WEBSITE BSE:544726 NSE: KOTYARK Inc. Year: 2016 Industry: Agriculture My Bucket: Add Stock
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1. Business Overview
Kotyark Industries Ltd. is an Indian company primarily engaged in the manufacturing and marketing of organic agricultural inputs. Its core business revolves around producing and distributing various organic fertilizers, soil conditioners, and plant growth promoters. The company aims to provide eco-friendly solutions to enhance soil health, improve crop yield, and boost plant immunity. It generates revenue primarily through the sale of these agricultural input products to farmers, often through a network of distributors and dealers.
2. Key Segments / Revenue Mix
The company operates predominantly within a single business segment: the manufacturing and sale of organic agricultural inputs. While it offers a range of products such as specific organic fertilizers, soil conditioners, and plant growth promoters (e.g., under brands like "Jeevan," "Bhumistar"), these are all part of a cohesive product portfolio targeting sustainable farming practices. Specific granular revenue breakdowns by individual product line are typically not disclosed for companies of this size.
3. Industry & Positioning
Kotyark operates in the highly competitive and fragmented Indian agricultural inputs market, specifically within the growing niche of organic and bio-agricultural products. This market is characterized by a mix of large established players (for conventional fertilizers/pesticides) and numerous smaller, regional players specializing in organic/bio-products. Kotyark is a relatively small player, listed on the BSE SME platform, and likely competes on product efficacy, regional distribution strength, and pricing within its chosen niche. Its positioning is as a provider of sustainable farming solutions.
4. Competitive Advantage (Moat)
Given its size and the nature of its products, Kotyark's competitive advantages are likely modest. Potential advantages could include:
Niche Specialization: A focused product portfolio in organic/bio-fertilizers caters to a specific, growing segment of farmers.
Regional Distribution Network: Establishing a strong, reliable network of distributors and dealers in its operating regions.
Product Formulation/Efficacy: Perceived effectiveness of its proprietary organic formulations, although this can be replicated over time.
True scale advantages, deep technology moats, or strong consumer brands are generally absent for companies of this profile.
5. Growth Drivers
Increasing Demand for Organic Farming: Growing awareness and adoption of organic and sustainable agricultural practices among Indian farmers.
Government Initiatives: Supportive policies, subsidies, and schemes from the government promoting organic farming and eco-friendly agricultural inputs.
Market Expansion: Expanding its distribution network into new geographies within India to reach a broader farmer base.
Product Portfolio Expansion: Introducing new and innovative organic/bio-products to cater to diverse crop and soil needs, leveraging R&D efforts.
Farmer Education: Increased education and outreach programs by the company or industry bodies leading to greater adoption of specialized organic inputs.
6. Risks
Monsoon Dependency: The agricultural sector in India is heavily reliant on monsoon patterns; erratic or poor monsoons can significantly impact crop yields and farmer purchasing power for inputs.
Raw Material Volatility: Fluctuations in the availability and prices of organic raw materials can affect production costs and profit margins.
Intense Competition: Facing competition from larger, established players as well as numerous other small to medium-sized companies in the organic inputs segment.
Regulatory Changes: Changes in agricultural policies, subsidies, or product approval processes can impact business operations.
Distribution Challenges: Difficulty in expanding and maintaining an effective and efficient distribution network across diverse agricultural regions.
Product Efficacy & Perception: The performance of organic products can be subjective and highly dependent on various environmental factors, potentially impacting farmer trust and repeat purchases.
7. Management & Ownership
Kotyark Industries Ltd. is a promoter-driven company. The promoter group typically holds a significant majority stake, indicating strong control and long-term commitment to the business. The management team likely consists of individuals with experience in the agricultural sector, particularly in the manufacturing and marketing of agricultural inputs. For an SME-listed company, the promoter family often plays a direct and active role in day-to-day operations and strategic direction.
