Krishana Phoschem Limited

Basic Materials — Agricultural Inputs · NSE

₹208.35−₹3.60 (−1.70%)

DalalBaazaar Score

60 / 100

🟢 Good

Verdict

CAUTION

Risk

Moderate

Driven by moderate debt load, negative free cash flow, small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

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

What does this company do?

Krishana Phoschem Limited engages in the manufacturing, Distribution, sales, and marketing of fertilizers and chemicals under the Annadata and Bharat brands in India.

IndustryAgricultural Inputs

SectorBasic Materials

Employees370

Annual revenue₹1,606 Cr

How does it make money?

Turns over ₹1,606 Cr a year. Of every ₹100 of sales, about ₹11 reaches shareholders as profit, with ₹20 left at the operating level before interest, tax and depreciation. Each of its 370 employees supports ₹4.34 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹4.34 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, ULTRATECH CEMENT LIMITED, ASIAN PAINTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 35.0% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE22.3%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +598% while net margin moved -3% 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+598%

Margin effect-3%

DalalBaazaar Score

60/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 40.5x is demanding — it needs sustained high growth to justify
• P/E is close to its own historical median of 42.9x
✗ P/B of 11.49x is a steep premium to book

Quality vs. Valuation

Company Quality

67/ 100

Good

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

Valuation

45/ 100

Fair

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

40.5x

3Y Median

42.9x

40 monthly readings · mean 44.6x · range 30.2x–85.4x

Sector Median

28.7x

median of 4 sector peers

🟡Currently trading close to its 3y median of 42.9x — the market is paying about what it usually pays for this company.

⚠️Against its sector it trades 41% above the peer median of 28.7x.

vs. its own history

Fair

42.9x median over 40 months · -5%

vs. sector peers

Expensive

28.7x median of 4 peers · +41%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

22.8x

PEG

0.46

What's Good / What's Bad

🟢 What's Going Well4

Return on equity is rising
ROE has improved from 10.2% to 32.1%.
Return on capital is rising
ROCE has improved from 10.5% to 35.0%.
High return on capital employed
ROCE of 35.0% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

6 items require attention · 3 high · 3 watch

🔴Debt has risen sharplyFinancial
Total debt is up 165% over 3 years, from ₹277 Cr to ₹733 Cr.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Receivables growing faster than salesFinancial
Receivables up 865% against revenue up 598% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹305 Cr in the latest year.
🟡Margins are compressingFinancial
EBITDA margin is down 3.8 points over 3 years.
🟡Low reported insider holdingOwnership
Reported insider holding is 0.0%. For Indian companies this field is an unreliable proxy — check the official promoter shareholding in the exchange filing.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 35.0% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 23.3% to 19.5%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 865% against revenue up 598%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 41% above the peer median. That premium needs a reason that persists, or it closes.
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
Small 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

1Revenue growth stays above 68% a year✓ 91.1% CAGR
Latest reported year was 34.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 18%✓ 19.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹305 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 32%✓ 35.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 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

5 good · 3 neutral · 3 weak

Market Cap

₹6,441 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

40.5x

Expensive

Expensive — verify against sector peers

P/B Ratio

11.49x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹5.14

Profitable

Profitable on a per-share basis

ROE

32.1%

Strong

Strong capital efficiency

ROCE

35.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.31x

Moderate

Moderate leverage

Revenue Growth (YoY)

34.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

53.5%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.05%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹305 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

14.1%

Average

Average margins

Net Margin

7.7%

Average

Average bottom-line conversion

Current Ratio

1.36

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.10

Defensive

Steadier than the market

52W Range Position

94%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

191.6 / 189.6

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

69.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹230 Cr	₹585 Cr	₹870 Cr	₹1,606 Cr	+91.1%
EBITDA	₹54 Cr	₹130 Cr	₹194 Cr	₹314 Cr	+80.2%
EBITDA Margin	23.3%	22.2%	22.3%	19.5%	—
PAT (Net Profit)	₹27 Cr	₹40 Cr	₹87 Cr	₹180 Cr	+88.9%
EPS	₹0.95	₹1.31	₹2.8	₹5.83	+83.3%
ROE	10.2%	13.5%	22.5%	32.1%	—
ROCE	10.5%	19.6%	27.7%	35.0%	—
Total Debt	₹277 Cr	₹436 Cr	₹376 Cr	₹733 Cr	+38.3%
Free Cash Flow	-₹226 Cr	-₹121 Cr	₹116 Cr	-₹305 Cr	—

🟢 Revenue has grown at 91.1% a year over 3 years.

🟢 EBITDA has grown at 80.2% a year over 3 years.

🔴 EBITDA Margin has fallen from 23.3% to 19.5% over 3 years (-3.8 pts).

🟢 PAT (Net Profit) has grown at 88.9% a year over 3 years.

🟢 EPS has grown at 83.3% a year over 3 years.

🟢 ROE has risen from 10.2% to 32.1% over 3 years (+21.9 pts).

🟢 ROCE has risen from 10.5% to 35.0% over 3 years (+24.5 pts).

🔴 Total Debt has grown at 38.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,641 Cr

Total Liabilities

₹1,080 Cr

Cash & Equivalents

₹21 Cr

Operating Cash Flow

-₹191 Cr

Capex

-₹113 Cr

Shareholding (proxy)

Institutional Holding

0.1%

Insider Holding

0.0%

Corporate Actions

Dividend Rate

₹0.1

Ex-Dividend Date

17 Jun 2026

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
ULTRATECH CEMENT LIMITED	37.6x	11.1%
ASIAN PAINTS LIMITED	46.9x	22.3%

Recent News

2 positive2 mixed2 general

Krishana Phoschem board approves 1:5 stock split

scanx.trade, 18 OctCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Krishana Phoschem Approves 1:5 Stock Split to Enhance Liquidity After 109% FY26 Profit Growth

Sahi, 27 MayCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Krishana Phoschem Ltd Hits All-Time High of Rs 211.36 as Momentum Builds Across Timeframes

MarketsMojo, 16 Oct

Krishana Phoschem Ltd. Share Price Within 2% of 52W High

Univest, 14 Aug

Impressive Earnings May Not Tell The Whole Story For Krishana Phoschem (NSE:KRISHANA)

Simply Wall Street, 16 AprResults

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

Krishana Phoschem slips as Q1 PAT drops 43% QoQ

Business Standard, 14 JulResults

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

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
Reported insider holding is low — cross-check the official promoter shareholding % in the company's exchange filing.

DalalBaazaar Thesis

StrongBusiness Quality · Growth · Profitability

MiddlingFinancial Health · Risk

WeakValuation

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 3 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive · see Key things to watch ↑