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Kanoria Chemicals & Industries Ltd. Stock Analysis

Small Cap
Evaluated by 434 users | BSE: 506525 | NSE: KANORICHEM |
Chemicals
Kanoria Chemicals & Industries is an ISO 9001, ISO 14001 and OHSAS 18001 certified leading manufacturer of chemical intermediates in India. In 1965 the company commissioned its Caustic Chlorine plant at Renukoot in the state of Uttar Pradesh with a capacity of 16,500 TPA of Caustic SodaKCI...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 6.42%10.53%0.51%3.78%1.68%3.27%4.65%0.88%1.9%0.29%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 492291243340311297296339448360
Y-o-Y Gr. Rt.--40.9%-16.5%40.1%-8.6%-4.4%-0.4%14.6%32.1%-19.6%
Adjusted EPS (Rs.) 3.749.93-0.382.691.243.27.220.322.14-1.44
Y-o-Y Gr. Rt.-165.5%-103.8%NA-53.9%158.1%125.6%-95.6%568.8%-167.3%
Book Value per Share (Rs.) 39.6691.47105.88110.37112.07138.09140.61139.54142.56141.15
Adjusted Net Profit 2155.9-1.711.85.41431.51.49.3-6.3
Net Op. Cash Flow (Rs. Cr.) 69-15.3-10.3-3.315.743.55.828.641.412.1
Debt to Cash Flow from Ops 5.49-8.23-13.95-33.536.482.7920.263.542.9311.99
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Kanoria Chemicals & Industries Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales -3.4%3%6.8%-19.6%
Adjusted EPS -189.9%-203%-158.4%-167.3%
Book Value per Share 15.24.70.1-1
Share Price 4.6% -8.9% -25.9% 6.8%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 8.9815.15-0.342.491.112.565.180.231.51-1.02
Operating Profit Margin (%) 18.067.451.918.333.6111.4310.163.935.941.61
Net Profit Margin (%) 4.2819.25-0.683.461.744.7110.660.412.09-1.75
Debt to Equity 1.70.240.310.230.210.20.190.170.20.23
Working Capital Days 103148139141184194221237192270
Cash Conversion Cycle 54774944535059563751
Entity Percentage Holding
Promoters 74.43%
Institutions 0.11%
Non-Institutions 25.46%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Kanoria Chemicals & Industries Ltd.'s performance infers:

Kanoria Chemicals & Industries Ltd. earnings have declined by -203%, whereas share price has depreciated -8.9% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Kanoria Chemicals & Industries Ltd. share prices over the last 10 years. Here is what we found out:

Kanoria Chemicals & Industries Ltd. share price has depreciated 2% annually over the past ten years.

Kanoria Chemicals & Industries is an ISO 9001, ISO 14001 and OHSAS 18001 certified leading manufacturer of chemical intermediates in India. In 1965 the company commissioned its Caustic Chlorine plant at Renukoot in the state of Uttar Pradesh with a capacity of 16,500 TPA of Caustic Soda

KCI has two manufacturing facilities, one at Renukoot in the state of Uttar Pradesh, which manufactures Chlor-Alkalis, Chlorine derivatives and water treatment chemicals; and the second at Ankleshwar in

Kanoria Chemicals & Industries is an ISO 9001, ISO 14001 and OHSAS 18001 certified leading manufacturer of chemical intermediates in India. In 1965 the company commissioned its Caustic Chlorine plant at Renukoot in the state of Uttar Pradesh with a capacity of 16,500 TPA of Caustic Soda

KCI has two manufacturing facilities, one at Renukoot in the state of Uttar Pradesh, which manufactures Chlor-Alkalis, Chlorine derivatives and water treatment chemicals; and the second at Ankleshwar in the state of Gujarat, which manufactures Alcohol based intermediates. KCI operates two 25MW thermal power plants in Renukoot, and enjoys cost advantage as a result of backward and forward integration. The company’s portfolio comprises of over twenty products, with market leadership in six and substantial shares in all others.

KCI has been rated ‘CRISIL GVC Level 3’ for its strong capability with respect to wealth creation for all its stakeholders while adopting sound corporate governance practices. The Company steadfastly believes in the core values of sustainability, transparency, ethical business practices, and maintaining high standards of corporate governance.

