Kanoria Chemicals & Industries Ltd (KANORICHEM) AI Stock Analysis

• Market Cap: ₹2.62B
• Dividend Yield: N/A
• Average Volume (3M): 2.67K
• Price to Earnings (P/E): 23.8
• Beta (1Y): 1.52
• Revenue Growth: -1.30%
• EPS Growth: -27.85%
• Country: IN
• Employees: 382
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 0.81
• 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: ₹59.00 ▼(-23.50% Downside)
• Action: Reiterated Date: 12/13/25
• Date: Action: Reiterated 12/13/25

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 a broad set of downstream industries reduces concentration and cyclicality risk. Durable demand from industrial customers smooths volumes and supports more consistent capacity utilization, helping stabilize revenue and margins over a 2–6 month horizon and beyond.

Specialty-chemical product niche

Manufacturing aliphatic amines and formaldehyde-based resins positions the company in specialty intermediates with technical requirements and recurring B2B relationships. This product mix can sustain higher margins and customer stickiness if quality and grades are maintained, supporting durable profitability levers.

Improving margins and operational recovery

An improving gross profit margin and a modest EBIT recovery signal operational progress—either via cost control, better mix, or pricing. If sustained, margin expansion enhances cash generation capacity, aids deleveraging, and increases resilience to feedstock or demand variability over coming quarters.

Negative Factors

Persistent net losses

Ongoing net losses erode retained earnings and investor returns, limiting internal funding for capex or working capital. Persistent unprofitability reduces strategic flexibility, hampers ability to rebuild equity, and increases reliance on external financing over a multi-quarter horizon.

Rising leverage

A rising debt-to-equity profile combined with declining equity raises interest and refinancing risk. Higher leverage reduces headroom for investment and makes the company more vulnerable to cash-flow shocks or higher rates, constraining strategic options over the medium term.

Negative free cash flow

Negative free cash flow means operations don't generate sufficient cash after capex, forcing dependence on external funding or non-operating sources. This limits the company’s ability to reduce debt, invest in higher-value grades, or absorb commodity cost spikes, impacting durable financial health.

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

Kanoria Chemicals & Industries Ltd primarily makes money by manufacturing and selling chemical products to industrial customers. Key revenue streams: 1) Sale of aliphatic amines: The company produces and sells aliphatic amines (specialty/industrial chemicals) that are used as intermediates or processing chemicals across multiple industries (e.g., pharmaceuticals, agrochemicals, rubber/tyre chemicals, water treatment, dyes and pigments). Revenue is generated through volumes sold and realized selling prices, typically under customer purchase orders or supply arrangements. 2) Sale of formaldehyde and formaldehyde-based products/resins: The company also manufactures formaldehyde and related/formaldehyde-based products (including resins/derivatives used in industrial applications such as wood panels, laminates, textiles, and other manufacturing uses). Earnings are driven by demand from these downstream sectors, product mix, and pricing. What drives profitability and cash generation: - Product mix and utilization: Higher capacity utilization and a shift toward higher-value specialty grades generally improve margins. - Raw material and energy costs: Many chemical products are sensitive to feedstock and energy prices; the company’s spreads (selling price minus raw material/utility costs) are a major determinant of operating profit. - Customer diversification across end-markets: Serving multiple end-use industries can help stabilize demand versus dependence on a single sector. Significant partnerships or other specific contributors to earnings: null

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	14.43B	15.37B	14.75B	15.78B	13.69B	10.95B
Gross Profit	4.13B	4.71B	4.67B	4.62B	3.86B	3.44B
EBITDA	463.20M	106.12M	642.63M	826.90M	955.19M	991.32M
Net Income	-649.00M	-836.00M	-383.96M	-87.70M	68.26M	145.23M
Balance Sheet
Total Assets	11.08B	14.98B	14.90B	14.81B	14.03B	13.62B
Cash, Cash Equivalents and Short-Term Investments	460.30M	109.60M	141.07M	308.20M	314.68M	348.06M
Total Debt	3.27B	5.95B	5.09B	5.10B	4.75B	4.93B
Total Liabilities	5.77B	9.88B	8.73B	8.74B	8.01B	7.66B
Stockholders Equity	5.31B	5.21B	6.01B	6.05B	5.98B	5.87B
Cash Flow
Free Cash Flow	-249.90M	-800.10M	-432.20M	-317.60M	402.19M	548.15M
Operating Cash Flow	77.10M	202.80M	375.70M	257.20M	830.76M	824.60M
Investing Cash Flow	-242.20M	-648.70M	-503.50M	-249.80M	-431.08M	-118.15M
Financing Cash Flow	571.80M	414.60M	51.40M	34.49M	-530.48M	-749.09M

Kanoria Chemicals & Industries Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 77.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 77.12 is above the 20-day moving average (MA) of 70.00, above the 50-day MA of 71.42, and below the 200-day MA of 81.37, indicating a bearish trend. The MACD of -3.05 indicates Positive momentum. The RSI at 31.46 is Neutral, neither overbought nor oversold. The STOCH value of 22.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
CENTEXT	67 Neutral	₹1.53B	15.66	―	―	―	―
OCCL	67 Neutral	₹996.01M	18.71	―	10.99%	-76.65%	-76.77%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
MAHASTEEL	61 Neutral	₹16.32B	215.61	―	―	11.83%	124.74%
LORDSCHLO	54 Neutral	₹2.90B	23.33	―	―	39.31%	―
KANORICHEM	45 Neutral	₹2.62B	23.83	―	―	-1.30%	-27.85%
DIAMINESQ	43 Neutral	₹2.21B	-19.09	―	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.