Kothari Indl

BSE: KOTIC · Fertilizers

52W Range₹142 ₹625

Snapshot

Unlock Kothari Indl's vital signs

Growth · Profitability · Valuation · Strength · Conviction

Company Overview

Business

Kothari Industrial Corporation Ltd is a diversified entity historically engaged in the manufacturing of fertilizers, FMCG, and healthcare products. The company has shifted its operational strategy by leasing its fertilizer manufacturing facilities to third-party operators.

Business Model

The company generates revenue primarily through the leasing of its industrial assets, such as the Ennore fertilizer unit, to external operators. This model reflects a transition away from direct manufacturing due to historical constraints in raw material supply and working capital.

Management Commentary

Management has focused on mitigating operational challenges by outsourcing the production activities of its idle facilities to industry peers. This approach aims to leverage existing infrastructure without incurring the direct costs of manufacturing.

Growth Outlook

Future growth is contingent upon the successful monetisation of existing assets and the potential revitalisation of its FMCG and healthcare segments. The company remains focused on stabilising its financial position through strategic leasing arrangements.

Key Risks

  • Working Capital Constraints. The company faces significant liquidity challenges that have historically hindered its ability to maintain direct manufacturing operations.
  • Dependency on Lessees. Revenue stability is heavily reliant on the performance and contractual obligations of third-party operators leasing the company's facilities.
  • Raw Material Volatility. The fertilizer sector is susceptible to fluctuations in the availability and cost of essential raw materials, impacting long-term operational viability.
  • Regulatory and Sectoral Risks. Changes in government policies regarding fertilizer subsidies and industrial regulations could adversely affect the company's business model.

Price

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Peers · Fertilizers

CompanyMkt Cap (Cr)P/EEV/EBITDARev Gr YoYEBITDA MgnROEROCE1Y Return
Kothari IndlKOTIC
-34.0%-61.7%
Coromandel International Ltd.COROMANDEL
57,25630.4519.746.0%11.8%21.4%29.4%-15.0%
Fertilisers and Chemicals Travancore Ltd.FACT
51,073-1386.39238.4341.3%4.3%-2.9%13.7%-12.9%
Chambal Fertilizers & Chemicals Ltd.CHAMBLFERT
16,9219.366.7824.9%13.5%21.4%23.1%-17.3%
Paradeep Phosphates LimitedPARADEEP
11,52814.608.3152.5%10.3%19.7%30.8%-18.6%
Rashtriya Chemicals & Fertilizers Ltd.RCF
6,31416.609.639.1%6.2%8.8%13.8%-18.0%

As of Mar 2026

Financials