Last updated: 15:59
No Notes Added Yet
1. Business Overview
Kothari Sugars And Chemicals Ltd. is primarily engaged in the manufacturing of sugar. The company has diversified its operations to include an integrated value chain that processes sugarcane. Beyond sugar production, it operates a distillery for manufacturing ethanol and industrial alcohol from molasses (a byproduct of sugar), co-generates power from bagasse (another byproduct), and produces industrial chemicals. Its core business model focuses on leveraging byproducts to create additional revenue streams and enhance overall operational efficiency, reducing reliance solely on sugar price fluctuations.
2. Key Segments / Revenue Mix
The major business segments for Kothari Sugars And Chemicals Ltd. typically include:
Sugar: The primary segment, involving the crushing of sugarcane and production of various grades of sugar.
Distillery: Production of ethanol and industrial alcohol, primarily from molasses. This segment's contribution has been growing due to the government's ethanol blending program.
Co-generation: Generation and sale of electricity using bagasse. This segment provides energy cost savings and supplementary revenue.
Chemicals: Manufacturing and sale of various industrial chemicals, contributing to overall diversification.
While specific revenue percentages are not provided, sugar historically forms a significant portion, with distillery and co-generation segments increasingly contributing to the company's top line and profitability.
3. Industry & Positioning
The Indian sugar industry is highly regulated, cyclical, and largely dependent on monsoon patterns, sugarcane output, and government policies. It is characterized by numerous regional players rather than a few dominant national ones. Key factors include government-mandated sugarcane prices (FRP), minimum selling prices for sugar, and policies related to ethanol blending and international trade. Kothari Sugars And Chemicals Ltd. operates primarily in the southern Indian sugar belt (Tamil Nadu). It is an established regional player, known for its integrated operations that help mitigate some of the inherent cyclicality and risks of being a standalone sugar manufacturer, positioning it as a relatively diversified player within its regional market.
4. Competitive Advantage (Moat)
Kothari Sugars possesses certain competitive advantages:
Integrated Operations: The ability to convert sugarcane into sugar, molasses into ethanol, and bagasse into power provides multiple revenue streams and improves cost efficiency, reducing vulnerability to price swings in a single commodity.
Location & Raw Material Sourcing: Established presence and relationships with local sugarcane farmers in its operating region ensure a relatively consistent supply of raw material.
Moderate Entry Barriers: Setting up a sugar, distillery, or chemical plant requires substantial capital investment, technological know-how, and numerous regulatory approvals, making it challenging for new entrants.
Operational Scale (Regional): Within its specific geographic area, the company benefits from economies of scale in procurement, processing, and distribution.
5. Growth Drivers
Key factors that can drive growth for Kothari Sugars And Chemicals Ltd. over the next 3-5 years include:
Ethanol Blending Program (EBP): The Indian government's ambitious targets for increasing ethanol blending in petrol (E20 by 2025) will continue to drive demand and provide stable, often higher, margins for ethanol producers. Capacity expansion in distilleries will be a direct growth lever.
Stable Domestic Sugar Consumption: India's large and growing population ensures consistent domestic demand for sugar.
Improved Efficiency and Recovery Rates: Continuous improvements in sugar recovery rates from sugarcane and optimization of by-product utilization (e.g., enhanced power generation) can boost profitability.
Value-Added Products: Expansion or focus on higher-margin specialty chemicals or other value-added products could provide further diversification and growth.
6. Risks
Kothari Sugars faces several significant risks:
Monsoon Dependency & Sugarcane Availability: The sugar industry is agro-climatic dependent. Erratic monsoons, droughts, or pests can lead to sugarcane shortages, impacting crushing volumes and increasing raw material costs.
Government Policies & Regulations: The industry is heavily regulated. Changes in sugarcane pricing (FRP), minimum selling price (MSP) for sugar, export/import policies, and ethanol procurement prices/targets can significantly impact profitability and operational viability.
