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

• Market Cap: ₹2.01B
• Dividend Yield: N/A
• Average Volume (3M): 58.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.35
• Revenue Growth: -39.31%
• EPS Growth: -110.49%
• Country: IN
• Employees: 512
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Confectioners
• EPS (TTM): -0.87
• 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: ₹24.00 ▼(-11.41% Downside)

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

Reasonable leverage and strong equity ratio

A balanced debt-to-equity posture and a strong equity ratio provide durable financial flexibility for a cyclical sugar business. This structural strength supports capital spending, working-capital swings during crushing seasons, and access to funding without overstretching leverage.

Improved free cash flow in latest year

An improvement in free cash flow and a healthy operating cash flow-to-net income relationship signal the company's ability to convert earnings into cash. Sustained cash generation underpins reinvestment, debt servicing and resilience across sugar-cycle downturns if maintained.

Past profitability and respectable margins historically

Historical periods of solid margins and profitability indicate operational capability to earn money in favorable conditions. That track record suggests the business model and processing assets can deliver sustainable margins again if input costs or realizations improve over the medium term.

Negative Factors

Large recent revenue decline

A near 40% revenue contraction is a structurally significant deterioration of scale, which reduces fixed-cost absorption and bargaining leverage with suppliers and buyers. If the top-line trend persists, it undermines long-term profitability and the economics of milling assets.

Declining margins and reduced return on equity

Sustained margin compression and falling ROE weaken internal capital generation and shareholder returns. For a capital-intensive, cyclical processor, persistent margin erosion can restrict reinvestment in plant efficiency and limit the ability to rebuild profitability in future cycles.

Decrease in total assets and stockholders' equity

A shrinking asset and equity base reduces operational capacity and financial headroom. Over time this constrains growth, limits collateral for financing, and can reflect asset impairments or capital withdrawal, each of which undermines long-term competitiveness in sugar processing.

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. generates revenue through multiple streams primarily centered around its sugar production and chemical manufacturing. The company produces raw and refined sugar, which is sold in domestic and international markets. Additionally, it capitalizes on sugarcane by-products, such as ethanol, which is utilized in the fuel sector and has seen increasing demand due to government policies favoring biofuels. The sale of power generated from cogeneration plants also contributes significantly to the revenue. Strategic partnerships with distributors and participation in government programs for renewable energy further enhance earnings, ensuring stable cash flow from both traditional and green energy markets.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.87B	3.10B	5.02B	6.10B	4.23B	4.19B
Gross Profit	636.15M	437.79M	639.14M	1.83B	776.62M	388.29M
EBITDA	368.90M	349.94M	596.84M	727.54M	575.33M	423.14M
Net Income	122.07M	104.25M	294.92M	419.23M	340.32M	190.18M
Balance Sheet
Total Assets	0.00	4.50B	4.83B	4.32B	3.94B	3.40B
Cash, Cash Equivalents and Short-Term Investments	1.20B	1.17B	936.24M	660.11M	717.16M	585.82M
Total Debt	0.00	499.20M	702.35M	385.00M	569.07M	358.89M
Total Liabilities	-2.89B	1.60B	2.04B	1.74B	1.74B	1.54B
Stockholders Equity	2.89B	2.89B	2.78B	2.58B	2.20B	1.86B
Cash Flow
Free Cash Flow	0.00	462.84M	-18.34M	236.43M	-69.47M	773.82M
Operating Cash Flow	0.00	517.32M	155.80M	451.22M	-26.85M	816.66M
Investing Cash Flow	0.00	-277.35M	-355.71M	-187.03M	-134.50M	-289.83M
Financing Cash Flow	0.00	-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: Neutral

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 25.34, above the 50-day MA of 26.92, and below the 200-day MA of 32.29, indicating a bearish trend. The MACD of -0.90 indicates Positive momentum. The RSI at 33.90 is Neutral, neither overbought nor oversold. The STOCH value of 36.94 is Neutral, 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	₹3.13B	2.99	―	4.69%	6.31%	161.73%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
PONNIERODE	56 Neutral	₹2.26B	8.74	―	1.13%	―	―
SAKHTISUG	56 Neutral	₹2.02B	7.65	―	―	1.70%	-71.32%
KCPSUGIND	52 Neutral	₹2.58B	-6.45	―	0.38%	-13.84%	-149.34%
KOTARISUG	49 Neutral	₹2.01B	-159.65	―	―	-39.31%	-110.49%
VISHWARAJ	45 Neutral	₹1.35B	-4.81	―	2.88%	-3.45%	-858.71%