Kothari Industrial Corporation Limited
BSE: KOTIC · Fertilizers
Snapshot
Unlock Kothari Industrial Corporation Limited'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.
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Peers · Fertilizers
| Company | Mkt Cap | P/E (TTM) | EV/EBITDA | Rev Gr YoY | EBITDA Mgn | ROE | ROCE | 1Y Return |
|---|---|---|---|---|---|---|---|---|
Kothari Industrial Corporation LimitedKOTIC | ₹1,589 Cr | 56.4× | 58.67 | — | 14.1% | 12.2% | 6.7% | -73.4% |
Southern Petrochemicals Industries Corporation LimitedSPIC | ₹1,364 Cr | 6.2× | 6.39 | -2.8% | 10.2% | 16.0% | 17.9% | -32.4% |
Madras FertilizeMADRASFERT | ₹990 Cr | 12.9× | 8.68 | -4.6% | 7.0% | 237.8% | 89.1% | -32.3% |
Zuari Agro Chemicals LimitedZUARI | ₹942 Cr | 1.0× | 6.40 | -44.0% | 9.4% | 49.4% | 32.0% | -22.5% |
Aries AgroARIES | ₹607 Cr | 13.0× | 6.73 | 18.4% | 12.3% | 15.2% | 22.5% | +27.0% |
Khaitan Chemicals & Fertilizers LimitedKHAICHEM | ₹486 Cr | 8.8× | 7.15 | 19.9% | 10.8% | 21.1% | 33.3% | -59.9% |
As of Q1 FY27
Financials
Kothari Industrial Corporation Limited
BSE: KOTIC · Fertilizers
Snapshot
Unlock Kothari Industrial Corporation Limited'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.
Start your research today
Unlock AI insights, financials, peers and live data on Kothari Industrial Corporation Limited and 5,000+ companies — free.
Peers · Fertilizers
As of Q1 FY27