Kanoria Chemicals & Industries Ltd (KANORICHEM) AI Stock Analysis

• Market Cap: ₹3.11B
• Dividend Yield: N/A
• Average Volume (3M): 2.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.46
• Revenue Growth: -1.30%
• EPS Growth: -27.85%
• Country: IN
• Employees: 382
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): -0.97
• Shares Outstanding: 43,693,333
• 10 Day Avg. Volume: 2,921
• 30 Day Avg. Volume: 2,667
• PEG Ratio: -0.03
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.22
• P/FCF Ratio: -4.27
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: ₹67.00 ▼(-13.12% Downside)

Kanoria Chemicals & Industries Ltd faces significant financial challenges, with persistent net losses and increasing debt levels being the most impactful factors. Technical analysis indicates a bearish trend, and valuation metrics suggest potential overvaluation. The absence of earnings call data and corporate events means these factors do not influence the score. Overall, the stock presents moderate risk, requiring strategic improvements for better financial health.

Positive Factors

Diversified end-markets

Serving pharmaceuticals, agrochemicals, rubber/tyre, water treatment, dyes, textiles and other industrial users provides durable demand diversification. This reduces revenue volatility versus single-sector exposure and supports steadier volume across cycles, aiding long-term cash flow stability.

Specialty chemical product set

Manufacturing aliphatic amines and formaldehyde-based resins positions the company in specialty intermediates with technical know-how and tailored applications. A specialty portfolio supports higher-value sales, customer stickiness and potential margin resilience if the company keeps moving up the value chain.

Improving gross profit margin

An improved gross margin signals better cost control or a favorable shift in product mix toward higher-margin grades. If sustained through continued specialty focus and utilization gains, this improvement underpins operating leverage and the path to restoring positive operating income over the medium term.

Negative Factors

Persistent net losses

Ongoing net losses erode retained earnings and shareholder equity, limiting reinvestment and reducing flexibility to fund growth or weather downturns. Continued losses depress return metrics and make financing more costly, hindering the company’s ability to execute long-term strategic initiatives.

Rising leverage

An increasing debt-to-equity ratio raises financial risk and interest obligations, restricting balance sheet flexibility. Higher leverage complicates funding for capex or working capital, increases vulnerability to cash flow stress, and can constrain strategic investments over multiple quarters.

Negative free cash flow

Negative free cash flow means operations plus capex consume cash, forcing reliance on external financing or non-operating inflows. This undermines the company’s ability to pay down debt, invest in capacity improvements, or build reserves, posing persistent constraints on financial recovery.

Kanoria Chemicals & Industries Ltd Business Overview & Revenue Model

Company Description

Kanoria Chemicals & Industries Limited manufactures and sells chemical intermediates in India. The company operates through Alco Chemicals and Solar Power segments. It provides chemicals, such as acetaldehyde, di-pentaerythritol, formaldehyde, hexamine, pentaerythritol, phenolic resins, and sodium formate. The company also develops and sells electronic and mechatronic modules, and control devices for the automotive, consumer goods, power tool electronics, and building automation industries. In addition, it operates a solar power plant with a generation capacity of 5 MW in Jodhpur district, Rajasthan; and manufactures and sells yarn and denim. The company also exports its products. The company was incorporated in 1960 and is based in New Delhi, India. Kanoria Chemicals & Industries Limited is a subsidiary of Vardhan Limited.

How the Company Makes Money

KANORICHEM generates revenue through multiple key streams, primarily by manufacturing and selling specialty chemicals to diverse industries. The company's revenue model is based on the production of high-value chemical products that cater to specific industry needs, allowing them to command premium pricing. Significant revenue is derived from long-term contracts and repeat business with established clients in the textile and pharmaceutical sectors. Additionally, KANORICHEM benefits from strategic partnerships with other manufacturers and distributors, enhancing its market reach and operational efficiency. The company's focus on research and development also enables it to innovate and introduce new products, which further drives revenue growth.

Kanoria Chemicals & Industries Ltd Financial Statement Overview

Summary

Kanoria Chemicals & Industries Ltd is facing financial challenges characterized by fluctuating revenues, persistent net losses, and increasing debt levels. While there are signs of operational improvement, the company must focus on enhancing profitability, reducing leverage, and improving cash flows to ensure long-term financial health. The current financial position indicates moderate risk, requiring strategic management actions to stabilize performance.

