📌 Introduction
This Kothari Petrochemicals share analysis provides insights into the company’s recent financial performance, valuation, and growth outlook. As a leading manufacturer of polyisobutylene in India, Kothari Petrochemicals plays a crucial role in the lubricant and chemical industries. Moreover, its strong promoter backing and operational discipline make it a notable small-cap stock.
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🔗 Kothari Petrochemicals on NSE India
💹 Share Price & Valuation Metrics
As of July 18, 2025, Kothari Petrochemicals trades at ₹178.6 with a market cap of ₹1,084 Cr. Additionally, it has a P/E ratio of 23.8 and a modest dividend yield of 0.56%. Notably, promoter holding stands strong at 59.91%, signaling long-term commitment.
| Metric | Value |
|---|---|
| Current Price | ₹178.6 |
| Market Cap | ₹1,084 Cr |
| P/E Ratio | 23.8 |
| Dividend Yield | 0.56% |
| ROCE (Last Year) | 23.51% |
| Promoter Holding | 59.91% |
📊 Quarterly Financial Performance
The June 2025 quarter shows solid numbers. In fact, both sales and profits grew sequentially. This suggests steady demand and efficient cost management.
| Quarter | Sales (₹ Cr) | Net Profit (₹ Cr) | EPS (₹) |
|---|---|---|---|
| Jun ’25 | 136 | 11.99 | 0.62 |
| Mar ’25 | 126 | 10.84 | 0.56 |
📈 Profit & Loss Overview
Over the past 5 years, the company has recorded a compounded profit growth of 20%. Although revenue growth remains steady, profit margins have improved due to operational efficiency.
- Operating Profit (FY25): ₹47 Cr
- Net Profit (FY25): ₹32 Cr
- EPS (TTM): ₹3.30
- Dividend Payout: 5%
💼 Balance Sheet Strength
Kothari Petrochemicals maintains a nearly debt-free balance sheet. The company has increased its reserves to ₹243 Cr in FY25, reflecting strong internal accruals and financial discipline.
| Metric | Mar 2025 |
|---|---|
| Reserves | ₹243 Cr |
| Debt | ₹0 Cr |
| Total Assets | ₹379 Cr |
🔁 Cash Flow & Ratios
The company generated consistent positive cash flows from operations in the last three years. Its ROCE improved from 13% (FY23) to 23.51% (FY25).
| Year | Cash Flow from Ops (₹ Cr) | ROCE |
|---|---|---|
| FY23 | ₹45 | 13% |
| FY25 | ₹47 | 23.5% |
✅ Shareholding Pattern (as of June 2025)
Promoters currently hold 59.91% of the company, while public investors own 39.84%. Although institutional participation is low, the high promoter holding builds confidence.
This high promoter holding signals long-term management commitment.
🧾 Conclusion – Kothari Petrochemicals Share Analysis Summary
To conclude, this Kothari Petrochemicals share analysis reveals a financially sound company with minimal debt and improving margins. Therefore, long-term investors looking for value in the specialty chemical space may consider this stock. However, do note that liquidity risks and low trading volumes should be factored into your investment decision.
⚠️ Disclaimer: This article is for educational purposes. Please consult a SEBI-registered advisor before making investment decisions.
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