Kothari Petrochemicals - Fundamentals - Stock Insights

 Kothari Petrochemicals - Fundamentals - Stock Insights

 

  • Manufacturer of PolyIso Butylene, founded in the year 1990
  • Kothari Petrochemicals Ltd is a part of HCK(HC Kothari) Group (Founded in 1919)
  • Largest producer of Polyisobutylene (PIB) in India
  •  PIB used in: Lubricants, Adhesives, Sealants, Construction Chemicals, Rubber, Paints, Polymer Modification and Optical Fibre
  •  Production Facility: 36,000 TPA (Manali, Chennai)
  •  Exports: More than 20 Countries (Americas, Africas, Europe, Middle East, Asia Pacific and South East Asia) 


 

Products:

  • Kothari Petrochemicals Ltd is the largest producer of Polyiso Butylene in India. In Common, Polyiso Butylene belongs to the group of viscous and non-drying liquid polymers.
  • It is widely used in various applications such as Adhesives, Construction Chemicals, Paints, Polymer Modification, Optical fibre, Rubber and Sealants.
  • High Tack Glue PIB R-01: It is a Tacky glue which is used in Industrial Chemicals, has uses in Pest Repellent, adhesive and tackiness applications. It is ideal for making Pest Management Product. It is a perfect glue to eliminate and prevent unwanted pest infestations in Households and Commerical establishments.
  •  KVIS 10: It is used in lubricant for modifying or improving the viscosity of the lubricant. It also helps in improving the quick stick and peel strength of elastomers. Applications: Surgical Tapes, Industrial Tapes, Paper laminates, Friction tapes.

  • KVIS 20: It is developed for Plastic Compound manufacturers. Applications: Master Batch, PVC Pipes and Fitting
  • KVIS 30: It is used for Stretch / Cling Wrap, widely used for Adhesive and Sealant segment.
  • KVIS 100: Improving the Fuel economy | KVIS 150: To control deposits, Sludge formation and to prevent oil thickening
  • KVIS 200: Mostly suitable grade for Specialty lubricants and grease. Applications: Butyl Rubber Adhesives, Gap Filling, Industrial grease, sugar crushing ,specialty gear oils, Agricultural traps and Optical Fibre compound. It can be used as Bright stock replacement in Gear oil manufacturing.

 


 

 

Management of Kothari Petrochemicals:

  • Mrs. Nina Bhadrashayam Kothari is a Chairperson of Kothari Petrochemicals Ltd. She is also holding directorship in HCK Group of Companies.
  • Mr. Arjun B Kothari is a Managing Director and he is also holding his position in other HCK Group companies. Previously, he worked as a Senior Specialist in the MDR(Management Development Rotation) Programme in General Electric Corporation, USA
  •  The company is having it's Headquarters in Nungambakkam, Chennai and the Plant complex were available at Manali, Chennai. There is another one office in Mumbai for it's operations.

 

Fundamental Parameters(As on FY2024):

  • Market Cap: Rs. 900 Cr (Feb 2025)
  • Debt to Equity: NIL (It's a Debt Free Company)
  • Interest Coverage Ratio(ICR): 104 Times
  • TTM PE: 14 Times
  • Book value: Rs.47 per Share (Current Market Price: Rs.153 per Share)
  • PEG Ratio: 0.36 Times
  • Promoter Holding: 71.00% (Key Promoters: BHK Trading LLP, Nina Bhadrashyam Kothari)
  • Pledging on Promoter Holding: NIL
  • Institutional Holding: FII and DII: Holding Less than 1 Percent
  • Debt: Rs. 3.28 Cr (As on Sep, 2024: Lease Liabilities: Rs.3.28 Cr, Other Liabilities: NIL)
  • Reserves on Balance Sheet: Rs.217 Cr (As on Sep, 2024)
  • Compounded Sales Growth(5 Yrs CAGR): 39%
  • Compounded Profit Growth(5 Yrs CAGR): 15%
  • ROE(Return on Equity) for 5 Yrs: 24%
  • ROCE(Capital Employed) for 5 Yrs: 30.74%
  • Operating Cash Flow(FY24): Positive
  • Free Cash Flow Average(3 Yrs): Rs.39 Cr
  • Non-current Liabilities: Rs.6.20 Cr (FY24)
  • Cash Equivalents: Rs.23 Cr (As on Sep, 2024)

 

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