Khaitan Chemicals Reports Strong Sales Growth Amid Long-Term Profitability Concerns

Khaitan Chemicals & Fertilizers, a microcap player in the fertilizers industry, has recently undergone an evaluation adjustment reflecting its financial standing. The company reported a significant growth in net sales for the quarter ending March 2025, reaching Rs 160.68 crore, which represents a notable increase of 216.11%. Additionally, the profit after tax (PAT) for the same period was recorded at Rs 8.63 crore, marking a growth of 123.1%. This positive performance has been consistent, as the company has declared favorable results for the last two consecutive quarters.
However, the long-term outlook presents challenges, with operating profit showing an annual decline of 19.76% over the past five years. The return on capital employed (ROCE) stands at -8, indicating a costly valuation with an enterprise value to capital employed ratio of 1.9. Despite generating a return of 5.61% over the past year and a substantial profit increase of 102%, the company's PEG ratio is at 5, suggesting a complex valuation landscape.

The technical trend remains sideways, indicating a lack of clear price momentum, while domestic mutual funds hold a minimal stake of only 0.02%, which may reflect their cautious stance regarding the company's valuation or business prospects.

Discover the Latest Mojo Score and Financial Trend Performance - SignUp in less than 2 Minutes and get FREE Premium Access.