Commodity Price Volatility: Prices of sugar, ethanol, and chemicals are subject to global and domestic market fluctuations, which directly affect revenue and margins.
Working Capital & Debt Levels: Sugar mills typically require substantial working capital due to the seasonal nature of operations, making them sensitive to interest rate changes and access to financing.
Environmental Compliance: Stringent environmental regulations for sugar and distillery units can lead to increased capital expenditure and operational costs for compliance.
7. Management & Ownership
Kothari Sugars And Chemicals Ltd. is part of the C.M. Kothari Group, indicating it is a promoter-led company. In such structures, the promoter family typically holds a significant ownership stake, which generally aligns their interests with the long-term success of the business. Management quality in the sugar sector is crucial for navigating its cyclicality, managing farmer relationships for cane procurement, and effectively responding to evolving government policies and market dynamics. The company's long operating history suggests experienced leadership in the industry, though adaptability to new technologies and regulatory landscapes is vital.
8. Outlook
Kothari Sugars And Chemicals Ltd. operates in a sector with inherent cyclicality and regulatory sensitivity. Its integrated business model, encompassing sugar, distillery (ethanol), co-generation, and chemicals, offers a degree of resilience by diversifying revenue streams beyond pure sugar sales. The government's strong push for ethanol blending presents a significant tailwind for the distillery segment, providing a relatively stable and higher-margin growth avenue. However, the company remains highly exposed to the vagaries of monsoon, fluctuations in sugarcane availability and cost, and unpredictable shifts in government policies concerning sugar and ethanol. While stable domestic demand for sugar provides a baseline, sustained profitability and growth will depend on efficient operational management, prudent capacity expansion in value-added segments, and adept navigation of the complex regulatory and climatic risks inherent in the Indian sugar industry.
Our experts help you choose the right stocks based on performance, risk, and growth potential.
Market Cap ₹206 Cr.
Stock P/E 19.8
P/B 0.7
Current Price ₹24.9
Book Value ₹ 35.7
Face Value 10
52W High ₹41.4
Dividend Yield 0%
52W Low ₹ 22.5
Price goes above X
Price falls below X
PE goes above X
PE falls below X
₹ | |
| #(Fig in Cr.) | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 132 | 94 | 90 | 102 | 83 | 36 | 67 | 68 | 70 | 42 |
| Other Income | 4 | 5 | 4 | 4 | 3 | 6 | 4 | 2 | 3 | 2 |
| Total Income | 136 | 100 | 94 | 105 | 86 | 42 | 71 | 70 | 73 | 44 |
