Sadhana Nitro Chem Limited (SADHNANIQ) AI Stock Analysis

• Market Cap: ₹2.11B
• Dividend Yield: 2.3%
• Average Volume (3M): 1.32M
• Price to Earnings (P/E): 44.3
• Beta (1Y): 1.16
• Revenue Growth: -15.63%
• EPS Growth: 0.14%
• Country: IN
• Employees: 247
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Chemicals - Specialty
• EPS (TTM): -0.06
• Shares Outstanding: 329,411,070
• 10 Day Avg. Volume: 294,021
• 30 Day Avg. Volume: 1,319,618
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ₹7.00
• Price Target Upside: 11.46% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: ₹7.00 ▲(11.46% Upside)

The overall stock score reflects significant challenges, primarily from bearish technical indicators and concerns over financial performance due to increasing debt levels and cash flow issues. Valuation concerns are present with a high P/E ratio, though the dividend yield provides some positive offset.

Sadhana Nitro Chem Limited Business Overview & Revenue Model

Company Description

Sadhana Nitro Chem Limited (SADHNANIQ) is a chemical manufacturing company based in India. It primarily operates in the specialty chemicals sector, focusing on the production of Nitrobenzene and its downstream derivatives. The company caters to a variety of industries including pharmaceuticals, agrochemicals, dyes, and pigments, providing essential chemical intermediates that are crucial for manufacturing processes in these sectors.

How the Company Makes Money

Sadhana Nitro Chem Limited generates revenue through the production and sale of Nitrobenzene and its derivatives. These chemical products are sold to various industries such as pharmaceuticals, where they are used as intermediates in the synthesis of active pharmaceutical ingredients (APIs); agrochemicals, for the production of pesticides and herbicides; and dyes and pigments, which use these chemicals for coloring and coating applications. The company's revenue streams are largely dependent on the demand from these sectors, which is influenced by industrial growth and regulatory environments. Additionally, strategic partnerships with other chemical manufacturers and distributors enhance its market reach and contribute to its earnings.

Sadhana Nitro Chem Limited Financial Statement Overview

Summary

Sadhana Nitro Chem Limited exhibits revenue growth and operational stability, but faces challenges with profitability consistency and cash flow management. Rising debt levels and high capital expenditures require careful financial strategy to sustain growth and improve cash flow.

Income Statement

The company has shown revenue growth over the years, with a slight dip in the most recent year. Gross profit margins are strong, but net profit margins have been fluctuating, indicating some volatility in profitability. EBIT and EBITDA margins are consistent, showing a stable core operational performance.

Balance Sheet

The debt-to-equity ratio has increased over time, suggesting rising leverage, which could pose risks if not managed carefully. However, the company has maintained a reasonable equity ratio, indicating a solid capital structure. Return on equity has been inconsistent, reflecting fluctuating profitability.

Cash Flow

Operating cash flow has improved recently, turning positive after periods of cash flow deficits. However, free cash flow remains negative due to high capital expenditures, which could strain liquidity if not controlled. The operating cash flow to net income ratio is improving, signaling better alignment of cash generation with reported earnings.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.66B	1.89B	1.42B	1.30B	1.01B
Gross Profit	1.03B	983.25M	689.31M	548.97M	584.68M
EBITDA	441.90M	445.34M	211.63M	175.08M	255.04M
Net Income	75.60M	40.82M	31.78M	62.25M	159.25M
Balance Sheet
Total Assets	6.37B	5.32B	4.26B	3.86B	3.04B
Cash, Cash Equivalents and Short-Term Investments	112.10M	137.92M	70.95M	129.67M	183.60M
Total Debt	2.47B	2.33B	1.39B	1.16B	872.71M
Total Liabilities	3.56B	3.05B	2.00B	2.26B	1.74B
Stockholders Equity	2.81B	2.27B	2.26B	1.60B	1.30B
Cash Flow
Free Cash Flow	-457.10M	-685.02M	-861.17M	-457.73M	-235.56M
Operating Cash Flow	478.70M	-27.22M	-378.15M	-47.02M	6.61M
Investing Cash Flow	-885.60M	-648.60M	-527.80M	-388.15M	-233.58M
Financing Cash Flow	246.70M	415.13M	716.39M	455.27M	300.63M

Sadhana Nitro Chem Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SADHNANIQ, the sentiment is Negative. The current price of 6.28 is below the 20-day moving average (MA) of 7.21, below the 50-day MA of 10.62, and below the 200-day MA of 27.74, indicating a bearish trend. The MACD of -0.98 indicates Negative momentum. The RSI at 21.43 is Positive, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SADHNANIQ.

Sadhana Nitro Chem Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DMCC	74 Outperform	₹8.38B	30.03		0.30%	44.95%	184.04%
CHEMCON	69 Neutral	₹8.36B	32.80		―	-7.67%	36.60%
INDOBORAX	67 Neutral	₹8.74B	22.60		0.38%	-3.77%	-9.20%
Sector *	59 Neutral	kr30.17B	0.02	-5.14%	3.50%	2.33%	-25.14%
SADHNANIQ	54 Neutral	₹2.11B	44.29		2.30%	-15.63%	0.14%
BODALCHEM	52 Neutral	₹8.73B	29.89		0.17%	19.75%	844.66%
FLEXITUFF	43 Neutral	₹690.23M	0.29		―	-51.79%	―

Sadhana Nitro Chem Limited Corporate Events

Sadhana Nitro Chem Limited Announces Key Financial and Audit Decisions

Sadhana Nitro Chem Limited’s board meeting on May 2, 2025, resulted in several significant decisions. The board approved the audited financial results for the quarter and year ending March 31, 2025, and recommended a 10% dividend for the financial year 2024-25. Additionally, the company appointed new auditors for internal, cost, and secretarial audits for the financial year 2025-26, and confirmed the re-appointment of its statutory auditor. The board also noted the utilization of proceeds from a recent rights issue, indicating a strategic focus on financial transparency and accountability.

Sadhana Nitro Chem Announces Financial Results and Auditor Appointments

Sadhana Nitro Chem Limited’s Board of Directors approved the audited financial results for the quarter and year ending March 31, 2025, and recommended a 10% dividend per equity share. The Board also appointed new auditors for internal, cost, and secretarial audits for the financial year 2025-26, and noted the utilization of proceeds from a recent rights issue.