Strong Net ProfitabilityAn 11.4% net profit margin demonstrates durable pricing power and operational efficiency in specialty PIB production. Healthy net margins provide a buffer versus feedstock swings, support reinvestment and shareholder returns, and underpin sustainable cash-generation if sales stabilize.

Very Low Leverage And High ROEExtremely low leverage and a 21.5% ROE give the company strong financial flexibility to fund capex or absorb cycles without heavy interest burden. An equity-heavy structure lowers solvency risk and allows strategic investments or reserves to support medium-term growth initiatives.

Niche, Recurring End-market Demand For PIBPIB's role as a specialty input across multiple downstream industries creates recurring, structural demand. Serving lubricants, additives and adhesives spreads customer exposure, supports steady order flows, and allows premium pricing for qualified grades, reinforcing long-term revenue potential.

Bears Say

Declining Revenue TrendSustained top-line decline reduces scale advantages and can strain margins and investment capacity. Over several months, falling sales make it harder to cover fixed costs, limit resources for customer qualification and new-grade development, and weaken competitive positioning in specialty markets.

Negative Free Cash FlowNegative free cash flow despite accounting profits constrains the firm's ability to self-fund working capital, capex, or strategic initiatives. Prolonged FCF weakness can force external financing, increase costs, and limit the company's capacity to invest to recover volumes or expand higher-margin grades.

Margin Compression On Operating LinesDeclining EBIT/EBITDA margins point to operational pressure from higher input costs or adverse product mix. In a petrochemical business where feedstock volatility is structural, continued margin erosion would weaken the company's capacity to sustain investment, competitive pricing, or buffer cyclical downturns.

KOTHARIPET FAQ

What was Kothari Petrochemicals Ltd.’s price range in the past 12 months?

Kothari Petrochemicals Ltd. lowest stock price was ₹111.56 and its highest was ₹191.95 in the past 12 months.

What is Kothari Petrochemicals Ltd.’s market cap?

Kothari Petrochemicals Ltd.’s market cap is ₹7.19B.

When is Kothari Petrochemicals Ltd.’s upcoming earnings report date?

Kothari Petrochemicals Ltd.’s upcoming earnings report date is May 27, 2026 which is in 94 days.

How were Kothari Petrochemicals Ltd.’s earnings last quarter?

Kothari Petrochemicals Ltd. released its earnings results on Feb 05, 2026. The company reported ₹3.177 earnings per share for the quarter, beating the consensus estimate of N/A by ₹3.177.

Is Kothari Petrochemicals Ltd. overvalued?

According to Wall Street analysts Kothari Petrochemicals Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Kothari Petrochemicals Ltd. pay dividends?

Kothari Petrochemicals Ltd. pays a Annually dividend of ₹1 which represents an annual dividend yield of 0.81%. See more information on Kothari Petrochemicals Ltd. dividends here

What is Kothari Petrochemicals Ltd.’s EPS estimate?

Kothari Petrochemicals Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Kothari Petrochemicals Ltd. have?

Kothari Petrochemicals Ltd. has 58,846,400 shares outstanding.

What happened to Kothari Petrochemicals Ltd.’s price movement after its last earnings report?

Kothari Petrochemicals Ltd. reported an EPS of ₹3.177 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -0.859%.

Which hedge fund is a major shareholder of Kothari Petrochemicals Ltd.?

Currently, no hedge funds are holding shares in IN:KOTHARIPET

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Kothari Petrochemicals Ltd.

Kothari Petrochemicals Limited produces and sells chemicals in India and internationally. It offers polyisobutylene, a linear polymer used in lubricants, adhesives, stretch/silage, sealants and caulks, polymer modification, construction chemicals and rubber, optical fibre, and other applications under the KVIS brand. The company was incorporated in 1989 and is headquartered in Chennai, India. Kothari Petrochemicals Limited is a subsidiary of BHK Trading LLP.