2. Is Rossari Biotech Ltd undervalued or overvalued?
The key valuation ratios of Rossari Biotech Ltd's currently when compared to its past seem to suggest it is in the Undervalued zone.
3. Is Rossari Biotech Ltd a good buy now?
The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Rossari Biotech Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.
10 Year X-Ray of Rossari Biotech:
Analysis of Financial Track Record
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.
What is a Financial Track Record? How to read this chart in order to understand the data present here?
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.
Rossari Biotech Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation ⓘ
Value Creation Index Colour Code Guide
ⓘ
Mar'16
Mar'17
Mar'18
Mar'19
Mar'20
Mar'21
Mar'22
Mar'23
Mar'24
Mar'25
TTM
ROCE % ⓘ
10.3%
26.4%
40.4%
54.4%
37.9%
28.8%
24.4%
18.5%
18.4%
16.1%
-
Value Creation Index ⓘ
-0.3
0.9
1.9
2.9
1.7
1.1
0.8
0.3
0.3
0.2
-
Growth Parameters ⓘ
Growth Parameters Colour Code Guide
ⓘ
Sales ⓘ
179
233
292
516
600
709
1,483
1,656
1,831
2,080
2,080
Sales YoY Gr.
-
30.6%
25%
76.9%
16.3%
18.2%
109.1%
11.7%
10.6%
13.6%
-
Adj EPS ⓘ
0.7
3.3
5.9
9.5
12.6
15.3
16.3
18.3
22.6
23.3
24.6
YoY Gr.
-
364.3%
81.9%
60.1%
33.1%
21.8%
6%
12.9%
23.1%
3.1%
-
BVPS (₹) ⓘ
10.3
13.5
19.5
25.6
56.4
78.3
145.7
165.3
189
213.7
213.7
Adj Net Profit ⓘ
3.4
15.7
28.6
45.8
63.9
79.6
89.5
101
125
129
136
Cash Flow from Ops. ⓘ
25.7
7.2
23.6
71.2
56.8
47.8
29.4
152
43.3
137
-
Debt/CF from Ops. ⓘ
0.9
3.1
0.9
0.1
1.2
0
0.3
0.5
2.5
1.4
-
CAGR ⓘ
CAGR Colour Code Guide
ⓘ
9 Years
5 Years
3 Years
1 Years
Sales ⓘ
31.4%
28.2%
11.9%
13.6%
Adj EPS ⓘ
47.6%
13.1%
12.7%
3.1%
BVPSⓘ
40%
30.5%
13.6%
13.1%
Share Price
-
-
-7.2%
-11.5%
Key Financial Parameters ⓘ
Performance Ratio Colour Code Guide
ⓘ
Mar'16
Mar'17
Mar'18
Mar'19
Mar'20
Mar'21
Mar'22
Mar'23
Mar'24
Mar'25
TTM
Return on Equity % ⓘ
7
27.3
35.8
42
31.1
22.9
14.7
11.8
12.7
11.5
11.5
Op. Profit Mgn % ⓘ
7
10.4
15.3
15.1
17.5
17.4
11.9
13
13.3
12.2
12.7
Net Profit Mgn % ⓘ
1.9
6.7
9.8
8.9
10.7
11.2
6
6.1
6.8
6.2
6.6
Debt to Equity ⓘ
0.5
0.3
0.2
0
0.2
0
0
0.1
0.1
0.2
0.1
Working Cap Days ⓘ
132
107
109
107
140
163
134
166
189
211
83
Cash Conv. Cycle ⓘ
62
42
45
24
13
29
46
68
79
84
42
Recent Performance Summary
Sales growth is growing at healthy rate in last 3 years 11.94%
Net Profit is growing at healthy rate in last 3 years 12.71%
Sales growth is good in last 4 quarters at 13.87%
Return on Equity has declined versus last 3 years average to 11.50%
Rossari Biotech (Rossari) is a specialty-chemicals manufacturer whichwas established in 2003 as a partnership, between Mr. Edward Menezes and Mr. Sunil Chari. Rossari has built a strong base of more than 1000 customers across segments with the likes of Hindustan Unilever (Love & Care, Cif, Rin, Vim), Reliance (Enzo), Arvind, Raymond, Gokul Poultry Industries. Currently, they are distributing more than 4,250 products and delivering their services through 435 distributors in 28 states and 8 Union territories in India. Rossari also exports its products to more than 33 countries.
Rossari operates 8 manufacturing facilities at Silvassa and Dahej in Gujarat, with a total production capacity of 354,100 MTPA. It has leveraged its 4 strategically placed R&D facilities, including a cutting-edge certified laboratory at the Mumbai IIT campus, to drive growth through smart chemistry and research. The company's R&D strength lies in its ability to swiftly deliver customized and cost-effective product solutions, encompassing synthesis, formulation, development, and technical services.
