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

• Market Cap: ₹6.29B
• Dividend Yield: N/A
• Average Volume (3M): 30.44K
• Price to Earnings (P/E): 8.6
• Beta (1Y): 1.74
• Revenue Growth: 67.43%
• EPS Growth: N/A
• Country: IN
• Employees: 681
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Agricultural Inputs
• EPS (TTM): 2.11
• 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: 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: 62 Neutral
• Price Target: ₹67.00 ▼(-14.67% Downside)

The score is primarily supported by solid financial momentum (strong revenue growth and sharply improved operating/free cash flow) and a low P/E valuation. These positives are materially offset by very weak technicals (price below all major moving averages and bearish momentum indicators) and thin profitability with moderate leverage.

Positive Factors

Strong revenue growth

Sustained 34%+ top-line growth indicates expanding product adoption and market penetration. Over a multi-month horizon this supports scale advantages, higher bargaining power with suppliers, and provides a larger base to convert future margin improvements into durable profit expansion.

Cash flow turnaround

Positive operating and free cash flow marks a structural liquidity improvement versus prior year. Robust cash generation reduces reliance on external funding, enables reinvestment in capacities/R&D, and strengthens resilience to cyclical shocks over the coming months.

Diversified product and distribution mix

A mix of nitrogenous, phosphatic, complex fertilizers plus specialty chemicals and distributor/cooperative channels creates multiple revenue streams. This structural diversification supports stable demand, better market reach, and cross-selling opportunities, improving long-term revenue durability.

Negative Factors

Thin profitability margins

Very low net and EBIT margins leave limited buffer against raw material or input-cost inflation common in fertilizers. Persistently thin margins constrain internal reinvestment and make earnings highly sensitive to cost swings, reducing durable earnings visibility.

Moderate leverage

A D/E around 1.4 reflects material reliance on debt financing. Over a 2-6 month horizon, this increases interest and refinancing exposure, limits financial flexibility for capex or working capital, and raises vulnerability if cash flow weakens seasonally.

Low return on equity

ROE near zero indicates weak capital efficiency despite revenue growth. Structurally low returns suggest investments are not yet translating into shareholder value, implying the company must improve margins or asset turnover to achieve durable profitability.

Khaitan Chemicals & Fertilizers Ltd. Business Overview & Revenue Model

Company Description

Khaitan Chemicals and Fertilizers Limited manufactures and sells single super phosphate (SSP), sulphuric acid, and other chemicals in India. It operates through three segments: Fertilizer, Chemicals & Specialty Chemicals, and Others. The company provides plain, zincated, and boronated SSP fertilizers in powder and granulated forms under the Khaitan SSP and Utsav SSP brands for use in crops. It produces sulphuric acid, which is used in manufacturing of SSP fertilizers, copper sulphate, zinc sulphate, ferrous sulphate, and health medicines; sulphur trioxide and oleum that are used for the production of plastics, detergents, and dyestuffs; and linier alkyl benzene sulphonic acid, which is used to produce detergent and cake for washing the clothes. In addition, the company manufactures and sells crude soya oil and de-oiled cakes; and refined vegetable oil under the Khaitan Vegetable Oil brand. Further, it generates steam and sells wind power. Khaitan Chemicals and Fertilizers Limited was incorporated in 1982 and is headquartered in Indore, India.

How the Company Makes Money

Khaitan Chemicals & Fertilizers Ltd. generates revenue primarily through the sales of its fertilizers and agrochemicals. The company operates on a multi-faceted revenue model that includes direct sales to farmers, partnerships with distributors, and collaborations with agribusinesses to provide tailored solutions. Key revenue streams include the production of nitrogenous and phosphatic fertilizers, which cater to the essential nutrient needs of crops. Additionally, KHAICHEM has established significant partnerships with agricultural cooperatives and retail outlets, which enhance its market penetration and distribution efficiency. The company's focus on research and development allows it to innovate and introduce new products, further driving its sales and revenue growth in a competitive market.

Khaitan Chemicals & Fertilizers Ltd. Financial Statement Overview

Summary

Strong revenue growth (+34.36%) and a major cash flow turnaround (operating cash flow INR 441m; free cash flow INR 393m) support the score. Offsetting this are weak profitability metrics (net margin 1.94%, EBIT margin 1.73%) and moderate leverage (debt-to-equity 1.43).

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	620.90M	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: Negative
• Last Price: 78.52
• 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:KHAICHEM, the sentiment is Negative. The current price of 78.52 is above the 20-day moving average (MA) of 66.16, above the 50-day MA of 75.61, and below the 200-day MA of 92.51, indicating a bearish trend. The MACD of -4.69 indicates Negative momentum. The RSI at 39.26 is Neutral, neither overbought nor oversold. The STOCH value of 59.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
ZUARI	74 Outperform	₹11.66B	1.17	―	―	23.32%	447.31%
PUNJABCHEM	64 Neutral	₹14.91B	24.83	―	0.24%	10.70%	32.65%
KHAICHEM	62 Neutral	₹6.29B	8.58	―	―	67.43%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
UNIENTER	49 Neutral	₹7.99B	42.10	―	0.34%	―	―
NAGAFERT	48 Neutral	₹2.94B	-11.86	―	―	-100.00%	-101.18%

Khaitan Chemicals & Fertilizers Ltd. Corporate Events

Khaitan Chemicals & Fertilizers Shareholders Clear Resolution at January 12 EGM via E-Voting

Khaitan Chemicals & Fertilizers Ltd. has reported the e-voting results of its Extra Ordinary General Meeting held on 12 January 2026 via video conferencing, in compliance with SEBI’s listing regulations governing shareholder voting disclosures. According to the scrutinizer’s consolidated report, the single resolution placed before shareholders at the EGM was duly approved by the requisite majority, underscoring formal shareholder support for the company’s proposed corporate action and affirming adherence to mandated corporate governance and disclosure norms.

Khaitan Chemicals Announces First EGM for FY 2025-26

Khaitan Chemicals & Fertilizers Ltd. has announced the details of its first Extraordinary General Meeting (EGM) for the fiscal year 2025-26, scheduled for January 12, 2026. The meeting will be conducted via video conferencing and e-voting, ensuring compliance with relevant regulations and standards. This announcement highlights the company’s commitment to maintaining transparent communication with its shareholders and adhering to regulatory requirements.