8. Outlook
Kotyark Industries operates in a promising niche within the Indian agricultural sector, driven by the increasing shift towards organic and sustainable farming practices. The growing awareness among farmers about soil health and eco-friendly solutions, coupled with supportive government initiatives, provides a favorable backdrop for demand for its organic fertilizers and soil conditioners. However, the company faces significant challenges typical of a small-cap player in a competitive and monsoon-dependent market. Its ability to achieve sustained growth hinges on effectively expanding its distribution network, consistently demonstrating product efficacy, navigating raw material price volatility, and competing against numerous regional and national players. While it is poised to benefit from macro trends in organic agriculture, its small scale and dependency on agricultural cycles suggest a potentially volatile growth path.
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Market Cap ₹462 Cr.
Stock P/E 32
P/B 2.6
Current Price ₹449
Book Value ₹ 175.8
Face Value 10
52W High ₹463.2
Dividend Yield 1.11%
52W Low ₹ 191.2
Price goes above X
Price falls below X
PE goes above X
PE falls below X
₹ | |
| #(Fig in Cr.) | Dec 2022 | Mar 2025 | Mar 2026 |
|---|---|---|---|
| Net Sales | 36 | 20 | 64 |
| Other Income | 0 | 0 | 0 |
| Total Income | 36 | 20 | 64 |
| Total Expenditure | 29 | 14 | 45 |
| Operating Profit | 6 | 6 | 19 |
| Interest | 0 | 2 | 2 |
| Depreciation | 0 | 4 | 3 |
| Exceptional Income / Expenses | 0 | 0 | 0 |
| Profit Before Tax | 6 | 0 | 14 |
| Provision for Tax | 1 | -1 | 4 |
| Profit After Tax | 4 | 2 | 9 |
| Adjustments | 0 | -0 | -0 |
| Profit After Adjustments | 4 | 1 | 9 |
| Adjusted Earnings Per Share | 4.9 | 1.4 | 9.1 |
| #(Fig in Cr.) | Mar 2023 | Mar 2024 | Mar 2025 | TTM |
|---|---|---|---|---|
| Net Sales | 131 | 271 | 288 | 120 |
| Other Income | 0 | 1 | 1 | 0 |
| Total Income | 131 | 272 | 289 | 120 |
| Total Expenditure | 106 | 227 | 246 | 88 |
| Operating Profit | 25 | 45 | 43 | 31 |
| Interest | 3 | 7 | 8 | 4 |
| Depreciation | 2 | 8 | 15 | 7 |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 |
| Profit Before Tax | 19 | 31 | 20 | 20 |
| Provision for Tax | 5 | 8 | 6 | 4 |
| Profit After Tax | 14 | 22 | 14 | 15 |
| Adjustments | 0 | 0 | -0 | 0 |
| Profit After Adjustments | 14 | 22 | 14 | 14 |
| Adjusted Earnings Per Share | 16.4 | 21.6 | 14 | 15.4 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | 6% | 0% | 0% | 0% |
| Operating Profit CAGR | -4% | 0% | 0% | 0% |
| PAT CAGR | -36% | 0% | 0% | 0% |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Share Price CAGR | 9% | -2% | NA% | NA% |
| ROE Average | 10% | 16% | 16% | 16% |
| ROCE Average | 13% | 19% | 19% | 19% |
| #(Fig in Cr.) | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|
| Shareholder's Funds | 77 | 144 | 143 |
| Minority's Interest | 0 | 0 | 0 |
| Borrowings | 16 | 31 | 29 |
| Other Non-Current Liabilities | 1 | 1 | 0 |