Rossari offers solutions in three main product categories:
Home, personal care, and performance chemicals (HPPC)- It manufactures chemicals which improve appearance, texture, performance, strength and process ability of end products for various industries. Example- It manufactures active agent for detergents. Rossari is involved in a wide range of activities, from supplying raw materials to developing complete products for other brands, allowing it to tap into various levels of the supply chain in the home care industry.
Textile specialty chemical (TSC) - Textile chemicals are specialty chemicals used during the dyeing and processing of textiles to impart desired properties to the end-product. These products include coating and casing chemicals, colorants, auxiliaries, finishing agents, desizing agents and many more.
Animal health and nutrition (AHN) - Rossari manufactures over 100 products for its customers in this category which include poultry feed supplements and additives, pet grooming and pet treats including for weaning, infants and adult pets.
Inorganic growth initiatives
Rossari Biotech successfully acquired and integrated three companies in last 2 years- Unitop Chemicals Pvt Ltd (33% FY23 revenue share), Tristar Intermediates Pvt Ltd (13% FY23 revenue share) and Romakk Chemicals Pvt Ltd (2% FY23 revenue share).The strategic acquisition of Unitop has helped Rossari diversify its product portfolio with its expansive product range in the agrochemicals, anti-foams, hand gels, viscosity modifiers, marine cleaners and Anti-Stats segments. Tristar has brought in significant synergy to Rossari in Pharmaceuticals, Textiles, Paints, Automotive and Agro-chemicals segments. The focus of the acquisitions will be on cross-selling products to existing customers and expanding into new areas of specialty chemicals.
In 2019, under the pet care segment, Rossari acquired a reputed Indian pet grooming brand - Lozalo International. The product range includes natural pet shampoos, powders, deodorants, sprays, creams, and floor washing liquid.
Competition
In the HPPC segment major Indian companies producing active ingredients are Aarti Industries, Galaxy Surfactants and Atul. And in the institutional cleaning chemicals, some of their competitors are Diversey India, Schevaran Laboratories, Satol Chemicals, Ecolab India, Haylide Chemicals, Altret Industries, Croda India Company, and BASF India. Market is also characterized by strong presence of multinational companies such as Wacker AG, Merck and others.
Due to the large unbranded textile segment in India, the textile specialty chemical market in India is fragmented and largely unorganized and comprises a total of ~500 large and small manufacturers in India. In the organized textile specialty chemicals sector, some of Rossari’s competitors include Archroma, CHT, Rudolf, Croda international, Huntsman Corporation, Fineotex Chemical, Resil Chemicals, Sarex Chemicals, Dai-ichi Karkaria, Britacel Silicones, Indokem.
In the animal health and nutrition products category, they compete with Cargill India, Zydus AH, a division of Cadila Healthcare, Bayer Animal Health, Boehringer Ingelheim Animal Health, Ceva Sante Animale, Sequent Scientific, Elanco, Merial and Virbac.
While competition is present across categories, Rossari has created a place for itself on back of a) partnering with customers for solutions, b) long standing relationships, c) expertise in select sub-segments.
Positives and triggers
HPPC segment growth-
HPPC segment has grown at 56% CAGR over FY19-23 (including acquisitions).
Ethoxylation is the property of providing cleaning, wetting, foaming and anti-foaming effects in personal care products such as cosmetics, shampoos, shower gels and detergents.
There have been capacity constraints in terms of Ethoxylation (current capacity -36,000 MTPA) which had capped growth. In Q2 FY24, the company proposed a capacity addition of 30,000 MTPA for Ethoxylation at its subsidiary Unitop Chemicals for a capex outlay of Rs.128 crores.
Also, planned a capex of Rs.50 crores for adding 20,000 MTPA capacity at its Dahej Facility dedicated to products related to HPPC. These projects are expected to be commissioned in a phased manner till Q3 FY25. From this capex of about Rs.180 crores, company is expecting to generate incremental revenue of Rs.400 crores (~2.22 asset turnover; peak ~3.5x) or higher in the next 2-4 years.
New product launches include green surfactants, performance chemicals, and biosurfactants in the HPPC segment. The company also plans to expand the manufacturing capacity of biosurfactants by 10 times from current capacity of 3 tons per month.
