Kothari Petroche (KOTHARIPET)

FairStock Score: 51/100 — MIXED

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at Kothari Petroche through a Graham lens: price versus book and earnings, plus balance-sheet safety. At ₹143.92, market cap ₹847 Cr, P/E 11.68 and P/B 2.28 with book value ₹63.26. That is not a bargain-bin asset play, but the earnings yield is attractive if profits hold. The quality markers are the real draw: ROE 21.37%, ROCE 29.99%, and debt/equity 0.01. A business earning 30% on capital with virtually no debt usually has some pricing power, niche chemistry, or cost advantage, even in petrochemicals. Piotroski 7/9 supports improving fundamentals, and promoter holding 72.22% aligns owners with shareholders. Dividend yield 1.39% is modest but a positive. Growth is the puzzle. Five-year revenue CAGR of 21.09% shows it can compound, yet latest Sales Growth is 0.00% and Profit Growth 3.20%. The latest quarter had ₹135 Cr sales and ₹19 Cr net profit, so profitability remains healthy, but the top line has stalled. PEG 0.39 suggests the market is not paying much for growth; P/E 11.68 is reasonable. FairStock Score 51/100 mixed confirms this isn't a slam dunk. The 52-week range ₹94.75–₹155.47 shows the stock has rerated but not euphorically. If I owned it, I would demand that sales reaccelerate while ROCE stays near 30% and debt stays negligible. The moat may be modest in a cyclical petrochemical business, so I would not overpay. At this price, it looks like a reasonably valued cyclical with quality balance sheet; a watchlist candidate, not a blind buy.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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