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

• Market Cap: ₹4.74B
• 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 34.36% indicates expanding market penetration and stronger demand for fertilizer products. Over 2-6 months this supports scalable topline, better fixed-cost absorption, and potential to fund product or channel expansion without relying solely on external capital.

Cash Flow Recovery

A clear operating cash flow turnaround with OCF of INR 441m and FCF of INR 393m strengthens liquidity and funding flexibility. Robust cash conversion (OCF/net income ~31.5%) creates durable capacity to fund capex, reduce debt, or sustain operations through agricultural seasonality.

Stable Agricultural Business Model

The core business supplies recurrent plant-nutrition inputs to farmers and institutions, creating predictable, cyclical demand tied to cropping patterns. This recurring consumable model supports steady revenue baselines and long-term customer relationships across distribution channels.

Negative Factors

Thin Profitability

Very low EBIT and net margins limit the firm's ability to build reserves against commodity and energy cost swings. Even with revenue growth, narrow profitability constrains reinvestment, weakens internal funding for expansion, and reduces buffer versus cyclical input-price shocks.

Moderate Leverage

A debt-to-equity of 1.43 reflects meaningful reliance on borrowed funds. With modest margins, this leverage raises interest coverage and refinancing risk in downturns, limits strategic flexibility for capex or acquisitions, and could pressure liquidity if cash flows weaken seasonally.

Low Return on Equity

ROE near zero indicates capital is generating minimal shareholder returns. Persistently low ROE makes it harder to justify new equity investment, reduce the cost of capital, or attract long-term investors, and signals the need for margin or asset-turn improvements to drive value.

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 54.15, above the 50-day MA of 60.54, and below the 200-day MA of 91.71, indicating a bearish trend. The MACD of -3.51 indicates Positive momentum. The RSI at 32.59 is Neutral, neither overbought nor oversold. The STOCH value of 12.90 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	₹12.63B	26.88	―	0.24%	10.70%	32.65%
KHAICHEM	62 Neutral	₹4.74B	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	₹2.34B	-13.60	―	―	-100.00%	-101.18%
UNIENTER	46 Neutral	₹6.68B	-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.