Kothari Petrochemicals Ltd

About Company
Kothari Petrochemicals Limited, the biggest manufacturer of premium polyisobutylene (PIB) in India, is a member of the well-known HC Kothari Group. The Chennai-based company, which was founded in 1989, produces polyisobutylene and exports its goods to more than 20 nations.

Business Segments
The main business division of Kothari Petrochemicals is the production and distribution of Polyisobutylene (PIB), a specialty petrochemical utilized in the adhesive, sealant, lubricant, and pharmaceutical industries. Their goods meet the demands of numerous downstream businesses that need premium PIB as a raw material, and they are sold in both domestic and foreign markets. By concentrating on this particular market, the company has been able to grow its export base internationally and hold a solid position as India's top manufacturer of polyisobutylene. Kothari Petrochemicals offers a variety of industrial applications and adds to the petrochemical value chain with its unique manufacturing capabilities.

Company's Facilities
Operating a state-of-the-art manufacturing facility near Manali, Chennai, Kothari Petrochemicals produces premium polyisobutylene (PIB) using this facility. To meet worldwide requirements, the plant is built to ensure effective processing and stringent quality control. The company's position as a top producer is supported by this facility, which allows it to serve both domestic and international markets efficiently. To ensure continued growth and competitiveness in the petrochemical sector, the company has research and development infrastructure in addition to production capabilities to innovate and enhance its product offerings.

Production Capacity
At its manufacturing facility at Manali, Chennai, Kothari Petrochemicals can produce about 3,000 metric tons of polyisobutylene (PIB) annually. This capability supports the company's position as a top PIB producer in India by allowing it to satisfy the demand for its speciality petrochemical products in both home and foreign markets. Maintaining and improving this capacity for effective manufacturing and reliable product quality is a constant emphasis of the business.

Future Plans
As part of its long-term growth strategy, Kothari Petrochemicals intends to expand its activities by paying ₹74 crore for land in Andhra Pradesh. The goal of this development is to address the growing domestic demand for polyisobutylene (PIB) and support expanded manufacturing capacity. The company's revenue has increased, indicating robust market demand, despite a recent drop in profit brought on by changes in the raw material mix. The expansion plan supports Kothari Petrochemicals' objective of preserving its market-leading position in PIBs and improving its production capacity for future expansion.

Financial Prospects of the Company

• The market capitalisation of the company is 857 crores

• The current stock price is 146

• The earnings per share (EPS) is 10.9

• The price-to-earnings (PE) ratio is 13.4

• The book value (PB) ratio is 52.0

• The price-to-book value (PE x PB) ratio is 37.4

• The return on equity (ROE) of the 23.8%

• The return on capital employed (ROCE) is 30.0%

• The annual dividend yield is 0.69%

The company's sales and profits in the last 5 years
In FY 2020-21, sales were 227 crores and profits were 23 crores. In FY 2021-22, sales were 382 crores and profits were 33 crores. In FY 2022-23, sales were 482 crores and profits were 39 crores. In FY 2023-24, sales were 596 crores and profits were 64 crores. In FY 2024-25, sales were 577 crores and profits were 66 crores

The company's sales and profits growth in the last 5 years
In the last 5 years, sales growth was 16.2% and profit growth was 30.7%. In the last 3 years, sales growth was 14.8% and profit growth was 24.4%. In last 1 year, sales growth was 4.37% and profit growth was -5.45%.

Investors

Shareholding Patterns
The promoter holds 72.22%, DIIs holds 0.09%, and the Public holds 27.69%

Company's latest news

The company's sales growth and strategic actions show that it is focused on maintaining its leadership in the polyisobutylene market, even though the raw material mix has some impact on profit. Furthermore, Nandkishore Bafna was recently appointed as a non-executive independent director for a five-year term beginning in November 2025, indicating a strengthening of governance. To maintain sustainable manufacturing, the corporation keeps making investments in infrastructure upgrades, including electricity generation and water recycling. All things considered, Kothari Petrochemicals is well-positioned for expansion while overcoming present market obstacles. ​

Technical Analysis

Chart Pattern

Moving Average (MA)
The stock is trading under the 50-MA, which indicates that it is in a bearish zone.
The stock is trading under the 200-MA, which also indicates that it is bearish zone.

Chart Pattern
The chart pattern shows that the stock has hit its previous bottom. It can go bullish if it breaks the 200-MA; if not, then the stock may remain in a sideways trend for some time.

Relative Strength Index (RSI)
The chart pattern shows that the stock has hit its previous bottom. It can go bullish if it breaks the 200-MA; if not, then stock may remain in a sideways trend for some time.

Strengths and weaknesses of the company

Strengths

• Leading producer of high-quality polyisobutylene (PIB) in India with a strong market position domestically and internationally.

• Established a manufacturing facility in Manali, Chennai, with advanced technology and quality control.

• Export presence in over 20 countries, diversifying revenue streams beyond the Indian market.

• Strategic expansion plans are underway, including land acquisition in Andhra Pradesh to increase production capacity.

• Focus on sustainable practices such as water recycling and power generation within the manufacturing process.

• Experienced management and recent board strengthening with new independent director appointments.

• Consistent revenue growth driven by increasing demand for PIB in various industrial applications.

Weaknesses

• Limited product diversification, primarily focused on PIB, which may expose the company to market fluctuations in this niche.

• Profit margins were recently impacted due to raw material mix changes.

• Operating capacity around 3,000 metric tons per annum may limit scalability in the immediate term until expansion projects are complete.

• Delivery volumes in the stock market show some investor caution, reflecting potential concerns about near-term performance volatility.

• Vulnerability to raw material price fluctuations that can affect profitability.

Analysis

Recent price increases in Kothari Petrochemicals' stock have been fueled by company-specific growth goals and consistent demand for the company's main product, polyisobutylene (PIB). By purchasing land for a new facility, the business is growing, which portends future capacity expansion and possible revenue growth. However, shifts in the price of raw materials have put some pressure on profit margins. The stock has a solid market position and consistent revenue growth, although it is somewhat erratic due to cautious investors, as shown by delivery volumes. Investors can benefit from long-term growth linked to the demand of the petrochemical industry, but there are risks associated with limited product diversification and fluctuating raw material prices.