| Total Expenditure | 133 | 91 | 89 | 91 | 79 | 39 | 66 | 76 | 76 | 45 |
| Operating Profit | 4 | 8 | 5 | 14 | 6 | 3 | 5 | -6 | -3 | -1 |
| Interest | 0 | 1 | 2 | 1 | 0 | 1 | 2 | 1 | 1 | 1 |
| Depreciation | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 | 6 | 0 | 2 | 0 | 20 | 0 |
| Profit Before Tax | -0 | 4 | -1 | 10 | 9 | -1 | 2 | -11 | 12 | -6 |
| Provision for Tax | -1 | -2 | -0 | 3 | 3 | -0 | 0 | -4 | 0 | -6 |
| Profit After Tax | 1 | 6 | -1 | 6 | 5 | -1 | 1 | -7 | 12 | 1 |
| Adjustments | 0 | 0 | 0 | 0 | -0 | 0 | 0 | 0 | 0 | 0 |
| Profit After Adjustments | 1 | 6 | -1 | 6 | 5 | -1 | 1 | -7 | 12 | 1 |
| Adjusted Earnings Per Share | 0.1 | 0.7 | -0.1 | 0.8 | 0.7 | -0.1 | 0.2 | -0.9 | 1.4 | 0.1 |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 340 | 247 | 317 | 287 | 332 | 353 | 419 | 423 | 610 | 503 | 310 | 247 |
| Other Income | 11 | 7 | 5 | 5 | 17 | 4 | 5 | 7 | 9 | 15 | 16 | 11 |
| Total Income | 351 | 253 | 322 | 292 | 350 | 357 | 424 | 430 | 619 | 518 | 326 | 258 |
| Total Expenditure | 331 | 229 | 280 | 259 | 302 | 325 | 387 | 374 | 549 | 458 | 298 | 263 |
| Operating Profit | 21 | 24 | 42 | 33 | 47 | 33 | 37 | 56 | 69 | 60 | 29 | -5 |
| Interest | 5 | 7 | 8 | 6 | 7 | 7 | 5 | 4 | 4 | 4 | 4 | 5 |
| Depreciation | 16 | 15 | 15 | 14 | 13 | 13 | 14 | 14 | 14 | 14 | 15 | 16 |
| Exceptional Income / Expenses | 0 | 0 | -6 | -10 | -5 | 6 | 5 | 1 | 4 | 0 | 6 | 22 |
| Profit Before Tax | -0 | 3 | 13 | 3 | 23 | 19 | 23 | 39 | 55 | 42 | 17 | -3 |
| Provision for Tax | 4 | 2 | 2 | 2 | 10 | -0 | 4 | 5 | 13 | 12 | 6 | -10 |
| Profit After Tax | -5 | 1 | 10 | 0 | 13 | 19 | 19 | 34 | 42 | 29 | 10 | 7 |
| Adjustments | 0 | 0 | 0 | 0 | 0 | 0 | 1 | -0 | 0 | -0 | 0 | 0 |
| Profit After Adjustments | -5 | 1 | 10 | 0 | 13 | 19 | 20 | 34 | 42 | 29 | 11 | 7 |
| Adjusted Earnings Per Share | -0.5 | 0.1 | 1.3 | 0.1 | 1.5 | 2.3 | 2.3 | 4.1 | 5.1 | 3.6 | 1.3 | 0.8 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | -38% | -10% | -3% | -1% |
| Operating Profit CAGR | -52% | -20% | -3% | 3% |
| PAT CAGR | -66% | -33% | -12% | 0% |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Share Price CAGR | -39% | -13% | -10% | 5% |
| ROE Average | 4% | 11% | 12% | 8% |
| ROCE Average | 6% | 14% | 14% | 10% |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Shareholder's Funds | 121 | 119 | 132 | 139 | 152 | 166 | 186 | 220 | 258 | 278 | 289 |
| Minority's Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Borrowings | 107 | 92 | 54 | 36 | 30 | 5 | 7 | 0 | 0 | 0 | 0 |
| Other Non-Current Liabilities | 32 | 30 | 30 | 28 | 33 | 30 | 29 | 28 | 32 | 37 | 36 |
| Total Current Liabilities | 98 | 127 | 164 | 166 | 176 | 172 | 117 | 146 | 143 | 168 | 124 |
