Kothari Indl (509732)

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

Strengths

• Sales grew 101.71%, with latest quarter revenue of ₹51 Cr, showing strong top-line traction.
• Fertilizer demand in India is structural and essential, providing a basic industry tailwind.
• Market cap of ₹47 Cr is small relative to latest quarter sales, offering high revenue leverage if margins ever normalize.
• Low absolute price of ₹11.04 and small size could attract strategic interest in a distress-sale scenario.

Concerns

• Latest quarter net loss of ₹19 Cr is nearly equal to the implied total book value of about ₹21 Cr, threatening solvency.
• ROE of -33.13% and ROCE of -12.59% show severe capital destruction, yet P/B is 2.20.
• P/E of 0.00 and profit growth of -426.70% mean there is no earnings support for the valuation.
• Piotroski F-score of 3/9 and missing debt/promoter data, plus an inconsistent 52-week range, raise data and governance red flags.

AI Analysis

Let me be blunt: this is not the kind of business I want to own. Kothari Indl is a fertilizer maker, and fertilizer is largely a commodity business with no pricing power. The numbers here are deeply troubling. The company trades at ₹11.04, while book value is ₹5.01, so I am being asked to pay 2.2 times book for a business earning -33.13% on equity and -12.59% on capital. That is not compounding; it is value destruction. A P/E of 0.00 and profit growth of -426.70% tell me there are no earnings to justify the price. Latest quarter sales were ₹51 Cr, but the net loss was ₹19 Cr. With market cap of ₹47 Cr and book value of ₹5.01 per share, total equity is roughly ₹21 Cr. One more quarter like this would wipe out almost the entire book value. Sales growth of 101.71% looks exciting, but growing sales while losing money only accelerates the cash burn. The Piotroski F-score of 3/9 supports my worry about financial health. Also, the reported 52-week range of ₹155.00-624.95 against a current price of ₹11.04 is impossible to reconcile; either the data are stale or unadjusted, and I cannot invest with unreliable numbers. There is no dividend to pay me while I wait. Graham taught me to demand a margin of safety, but at 2.2 times book with negative returns, no margin exists. This is a cyclical, commodity business under financial stress. Before I even consider it, I need debt numbers, promoter holding, and several quarters of margin improvement. Today, this goes into the too-hard pile.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer