Khaitan Chemicals & Fertilizers Ltd. (KHAICHEM) AI Stock Analysis

• Market Cap: ₹11.97B
• Dividend Yield: 0.41%
• Average Volume (3M): 30.44K
• Price to Earnings (P/E): 30.3
• Beta (1Y): 1.31
• Revenue Growth: 64.35%
• EPS Growth: N/A
• Country: IN
• Employees: 681
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Agricultural Inputs
• EPS (TTM): 2.21
• Shares Outstanding: 96,989,200
• 10 Day Avg. Volume: 23,622
• 30 Day Avg. Volume: 30,438
• PEG Ratio: -3.41
• Price to Book (P/B): 2.19
• Price to Sales (P/S): 0.68
• P/FCF Ratio: 12.37
• 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: ₹134.00
• Price Target Upside: 8.55% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: ₹134.00 ▲(8.55% Upside)

Khaitan Chemicals & Fertilizers Ltd. benefits from strong revenue growth and improved cash flow, enhancing liquidity. However, profitability challenges and a high P/E ratio suggest caution. The technical analysis indicates bullish momentum, but overbought conditions could lead to a pullback.

Khaitan Chemicals & Fertilizers Ltd. Business Overview & Revenue Model

Company Description

Khaitan Chemicals & Fertilizers Ltd. (KHAICHEM) is a prominent player in the chemical and fertilizer industry in India. The company primarily operates in the production and distribution of fertilizers, agrochemicals, and chemicals that cater to the agricultural sector. Its core products include single super phosphate (SSP) fertilizers, sulfuric acid, and a range of other chemical products that support agricultural productivity.

How the Company Makes Money

Khaitan Chemicals & Fertilizers Ltd. generates revenue through the manufacturing and sale of its chemical and fertilizer products. The primary revenue stream comes from the sale of single super phosphate (SSP) fertilizers, which are widely used by farmers to enhance soil fertility and crop yield. Additionally, the company produces and sells sulfuric acid, a key industrial chemical with applications in various sectors including agriculture, manufacturing, and chemical processing. The company also engages in the sale of agrochemicals, which further supports crop production and protection. Key factors contributing to the company's earnings include the demand for agricultural inputs driven by the agricultural sector, strategic distribution networks, and partnerships with agricultural cooperatives and retailers.

Khaitan Chemicals & Fertilizers Ltd. Financial Statement Overview

Summary

Khaitan Chemicals & Fertilizers Ltd. shows strong revenue growth but struggles with profitability. The balance sheet is stable with moderate leverage, and cash flow has improved significantly, enhancing liquidity and operational efficiency.

Income Statement

The income statement reveals a commendable revenue growth of 34.36% over the past year, indicating strong sales performance. However, the gross profit margin stands at 29.5%, and the net profit margin is relatively low at 1.94% due to increased costs and expenses. The EBIT margin is 1.73%, showing a recovery from negative values in the previous year, but still indicates room for improvement. Overall, the income statement shows positive revenue growth but highlights challenges in maintaining profitability.

Balance Sheet

The balance sheet reflects a moderate financial position with a debt-to-equity ratio of 1.43, indicating reliance on debt financing but within manageable levels. The equity ratio is 35.94%, suggesting a balanced capital structure. Return on equity improved slightly to 0.63%, showcasing better utilization of equity, though still relatively low. Overall, the balance sheet shows stability but highlights potential risks related to debt levels.

Cash Flow

Cash flow analysis reveals significant improvement with a positive operating cash flow of INR 441 million, contrasting the negative cash flow in the previous year. Free cash flow turned positive at INR 393 million, reflecting effective cost management and capital investment strategies. The operating cash flow to net income ratio of 31.54 indicates a solid conversion of income into cash. Overall, the cash flow statement shows strengthened liquidity and operational efficiency.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2021	Dec 2021
Income Statement
Total Revenue	7.20B	7.20B	5.36B	8.88B	4.81B	8.24B
Gross Profit	2.03B	2.12B	1.27B	1.69B	1.62B	2.59B
EBITDA	239.17M	239.17M	-286.38M	788.73M	628.82M	1.22B
Net Income	13.99M	13.99M	-704.90M	421.25M	248.67M	794.96M
Balance Sheet
Total Assets	6.20B	6.20B	6.23B	7.07B	3.54B	5.71B
Cash, Cash Equivalents and Short-Term Investments	199.82M	199.82M	542.00K	1.55M	3.39M	471.86M
Total Debt	3.18B	3.18B	3.16B	2.29B	790.47M	1.42B
Total Liabilities	3.97B	3.97B	4.03B	4.13B	1.80B	3.19B
Stockholders Equity	2.23B	2.23B	2.20B	2.94B	1.74B	2.52B
Cash Flow
Free Cash Flow	0.00	393.38M	-672.58M	-1.21B	791.42M	122.07M
Operating Cash Flow	0.00	441.27M	-553.92M	-881.55M	843.47M	269.71M
Investing Cash Flow	0.00	-166.20M	17.96M	-221.67M	-55.69M	-198.25M
Financing Cash Flow	0.00	-274.81M	534.96M	632.91M	-788.09M	397.01M

Khaitan Chemicals & Fertilizers Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 123.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:KHAICHEM, the sentiment is Positive. The current price of 123.45 is below the 20-day moving average (MA) of 123.71, above the 50-day MA of 119.33, and above the 200-day MA of 83.35, indicating a neutral trend. The MACD of 0.24 indicates Positive momentum. The RSI at 51.82 is Neutral, neither overbought nor oversold. The STOCH value of 46.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:KHAICHEM.

Khaitan Chemicals & Fertilizers Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KHAICHEM	69 Neutral	₹11.97B	30.30	―	0.41%	64.35%	―
PUNJABCHEM	64 Neutral	₹17.21B	37.31	―	0.22%	9.24%	2.10%
ZUARI	64 Neutral	₹10.92B	4.29	―	―	―	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
NAGAFERT	44 Neutral	₹2.92B	0.15	―	―	-99.98%	-101.75%

Khaitan Chemicals & Fertilizers Ltd. Corporate Events

Khaitan Chemicals Appoints New Secretarial Auditors

Khaitan Chemicals & Fertilizers Ltd. announced the appointment of M/s Ritesh Gupta & Co. as Secretarial Auditors for a five-year term starting from FY 2025-26, pending shareholder approval. This decision, recommended by the Audit Committee and approved by the Board of Directors, underscores the company’s commitment to robust corporate governance and compliance.

Khaitan Chemicals & Fertilizers Ltd. Reports Financial Results and Announces Key Appointments

Khaitan Chemicals & Fertilizers Ltd. announced its audited financial results for the quarter and financial year ending March 31, 2025, revealing no profit and an elongated working capital cycle, leading to a decision not to recommend any dividend for the year. The company also made several key appointments, including new secretarial, cost, and internal auditors, and noted the completion of tenure for a Whole-Time Director, indicating a strategic focus on strengthening its financial and operational governance.