Kothari Petrochemicals Ltd. (KOTHARIPET) AI Stock Analysis

Kothari Petrochemicals Ltd.

(NSE:KOTHARIPET)

Select Model

Rating:84.3Outperform

Price Target:INR 128.00▲(17.37% Upside)

Action:reiterated

Date:09/09/26

The overall score is driven primarily by robust financial performance, including strong growth, margin expansion, high ROE, and a substantially deleveraged balance sheet, supported by improving cash flows. Valuation is attractive with a modest P/E and positive dividend yield, enhancing the investment case. Technicals are constructive, with the price above key moving averages and healthy momentum, though the negative MACD and elevated beta point to higher volatility and the potential for near-term consolidation.

Positive Factors

Very low leverageExtremely low leverage reduces the company’s dependence on borrowed funding and limits interest-related pressure on earnings. Growing equity alongside assets also supports financial flexibility, allowing Kothari Petrochemicals to fund operations and pursue opportunities with comparatively limited balance-sheet strain.

Negative Factors

Volatile free cash flowThe history of negative free cash flow shows that reported profitability has not translated consistently into surplus cash. Such volatility can complicate capital allocation and reduce certainty around internally funded growth, even though the latest reported period showed a substantial improvement.

Kothari Petrochemicals Ltd. (KOTHARIPET) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 6.48B
Dividend Yield: 1.83%
Average Volume (3M): 83.31K
Price to Earnings (P/E): 8.9
Beta (1Y): 1.62
Revenue Growth: -7.71%
EPS Growth: 12.35%
Country: India
Employees: 200
Sector: General
Sector Strength: 55
Industry: Chemicals - Specialty

Kothari Petrochemicals Ltd. Business Overview & Revenue Model

Company Description

Headquartered in Chennai, India, Kothari Petrochemicals Limited is a global manufacturer and supplier of chemicals. Established in 1989, the company specializes in polyisobutylene (PIB), a linear polymer branded as KVIS. This versatile product is int...

Kothari Petrochemicals Ltd. Financial Statement Overview

Summary

Financial performance is very strong, with 60% revenue growth, expanding margins, high and consistent ROE above 19%, sharply reduced leverage, and significantly improved operating cash flows, though past free cash flow volatility warrants monitoring.

Income Statement

88Very Positive

Balance Sheet

95Very Positive

Cash Flow

85Very Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	5.77B	5.91B	5.77B	5.92B	4.79B	3.80B
Gross Profit	1.52B	1.42B	1.26B	1.75B	755.64M	612.60M
EBITDA	1.03B	1.06B	917.18M	1.04B	643.74M	519.83M
Net Income	719.38M	724.90M	658.18M	637.84M	391.77M	328.85M
Balance Sheet
Total Assets	0	4.42B	3.78B	3.19B	2.70B	2.23B
Cash, Cash Equivalents and Short-Term Investments	326.56M	399.48M	311.80M	729.76M	530.04M	402.18M
Total Debt	0	22.38M	30.11M	22.38M	228.35M	120.43M
Total Liabilities	-3.72B	695.53M	723.44M	724.21M	782.71M	671.95M
Stockholders Equity	3.72B	3.72B	3.06B	2.47B	1.92B	1.56B
Cash Flow
Free Cash Flow	433.27M	626.12M	-256.66M	559.59M	57.54M	-20.92M
Operating Cash Flow	484.18M	814.79M	603.99M	715.22M	262.16M	183.73M
Investing Cash Flow	-450.43M	-779.63M	-455.81M	-444.04M	-261.87M	-320.09M
Financing Cash Flow	-66.17M	-69.59M	-69.59M	-330.28M	48.69M	75.70M

Kothari Petrochemicals Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price109.06

Price Trends

50DMA126.97Negative

100DMA129.41Negative

200DMA125.04Negative

Market Momentum

MACD-5.90Positive

RSI33.23Neutral

STOCH37.76Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:KOTHARIPET, the sentiment is Negative. The current price of 109.06 is below the 20-day moving average (MA) of 116.39, below the 50-day MA of 126.97, and below the 200-day MA of 125.04, indicating a bearish trend. The MACD of -5.90 indicates Positive momentum. The RSI at 33.23 is Neutral, neither overbought nor oversold. The STOCH value of 37.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:KOTHARIPET.

Kothari Petrochemicals Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:KOTHARIPET against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:KOTHARIPET	84Outperform	INR 6.42B	8.92	―	1.83%	-7.71%	12.35%
IN:VEEDOL	79Outperform	INR 23.22B	10.33	―	4.35%	12.88%	21.27%
IN:MANALIPETC	70Outperform	INR 11.77B	6.53	―	0.73%	19.19%	487.80%
IN:TNPETRO	64Neutral	INR 10.31B	7.26	―	1.31%	-2.43%	81.18%
IN:SOTL	64Neutral	INR 44.45B	10.76	―	0.77%	26.14%	223.49%
IN:IGPL	56Neutral	INR 16.36B	20.03	―	0.94%	-0.88%	34.57%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

IN:KOTHARIPET and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:KOTHARIPET	Kothari Petrochemicals Ltd.	109.06	-41.88	-27.75%
IN:IGPL	IG Petrochemicals Ltd.	531.25	122.32	29.91%
IN:MANALIPETC	Manali Petrochemicals Limited	68.42	-5.12	-6.97%
IN:SOTL	Savita Oil Technologies Limited	648.35	259.79	66.86%
IN:TNPETRO	Tamilnadu Petro Products Ltd.	114.55	-8.83	-7.16%
IN:VEEDOL	Veedol Corp. Ltd	1332.55	-361.59	-21.34%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 09, 2026

Kothari Petrochemicals Ltd. AI Stock Analysis