Lords Chloro Alkali Limited (LORDSCHLO) AI Stock Analysis

• Market Cap: ₹3.11B
• Dividend Yield: N/A
• Average Volume (3M): 2.73K
• Price to Earnings (P/E): 23.3
• Beta (1Y): 1.57
• Revenue Growth: 39.31%
• EPS Growth: N/A
• Country: IN
• Employees: 199
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 1.83
• Shares Outstanding: 25,153,860
• 10 Day Avg. Volume: 3,115
• 30 Day Avg. Volume: 2,734
• PEG Ratio: -0.24
• Price to Book (P/B): 1.86
• Price to Sales (P/S): 1.25
• P/FCF Ratio: -2.86
• 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: ₹124.00 ▼(-23.93% Downside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 02/06/26

The score is driven primarily by mixed financial performance—stronger recent revenue growth and decent gross margins are offset by weak net profitability and concerning free cash flow. Technicals further weigh on the score with negative MACD and the price below key longer-term moving averages, while valuation is supportive but only moderately so at a 16.74 P/E.

Positive Factors

Revenue Growth Momentum

A 22.2% year‑over‑year revenue rebound indicates recovering product demand and better pricing/volume mix for core caustic soda sales. Sustained top‑line growth provides scale to absorb fixed costs, supports investment recovery and underpins potential margin expansion over the next 2–6 months.

Gross and EBITDA Margin Resilience

Decent gross margins (~24%) and a stable EBITDA margin (~9.5%) reflect an ability to maintain spreads in a commoditized chlor‑alkali business. This structural margin floor suggests the company can manage input and conversion costs relatively well, supporting medium‑term operating stability despite cyclicality in feedstock and power costs.

Stable Equity Base and Improving ROE

A nearly 48.3% equity ratio indicates a solid capital base to support operations and capex needs, while improving ROE (3.4%) shows nascent gains in capital efficiency. Together they provide balance‑sheet stability that reduces bankruptcy risk and enables the company to fund cyclical investment without immediate equity raises.

Negative Factors

Negative Free Cash Flow

Persistent negative free cash flow driven by elevated capex weakens internal funding capacity and increases reliance on external financing. Over the medium term this can constrain strategic flexibility, delay deleveraging or dividends, and amplify liquidity risk if operating cash generation does not meaningfully improve.

Low Net Profitability

A net margin near 2.3% leaves little buffer against raw material, energy or pricing shocks common in chemicals. Low profit retention limits retained earnings for reinvestment, curtails capacity to build reserves, and makes long‑term returns to shareholders sensitive to even small adverse cost or price moves.

Meaningful Leverage

A debt/equity ratio around 0.73 denotes material leverage for a commodity chemical producer. Combined with weak net margins and negative FCF, this leverage raises interest and refinancing exposure, restricting strategic options and increasing the importance of steady cash generation to avoid balance‑sheet stress.

Lords Chloro Alkali Limited Business Overview & Revenue Model

Company Description

Lords Chloro Alkali Limited manufactures and sells caustic soda and other chemical products in India. The company offers caustic soda lye and flakes, hydrogen gas, stable bleaching powder, liquid chlorine, hydrochloric acid, and sodium hypochlorite. It serves the paper, soap manufacturing, dye, chemical, plastic, and vegetable oil industries through its dealership network. The company also exports its products. Lords Chloro Alkali Limited was incorporated in 1979 and is based in New Delhi, India.

How the Company Makes Money

The company primarily makes money by producing chlor-alkali chemicals and selling them to industrial customers. Its key revenue stream is sales of caustic soda (a widely used alkali in industries such as soaps/detergents, textiles, paper, alumina, and general chemical processing). In addition, the chlor-alkali manufacturing process yields co-products (typically chlorine and hydrogen), which can be sold as secondary revenue streams; these co-product realizations can meaningfully affect overall margins depending on market demand and pricing. Earnings are therefore driven by (1) sales volumes and realized prices of caustic soda and co-products, (2) input and conversion costs—especially power and energy, which are major cost components in chlor-alkali production, and (3) broader supply-demand conditions and commodity price cycles in basic chemicals. Specific partnership arrangements, customer concentration, or long-term offtake contracts are not available from the provided context and are therefore null.

Lords Chloro Alkali Limited Financial Statement Overview

Summary

Mixed fundamentals: revenue growth rebounded strongly (+22.2% YoY) and gross margin is decent (~24%), but net margin is low (~2.3%) and cash flow is a key weakness (negative free cash flow driven by high capex). Balance sheet is stable with a strong equity ratio (~48.3%) but leverage is meaningful (D/E ~0.73).

