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Check Before You Invest : Krishana Phoschem Ltd

BSE: 0 NSE: KRISHANA ISIN: INE506W01020
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Fertilizers

Snapshot

Q.1 Which industry/sub-sector does Krishana Phoschem Ltd belong to?
Krishana Phoschem Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Fertilizers segment.
Q.2 Is Krishana Phoschem Ltd a good quality company?
Krishana Phoschem Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Krishana Phoschem Ltd undervalued or overvalued?
Krishana Phoschem Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 24.11 33.53
Price to Book 7.75 4.84
Price to Sales 1.8 2.20
EV to EBITDA 16.02 15.99
Q.4 Is Krishana Phoschem Ltd a good buy now?
Krishana Phoschem 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

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Krishana Phoschem Ltd?
Krishana Phoschem Ltd revenue growth is 47% for FY-2025, which is below its 5-year CAGR of 52.82%, indicating slower growth.

Q.2 Gross Profit margin of Krishana Phoschem Ltd?
Krishana Phoschem Ltd Gross profit margin which is the profit after deduction of direct costs, is 11.4% for FY-2025, which is below its 5-year median of 14.8%, indicating decreasing margins.

Q.3 Operating Profit Margin of Krishana Phoschem Ltd?
Krishana Phoschem Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 13.64% for FY-2025, which is below its 5-year median of 15.97% indicating decreasing margins.

Q.4 Net Profit Margin of Krishana Phoschem Ltd?
Krishana Phoschem Ltd Net Profit Margin is 6.37% for FY-2025, is below its 5-year median of 8.28%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 11.4 14.8
Operating Profit Margin (%) 13.64 15.97
Net Profit Margin (%) 6.37 8.28

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Krishana Phoschem Ltd?
Krishana Phoschem Ltd Return on Asset is 9.2%, which is in line with its 5-year historical median of 9.2%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Krishana Phoschem Ltd?
Krishana Phoschem Ltd Return on capital employed is 21.77% for FY-2025, which is above its 5-year historical median of 20.18%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Krishana Phoschem Ltd?
Krishana Phoschem Ltd Return on equity is 25.29% for FY-2025, which is above its 5-year historical median of 14.64%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Krishana Phoschem Ltd?
Krishana Phoschem Ltd Cash conversion cycle is 91 days, in line with its 5-year historical median of 95 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.44 1.22
ROE (%) 25.29 14.64
ROCE (%) 21.77 20.18
Cash Conversion Cycle 91 days 95 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Krishana Phoschem Ltd?
Krishana Phoschem Ltd Debt-to-Equity ratio is 0.98, which is above the industry average of 0.41, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Krishana Phoschem Ltd?
Krishana Phoschem Ltd Debt to cash flow from operations is 2.43, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Krishana Phoschem Ltd?

Q.1 Promoter shareholding and pledge status of Krishana Phoschem Ltd?
Promoters hold 72.94% of the Krishana Phoschem Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Krishana Phoschem Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Krishana Phoschem Ltd vs industry peers?
Krishana Phoschem Ltd revenue CAGR is 52.82%, compared to the industry median CAGR of 8.22%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 47 8.2
Gross Profit Growth (%) 65.6 13.5
Operating Profit Growth (%) 43.8 7
Net Profit Growth (%) 117.5 14.9
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.44 1.19
ROE (%) 25.29 7.02
ROCE (%) 21.77 9.34
Cash Conversion Cycle (days) 90.82 68

Valuation & price assessment

Q.1 Stock return of Krishana Phoschem Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 53.42% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- 53.4% 15.6% 86.2%
Q.2 Valuation ratios of Krishana Phoschem Ltd vs historical?
The current P/E ratio of 24.11 is lower than its historical median of 33.53, indicating that the stock is trading below its historical average valuation.
Q.3 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 24.11 33.53 13.55
Price to Book 7.75 4.84 1.43
Price to Sales 1.8 2.20 0.63
EV to EBITDA 16.02 15.99 7.82

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