Check Before You Invest : Kothari Fermentation & Biochem Ltd

Q: 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: Is Kothari Fermentation & Biochem Ltd a good quality company?

Kothari Fermentation & Biochem Ltd is a quality company, based on a 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: Is Kothari Fermentation & Biochem Ltd undervalued or overvalued?

Kothari Fermentation & Biochem Ltd appears 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. Price to Earnings, Current: -, Historic Median: 15.55. Price to Book, Current: 1.18, Historic Median: 1.66. Price to Sales, Current: 0.55, Historic Median: 0.95. EV to EBITDA, Current: 12.79, Historic Median: 13.16

Q: 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

Q: 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 3.38%, indicating faster growth.

Q: 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: 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: Net Profit Margin of Kothari Fermentation & Biochem Ltd?

Kothari Fermentation & Biochem Ltd Net Profit Margin is 0.71% for FY-2025, is above its 5-year median of 0.32%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 7.3, Historic Median: 7.3. Operating Profit Margin (%), Current: 10.43, Historic Median: 10.43. Net Profit Margin (%), Current: 0.71, Historic Median: 0.32

Q: 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: 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 above its 5-year historical median of 4.41%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

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 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 Kothari Fermentation & Biochem Ltd undervalued or overvalued?

Kothari Fermentation & Biochem Ltd appears 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	-	15.55
Price to Book	1.18	1.66
Price to Sales	0.55	0.95
EV to EBITDA	12.79	13.16

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

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 Kothari Fermentation & Biochem Ltd?

Kothari Fermentation & Biochem Ltd revenue growth is 4.9% for FY-2025, which is above its 5-year CAGR of 3.38%, 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 its 5-year median of 0.32%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	7.3	7.3
Operating Profit Margin (%)	10.43	10.43
Net Profit Margin (%)	0.71	0.32

B: Does the business utilize capital efficiently?

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 capital employed (ROCE) of Kothari Fermentation & Biochem Ltd?

Kothari Fermentation & Biochem Ltd Return on capital employed is 5.45% for FY-2025, which is above its 5-year historical median of 4.41%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 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 5-year historical median of 0.51%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Kothari Fermentation & Biochem Ltd?

Kothari Fermentation & Biochem Ltd Cash conversion cycle is 67 days, above its 5-year historical median of 64 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 (x)	0.88	0.85
ROE (%)	1.44	0.51
ROCE (%)	5.45	4.41
Cash Conversion Cycle	67 days	64 days

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

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 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

D: Promoter shareholding and pledge status of Kothari Fermentation & Biochem Ltd?

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)

E: How does Kothari Fermentation & Biochem Ltd performance compare with that of its Peers?

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 6.98%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	4.9	7
Gross Profit Growth (%)	392.9	13.3
Operating Profit Growth (%)	130.5	12.6
Net Profit Growth (%)	0	20.7

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.88	1.2
ROE (%)	1.44	7.22
ROCE (%)	5.45	11.34
Cash Conversion Cycle (days)	67.39	48

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 6.8% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	6.8%	-5%	-4.6%	-48%

Q.2 Valuation ratios of Kothari Fermentation & Biochem Ltd vs historical?

The current P/E ratio of 0 is lower than its historical median of 15.55, 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	-	15.55	26.55
Price to Book	1.18	1.66	2.53
Price to Sales	0.55	0.95	1.43
EV to EBITDA	12.79	13.16	14.38

Check more companies

1. Jubilant FoodWorks

2. Hatsun Agro Product

3. Bikaji Foods Inter.

4. Zydus Wellness

5. LT Foods

6. Devyani Internatl.

7. Manorama Industries

8. Orkla India

9. KRBL

10. Dodla Dairy

Check trending companies

1. TVS Motor Company Ltd.

2. Graphite India Ltd.

3. Narayana Hrudayalaya Ltd.

4. Laurus Labs Ltd.

5. The Federal Bank Ltd.