Export opportunity - Export turnover is expected to grow by a higher percentage than the domestic turnover which is ~14% CAGR. The company expects great upside for exports, especially in America in industries like home care, agro, food processing and surfactants for food processing. Launch of Ester Quartz (Softeners) which goes into commercial laundry as well as mainly into retail laundry seems to be a great candidate to bring growth in exports. The emphasis is particularly strong on areas such as Specialty Surfactants, Phenoxy Series, Institutional Cleaning and Performance Chemicals. By leveraging the existing and new product lines, Rossari aims to penetrate deeper into new geographies and further increase the wallet share with existing partners.
Concern areas
Client concentration risk and short term contract: Reliance on a limited number of customers for the business may generally involve several risks. Notably, the company does not have any long term agreements with most of their customers, and the loss of one or more of them or a reduction in the demand for their products could adversely affect the business.
Raw Material Risk: Rossari’s largest expense is the cost of raw materials. Their primary raw materials are acrylic acid, surfactants and silicone oils which are subject to volatility due to factors beyond the company's control, such as market dynamics, economic conditions, and transportation and labor costs. The company does not have long-term agreements with suppliers, relying instead on purchaseorders, necessitating precise forecasting of supply and demand. Since product prices are typically fixed upon receiving a customer's purchase order, the company may not be able to fully transfer increased raw material costs to customers. But the same is done with some lag effect.
Financials
Revenues have more than tripled in the last 5 years from Rs.516 Cr. in FY19 to Rs.1656 Cr. in FY23 at a CAGR of 34%, majorly coming from the growth of HPPC segment. EBITDA has also shown consistent growth of 29% CAGR from FY19 to FY23. PAT has increased from Rs.46 Cr. in FY19 to Rs.107 Cr. in FY23 maintaining a moderate CAGR of 24% owing to increase in raw material costs. However, the raw material pressure has eased off over the last few quarters, which has led to an improvement in gross margins.
Management profile - Founders are technocrats with growth focus and clearly defined business roles.
Mr. Edward Menezes - He is the Executive Chairman and guides the company's technical, manufacturing, and marketing strategies. He has a B.Sc. in Textile Chemistry from University Department of Chemical Technology (UDCT) and master’s degree in marketing management from Prin. L. N. Welingkar Institute of Management Development and Research. His career spans over 34 years in textile processing.
Mr. Sunil Chari- He is the Managing Director and brings over three decades of expertise in textiles and related chemicals. He has a Bachelor's in Arts from Kakatiya University and a diploma in technical and applied chemistry from Victoria Jubilee Technical Institute. He is the cornerstone of Rossari's formidable sales and distribution network, driving market expansion and financial fortitude.
Moneyworks4me Opinion- Rossari has low debt to equity ratio, industry leading asset turnover, and an experienced management team with a great execution track record. It is also a proxy play on FMCG sector wherein branded companies are relatively expensive. Future outlook is strong on a) expansion coming into play, b) entering new industries and increasing target addressable market, c) stable raw material prices. Only short term hindrance looks like muted FMCG volume growth (esp. rural volumes). We value Rossari at Rs.700 (18x forward PE for FY26) and will wait for a better entry price given that current risk reward scenario is not lucrative.
Company share prices are keep on changing according to the market conditions. The closing price of Rossari Biotech on 13-Jun-2025 16:59 is ₹678.0.
What is the market cap of Rossari Biotech?
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 13-Jun-2025 16:59 the market cap of Rossari Biotech stood at ₹3,754.1.
What is the P/E ratio of Rossari Biotech?
The latest P/E ratio of Rossari Biotech as of 13-Jun-2025 16:59 is 32.72.
What is the P/B ratio of Rossari Biotech?
The latest P/B ratio of Rossari Biotech as of 13-Jun-2025 16:59 is 3.49.
What is the 52-week high and low of Rossari Biotech?
The 52-week high of Rossari Biotech is ₹966.0 and the 52-week low is ₹568.0.
What is the TTM revenue of Rossari Biotech?
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Rossari Biotech is ₹1,432 ( Cr.) .
About Rossari Biotech Ltd
The company was initially incorporated as Rossari Labtech on March 6, 2003, as a partnership firm under the Indian Partnership Act, 1932, pursuant to a certificate of registration dated June 22, 2003, issued by the Registrar of Firms, Mumbai. The name of the partnership firm was changed to Rossari Biotech on December 5, 2003 and further the firm converted into a joint stock company on August 10, 2009, under part IX of the Companies Act, 1956 as Rossari Biotech Limited with a certificate of incorporation granted by the Registrar of Companies, Maharashtra at Mumbai (RoC). The company received its certificate of commencement of business on August 13, 2009.
