Khaitan Chemicals & Fertilizers Faces Quality Grade Downgrade Amid Mixed Financial Performance

Khaitan Chemicals & Fertilizers has recently undergone an adjustment in its evaluation, reflecting a shift in its quality grade from average to below average. This revision comes amid a backdrop of notable financial metrics that highlight both strengths and weaknesses within the company's performance.
Over the past five years, Khaitan Chemicals has demonstrated a sales growth rate of 12.39% and an EBIT growth of 3.12%. The company's EBIT to interest ratio stands at 2.99, indicating its ability to cover interest expenses. However, the debt to EBITDA ratio averages 1.33, suggesting a moderate level of debt relative to earnings. Additionally, the net debt to equity ratio is recorded at 0.83, which provides insight into the company's leverage.

Despite these figures, the company has reported a negative tax ratio, and institutional holding remains low at 0.48%. The return on capital employed (ROCE) averages 16.06%, while the return on equity (ROE) is at 11.91%. These indicators reflect a mixed picture of financial health, with the company achieving significant sales growth in recent quarters but facing challenges in long-term fundamental strength.

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