Income Statement

Kanoria Chemicals & Industries Ltd shows fluctuating revenue with a recent decline from 2023 to 2024, followed by a slight increase in 2025. The gross profit margin has improved, yet the company has been experiencing net losses in recent years, with net income turning negative. This indicates challenges in cost management and profitability. The EBIT margin has been volatile and negative in 2024, but improved slightly in 2025, suggesting some operational recovery.

Balance Sheet

The company maintains a moderate debt-to-equity ratio, increasing from previous years, which indicates a rise in leverage. The equity ratio is relatively stable, showing a consistent level of equity financing. However, declining stockholders' equity and increased debt levels pose a risk to financial stability. Return on equity has turned negative recently due to net losses, affecting investor returns.

Cash Flow

Free cash flow has been negative, indicating the company is facing challenges generating cash after capital expenditures. The operating cash flow to net income ratio suggests a reliance on non-operating activities for cash generation, as net income remains negative. The company needs to improve cash generation to support operations and reduce financial strain.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	16.06B	15.37B	14.75B	15.78B	13.69B	10.95B
Gross Profit	4.93B	4.71B	4.67B	4.62B	3.86B	3.44B
EBITDA	456.20M	106.12M	642.63M	826.90M	955.19M	991.32M
Net Income	-745.90M	-836.00M	-383.96M	-87.70M	68.26M	145.23M
Balance Sheet
Total Assets	0.00	14.98B	14.90B	14.81B	14.03B	13.62B
Cash, Cash Equivalents and Short-Term Investments	109.60M	109.60M	141.07M	308.20M	314.68M	348.06M
Total Debt	0.00	5.95B	5.09B	5.10B	4.75B	4.93B
Total Liabilities	-5.10B	9.88B	8.73B	8.74B	8.01B	7.66B
Stockholders Equity	5.10B	5.21B	6.01B	6.05B	5.98B	5.87B
Cash Flow
Free Cash Flow	0.00	-800.10M	-432.20M	-317.60M	402.19M	548.15M
Operating Cash Flow	0.00	202.80M	375.70M	257.20M	830.76M	824.60M
Investing Cash Flow	0.00	-648.70M	-503.50M	-249.80M	-431.08M	-118.15M
Financing Cash Flow	0.00	414.60M	51.40M	34.49M	-530.48M	-749.09M

Kanoria Chemicals & Industries Ltd Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 77.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:KANORICHEM, the sentiment is Neutral. The current price of 77.12 is above the 20-day moving average (MA) of 69.77, above the 50-day MA of 73.42, and below the 200-day MA of 83.79, indicating a neutral trend. The MACD of -1.54 indicates Negative momentum. The RSI at 50.42 is Neutral, neither overbought nor oversold. The STOCH value of 58.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:KANORICHEM.

Kanoria Chemicals & Industries Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OCCL	67 Neutral	₹1.25B	11.66	―	10.99%	-76.65%	-76.77%
CENTEXT	66 Neutral	₹1.73B	16.94	―	―	―	―
MAHASTEEL	66 Neutral	₹12.00B	118.53	―	―	11.83%	124.74%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
LORDSCHLO	53 Neutral	₹3.61B	15.45	―	―	39.31%	―
KANORICHEM	45 Neutral	₹3.11B	-4.77	―	―	-1.30%	-27.85%
DIAMINESQ	43 Neutral	₹2.42B	-48.96	―	0.38%	―	―

Kanoria Chemicals & Industries Ltd Corporate Events

Kanoria Chemicals Files SEBI Demat Compliance Certificate for December Quarter

Kanoria Chemicals & Industries Limited has submitted the required quarterly compliance certificates under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018, confirming that securities received for dematerialization up to 31 December 2025 have been properly processed. The company reported that all such securities correspond to already listed shares, the physical certificates have been mutilated and cancelled after due verification, and the depositories have been recorded as the registered owners within the prescribed timeframe, underscoring its adherence to regulatory norms and robust governance in handling shareholder demat requests.

Kanoria Chemicals Closes Insider Trading Window Ahead of Q3 FY26 Results

Kanoria Chemicals & Industries Ltd has announced that its trading window for designated persons will be closed from 1 January 2026 until the declaration of its financial results for the quarter ended 31 December 2025 and for two days thereafter, in line with SEBI’s Prohibition of Insider Trading Regulations and the company’s internal code of conduct. During this period, insiders and other designated individuals are barred from trading in the company’s shares, underscoring the firm’s adherence to regulatory norms on preventing insider trading ahead of its upcoming quarterly results, for which the board meeting date will be communicated later.