| Total Current Liabilities | 22 | 46 | 62 |
| Total Liabilities | 115 | 222 | 235 |
| Fixed Assets | 26 | 74 | 67 |
| Other Non-Current Assets | 30 | 11 | 17 |
| Total Current Assets | 59 | 137 | 150 |
| Total Assets | 115 | 222 | 235 |
| #(Fig in Cr.) | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|
| Opening Cash & Cash Equivalents | 1 | 0 | 5 |
| Cash Flow from Operating Activities | 10 | -16 | 31 |
| Cash Flow from Investing Activities | -32 | -53 | -13 |
| Cash Flow from Financing Activities | 22 | 74 | -22 |
| Net Cash Inflow / Outflow | -0 | 5 | -5 |
| Closing Cash & Cash Equivalent | 0 | 5 | 0 |
| # | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|
| Earnings Per Share (Rs) | 16.42 | 21.6 | 13.96 |
| CEPS(Rs) | 18.65 | 29.63 | 28.87 |
| DPS(Rs) | 5 | 7.5 | 8.5 |
| Book NAV/Share(Rs) | 86.78 | 140.21 | 139.17 |
| Core EBITDA Margin(%) | 18.77 | 16.42 | 14.75 |
| EBIT Margin(%) | 17.3 | 13.71 | 9.71 |
| Pre Tax Margin(%) | 14.77 | 11.29 | 7.03 |
| PAT Margin (%) | 10.95 | 8.19 | 5 |
| Cash Profit Margin (%) | 12.44 | 11.24 | 10.3 |
| ROA(%) | 12.46 | 13.18 | 6.32 |
| ROE(%) | 18.93 | 20.19 | 10.04 |
| ROCE(%) | 20.47 | 23.02 | 13.19 |
| Receivable days | 37.87 | 32.35 | 27.91 |
| Inventory Days | 101.91 | 81.59 | 134.86 |
| Payable days | 0 | 0 | 10.02 |
| PER(x) | 18.37 | 56.08 | 22.25 |
| Price/Book(x) | 3.48 | 8.64 | 2.23 |
| Dividend Yield(%) | 1.66 | 0.62 | 2.74 |
| EV/Net Sales(x) | 2.27 | 4.83 | 1.35 |
| EV/Core EBITDA(x) | 12.08 | 28.8 | 8.97 |
| Net Sales Growth(%) | 0 | 106.88 | 6.31 |
| EBIT Growth(%) | 0 | 64 | -24.69 |
| PAT Growth(%) | 0 | 54.75 | -35.07 |
| EPS Growth(%) | 0 | 31.5 | -35.36 |
| Debt/Equity(x) | 0.45 | 0.47 | 0.48 |
| Current Ratio(x) | 2.74 | 2.98 | 2.43 |
| Quick Ratio(x) | 1.04 | 1.14 | 0.35 |
| Interest Cover(x) | 6.86 | 5.67 | 3.62 |
| Total Debt/Mcap(x) | 0.13 | 0.05 | 0.22 |
| # | Mar 2022 | Sep 2022 | Mar 2023 | Sep 2023 | Mar 2024 | Sep 2024 | Mar 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 72.22 | 69.05 | 69.17 | 69.17 | 67.65 | 67.65 | 67.76 | 67.76 | 66.88 | 63.84 |
| FII | 0 | 0 | 0 | 0 | 0.94 | 0.94 | 1.06 | 1.06 | 1.03 | 1.03 |
| DII | 0 | 0.78 | 1.16 | 0 | 0.6 | 0.56 | 0 | 0 | 0 | 0 |
| Public | 27.78 | 30.17 | 29.67 | 30.83 | 30.81 | 30.85 | 31.18 | 31.18 | 32.1 | 35.13 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Mar 2022 | Sep 2022 | Mar 2023 | Sep 2023 | Mar 2024 | Sep 2024 | Mar 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 0.6 | 0.6 | 0.6 | 0.6 | 0.7 | 0.7 | 0.7 | 0.7 | 0.69 | 0.66 |
| FII | 0 | 0 | 0 | 0 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| DII | 0 | 0.01 | 0.01 | 0 | 0.01 | 0.01 | 0 | 0 | 0 | 0 |
| Public | 0.23 | 0.26 | 0.26 | 0.27 | 0.32 | 0.32 | 0.32 | 0.32 | 0.33 | 0.36 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 0.83 | 0.87 | 0.87 | 0.87 | 1.03 | 1.03 | 1.03 | 1.03 | 1.03 | 1.03 |
* The pros and cons are machine generated.
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