| Total Liabilities | 358 | 368 | 380 | 370 | 391 | 373 | 340 | 394 | 432 | 483 | 450 |
| Fixed Assets | 209 | 195 | 190 | 177 | 166 | 171 | 161 | 152 | 151 | 163 | 149 |
| Other Non-Current Assets | 5 | 7 | 4 | 16 | 3 | 2 | 2 | 8 | 33 | 25 | 30 |
| Total Current Assets | 144 | 167 | 186 | 177 | 222 | 200 | 177 | 235 | 248 | 295 | 271 |
| Total Assets | 358 | 368 | 380 | 370 | 391 | 373 | 340 | 394 | 432 | 483 | 450 |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Opening Cash & Cash Equivalents | 1 | 7 | 15 | 1 | 2 | -73 | -72 | -21 | -48 | -37 | -69 |
| Cash Flow from Operating Activities | -13 | 25 | 25 | 37 | 26 | 27 | 82 | -3 | 45 | 16 | 52 |
| Cash Flow from Investing Activities | 1 | 4 | -10 | 0 | -11 | 3 | -29 | -13 | -19 | -36 | -28 |
| Cash Flow from Financing Activities | 18 | -22 | -28 | -36 | -10 | -30 | -1 | -11 | -15 | -12 | -4 |
| Net Cash Inflow / Outflow | 6 | 8 | -14 | 1 | 5 | 0 | 51 | -27 | 11 | -32 | 21 |
| Closing Cash & Cash Equivalent | 7 | 15 | 1 | 2 | 7 | -72 | -21 | -48 | -37 | -69 | -48 |
| # | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Per Share (Rs) | -0.55 | 0.14 | 1.26 | 0.06 | 1.53 | 2.34 | 2.29 | 4.11 | 5.06 | 3.56 | 1.26 |
| CEPS(Rs) | 1.38 | 1.91 | 3.03 | 1.73 | 3.08 | 3.91 | 3.96 | 5.81 | 6.75 | 5.28 | 3.03 |
| DPS(Rs) | 0 | 0 | 0.5 | 0 | 0.5 | 0 | 0 | 0 | 1 | 0.5 | 0 |
| Book NAV/Share(Rs) | 14.08 | 14.22 | 15.94 | 16.81 | 18.35 | 20.09 | 22.47 | 26.54 | 31.07 | 33.6 | 34.9 |
| Core EBITDA Margin(%) | 2.7 | 7.01 | 11.03 | 9.64 | 9.02 | 8.01 | 7.78 | 11.71 | 9.93 | 8.81 | 3.95 |
| EBIT Margin(%) | 1.36 | 3.88 | 6.28 | 3.16 | 8.99 | 7.38 | 6.8 | 10.25 | 9.62 | 9.03 | 6.55 |
| Pre Tax Margin(%) | -0.1 | 1.09 | 3.82 | 0.92 | 6.87 | 5.39 | 5.59 | 9.28 | 8.98 | 8.33 | 5.4 |
| PAT Margin (%) | -1.31 | 0.46 | 3.18 | 0.17 | 3.83 | 5.5 | 4.53 | 8.03 | 6.87 | 5.86 | 3.36 |
| Cash Profit Margin (%) | 3.29 | 6.22 | 7.62 | 4.94 | 7.68 | 9.18 | 7.82 | 11.35 | 9.17 | 8.7 | 8.08 |
| ROA(%) | -1.22 | 0.32 | 2.8 | 0.13 | 3.34 | 5.08 | 5.33 | 9.27 | 10.15 | 6.45 | 2.24 |
| ROE(%) | -3.82 | 1 | 8.39 | 0.35 | 8.72 | 12.19 | 10.78 | 16.75 | 17.56 | 11 | 3.67 |
| ROCE(%) | 1.73 | 3.41 | 7.23 | 3.41 | 11.33 | 10.06 | 12.09 | 17.45 | 20.57 | 14.13 | 5.93 |
| Receivable days | 11.25 | 12.54 | 12.89 | 20.02 | 19.31 | 23.09 | 21.07 | 19.77 | 15.86 | 18.16 | 22.95 |
| Inventory Days | 105.87 | 154.74 | 144.07 | 170.79 | 146.14 | 135.86 | 91.2 | 91.85 | 78.76 | 110 | 155.72 |
| Payable days | 56.81 | 64.18 | 69.28 | 115.63 | 123.6 | 115.12 | 93.49 | 103.35 | 70.26 | 92.98 | 126.95 |
| PER(x) | 0 | 75.35 | 10.71 | 205.45 | 6.2 | 3.65 | 11.96 | 8.66 | 6.9 | 14.46 | 25.69 |
| Price/Book(x) | 0.44 | 0.75 | 0.85 | 0.71 | 0.52 | 0.43 | 1.22 | 1.34 | 1.12 | 1.53 | 0.93 |
