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INVESTMENT INSIGHTS

Check Before You Invest : Kothari Petrochemicals Ltd

BSE: 532096 NSE: KOTHARIPET ISIN: INE720A01015
  |   Sector:  Oil & Gas   |   Industry:  Petrochemicals

Snapshot

Q.1 Which industry/sub-sector does Kothari Petrochemicals Ltd belong to?
Kothari Petrochemicals Ltd belongs to the Oil & Gas sector, operating specifically within the Petrochemicals segment.
Q.2 Is Kothari Petrochemicals Ltd a good quality company?
Kothari Petrochemicals Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is Kothari Petrochemicals Ltd undervalued or overvalued?
Kothari Petrochemicals Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Kothari Petrochemicals Ltd a good buy now?
Kothari Petrochemicals 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 Petrochemicals Ltd?
Kothari Petrochemicals Ltd revenue growth is -23.6% for FY-2016 , which is below its 5 year CAGR of 0% , indicating slower growth.
Q.2 Gross Profit margin of Kothari Petrochemicals Ltd?
Kothari Petrochemicals Ltd Gross profit margin which is the profit after deduction of direct costs, is 7.4% for FY-2016 , which is above its 5 year median of 5.6% , indicating increasing margins.
Q.3 Operating Profit Margin of Kothari Petrochemicals Ltd?
Kothari Petrochemicals Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.2% for FY-2016 , which is above its 5 year median of 3.7% indicating increasing margins.
Q.4 Net Profit Margin of Kothari Petrochemicals Ltd?
Kothari Petrochemicals Ltd Net Profit Margin is 4.45% for FY-2016 , is above with its 5 year median of 3.4%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 7.4 5.6
Operating Profit Margin 7.2 3.7
Net Profit Margin 4.45 3.4
Q.5 Return on Asset of Kothari Petrochemicals Ltd?
Kothari Petrochemicals Ltd Return on Asset is 8.26%, which is below its 5 year historical median of 9%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Kothari Petrochemicals Ltd?
Kothari Petrochemicals Ltd Return on equity is 14.36% for FY-2016 , which is below its historical median of 15.96%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Kothari Petrochemicals Ltd?
Kothari Petrochemicals Ltd Return on capital employed is 18.15% for FY-2016 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of Kothari Petrochemicals Ltd?
Kothari Petrochemicals Ltd Cash conversion cycle is 21 days, above its historical median of 18 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 2.02 3.12
ROE 14.36 15.96
ROCE 18.15 20.57
Cash Conversion Cycle 21 days 18 days
Q.9 Debt to Equity ratio of Kothari Petrochemicals Ltd?
Kothari Petrochemicals Ltd Debt-to-Equity ratio is 0.00 , which is lower with the industry average of 0.46 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Kothari Petrochemicals Ltd?
Kothari Petrochemicals Ltd Debt to cash flow from operations is 1.11 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Kothari Petrochemicals Ltd?
Promoters hold 72.22% of the Kothari Petrochemicals Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Kothari Petrochemicals Ltd vs industry peers?
Kothari Petrochemicals Ltd revenue CAGR is 16.15% , compared to the industry median CAGR of 12.24% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 214.2 1,481.3
Gross Profit 15.8 93.5
Operating Profit 15 99
Net Profit 10 56
Operating Efficiency
Current Level Industry Median
Asset Turnover 2.02 1.79
ROE 14.36 10.39
ROCE 18.15 13.99
Cash Conversion Cycle (days) 20.89 41

Valuation & price assessment

Q.1 Stock return of Kothari Petrochemicals Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 37.81% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - 37.8% 26.4% -21.7%
Q.3 Valuation ratios of Kothari Petrochemicals 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 78.32 13.36 37.80
Price to Book - 3.34 2.05
Price to Sales 3.49 1.24 1.35
EV to EBITDA 40.23 8.48 10.08

Check more companies

1. Supreme Petrochem
2. Rain Industries
3. TN Petro Products
4. Kothari Petrochem
5. Agarwal Indl. Corp
6. Neptune Petrochem.
7. Multibase India
8. Greenhitech Ventures
9. Nexxus Petro Inds
10. SVC Industries
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