Income Statement

The company shows moderate revenue growth with some fluctuation in profitability. The gross profit margin is decent at approximately 24.0% for the latest year, but net profit margin is low at around 2.3%, indicating pressure on profitability. Revenue growth rate was strong from 2024 to 2025 at 22.2%, recovering from a negative growth the previous year. The EBIT margin improved but remains weak overall. EBITDA margin is stable at about 9.5%.

Balance Sheet

The balance sheet reveals significant leverage, with a debt-to-equity ratio of 0.73, which is moderate but has increased from prior years. Return on equity has improved to 3.4% but is still low, indicating less efficient use of equity. The equity ratio is strong at 48.3%, suggesting a stable equity base relative to total assets.

Cash Flow

The cash flow situation is concerning with negative free cash flow growth due to high capital expenditures. The operating cash flow to net income ratio is positive, indicating that cash generation is decent relative to reported profit. However, the free cash flow to net income ratio is negative, reflecting substantial outflows exceeding earnings.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	3.05B	2.70B	2.21B	2.95B	2.40B	1.54B
Gross Profit	2.26B	649.11M	286.87M	1.18B	806.44M	238.79M
EBITDA	395.49M	256.05M	2.62M	845.55M	585.52M	80.11M
Net Income	146.78M	61.81M	-47.95M	532.23M	322.84M	-20.41M
Balance Sheet
Total Assets	0.00	3.76B	2.62B	2.38B	2.00B	1.80B
Cash, Cash Equivalents and Short-Term Investments	119.42M	119.42M	342.54M	611.14M	311.06M	1.98M
Total Debt	0.00	1.32B	431.13M	224.77M	415.26M	646.20M
Total Liabilities	-1.82B	1.94B	978.67M	683.73M	839.44M	957.00M
Stockholders Equity	1.82B	1.82B	1.64B	1.69B	1.16B	838.68M
Cash Flow
Free Cash Flow	0.00	-1.18B	-482.40M	515.08M	577.59M	-60.04M
Operating Cash Flow	0.00	91.74M	-144.00M	687.37M	674.15M	-16.59M
Investing Cash Flow	0.00	-1.25B	-313.43M	-151.09M	-62.70M	-11.54M
Financing Cash Flow	0.00	941.23M	184.78M	-236.20M	-302.36M	-31.21M

Lords Chloro Alkali Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 163.00
• 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:LORDSCHLO, the sentiment is Negative. The current price of 163 is above the 20-day moving average (MA) of 127.65, above the 50-day MA of 143.86, and below the 200-day MA of 173.20, indicating a bearish trend. The MACD of -6.59 indicates Negative momentum. The RSI at 41.36 is Neutral, neither overbought nor oversold. The STOCH value of 60.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:LORDSCHLO.

Lords Chloro Alkali Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CHEMBOND	66 Neutral	₹1.88B	34.22	―	1.11%	-37.34%	-45.55%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
LORDSCHLO	54 Neutral	₹3.11B	23.33	―	―	39.31%	―
KESORAMIND	52 Neutral	₹2.63B	17.07	―	―	-91.62%	―
APCL	51 Neutral	₹3.43B	-4.95	―	―	-3.03%	27.30%
KANORICHEM	45 Neutral	₹2.79B	23.83	―	―	-1.30%	-27.85%
DIAMINESQ	43 Neutral	₹2.18B	-19.09	―	0.38%	―	―

Lords Chloro Alkali Limited Corporate Events

Lords Chloro Alkali Updates Markets on Investor Conference Participation

Lords Chloro Alkali Limited reported that its senior management virtually participated in the Arihant Capital: Bharat Connect Conference on March 10, 2026, engaging with investors and analysts. The company emphasized that the interaction focused on an overview of the business and did not involve any unpublished price-sensitive information, underscoring its adherence to regulatory norms and transparent disclosure practices for stakeholders.

Lords Chloro Alkali Confirms SEBI Dematerialisation Compliance for Q3 FY2025

Lords Chloro Alkali Limited has submitted a compliance certificate from its registrar and share transfer agent, Alankit Assignments Limited, confirming adherence to Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended 31 December 2025. The certificate confirms that physical share certificates received for dematerialisation have been duly verified, listed on the stock exchanges, mutilated and cancelled, with the depository’s name recorded as the registered owner, underscoring the company’s ongoing compliance with securities regulations and the orderly transition of its equity shares into electronic form for shareholders and market participants.