At a Glance
Punjab Chemicals & Crop Protection Ltd (PCCPL) posted Q1 FY26 revenue of ₹318.6 Cr (↑31.9% YoY) with PAT ₹20.1 Cr (EPS ₹16.4). The stock closed at ₹1,353, up 2.7%. The company signed 3 MOUs and announced a ₹60 Cr expansion to target ₹120–150 Cr extra sales in 2–3 years. Investors yawned… but maybe they shouldn’t.
Introduction
Imagine a marathon runner who stops for tea breaks—Punjab Chemicals is that guy. Revenue growth over 5 years is a lazy 10.4%, yet margins and expansions hint that the best race is ahead. PAT jumped 53% YoY this quarter, showing there’s still gas in the tank.
Business Model (WTF Do They Even Do?)
PCCPL plays in Agrochemicals, Pharmaceuticals, Industrial Chemicals, and CRAMS. They make specialty chemicals, custom molecules, and crop protection products, serving both domestic and global clients.
Sarcasm: Think of them as chemists with a passport—making and exporting everything that smells like money.
Financials Overview
- Q1 FY26 Revenue: ₹318.6 Cr (↑32% YoY)
- Net Profit: ₹20.1 Cr (↑53% YoY)
- OPM: 11%
- ROE: 12%
- ROCE: 15%
Verdict: Growth spark, margins steady, debt creeping up.
Valuation
- P/E: 34×
- CMP/BV: 4.55×
- Fair Value Range: ₹1,200–₹1,450
Market pricing in future expansion—any slip and P/E could bite.
What’s Cooking – News, Triggers, Drama
- 3 MOUs signed – new collaborations (details yet to be disclosed).
- ₹60 Cr expansion – targeted additional sales ₹120–150 Cr within 2–3 years.
- Strategic focus on CRAMS and contract manufacturing – high-margin play.
Balance Sheet
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Assets | 616 | 640 | 801 |
| Liabilities | 616 | 640 | 801 |
| Net Worth | 280 | 330 | 364 |
| Borrowings | 94 | 123 | 168 |
Punchline: Assets growing, debt rising but still manageable.
Cash Flow – Sab Number Game Hai
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating | 58 | 30 | 25 |
| Investing | -38 | -36 | -31 |
| Financing | -20 | 4 | 12 |
Comment: Cash flow looks like a student’s bank account—always low but somehow surviving.
Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROE % | 31% | 22% | 12% |
| ROCE % | 31% | 22% | 15% |
| D/E | 0.29 | 0.37 | 0.46 |
Punchline: Returns cooling down, leverage climbing—watch closely.
P&L Breakdown – Show Me the Money
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 1,006 | 934 | 901 |
| Net Profit | 61 | 54 | 39 |
Comment: Revenue dipped last year, but Q1 FY26 rebound is promising.
Peer Comparison
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| PI Industries | 7,978 | 1,663 | 38× |
| Bayer Crop Science | 5,473 | 569 | 50× |
| Dhanuka Agritech | 2,035 | 292 | 27× |
| Punjab Chemicals | 978 | 46 | 34× |
Humour: The smallest kid at the agrochemical party—but punching above its weight.
Miscellaneous – Shareholding, Promoters
- Promoters: 39.2% (steady)
- FIIs: ~3%
- Public: ~57%
Note: High retail holding means sentiment drives moves.
EduInvesting Verdict™
Punjab Chemicals is at an interesting inflection—MOUs and expansion signal growth, but historical volatility keeps risk alive. Q1 results suggest a recovery phase.
Final Word: A slow cooker that might finally serve a gourmet dish—just don’t burn your fingers waiting.
Written by EduInvesting Team | 28 July 2025
SEO Tags: Punjab Chemicals Q1 FY26, Agrochemical Stocks, Specialty Chemicals, CRAMS, Stock Analysis
