Kothari Sugars & Chemicals Ltd. (KOTARISUG) AI Stock Analysis

• Market Cap: ₹1.96B
• Dividend Yield: N/A
• Average Volume (3M): 58.27K
• Price to Earnings (P/E): 4.7
• Beta (1Y): 1.21
• Revenue Growth: -39.31%
• EPS Growth: -110.49%
• Country: IN
• Employees: 512
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Confectioners
• EPS (TTM): 1.44
• Shares Outstanding: 82,888,570
• 10 Day Avg. Volume: 45,651
• 30 Day Avg. Volume: 58,269
• PEG Ratio: -0.42
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 0.92
• P/FCF Ratio: 6.18
• 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: 49 Neutral
• Price Target: ₹23.50 ▼(-13.25% Downside)
• Action: Reiterated Date: 11/26/25
• Date: Action: Reiterated 11/26/25

The overall stock score is primarily influenced by the company's mixed financial performance and bearish technical indicators. The negative P/E ratio and lack of dividend yield further weigh down the score, suggesting caution for potential investors.

Positive Factors

Balance Sheet Health

A reasonable debt-to-equity mix and a strong equity ratio provide durable financial flexibility for a cyclical sugar business. Balanced leverage supports working capital needs during crushing seasons, funds maintenance capex and cushions commodity swings, enabling stability over the next several months.

Cash Generation Improvement

A material recovery in free cash flow and a healthy operating-cash-to-net-income ratio indicate the company can convert profits into cash. This strengthens ability to service debt, finance seasonal cane procurement and maintain plant operations, reducing refinancing and liquidity risks over time.

Margin Recovery Potential

Historical periods of respectable gross and net margins imply the business model can achieve attractive unit economics when cane costs and prices normalize. Given capacity and by-product avenues typical in sugar processing, margin recovery is a realistic structural outcome if industry conditions improve.

Negative Factors

Revenue Decline

A steep ~35% revenue contraction is a durable red flag for scale and fixed-cost coverage in sugar manufacturing. Sustained top-line declines erode operating leverage, reduce cash margin cushions and impair the firm's ability to invest in maintenance or efficiency projects over the medium term.

Earnings Erosion

A near 70% fall in EPS signals significant earnings stress and volatile profitability. Persistent earnings erosion limits reinvestment, pressure debt servicing capacity and reduces retained earnings available for restoring capacity or smoothing seasonal working capital swings across future cycles.

Margin Compression & Lower ROE

Declining margins and reduced ROE point to weaker returns on invested capital, limiting the firm's ability to generate acceptable returns as an ongoing business. Structural margin pressure from input costs or pricing dynamics can impair competitiveness and capital allocation over multiple quarters.

Kothari Sugars & Chemicals Ltd. Business Overview & Revenue Model

Company Description

Kothari Sugars and Chemicals Limited manufactures and sells sugar and its by-products in India and internationally. The company operates in three segments: Sugar, Cogeneration of Power, and Distillery. It also engages in the co-generation of power from bagasse; production of industrial alcohol from molasses; and bio-compost from press mud and distillery effluents. In addition, the company provides liquid hand sanitizers. The company was incorporated in 1960 and is headquartered in Chennai, India. Kothari Sugars and Chemicals Limited is a subsidiary of Parvathi Trading & Finance Co. Pvt. Ltd.

How the Company Makes Money

Kothari Sugars & Chemicals Ltd. primarily makes money by selling sugar produced from processed sugarcane to wholesale/industrial buyers and other market channels; specific customer mix and contract structure are null. Additional earnings, where applicable in sugar manufacturing operations, generally come from monetizing by-products and allied outputs generated during processing (e.g., co-products from crushing and refining), but KOTARISUG’s exact by-product revenue streams and their contribution are null. Revenue can also be influenced by industry factors such as domestic sugar pricing, sugarcane procurement costs, government policies affecting the sugar industry, and capacity utilization; company-specific hedging practices, export exposure, and named partnerships are null.

Kothari Sugars & Chemicals Ltd. Financial Statement Overview

Summary

Kothari Sugars & Chemicals Ltd. shows a mixed financial position. While past profitability and cash generation are strengths, recent struggles with revenue growth and profit margins highlight potential challenges. The stable balance sheet could support future growth if profitability improves.

Income Statement

Kothari Sugars & Chemicals Ltd. has shown fluctuating revenue figures with a significant drop in the latest fiscal year. Gross profit and net profit margins have also decreased, indicating challenges in maintaining profitability. However, past periods showed respectable margins, suggesting potential for recovery.

Balance Sheet

The company's balance sheet shows a reasonable debt-to-equity ratio, suggesting balanced leverage. The equity ratio remains strong, though a decrease in total assets and stockholders' equity is noted. Return on equity has diminished, reflecting reduced profitability.

Cash Flow

Cash flow analysis reveals substantial improvement in free cash flow in the latest year, although historical volatility is evident. The operating cash flow to net income ratio is healthy, indicating effective cash generation relative to profits.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.54B	3.10B	5.02B	6.10B	4.23B	4.19B
Gross Profit	561.20M	437.79M	639.14M	1.83B	776.62M	388.29M
EBITDA	169.89M	349.94M	596.84M	727.54M	575.33M	423.14M
Net Income	-12.71M	104.25M	294.92M	419.23M	340.32M	190.18M
Balance Sheet
Total Assets	4.19B	4.50B	4.83B	4.32B	3.94B	3.40B
Cash, Cash Equivalents and Short-Term Investments	1.03B	1.17B	936.24M	660.11M	717.16M	585.82M
Total Debt	486.50M	499.20M	702.35M	385.00M	569.07M	358.89M
Total Liabilities	1.36B	1.60B	2.04B	1.74B	1.74B	1.54B
Stockholders Equity	2.83B	2.89B	2.78B	2.58B	2.20B	1.86B
Cash Flow
Free Cash Flow	-200.08M	462.84M	-18.34M	236.43M	-69.47M	773.82M
Operating Cash Flow	-85.16M	517.32M	155.80M	451.22M	-26.85M	816.66M
Investing Cash Flow	122.89M	-277.35M	-355.71M	-187.03M	-134.50M	-289.83M
Financing Cash Flow	-31.46M	-37.24M	-123.63M	-151.43M	-112.75M	-11.85M

Kothari Sugars & Chemicals Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 27.09
• 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:KOTARISUG, the sentiment is Negative. The current price of 27.09 is above the 20-day moving average (MA) of 24.40, above the 50-day MA of 25.17, and below the 200-day MA of 30.36, indicating a bearish trend. The MACD of -0.52 indicates Positive momentum. The RSI at 40.92 is Neutral, neither overbought nor oversold. The STOCH value of 15.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:KOTARISUG.

Kothari Sugars & Chemicals Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAWANASUG	78 Outperform	₹3.22B	22.43	―	4.69%	6.31%	161.73%
PONNIERODE	68 Neutral	₹2.34B	5.98	―	1.13%	―	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
KCPSUGIND	52 Neutral	₹2.70B	10.94	―	0.38%	-13.84%	-149.34%
KOTARISUG	49 Neutral	₹1.96B	4.71	―	―	-39.31%	-110.49%
SAKHTISUG	45 Neutral	₹1.74B	-1.68	―	―	1.70%	-71.32%
VISHWARAJ	44 Neutral	₹1.07B	-5.57	―	2.88%	-3.45%	-858.71%