Sadhana Nitro Chem Limited (SADHNANIQ) AI Stock Analysis

• Market Cap: ₹2.18B
• Dividend Yield: 1.25%
• Average Volume (3M): 493.07K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.26
• Revenue Growth: -37.44%
• EPS Growth: -950.73%
• Country: IN
• Employees: 247
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): -0.78
• Shares Outstanding: 329,411,070
• 10 Day Avg. Volume: 524,189
• 30 Day Avg. Volume: 493,071
• PEG Ratio: 0.89
• Price to Book (P/B): 1.84
• Price to Sales (P/S): 3.12
• P/FCF Ratio: -11.29
• 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: 51 Neutral
• Price Target: ₹6.50 ▼(-10.47% Downside)

The overall stock score reflects significant challenges in financial performance, particularly in profitability and cash flow management, combined with a bearish technical outlook. The negative P/E ratio further weighs on the valuation, despite a moderate dividend yield. These factors collectively suggest caution for potential investors.

Positive Factors

Operational Stability

Operational stability indicates a reliable business model and consistent performance, which are crucial for long-term success and competitiveness.

Strong Gross Profit Margins

Strong gross profit margins suggest efficient production and pricing strategies, providing a buffer against market fluctuations and enhancing profitability.

Improving Operating Cash Flow

Improved operating cash flow enhances financial flexibility, allowing the company to invest in growth opportunities and manage obligations effectively.

Negative Factors

Rising Debt Levels

Rising debt levels can increase financial risk and limit the company's ability to invest in growth, potentially impacting long-term sustainability.

Fluctuating Profitability

Fluctuating profitability can indicate instability in earnings, which may affect investor confidence and the company's ability to plan for the future.

High Capital Expenditures

High capital expenditures can strain liquidity and limit the company's ability to respond to market changes, potentially impacting long-term growth.

Sadhana Nitro Chem Limited Business Overview & Revenue Model

Company Description

Sadhana Nitro Chem Ltd. engages in manufacturing chemical intermediates, heavy organic and performance chemicals, and wireless network equipment and services. It operates under the Domestic Sales and Export Sales segments. The company was founded by Dhankumar T. Javeri on July 21, 1973 and is headquartered in Mumbai, India.

How the Company Makes Money

Sadhana Nitro Chem Limited generates revenue through the manufacturing and sale of its specialty chemicals, primarily nitro compounds, which are essential for various applications in the pharmaceutical and agrochemical industries. The company's revenue model is based on direct sales to industrial clients, where it leverages long-term contracts and relationships to secure consistent demand. Key revenue streams include the production of specialized chemical intermediates used in drug formulations and agricultural products. Additionally, the company may engage in strategic partnerships with other manufacturers and suppliers to enhance its product offerings and expand its market reach, which contributes to its overall earnings.

Sadhana Nitro Chem Limited Financial Statement Overview

Summary

Sadhana Nitro Chem Limited shows revenue growth and operational stability, but faces challenges with profitability consistency and cash flow management. Rising debt levels and high capital expenditures are areas of concern, requiring 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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.58B	1.66B	1.89B	1.42B	1.30B	1.01B
Gross Profit	882.40M	1.03B	983.25M	689.31M	548.97M	584.68M
EBITDA	407.00M	441.90M	445.34M	211.63M	175.08M	255.04M
Net Income	48.20M	75.60M	40.82M	31.78M	62.25M	159.25M
Balance Sheet
Total Assets	0.00	6.37B	5.32B	4.26B	3.86B	3.04B
Cash, Cash Equivalents and Short-Term Investments	89.10M	112.10M	60.52M	70.95M	129.67M	183.60M
Total Debt	0.00	2.47B	2.33B	1.39B	1.16B	872.71M
Total Liabilities	-2.81B	3.56B	3.05B	2.00B	2.26B	1.74B
Stockholders Equity	2.81B	2.81B	2.27B	2.26B	1.60B	1.30B
Cash Flow
Free Cash Flow	0.00	-457.10M	-685.02M	-861.17M	-457.73M	-235.56M
Operating Cash Flow	0.00	478.70M	-144.55M	-378.15M	-47.02M	6.61M
Investing Cash Flow	0.00	-885.60M	-648.60M	-527.80M	-388.15M	-233.58M
Financing Cash Flow	0.00	246.70M	411.80M	716.39M	455.27M	300.63M