| Dividend Yield(%) | 0 | 0 | 3.69 | 0 | 5.26 | 0 | 0 | 0 | 2.87 | 0.97 | 0 |
| EV/Net Sales(x) | 0.61 | 1.01 | 0.81 | 0.75 | 0.56 | 0.44 | 0.63 | 0.83 | 0.54 | 0.99 | 1.02 |
| EV/Core EBITDA(x) | 10.08 | 10.16 | 6.14 | 6.5 | 3.95 | 4.71 | 7.04 | 6.2 | 4.72 | 8.3 | 11.03 |
| Net Sales Growth(%) | 5.11 | -27.47 | 28.46 | -9.42 | 15.79 | 6.2 | 18.9 | 0.95 | 44.04 | -17.58 | -38.33 |
| EBIT Growth(%) | -67.44 | 107.91 | 109.93 | -55.68 | 225.71 | -12.8 | 9.64 | 52.25 | 35.16 | -22.64 | -55.24 |
| PAT Growth(%) | -262.85 | 125.94 | 790.58 | -95.42 | 2547.45 | 52.76 | -2.05 | 78.94 | 23.19 | -29.65 | -64.65 |
| EPS Growth(%) | -262.83 | 125.93 | 790.7 | -95.42 | 2547.39 | 52.76 | -2.05 | 78.94 | 23.19 | -29.65 | -64.65 |
| Debt/Equity(x) | 1.34 | 1.48 | 1.1 | 0.86 | 0.76 | 0.5 | 0.19 | 0.25 | 0.15 | 0.25 | 0.17 |
| Current Ratio(x) | 1.46 | 1.31 | 1.14 | 1.07 | 1.26 | 1.16 | 1.51 | 1.61 | 1.74 | 1.76 | 2.18 |
| Quick Ratio(x) | 0.45 | 0.4 | 0.26 | 0.3 | 0.47 | 0.44 | 0.78 | 0.74 | 0.79 | 0.76 | 1.4 |
| Interest Cover(x) | 0.93 | 1.39 | 2.55 | 1.41 | 4.24 | 3.71 | 5.6 | 10.6 | 15.09 | 12.89 | 5.69 |
| Total Debt/Mcap(x) | 3.18 | 1.98 | 1.3 | 1.22 | 1.47 | 1.18 | 0.16 | 0.19 | 0.13 | 0.16 | 0.18 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 73.53 | 73.53 | 73.53 | 73.53 | 73.53 | 73.53 | 73.53 | 73.53 | 73.53 | 73.53 |
| FII | 0.66 | 0.66 | 0.65 | 0.62 | 0.6 | 0.56 | 0.59 | 0.22 | 0.17 | 0.16 |
| DII | 0.84 | 0.69 | 0.67 | 0.67 | 0.67 | 0.67 | 0.65 | 0.65 | 0.63 | 0.5 |
| Public | 24.97 | 25.12 | 25.14 | 25.18 | 25.2 | 25.24 | 25.23 | 25.61 | 25.67 | 25.8 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 6.09 | 6.09 | 6.09 | 6.09 | 6.09 | 6.09 | 6.09 | 6.09 | 6.09 | 6.09 |
| FII | 0.05 | 0.06 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.02 | 0.01 | 0.01 |
| DII | 0.07 | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 | 0.05 | 0.05 | 0.05 | 0.04 |
| Public | 2.07 | 2.08 | 2.08 | 2.09 | 2.09 | 2.09 | 2.09 | 2.12 | 2.13 | 2.14 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 8.29 | 8.29 | 8.29 | 8.29 | 8.29 | 8.29 | 8.29 | 8.29 | 8.29 | 8.29 |
* The pros and cons are machine generated.
You May Also Know About
Looking to buy unlisted shares or need guidance on the investment process? Our expert Private Equity Advisors are here to assist you with accurate information, real-time pricing, and seamless execution.
Want to sell unlisted shares, liquidate your ESOPs, or understand the step-by-step process of liquidation? Connect with our Buying Team for smooth coordination, quick evaluations, and end-to-end support.
Planning to build or grow your portfolio? For Mutual Fund investments, PMS solutions, tailored portfolio creation, and overall wealth management, our dedicated Wealth Team is ready to guide you.