Business area of the company
The company is one of the leading specialty chemicals manufacturing companies in India providing customized solutions to specific industrial and production requirements of its customers primarily in the FMCG, apparel, poultry and animal feed industries through its diversified product portfolio comprising home, personal care and performance chemicals; textile specialty chemicals; and animal health and nutrition products. The company’s business is organized in three main product categories - (i) home, personal care and performance chemicals; (ii) textile specialty chemicals; and (iii) animal health and nutrition products.
The company is the leading manufacturer of acrylic polymers in India and manufactures many products for its customers in the soaps and detergent, paints, inks and coatings, ceramics and tiles, water treatment chemicals and pulp and paper industries. It also manufacture institutional cleaning chemical formulations for hospitality, facility management, airports, corporates, food service, commercial laundry, malls, multiplexes, educational sector, places of worship etc. It is in advanced stages of expanding its home, personal care and performance product portfolio to water treatment formulations, specialty formulation for breweries as well as dairies. Besides, the company provides specialty chemicals for the entire value-chain of the textile industry starting from fiber, yarn to fabric, wet processing and garment processing. The company has also diversified into animal health and nutrition and currently supply poultry feed supplements and additives, pet grooming and pet treats including for weaning, infants and adult pets.
Major Events & Milestones:
2003: The company’s Promoters entered into a partnership firm to start the manufacturers of specialty chemicals and industrial enzymes in India.
2004: Established first manufacturing facility at Silvassa.
2009: Conversion of partnership firm into company.
2009: Incorporation of company.
2009: Obtained recognition for in-house R&D unit from the Department of Scientific and Industrial Research.
2010: Forayed into animal health and nutrition products.
2013: Forayed into HPPC products.
2014: The company’s Promoters entered into a Joint Venture with BUZIL-WERK Wagner GmbH & Co. KG to form Buzil Rossari.
2015: Lease granted by GIDC to company for setting up manufacturing facility at Dahej.
2017: The Food Safety Management System of Silvassa Manufacturing Facility has been assessed and found to conform to the requirements of ISO 9001:2015.
2018: Entered into an exclusive purchasing agreement with Hindustan Unilever.
2020: Completion of the Pre-IPO Placement.
Awards & accreditations:
2009: The erstwhile Hon’ble Union Finance Minister Pranab Mukherjee awarded ‘Corp EXCEL 2008– National mSME’ form a list of 27000 companies.
2010: Frost & Sullivan awarded ‘Customer Value Enhancement for Industrial Enzymes Market’.
2011: The Council for Fair Business Practices awarded ‘CFBP – Jamnalal Bajaj Uchit Vyavahar Puraskar for Fair Business Practices’.
2017: The India SME Forum awarded at the India SME 100 Awards for ‘scoring in the top 100 in the overall evaluation of Financial & Non - Financial Parameters amongst 33102 nominations’.
2018: Arvind awarded ‘Star Performer Award 2018’ in the Dye & Chemicals Category.
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Valuation is computed by comparing relevant price multiples versus industry and its own history.
One unique and very important modification is our adjustment for company's financials for cyclicality and normalized profitability.
or based on whether current ratio is lower or higher than median values. See graph for better assessment.
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MoneyWorks4Me rates and ranks mutual funds based on the following data-driven system:
Performance Consistency: This is measure based on whether the fund has beaten the benchmark index consistently. For
this we compare the 3-year rolling returns of the fund with the benchmark for a minimum of 5 years and preferable 10
years. The period of rolling is one month and holding period is 3 years. Fund are color-coded Green on Performance when
the fund beats the benchmark more than 90% of the time. It is Orange if it beats 80% to 90% of the time and Red if less
than 80%. Funds with less than 5 year data are color-coded Grey.
Quality of Portfolio Holding: Moneyworks4Me has color-coded stocks as Green, Orange and Red based on whether the
company's performance has generated a ROCE above a threshold level (cost of capital) over 10 years (minimum 6 years) and
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year. Stocks that perform consistently on these combined metrics are color-coded Green (min score 14 out of 20), Orange
(between 8 and 14) and Red (less than 8 out of 20).
Fund are color-coded Green provided the portfolio has 70% holding in Green stocks but not more than 20% in Red stocks.
Funds with more than 20% Red stocks in the portfolio are color-coded Red. The rest are Orange funds
Funds ranking in screeners: Performance Consistency and Quality are two parameters used for ranking funds for SIP. The
ranking as follows GG, GO, GR, OG, OO, OR, RG, RO and RR.
With the same color-coded funds, the one with the higher Average 3-year rolling returns (over 5 to 10 years), the number
that appears in the Performance tag, ranks higher.
Here is the summary:
The third tag Upside Potential is not relevant for SIP. It is relevant for lumpsum investments in Mutual Funds.
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