Sadhana Nitro Chem Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.26
• 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:SADHNANIQ, the sentiment is Negative. The current price of 7.26 is above the 20-day moving average (MA) of 7.21, above the 50-day MA of 6.91, and below the 200-day MA of 11.36, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 42.67 is Neutral, neither overbought nor oversold. The STOCH value of 16.43 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
INDOBORAX	63 Neutral	₹8.20B	17.90	―	0.38%	12.35%	6.79%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
DMCC	61 Neutral	₹5.96B	21.40	―	0.97%	40.79%	109.95%
CHEMCON	57 Neutral	₹6.96B	27.44	―	―	2.76%	30.68%
BODALCHEM	52 Neutral	₹6.28B	18.40	―	―	15.56%	2114.71%
SADHNANIQ	51 Neutral	₹2.18B	-10.53	―	1.25%	-37.44%	-950.73%
FLEXITUFF	40 Underperform	₹422.76M	-0.66	―	―	-67.01%	-140.84%

Sadhana Nitro Chem Limited Corporate Events

Sadhana Nitro Chem Confirms SEBI-Compliant Share Dematerialisation for Q3 FY2025-26

Sadhana Nitro Chem Limited has informed the stock exchanges that, for the quarter ended 31 December 2025, all shares submitted for dematerialisation have been properly processed in line with SEBI (Depositories and Participants) Regulations, 2018, based on a confirmation from its registrar and transfer agent MUFG Intime India Private Limited. The company confirmed that securities received for dematerialisation were listed on the relevant stock exchanges, that physical certificates were duly verified, mutilated and cancelled, and that the depositories’ names have been entered in the company’s records as registered owners within the prescribed timelines, underscoring its ongoing compliance with securities market regulations and safeguarding of shareholder records.

Sadhana Nitro Chem Files Quarterly Share Capital Reconciliation Audit Certificate

Sadhana Nitro Chem Limited has submitted to BSE and NSE a Reconciliation of Share Capital Audit Certificate for the quarter ended December 31, 2025, in compliance with Regulation 76 of the SEBI (Depositories and Participants) Regulations, 2018. The certificate, issued by practicing company secretaries Mehta & Mehta, underscores the company’s ongoing adherence to regulatory requirements on share capital and depository records, reinforcing governance standards and transparency for its shareholders and market regulators.

Sadhana Nitrochem Appoints New Independent Director

Sadhana Nitrochem Limited has announced the appointment of Mr. Tej Mayur Contractor as a Non-Executive Independent Director for a term of five years, starting from October 18, 2025, to October 17, 2030. This decision, approved by the Board of Directors and pending shareholder approval, is based on the Nomination and Remuneration Committee’s recommendation. The appointment aims to strengthen the company’s governance structure and potentially enhance its strategic direction.

Sadhana Nitrochem Appoints New Independent Director

Sadhana Nitrochem Limited has announced a change in its board of directors. The company has appointed Mr. Tej Mayur Contractor as a Non-Executive Independent Director for a term of five years, starting from October 18, 2025, subject to shareholder approval. This appointment is based on the recommendation of the Nomination and Remuneration Committee. The inclusion of Mr. Contractor, a businessman, is expected to strengthen the company’s governance and strategic direction.

Sadhana Nitrochem Appoints New Independent Director

Sadhana Nitrochem Limited has announced a significant change in its management structure with the appointment of Mr. Tej Mayur Contractor as a Non-Executive Independent Director. This decision, approved by the Board of Directors and based on the Nomination and Remuneration Committee’s recommendation, is pending shareholder approval and marks a strategic move for the company as it looks to strengthen its governance and leadership framework.