash, Cash Equivalents and Short-Term Investments	360.60M	360.60M	462.50M	225.87M	93.95M	119.14M
Total Debt	0.00	9.11B	8.47B	6.98B	5.76B	3.47B
Total Liabilities	-11.05B	12.48B	12.06B	10.43B	10.70B	7.68B
Stockholders Equity	11.05B	11.05B	10.82B	10.78B	10.56B	9.81B
Cash Flow
Free Cash Flow	0.00	-83.36M	-407.19M	-528.49M	-1.73B	-1.91B
Operating Cash Flow	0.00	381.14M	2.04B	2.85B	-135.20M	-130.17M
Investing Cash Flow	0.00	-424.34M	-2.62B	-3.10B	-1.70B	-1.68B
Financing Cash Flow	0.00	76.36M	809.81M	326.55M	1.81B	1.78B

Bodal Chemicals Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 54.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:BODALCHEM, the sentiment is Negative. The current price of 54.06 is above the 20-day moving average (MA) of 47.70, above the 50-day MA of 49.41, and below the 200-day MA of 61.70, indicating a bearish trend. The MACD of -1.44 indicates Positive momentum. The RSI at 29.70 is Positive, neither overbought nor oversold. The STOCH value of 42.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:BODALCHEM.

Bodal Chemicals Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHREEPUSHK	68 Neutral	₹9.68B	17.66	―	0.52%	28.67%	50.12%
BHAGERIA	63 Neutral	₹6.56B	17.61	―	0.81%	33.39%	85.08%
AGARIND	62 Neutral	₹6.82B	95.10	―	0.45%	-4.09%	-32.35%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
BODALCHEM	60 Neutral	₹5.54B	697.51	―	―	15.56%	2114.71%
KIRIINDUS	57 Neutral	₹23.14B	0.22	―	―	-22.04%	-58.81%
FAIRCHEMOR	47 Neutral	₹6.86B	-2,425.33	―	1.07%	-22.10%	-85.56%