Kanoria Chemicals & Industries Limited

Basic Materials — Chemicals · NSE

₹189.27−₹0.77 (−0.41%)

DalalBaazaar Score

54 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by short-term liabilities exceed short-term assets, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with modest growth. Short-term liquidity is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of Kanoria Chemicals & Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Kanoria Chemicals & Industries Limited manufactures and sells Industrial Chemicals in India. The company operates through Chemicals and Textile segments.

IndustryChemicals

SectorBasic Materials

Employees385

Annual revenue₹945 Cr

How does it make money?

Turns over ₹945 Cr a year. Of every ₹100 of sales, about ₹13 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation. Each of its 385 employees supports ₹2.45 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin9.1%

Net margin12.8%

Revenue / employee₹2.45 Cr

Who are its competitors?

The closest listed comparisons in its industry are PIDILITE INDUSTRIES LTD, SRF LTD, UPL LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

PIDILITE INDUSTRIES LTDP/E 57.8x · ROE 24.4%

SRF LTDP/E 33.8x · ROE 15.4%

UPL LIMITEDP/E 21.5x · ROE 6.1%

What is its competitive advantage?Little sign of one

Returns on capital of 6.4% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE6.4%

ROE21.1%

Peer median ROE15.4%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -40% while net margin moved -2388% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-40%

Margin effect-2388%

DalalBaazaar Score

54/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 15.6% a year

Quality vs. Valuation

Company Quality

49/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

80/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

13.6x

Sector Median

33.8x

median of 3 sector peers

🟢Against its sector it trades 60% below the peer median of 33.8x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

33.8x median of 3 peers · -60%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

13.6x

P/B

1.44x

EV/EBITDA

12.9x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 4.4% to 9.1% over 3 years.
Debt is being paid down
Total debt is down 43% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from -1.4% to 21.1%.
Return on capital is rising
ROCE has improved from 2.0% to 6.4%.

🔴 What Needs Attention1

Short-term liquidity is tight
Current ratio of 0.92 — near-term obligations exceed near-term assets.

Red Flags

1 item require attention · 1 watch

🟡Short-term liquidity is tightFinancial
Current ratio of 0.92 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 4.4% to 9.1%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 43% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 60% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 3.4x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 7%✓ 9.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 3.4x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✗ 2.1x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹13 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ 6.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 11 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✗ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

7 good · 3 neutral · 1 weak

Market Cap

₹827 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

13.6x

Cheap

Cheap against the generic band

P/B Ratio

1.44x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹13.94

Profitable

Profitable on a per-share basis

ROE

21.1%

Strong

Strong capital efficiency

ROCE

6.4%

Weak

Low return on total capital employed

Debt/Equity

0.51x

Low

Conservative leverage

Revenue Growth (YoY)

1.5%

Modest

Modest growth

Profit Growth (YoY)

244.5%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹13 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹189.27

Operating Margin

7.8%

Average

Average margins

Net Margin

12.5%

Good

Strong bottom-line conversion

Current Ratio

0.92

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.63

Defensive

Steadier than the market

52W Range Position

89%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

184.7 / 169.6

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

42.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,569 Cr	₹1,454 Cr	₹740 Cr	₹945 Cr	-15.6%
EBITDA	₹69 Cr	₹52 Cr	₹14 Cr	₹86 Cr	+7.6%
EBITDA Margin	4.4%	3.5%	1.9%	9.1%	—
PAT (Net Profit)	-₹9 Cr	-₹38 Cr	-₹84 Cr	₹121 Cr	—
EPS	₹-2.01	₹-8.79	₹-19.13	₹27.64	—
ROE	-1.4%	-6.4%	-16.1%	21.1%	—
ROCE	2.0%	0.7%	-1.7%	6.4%	—
Total Debt	₹510 Cr	₹509 Cr	₹595 Cr	₹291 Cr	-17.0%
Free Cash Flow	-₹32 Cr	-₹43 Cr	-₹36 Cr	₹13 Cr	—

🔴 Revenue has shrunk at 15.6% a year over 3 years.

🟢 EBITDA has grown at 7.6% a year over 3 years.

🟢 EBITDA Margin has risen from 4.4% to 9.1% over 3 years (+4.7 pts).

🟢 PAT (Net Profit) has turned positive, from -₹9 Cr to ₹121 Cr.

🟢 EPS has turned positive, from ₹-2.01 to ₹27.64.

🟢 ROE has risen from -1.4% to 21.1% over 3 years (+22.5 pts).

🟢 ROCE has risen from 2.0% to 6.4% over 3 years (+4.4 pts).

🟢 Total Debt has shrunk at 17.0% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹32 Cr to ₹13 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,117 Cr

Total Liabilities

₹544 Cr

Total Debt

₹291 Cr

Cash & Equivalents

₹10 Cr

Operating Cash Flow

₹71 Cr

Capex

-₹59 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

78.4%

Corporate Actions

Ex-Dividend Date

24 Aug 2022

Peer Comparison

Company	P/E	ROE
PIDILITE INDUSTRIES LTD	57.8x	24.4%
SRF LTD	33.8x	15.4%
UPL LIMITED	21.5x	6.1%

Recent News

1 mixed5 general

Kanoria Chemicals & Industries Lower Circuit Streak: Day 2

Univest, 13 Oct

Kanoria Chemicals returns to profit with gain of ₹9,766 lakh

scanx.trade, 08 Oct

Kanoria Chemicals & Industries Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 04 Sept

Kanoria Chemicals & Industries reports consolidated net profit of Rs 26.36 crore in the June 2026 quarter

Business Standard, 11 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Kanoria Chemicals & Industries Ltd. Share Price Live Today

CNBC TV18, 03 Jan

Kanoria Chemicals & Industries Share Price Forecast to 2030

Univest, 20 Jul

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟡Business QualityAdequate10.2/20

🟡Financial HealthAdequate11.2/20

🔴GrowthWeak2.4/20

🟢ProfitabilityStrong12.9/15

🟢ValuationAttractive13/15

🔴RiskHigh4.4/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you.

This thesis breaks if

✓EBITDA margin holds above 7%9.1%
✗Debt / EBITDA falls below 3x3.4x
✗Interest cover stays above 3x2.1x
✓Free cash flow remains positive₹13 Cr
✗ROCE stays above 8%6.4%