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Check Before You Invest : Kothari Fermentation & Biochem Ltd

BSE: 507474 NSE: ISIN: INE991B01010
  |   Sector:  FMCG   |   Industry:  Consumer Food

Snapshot

Q.1 Which industry/sub-sector does Kothari Fermentation & Biochem Ltd belong to?
Kothari Fermentation & Biochem Ltd belongs to the FMCG sector, operating specifically within the Consumer Food segment.
Q.2 Is Kothari Fermentation & Biochem Ltd a good quality company?
Kothari Fermentation & Biochem Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Kothari Fermentation & Biochem Ltd undervalued or overvalued?
Kothari Fermentation & Biochem Ltd appears Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Kothari Fermentation & Biochem Ltd a good buy now?
Kothari Fermentation & Biochem Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Kothari Fermentation & Biochem Ltd?
Kothari Fermentation & Biochem Ltd revenue growth is 4.9% for FY-2025 , which is above its 5 year CAGR of 3.4% , indicating faster growth.
Q.2 Gross Profit margin of Kothari Fermentation & Biochem Ltd?
Kothari Fermentation & Biochem Ltd Gross profit margin which is the profit after deduction of direct costs, is 7.3% for FY-2025 , which is in line with its 5 year median of 7.3% , indicating stable margins.
Q.3 Operating Profit Margin of Kothari Fermentation & Biochem Ltd?
Kothari Fermentation & Biochem Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 10.43% for FY-2025 , which is in line with its 5 year median of 10.43% indicating stable margins.
Q.4 Net Profit Margin of Kothari Fermentation & Biochem Ltd?
Kothari Fermentation & Biochem Ltd Net Profit Margin is 0.71% for FY-2025 , is above with its 5 year median of 0.32%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 7.3 7.3
Operating Profit Margin 10.43 10.43
Net Profit Margin 0.71 0.32
Q.5 Return on Asset of Kothari Fermentation & Biochem Ltd?
Kothari Fermentation & Biochem Ltd Return on Asset is 0.62%, which is above its 5 year historical median of 0.25%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Kothari Fermentation & Biochem Ltd?
Kothari Fermentation & Biochem Ltd Return on equity is 1.44% for FY-2025 , which is above its historical median of 0.51%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Kothari Fermentation & Biochem Ltd?
Kothari Fermentation & Biochem Ltd Return on capital employed is 5.45% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Kothari Fermentation & Biochem Ltd?
Kothari Fermentation & Biochem Ltd Cash conversion cycle is 67 days, above its historical median of 64 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.88 0.85
ROE 1.44 0.51
ROCE 5.45 4.41
Cash Conversion Cycle 67 days 64 days
Q.9 Debt to Equity ratio of Kothari Fermentation & Biochem Ltd?
Kothari Fermentation & Biochem Ltd Debt-to-Equity ratio is 0.77 , which is above with the industry average of 0.49 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Kothari Fermentation & Biochem Ltd?
Kothari Fermentation & Biochem Ltd Debt to cash flow from operations is 4.06 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Kothari Fermentation & Biochem Ltd?
Promoters hold 68.87% of the Kothari Fermentation & Biochem Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Kothari Fermentation & Biochem Ltd vs industry peers?
Kothari Fermentation & Biochem Ltd revenue CAGR is 3.38% , compared to the industry median CAGR of 6.97% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 114.2 117.4
Gross Profit 8.3 5
Operating Profit 11.9 7
Net Profit 0.8 2.6
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.88 1.2
ROE 1.44 7.15
ROCE 5.45 10.41
Cash Conversion Cycle (days) 67.39 51

Valuation & price assessment

Q.1 Stock return of Kothari Fermentation & Biochem Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 7.2% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 7.2% -3% -0.6% -41%
Q.3 Valuation ratios of Kothari Fermentation & Biochem Ltd vs historical?
The current P/E is lower that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings - 13.31 51.80
Price to Book 1.21 1.26 2.42
Price to Sales 0.56 0.71 1.42
EV to EBITDA 12.94 6.98 14.55

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