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

• Market Cap: ₹9.98B
• Dividend Yield: N/A
• Average Volume (3M): 30.44K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 1.37
• Revenue Growth: 67.43%
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: ₹95.00 ▲(15.31% Upside)

The overall stock score is primarily influenced by strong revenue growth and improved cash flow, but is tempered by weak profitability and bearish technical indicators. The valuation is reasonable, but the lack of a dividend yield and oversold technical signals suggest caution.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust sales performance and market demand, which can drive long-term business expansion and competitiveness.

Cash Flow Improvement

Improved cash flow enhances liquidity and operational efficiency, providing the company with more flexibility to invest in growth opportunities.

Market Position

Being a prominent player in the industry strengthens the company's market position, allowing it to leverage its brand and distribution network for sustained growth.

Negative Factors

Profitability Challenges

Low profitability margins indicate challenges in cost management, which can impact long-term financial health and shareholder returns.

Debt Levels

Reliance on debt financing, while manageable, poses potential risks to financial stability, especially if interest rates rise or cash flow decreases.

Margin Sustainability

Sustaining low margins suggests difficulties in maintaining cost efficiency, which could hinder profitability and competitive pricing strategies.

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

Khaitan Chemicals & Fertilizers Ltd. shows strong revenue growth but struggles with profitability, as indicated by low net profit margins. The balance sheet is stable with moderate leverage, and cash flow improvements enhance liquidity and operational strength.

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: 82.39
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• 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 82.39 is below the 20-day moving average (MA) of 92.15, below the 50-day MA of 110.01, and below the 200-day MA of 88.02, indicating a bearish trend. The MACD of -7.62 indicates Negative momentum. The RSI at 24.95 is Positive, neither overbought nor oversold. The STOCH value of 19.84 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
ZUARI	74 Outperform	₹11.53B	1.18	―	―	23.32%	447.31%
PUNJABCHEM	64 Neutral	₹16.00B	30.60	―	0.21%	10.70%	32.65%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
KHAICHEM	58 Neutral	₹9.98B	15.57	―	―	67.43%	―
NAGAFERT	37 Underperform	₹2.96B	-8.56	―	―	-100.00%	-101.18%

Khaitan Chemicals & Fertilizers Ltd. Corporate Events

Khaitan Chemicals & Fertilizers Ltd. Announces Trading Window Closure

Khaitan Chemicals & Fertilizers Ltd. has announced the closure of its trading window in compliance with SEBI regulations, effective from October 1, 2025, until 48 hours after the declaration of its unaudited financial results for the quarter ending September 30, 2025. This measure is part of the company’s adherence to insider trading regulations, impacting directors, promoters, and connected persons who are prohibited from trading during this period.