Sadhana Nitro Chem Limited (SADHNANIQ) AI Stock Analysis

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Sadhana Nitro Chem Limited

(NSE:SADHNANIQ)

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Rating:43Neutral

Price Target:INR 2.50▼(-2.72% Downside)

Action:reiterated

Date:10/15/26

The score is driven primarily by weak financial performance, including a sharp 2026 revenue decline, deeply negative profitability, and sustained cash burn, only partially offset by improved leverage. Technicals add downside pressure with the price below key moving averages and negative MACD, while valuation offers limited support due to a negative P/E and only a modest dividend yield.

Positive Factors

Improved LeverageThe substantial reduction in debt-to-equity improves balance-sheet resilience and lowers the financial burden relative to the equity base. If operating performance recovers, this stronger capital structure should provide greater flexibility for funding operations, investment, and working-capital needs.

Negative Factors

Revenue CollapseA revenue decline of this magnitude indicates a severe contraction in the company’s current business activity and weakens operating leverage. Deeply negative margins mean lower sales are translating into disproportionate earnings damage, making recovery in demand and execution critical over coming quarters.

Sadhana Nitro Chem Limited (SADHNANIQ) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 7.37B
Dividend Yield: 1.10%
Average Volume (3M): 487.53K
Price to Earnings (P/E): -1.7
Beta (1Y): 1.00
Revenue Growth: -24.31%
EPS Growth: -473.28%
Country: India
Employees: 190
Sector: General
Sector Strength: 55
Industry: Chemicals - Specialty

Sadhana Nitro Chem Limited Business Overview & Revenue Model

Company Description

Sadhana Nitro Chem Ltd. specializes in the production and supply of a diverse array of chemical products, including intermediates, heavy organic compounds, and high-performance chemicals. Additionally, the company provides wireless network equipment...

Sadhana Nitro Chem Limited Financial Statement Overview

Summary

Financial results are severely pressured by the latest annual period (2026): revenue fell ~58%, margins turned deeply negative, and the company posted a large net loss. Cash flow is also weak with operating cash flow and free cash flow negative and worsening in 2026, indicating ongoing cash burn. The main positive is improved leverage (debt-to-equity ~0.25), but profitability and cash generation have not stabilized.

Income Statement

18Very Negative

Balance Sheet

52Neutral

Cash Flow

24Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	888.40M	496.70M	1.66B	1.89B	1.42B	1.30B
Gross Profit	20.70M	-423.80M	1.03B	983.25M	689.31M	548.97M
EBITDA	-267.30M	-445.00M	441.90M	445.34M	211.63M	175.08M
Net Income	-579.40M	-864.20M	75.60M	40.82M	31.78M	62.25M
Balance Sheet
Total Assets	6.70B	6.58B	6.37B	5.32B	4.26B	3.86B
Cash, Cash Equivalents and Short-Term Investments	52.40M	137.71M	112.10M	60.52M	70.95M	129.67M
Total Debt	688.90M	1.13B	2.47B	2.33B	1.39B	1.16B
Total Liabilities	2.02B	2.03B	3.56B	3.05B	2.00B	2.26B
Stockholders Equity	4.68B	4.54B	2.81B	2.27B	2.26B	1.60B
Cash Flow
Free Cash Flow	0	-1.33B	-457.10M	-685.02M	-861.17M	-457.73M
Operating Cash Flow	0	-688.80M	478.70M	-23.82M	-378.15M	-47.02M
Investing Cash Flow	0	-470.60M	-885.60M	-648.60M	-527.80M	-388.15M
Financing Cash Flow	0	1.34B	246.70M	411.80M	716.39M	455.27M

Sadhana Nitro Chem Limited Technical Analysis

Technical Analysis SentimentPositive

Last Price2.57

Price Trends

50DMA2.54Positive

100DMA2.70Negative

200DMA2.36Positive

Market Momentum

MACD-0.03Negative

RSI58.65Neutral

STOCH86.02Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SADHNANIQ, the sentiment is Positive. The current price of 2.57 is above the 20-day moving average (MA) of 2.26, above the 50-day MA of 2.54, and above the 200-day MA of 2.36, indicating a bullish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 58.65 is Neutral, neither overbought nor oversold. The STOCH value of 86.02 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:SADHNANIQ.

Sadhana Nitro Chem Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:SADHNANIQ against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:ALKYLAMINE	65Neutral	INR 82.57B	33.28	―	0.62%	13.38%	35.82%
IN:BALAMINES	58Neutral	INR 59.05B	25.45	―	0.59%	20.91%	62.44%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:NEOGEN	50Neutral	INR 83.35B	191.31	―	0.04%	26.66%	51.16%
IN:BODALCHEM	47Neutral	INR 20.27B	14.20	―	―	44.89%	306.54%
IN:LXCHEM	46Neutral	INR 45.90B	26.46	―	0.18%	21.34%	105.39%
IN:SADHNANIQ	43Neutral	INR 7.43B	-1.66	―	1.10%	-24.31%	-473.28%

* General Sector Average

Performance Comparison

IN:SADHNANIQ and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:SADHNANIQ	Sadhana Nitro Chem Limited	2.57	0.71	37.88%
IN:ALKYLAMINE	Alkyl Amines Chemicals Limited	1608.65	-154.90	-8.78%
IN:BALAMINES	Balaji Amines Limited	1865.65	642.01	52.47%
IN:BODALCHEM	Bodal Chemicals Limited	162.60	104.93	181.95%
IN:LXCHEM	Laxmi Organic Industries Ltd.	163.95	-23.68	-12.62%
IN:NEOGEN	Neogen Chemicals Ltd.	2856.90	1640.29	134.82%

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: Oct 15, 2026

Sadhana Nitro Chem Limited AI Stock Analysis