Check Before You Invest : Kothari Sugars And Chemicals Ltd

Snapshot

Q.1 Which industry/sub-sector does Kothari Sugars And Chemicals Ltd belong to?

Kothari Sugars And Chemicals Ltd belongs to the Agriculture & Allied activities sector, operating specifically within the Sugar segment.

Q.2 Is Kothari Sugars And Chemicals Ltd a good quality company?

Kothari Sugars And Chemicals Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Kothari Sugars And Chemicals Ltd undervalued or overvalued?

Kothari Sugars And Chemicals Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Kothari Sugars And Chemicals Ltd a good buy now?

Kothari Sugars And Chemicals Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Kothari Sugars And Chemicals Ltd?

Kothari Sugars And Chemicals Ltd revenue growth is -38.3% for FY-2025, which is below its 5-year CAGR of -2.55%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Kothari Sugars And Chemicals Ltd?

Kothari Sugars And Chemicals Ltd Return on capital employed is 5.93% for FY-2025, which is below its 5-year historical median of 14.13%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Kothari Sugars And Chemicals Ltd?

Kothari Sugars And Chemicals Ltd Return on Asset is 2.24%, which is below its 5-year historical median of 6.45%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Kothari Sugars And Chemicals Ltd?

Kothari Sugars And Chemicals Ltd Return on equity is 3.67% for FY-2025, which is below its 5-year historical median of 11%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Kothari Sugars And Chemicals Ltd?

Kothari Sugars And Chemicals Ltd Cash conversion cycle is 57 days, above its 5-year historical median of 42 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.67	1.15
ROE	3.67	11
ROCE	5.93	14.13
Cash Conversion Cycle	57 days	42 days

Q.6 Gross Profit margin of Kothari Sugars And Chemicals Ltd?

Kothari Sugars And Chemicals Ltd Gross profit margin which is the profit after deduction of direct costs, is 8.1% for FY-2025, which is below its 5-year median of 10.7%, indicating decreasing margins.

Q.7 Operating Profit Margin of Kothari Sugars And Chemicals Ltd?

Kothari Sugars And Chemicals Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 3.95% for FY-2025, which is below its 5-year median of 8.81% indicating decreasing margins.

Q.8 Net Profit Margin of Kothari Sugars And Chemicals Ltd?

Kothari Sugars And Chemicals Ltd Net Profit Margin is 3.36% for FY-2025, is below with its 5-year median of 5.87%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	8.1	10.7
Operating Profit Margin	3.95	8.81
Net Profit Margin	3.36	5.87

Q.9 Debt to Equity ratio of Kothari Sugars And Chemicals Ltd?

Kothari Sugars And Chemicals Ltd Debt-to-Equity ratio is 0.17, which is lower with the industry average of 0.62, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Kothari Sugars And Chemicals Ltd?

Kothari Sugars And Chemicals Ltd Debt to cash flow from operations is 0.94, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Kothari Sugars And Chemicals Ltd?

Promoters hold 73.53% of the Kothari Sugars And Chemicals Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Kothari Sugars And Chemicals Ltd vs industry peers?

Kothari Sugars And Chemicals Ltd revenue CAGR is -2.55%, compared to the industry median CAGR of 2.97%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-38.3	3
Gross Profit Growth	-55.4	3
Operating Profit Growth	-72.7	0.6
Net Profit Growth	-65.5	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.67	0.87
ROE	3.67	9.39
ROCE	5.93	8.97
Cash Conversion Cycle (days)	56.66	114

Valuation & price assessment

Q.1 Stock return of Kothari Sugars And Chemicals Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 3.08% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	3.1%	-10.9%	-22.5%

Q.3 Valuation ratios of Kothari Sugars And Chemicals Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	43.62	13.30	13.25
Price to Book	0.78	1.40	1.05
Price to Sales	0.96	0.79	0.65
EV to EBITDA	-491.45	7.72	8.73

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