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Check Before You Invest : KG Petrochem Ltd

BSE: 531609 NSE: ISIN: INE902G01016
  |   Sector:  Textiles & Apparels   |   Industry:  Textile

Snapshot

Q.1 Which industry/sub-sector does KG Petrochem Ltd belong to?
KG Petrochem Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.
Q.2 Is KG Petrochem Ltd a good quality company?
KG Petrochem Ltd is a average quality company, based on a somewhat consistent 10 year financial track record.
Q.3 Is KG Petrochem Ltd undervalued or overvalued?
KG Petrochem Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is KG Petrochem Ltd a good buy now?
KG Petrochem 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 KG Petrochem Ltd?
KG Petrochem Ltd revenue growth is 13.5% for FY-2025 , which is above its 5 year CAGR of 2.6% , indicating faster growth.
Q.2 Gross Profit margin of KG Petrochem Ltd?
KG Petrochem Ltd Gross profit margin which is the profit after deduction of direct costs, is 5.5% for FY-2025 , which is below its 5 year median of 7.6% , indicating decreasing margins.
Q.3 Operating Profit Margin of KG Petrochem Ltd?
KG Petrochem Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 6.75% for FY-2025 , which is below its 5 year median of 8.72% indicating decreasing margins.
Q.4 Net Profit Margin of KG Petrochem Ltd?
KG Petrochem Ltd Net Profit Margin is 1.47% for FY-2025 , is below with its 5 year median of 2.57%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 5.5 7.6
Operating Profit Margin 6.75 8.72
Net Profit Margin 1.47 2.57
Q.5 Return on Asset of KG Petrochem Ltd?
KG Petrochem Ltd Return on Asset is 1.5%, which is below its 5 year historical median of 2.06%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of KG Petrochem Ltd?
KG Petrochem Ltd Return on equity is 4.12% for FY-2025 , which is below its historical median of 6.28%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of KG Petrochem Ltd?
KG Petrochem Ltd Return on capital employed is 6.23% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of KG Petrochem Ltd?
KG Petrochem Ltd Cash conversion cycle is 136 days, below its historical median of 136 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.02 0.91
ROE 4.12 6.28
ROCE 6.23 8.28
Cash Conversion Cycle 136 days 136 days
Q.9 Debt to Equity ratio of KG Petrochem Ltd?
KG Petrochem Ltd Debt-to-Equity ratio is 0.89 , which is above with the industry average of 0.42 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of KG Petrochem Ltd?
KG Petrochem Ltd Debt to cash flow from operations is 4.45 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of KG Petrochem Ltd?
Promoters hold 74.66% of the KG Petrochem Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of KG Petrochem Ltd vs industry peers?
KG Petrochem Ltd revenue CAGR is 2.64% , compared to the industry median CAGR of 0.00% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 375.4 96.6
Gross Profit 20.6 3.2
Operating Profit 25 5.7
Net Profit 6 1.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.02 0.95
ROE 4.12 4.25
ROCE 6.23 7.55
Cash Conversion Cycle (days) 136.09 102

Valuation & price assessment

Q.1 Stock return of KG Petrochem Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 15.9% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 15.9% 0.1% 3.2% -22%
Q.3 Valuation ratios of KG Petrochem Ltd vs historical?
The current P/E is higher 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 42.43 7.10 30.76
Price to Book 0.83 0.00 1.39
Price to Sales 0.32 0.00 1.01
EV to EBITDA 7.11 5.13 9.47

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