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

• Market Cap: ₹4.72B
• Dividend Yield: N/A
• Average Volume (3M): 30.44K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 1.62
• 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: ₹52.00 ▼(-33.77% Downside)
• Action: Reiterated Date: 01/22/26
• Date: Action: Reiterated 01/22/26

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

Revenue Growth

Sustained revenue growth of ~34% indicates expanding product demand and market penetration in core fertilizer markets. Over 2-6 months this underpins scale advantages, supports fixed cost absorption, and provides a base for margin recovery if cost pressures ease.

Cash Flow Turnaround

A material swing to positive operating and free cash flow signals improved cash conversion and operational efficiency. Durable cash generation enhances liquidity, funds working capital and capex, and creates room to pay down debt or invest in growth over coming quarters.

Essential Agri Inputs Business

Fertilizers are essential, recurring inputs for agriculture, giving the company a defensive, demand-stable end market. Structural food demand and cropping cycles support baseline volumes and long-term relevance of the business model versus discretionary sectors.

Negative Factors

Thin Profitability

Very low net and EBIT margins limit internal funds for reinvestment and reduce buffer vs input cost swings. Persistently thin profitability constrains ability to build reserves, invest in efficiency or absorb regulatory shifts, raising structural fragility.

Moderate Leverage

A debt-to-equity of ~1.4 reflects meaningful reliance on debt financing. Over the medium term this increases interest expense sensitivity and refinancing risk, limiting financial flexibility for capex or buffering cyclical revenue dips in the sector.

Input & Regulatory Exposure

Revenue and margins are structurally exposed to volatile commodity and energy prices plus fertilizer-specific regulations/subsidies. These persistent external risks can compress margins and disrupt volumes over multiple seasons, challenging steady earnings.

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. makes money primarily by manufacturing and selling fertilizer products. Revenue is generated from (1) sales of fertilizers to distributors/retailers and other channel partners who supply farmers, and (2) direct/institutional sales where applicable. Earnings are driven by sales volumes and product realizations (pricing), which in turn depend on agricultural demand, cropping cycles, raw-material and energy costs, and the regulatory environment for fertilizers. Specific details on product-wise revenue split, major customer concentration, or material partnerships are null.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2021	Mar 2020
Income Statement
Total Revenue	6.68B	7.20B	5.36B	8.88B	8.24B	4.37B
Gross Profit	2.04B	2.12B	1.27B	1.69B	2.59B	988.90M
EBITDA	532.79M	239.17M	-286.38M	788.73M	1.22B	445.68M
Net Income	426.58M	13.99M	-704.90M	421.25M	794.96M	150.81M
Balance Sheet
Total Assets	7.00B	6.20B	6.23B	7.07B	5.71B	3.91B
Cash, Cash Equivalents and Short-Term Investments	185.03M	199.82M	542.00K	1.55M	471.86M	3.70M
Total Debt	2.84B	3.18B	3.16B	2.29B	1.42B	1.40B
Total Liabilities	4.34B	3.97B	4.03B	4.13B	3.19B	2.38B
Stockholders Equity	2.66B	2.23B	2.20B	2.94B	2.52B	1.53B
Cash Flow
Free Cash Flow	491.05M	393.38M	-672.58M	-1.21B	122.07M	146.57M
Operating Cash Flow	523.46M	441.27M	-553.92M	-881.55M	269.71M	160.67M
Investing Cash Flow	-22.87M	-166.20M	17.96M	-221.67M	-198.25M	10.27M
Financing Cash Flow	-500.86M	-274.81M	534.96M	632.91M	397.01M	-170.53M

Khaitan Chemicals & Fertilizers Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 78.52
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 55.31, above the 50-day MA of 61.58, and below the 200-day MA of 92.03, indicating a bearish trend. The MACD of -3.36 indicates Positive momentum. The RSI at 37.42 is Neutral, neither overbought nor oversold. The STOCH value of 15.78 is Positive, 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
PUNJABCHEM	64 Neutral	₹12.66B	26.88	―	0.24%	10.70%	32.65%
KHAICHEM	62 Neutral	₹4.72B	9.32	―	―	67.43%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ZUARI	57 Neutral	₹8.30B	8.74	―	―	23.32%	447.31%
NAGAFERT	48 Neutral	₹2.33B	-13.60	―	―	-100.00%	-101.18%
UNIENTER	46 Neutral	₹6.54B	-247.22	―	0.34%	―	―

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.