Kothari Products Limited. (KOTHARIPRO) AI Stock Analysis

• Market Cap: ₹3.86B
• Dividend Yield: N/A
• Average Volume (3M): 46.99K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 1.10
• Revenue Growth: -3.96%
• EPS Growth: N/A
• Country: IN
• Employees: 40
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Conglomerates
• EPS (TTM): 1.66
• Shares Outstanding: 59,687,730
• 10 Day Avg. Volume: 96,124
• 30 Day Avg. Volume: 46,992
• PEG Ratio: 0.01
• Price to Book (P/B): 0.39
• Price to Sales (P/S): 0.44
• P/FCF Ratio: 4.33
• 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: 54 Neutral
• Price Target: ₹66.00 ▼(-8.27% Downside)
• Action: Reiterated Date: 11/21/25
• Date: Action: Reiterated 11/21/25

Kothari Products Limited faces significant challenges with declining financial performance and bearish technical indicators. While the valuation appears reasonable, the lack of dividend yield and negative market momentum weigh heavily on the stock's attractiveness.

Positive Factors

Improved leverage management

A meaningful reduction in total debt and an improved debt-to-equity ratio materially strengthens solvency and lowers interest burden. Over the next 2–6 months this improves financial flexibility to fund operations, absorb shocks, or reallocate capital toward restructuring or growth.

Positive free cash flow

Maintaining positive free cash flow even while operating cash flow falls indicates capex discipline and some cash generation capacity. This affords the company durable flexibility to service liabilities, fund short-term strategic moves, or conserve cash while working on operational fixes.

Stable equity ratio

A stable equity ratio implies a consistent capital structure and a buffer for creditors. Over months this supports access to financing if needed and reduces insolvency risk, giving management time to execute operational improvements without immediate balance-sheet distress.

Negative Factors

Declining revenue trend

Sustained revenue decline erodes scale and bargaining power, increases per-unit fixed costs, and undermines long-term competitiveness. If the top-line contraction persists over 2–6 months it will constrain margin recovery, limit reinvestment, and heighten the need for structural business fixes.

Negative profitability and margins

Transition to negative net and operating margins indicates core operations are loss-making after costs. This is a structural warning: without margin restoration the company cannot sustain reinvestment, debt service, or competitive positioning over the medium term, forcing strategic change or capital support.

Declining operating cash flow & inefficiencies

A sharp fall in operating cash flow and cited operational inefficiencies reduce internal funding and increase dependence on external financing. Over months this constrains working capital management, weakens ability to execute turnarounds, and raises the risk of liquidity stress if performance doesn't improve.

Kothari Products Limited. Business Overview & Revenue Model

Company Description

Kothari Products Limited, together with its subsidiaries, engages in international trade and real estate activities in India. It operates through two segments, Trading and Real Estate. The company is involved in the import, export, and trade of various products/commodities, including agro based commodities, minerals, metals, petroleum products and coal, tiles, notebooks, computer storage devices, computer hardware products, electronic components, transformers, copier papers, steel products, scrap and PVC products, etc. It also develops land, commercial, retail, mall, hotel, and service apartment projects, as well as leases commercial buildings; operates a hotel, as well as senior secondary schools; and invests in stocks and mutual funds. The company was incorporated in 1983 and is based in Kanpur, India.

How the Company Makes Money

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Kothari Products Limited. Financial Statement Overview

Summary

Kothari Products Limited is facing profitability issues with declining revenues and negative margins. Although the company has improved its debt position, operational inefficiencies and declining cash flows pose challenges. The balance sheet remains relatively stable, but overall financial health is under pressure.

Income Statement

The company shows a declining trend in revenue with a significant revenue drop from 2022 to 2025. The gross profit margin is low, and the net profit margin has turned negative in 2025, indicating profitability challenges. The EBIT and EBITDA margins have also turned negative, highlighting operational inefficiencies.

Balance Sheet

The company has managed to reduce its total debt significantly from 2020 to 2025. The debt-to-equity ratio has improved, indicating better leverage management. However, stockholders' equity has decreased slightly over the years. The equity ratio remains stable, suggesting moderate financial stability.

Cash Flow

Operating cash flow has decreased significantly in the most recent period, yet free cash flow remains positive due to reduced capital expenditure. The free cash flow to net income ratio reflects positive cash generation relative to earnings, despite declining operating cash flows.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	9.76B	9.58B	9.92B	13.87B	33.97B	31.17B
Gross Profit	218.50M	106.00M	134.50M	207.80M	328.30M	293.20M
EBITDA	661.10M	-809.50M	282.10M	227.00M	532.10M	49.30M
Net Income	457.00M	-952.10M	324.90M	51.90M	146.80M	-563.10M
Balance Sheet
Total Assets	15.30B	14.97B	13.33B	14.79B	17.68B	25.49B
Cash, Cash Equivalents and Short-Term Investments	2.73B	2.16B	551.80M	837.70M	1.31B	2.08B
Total Debt	2.56B	2.64B	822.20M	2.75B	3.43B	10.25B
Total Liabilities	3.64B	3.72B	1.37B	3.25B	6.85B	14.89B
Stockholders Equity	11.21B	10.96B	11.96B	11.54B	10.83B	10.60B
Cash Flow
Free Cash Flow	-123.40M	973.80M	1.59B	2.38B	6.68B	1.19B
Operating Cash Flow	-86.70M	996.70M	1.62B	2.41B	6.70B	1.20B
Investing Cash Flow	-409.50M	-1.30B	350.00M	-1.68B	133.30M	735.40M
Financing Cash Flow	-84.80M	547.90M	-1.98B	-805.40M	-7.14B	-1.38B

Kothari Products Limited. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 71.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:KOTHARIPRO, the sentiment is Negative. The current price of 71.95 is above the 20-day moving average (MA) of 65.01, above the 50-day MA of 67.05, and below the 200-day MA of 79.07, indicating a bearish trend. The MACD of -1.33 indicates Negative momentum. The RSI at 47.70 is Neutral, neither overbought nor oversold. The STOCH value of 69.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:KOTHARIPRO.

Kothari Products Limited. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
KRITINUT	60 Neutral	₹3.19B	9.38	―	0.43%	16.35%	-32.55%
KOTHARIPRO	54 Neutral	₹3.86B	11.19	―	―	-3.96%	―
UGARSUGAR	50 Neutral	₹4.33B	8.79	―	0.60%	20.40%	―
KOTARISUG	49 Neutral	₹1.96B	4.71	―	―	-39.31%	-110.49%
SAKUMA	46 Neutral	₹2.29B	137.71	―	0.46%	-22.06%	-79.52%