ScoreWhy is Kothari Petrochemicals Ltd ?
1
The company is Net-Debt Free
2
Poor long term growth as Operating profit has grown by an annual rate 18.99% of over the last 5 years
3
Flat results in Jun 26
- ROCE(HY) Lowest at 26.11%
- DEBTORS TURNOVER RATIO(HY) Lowest at 9.63 times
- PBDIT(Q) Lowest at Rs 21.84 cr.
4
With ROE of 19.4, it has a Fair valuation with a 2.2 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -100.00%, its profits have risen by 12.7% ; the PEG ratio of the company is 0.9
5
Despite the size of the company, domestic mutual funds hold only 0.29% 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
6
Below par performance in long term as well as near term
- Along with generating -100.00% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Kothari Petroche should be less than 10%
- Overall Portfolio exposure to Petrochemicals should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Petrochemicals)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Kothari Petroche for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Kothari Petroche
-11.7%
-0.29
40.13%
Sensex
-9.4%
-0.70
13.49%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
15.77%
EBIT Growth (5y)
18.99%
EBIT to Interest (avg)
62.22
Debt to EBITDA (avg)
0.11
Net Debt to Equity (avg)
-0.10
Sales to Capital Employed (avg)
2.08
Tax Ratio
25.37%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0.10%
ROCE (avg)
35.85%
ROE (avg)
21.82%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
11
Industry P/E
Price to Book Value
2.15
EV to EBIT
8.71
EV to EBITDA
7.94
EV to Capital Employed
2.28
EV to Sales
1.32
PEG Ratio
0.88
Dividend Yield
NA
ROCE (Latest)
26.50%
ROE (Latest)
19.38%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bearish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend1What is working for the Company
NO KEY POSITIVE TRIGGERS
-6What is not working for the Company
ROCE(HY)
Lowest at 26.11%
DEBTORS TURNOVER RATIO(HY)
Lowest at 9.63 times
PBDIT(Q)
Lowest at Rs 21.84 cr.
PBT LESS OI(Q)
Lowest at Rs 19.60 cr.
EPS(Q)
Lowest at Rs 2.88
Loading Valuation Snapshot...
Here's what is not working for Kothari Petroche
Operating Profit (PBDIT) - Quarterly
Lowest at Rs 21.84 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Lowest at Rs 19.60 cr.
in the last five quartersMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
Earnings per Share (EPS) - Quarterly
Lowest at Rs 2.88
in the last five quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)
Debtors Turnover Ratio- Half Yearly
Lowest at 9.63 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
Non Operating Income - Quarterly
Highest at Rs 2.86 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
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