ScoreWhy is Kanoria Chemicals & Industries Ltd ?
1
Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 1.64%
- Poor long term growth as Net Sales has grown by an annual rate of 2.67% and Operating profit at 5.74% over the last 5 years
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 5.80 times
2
Positive results in Dec 25
- PAT(Latest six months) At Rs 96.99 cr has Grown at 5,571.93%
- PBT LESS OI(Q) At Rs 3.34 cr has Grown at 117.7% (vs previous 4Q average)
- NET SALES(Latest six months) At Rs 475.66 cr has Grown at 33.27%
3
With ROCE of 1.7, it has a Very Attractive valuation with a 0.8 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 0.56%, its profits have risen by 106.2% ; the PEG ratio of the company is 2.4
4
29.57% of Promoter Shares are Pledged
- In falling markets, high promoter pledged shares puts additional downward pressure on the stock prices
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Kanoria Chem. should be less than 10%
- Overall Portfolio exposure to Commodity Chemicals should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Commodity Chemicals)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Kanoria Chem. for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Kanoria Chem.
0.56%
0.01
44.78%
Sensex
-8.06%
-0.61
13.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
2.67%
EBIT Growth (5y)
5.74%
EBIT to Interest (avg)
0.29
Debt to EBITDA (avg)
8.98
Net Debt to Equity (avg)
0.53
Sales to Capital Employed (avg)
1.25
Tax Ratio
38.48%
Dividend Payout Ratio
0
Pledged Shares
29.57%
Institutional Holding
0.12%
ROCE (avg)
0.93%
ROE (avg)
1.89%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
253
Industry P/E
42
Price to Book Value
0.74
EV to EBIT
36.56
EV to EBITDA
11.05
EV to Capital Employed
0.83
EV to Sales
0.61
PEG Ratio
2.39
Dividend Yield
NA
ROCE (Latest)
1.75%
ROE (Latest)
1.49%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
Bearish
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend23What is working for the Company
PAT(Latest six months)
At Rs 96.99 cr has Grown at 5,571.93%
PBT LESS OI(Q)
At Rs 3.34 cr has Grown at 117.7% (vs previous 4Q average
NET SALES(Latest six months)
At Rs 475.66 cr has Grown at 33.27%
OPERATING PROFIT TO INTEREST(Q)
Highest at 2.60 times
CASH AND CASH EQUIVALENTS(HY)
Highest at Rs 46.03 cr
DEBT-EQUITY RATIO(HY)
Lowest at 0.62 times
DEBTORS TURNOVER RATIO(HY)
Highest at 9.01 times
PBDIT(Q)
Highest at Rs 19.88 cr.
-5What is not working for the Company
PAT(Q)
At Rs 3.55 cr has Fallen at -84.0% (vs previous 4Q average
NON-OPERATING INCOME(Q)
is 41.71 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for Kanoria Chem.
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 3.34 cr has Grown at 117.7% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs -18.89 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Operating Profit to Interest - Quarterly
Highest at 2.60 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Net Sales - Latest six months
At Rs 475.66 cr has Grown at 33.27%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 19.88 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Cash and Cash Equivalents - Half Yearly
Highest at Rs 46.03 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio - Half Yearly
Lowest at 0.62 times
in the last five half yearly periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Debtors Turnover Ratio- Half Yearly
Highest at 9.01 times
in the last five half yearly periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio
Here's what is not working for Kanoria Chem.
Profit After Tax (PAT) - Quarterly
At Rs 3.55 cr has Fallen at -84.0% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 22.18 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Non Operating Income - Quarterly
is 41.71 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
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