KCI is well recognised in the areas of environment management, resource use efficiency and social responsibility. It has been the recipient of several awards, including:The Indian Chemicals Manufacturers Association (ICMA) Award for Water Resource Management in Chemical Industry

Product range of the company includes: Kanoria Chemicals & Industries Limited (KCI) is a leading player in the Indian chemicals and intermediates market. The company is engaged in the manufacturing of:

  • Alco Chemicals
  • Chloro Chemicals
  • Industrial Gases
  • Water Treatment Chemicals

Milestones of the company

  • 2012 - Acquired 90% stake in APAG Holdings AG, Switzerland engaged in development and sale of mechatronic modules and control devices
    Set up 5 MW solar power project in Jodhpur district in the state of Rajasthan.
  • 2011 - Divested the Chloro Chemicals manufacturing facility at Renukoot.
  • 2008 Further expansion in Caustic Soda manufacturing capacity from 90,000 TPA to 130,000 TPA • Commissioned a 15,000 TPA Bleaching Powder Plant • Commissioned a 11.500 TPA Chlorinated Paraffins plant
  • 2006 Expansion in Caustic Soda manufacturing capacity from 50,000 TPA to 90,000 TPA
  • 2005 Commissioned a second 25 MW coal based power plant at Renukoot2004• Further expansion of Formaldehyde plant to 75,000 TPA• Further expansion of Aluminium Chloride plant
  • 2002 Further expansion of Penta plant to 6,000 TPA• Further expansion of Formaldehyde plant to 50,000 TPA• Further expansion of Acetaldehyde plant to 10,000 TPA
  • 2000 Started producing Hydrogen for commercial purposes
  • 1999 Expansion in capacity of Distillery to 225 million litres per annum• Commissioned a 2 MW Bio-gas plant at Ankleshwar
  • 1998 Commissioned a 25 MW coal based power plant at Renukoot• Further expansion in capacity of Acetaldehyde plant to 9,000 TPA• Commissioned Acetic Acid plant with a capacity of 6,000 TPA• Commissioned Ethyl Acetate plant with a capacity of 3,300 TPA
  • 1997 Further expansion in capacity of Lindane plant to 875 TPA• Commissioned Aluminium Chloride plant with a capacity of 6,875 TPA• Further expansion of Penta plant to 5,000 TPA• Further expansion of Hexamine plant to 4,000 TPA1995• Expansion in capacity of Lindane plant to 660 TPA
  • 1994 Started producing Industrial Alcohol (15 million litres per annum)1993• Expansion in capacity of Formaldehyde plant to 33,000 TPA
  • 1992 Commissioned Hexamine plant with a capacity of 1,500 TPA1991• Commissioned a plant to manufacture Lindane with a capacity of 33 TPA
  • 1991 Expansion in capacity of Acetaldehyde plant to 2,500 TPA
  • 1988 Expansion in capacity of Penta to 3,000 TPA and consequently Sodium Formate plant to 1,650 TPA• Commenced production of Acetaldehyde with a capacity of 6,000 TPA
  • 1987 Commissioned Formaldehyde plant with a capacity of 16,500 TPA
  • 1983 Commissioned another chemical complex in Ankleshwar in the state of Gujarat, with initial capacity of 1,200    TPA of Pentaerythritol (Penta) and 660 TPA of Sodium Formate.
  • 1980 Further expansion of SBP plant to 15,000 TPA
  • 1977 Expansion in capacity of SBP to 10,000 TPA
  • 1973 Further expansion in capacity of Caustic Chlorine plant to 33,000 TPA
  • 1972 Expansion in capacity of Caustic Chlorine plant to 21,000 TPA• Added Stable Bleaching Powder (SBP) plant with a capacity of 5,000 TPA• Started producing own Salt
  • 1965 Caustic Chlorine plant commissioned at Renukoot in the state of Uttar Pradesh with a capacity of 16,500 TPA of Caustic Soda

Awards & Certificates

  • Kanoria Chemicals & Industries Limited (KCI) attaches great significance to quality, safety, corporate governance and environment management.
  • KCI is an ISO 9001, ISO 14001 and OHSAS 18001 certified company.
  • KCI is rated by CRISIL at Level 3 for Governance and Value Creation.
  • KCI is widely recognised for its initiatives in environment management and technological innovations. Some of the awards that the company has won include:-'Indian Chemical Manufacturers' Association (ICMA) Award for Water Resource Management in Chemical Industry 2003-04-ICMA D.M. Trivedi Award for Introducing Advancement in Technology having a Widespread Impact on Chemical Industry 2003-04-The Energy & Resources Institute (TERI) Corporate Environmental Award 2003-04-The Golden Peacock Eco-Innovation Award for Environment Management 2005, instituted by the World Environment Foundation.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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