Khaitan Chemicals & Fertilizers Ltd (KHAICHEM) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Part of MojoOne Strategy

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Rama Phosphates

Krishana Phosch.

M B Agro Prod.

Zuari Agro Chem.

Aries Agro

Khaitan Chemical

SPIC

Nova Agritech

Madras Fertilize

Indogulf Cropsci

Balaji Phos.

Why is Khaitan Chemicals & Fertilizers Ltd ?

Weak Long Term Fundamental Strength with a 7.29% CAGR growth in Operating Profits over the last 5 years

Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.38 times

With a growth in Operating Profit of 253.09%, the company declared Outstanding results in Sep 25

The company has declared positive results for the last 4 consecutive quarters
NET SALES(Latest six months) At Rs 542.92 cr has Grown at 50.51%
PAT(Latest six months) Higher at Rs 42.89 cr
OPERATING PROFIT TO INTEREST(Q) Highest at 3.89 times

With ROCE of 14, it has a Fair valuation with a 2.1 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 18.87%, its profits have risen by 176.1% ; the PEG ratio of the company is 0.1

Despite the size of the company, domestic mutual funds hold only 0.02% of the company

Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Khaitan Chemical should be less than 10%
Overall Portfolio exposure to Fertilizers should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Fertilizers)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Khaitan Chemical for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Khaitan Chemical

18.87%

0.39

48.43%

Sensex

4.83%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.82%

EBIT Growth (5y)

7.29%

EBIT to Interest (avg)

2.84

Debt to EBITDA (avg)

1.66

Net Debt to Equity (avg)

1.00

Sales to Capital Employed (avg)

1.57

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.80%

ROCE (avg)

11.82%

ROE (avg)

14.42%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.15

EV to EBIT

14.77

EV to EBITDA

13.11

EV to Capital Employed

2.08

EV to Sales

1.22

PEG Ratio

0.07

Dividend Yield

ROCE (Latest)

14.05%

ROE (Latest)

24.11%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

33What is working for the Company

NET SALES(Latest six months)

At Rs 542.92 cr has Grown at 50.51%

PAT(Latest six months)

Higher at Rs 42.89 cr

OPERATING PROFIT TO INTEREST(Q)

Highest at 3.89 times

PBT LESS OI(Q)

Highest at Rs 21.16 cr.

EPS(Q)

Highest at Rs 2.21

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Loading Valuation Snapshot...

Here's what is working for Khaitan Chemical

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 21.16 cr has Grown at 1112.44%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 21.48 cr has Grown at 799.7%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Operating Profit to Interest - Quarterly

Highest at 3.89 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 21.16 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Net Sales - Quarterly

Highest at Rs 308.60 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Net Sales - Quarterly

At Rs 308.60 cr has Grown at 33.80%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 21.48 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 2.21

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)