New Risk • Jun 04
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. The company is paying a dividend despite having no free cash flows. Dividend yield: 0.3% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. This is currently the only risk that has been identified for the company. Reported Earnings • May 30
Full year 2026 earnings released: EPS: ₹15.29 (vs ₹11.41 in FY 2025) Full year 2026 results: EPS: ₹15.29 (up from ₹11.41 in FY 2025). Revenue: ₹26.5b (up 4.7% from FY 2025). Net income: ₹1.97b (up 34% from FY 2025). Profit margin: 7.4% (up from 5.8% in FY 2025). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has only increased by 17% per year, which means it is significantly lagging earnings growth. Anuncio • May 28
The KCP Limited Recommends Dividend for the Year Ended March 31, 2026 The KCP Limited announced that at its board meeting held on May 28, 2026 Board has recommended a dividend of 50% at the rate of INR 0.50 per equity share of INR 1/- each for the year ended 31st March 2026, subject to the approval of the members at the ensuing Annual General Meeting. Anuncio • May 04
The KCP Limited to Report Q4, 2026 Results on May 28, 2026 The KCP Limited announced that they will report Q4, 2026 results on May 28, 2026 Valuation Update With 7 Day Price Move • Apr 06
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to ₹150, the stock trades at a trailing P/E ratio of 12.9x. Average trailing P/E is 24x in the Basic Materials industry in India. Total returns to shareholders of 47% over the past three years. New Risk • Feb 15
New major risk - Revenue and earnings growth Earnings have declined by 0.02% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. This is currently the only risk that has been identified for the company. Reported Earnings • Feb 15
Third quarter 2026 earnings released: EPS: ₹1.20 (vs ₹1.24 in 3Q 2025) Third quarter 2026 results: EPS: ₹1.20 (down from ₹1.24 in 3Q 2025). Revenue: ₹6.39b (up 6.5% from 3Q 2025). Net income: ₹154.9m (down 3.2% from 3Q 2025). Profit margin: 2.4% (down from 2.7% in 3Q 2025). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 30% per year but the company’s share price has only increased by 19% per year, which means it is significantly lagging earnings growth. Anuncio • Jan 22
The KCP Limited to Report Q3, 2026 Results on Feb 13, 2026 The KCP Limited announced that they will report Q3, 2026 results at 9:08 AM, Indian Standard Time on Feb 13, 2026 Reported Earnings • Nov 14
Second quarter 2026 earnings released: EPS: ₹2.56 (vs ₹4.76 in 2Q 2025) Second quarter 2026 results: EPS: ₹2.56 (down from ₹4.76 in 2Q 2025). Revenue: ₹6.13b (up 1.7% from 2Q 2025). Net income: ₹330.3m (down 46% from 2Q 2025). Profit margin: 5.4% (down from 10% in 2Q 2025). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 36% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. Anuncio • Oct 06
The KCP Limited to Report Q2, 2026 Results on Nov 13, 2025 The KCP Limited announced that they will report Q2, 2026 results on Nov 13, 2025 Reported Earnings • Jul 23
Full year 2025 earnings released: EPS: ₹11.41 (vs ₹14.63 in FY 2024) Full year 2025 results: EPS: ₹11.41 (down from ₹14.63 in FY 2024). Revenue: ₹25.3b (down 11% from FY 2024). Net income: ₹1.47b (down 22% from FY 2024). Profit margin: 5.8% (down from 6.6% in FY 2024). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 21% per year whereas the company’s share price has increased by 26% per year. Declared Dividend • Jul 21
Dividend reduced to ₹0.25 Dividend of ₹0.25 is 75% lower than last year. Ex-date: 4th August 2025 Payment date: 10th September 2025 Dividend yield will be 0.1%, which is lower than the industry average of 0.4%. Anuncio • Jul 18
The KCP Limited, Annual General Meeting, Aug 11, 2025 The KCP Limited, Annual General Meeting, Aug 11, 2025, at 10:30 Indian Standard Time. Anuncio • Jul 03
The KCP Limited to Report Q1, 2026 Results on Aug 11, 2025 The KCP Limited announced that they will report Q1, 2026 results on Aug 11, 2025 Reported Earnings • May 29
Full year 2025 earnings released: EPS: ₹11.41 (vs ₹14.63 in FY 2024) Full year 2025 results: EPS: ₹11.41 (down from ₹14.63 in FY 2024). Revenue: ₹25.9b (down 9.0% from FY 2024). Net income: ₹1.47b (down 22% from FY 2024). Profit margin: 5.7% (down from 6.6% in FY 2024). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 21% per year whereas the company’s share price has increased by 25% per year. Anuncio • May 28
The KCP Limited Recommends Dividend for the Year Ended March 31, 2025 The board of directors of The KCP Limited at its meeting held on 28 May 2025, recommended divided of 25% at the rate of INR 0.25 paisa per equity share of INR 1/- each for the year ended 31st March 2025, subject to the approval of the members at the ensuing Annual General Meeting of the Company. Valuation Update With 7 Day Price Move • May 16
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to ₹222, the stock trades at a trailing P/E ratio of 17.3x. Average trailing P/E is 37x in the Basic Materials industry in India. Total returns to shareholders of 107% over the past three years. Buy Or Sell Opportunity • May 12
Now 25% overvalued after recent price rise Over the last 90 days, the stock has risen 3.6% to ₹204. The fair value is estimated to be ₹163, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years. Earnings per share has grown by 9.6%. Anuncio • May 05
The KCP Limited to Report Q4, 2025 Results on May 28, 2025 The KCP Limited announced that they will report Q4, 2025 results on May 28, 2025 Buy Or Sell Opportunity • Apr 15
Now 22% overvalued Over the last 90 days, the stock has fallen 3.6% to ₹208. The fair value is estimated to be ₹171, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years. Earnings per share has grown by 9.6%. Buy Or Sell Opportunity • Mar 22
Now 27% overvalued Over the last 90 days, the stock has fallen 16% to ₹207. The fair value is estimated to be ₹163, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years. Earnings per share has grown by 9.6%. Recent Insider Transactions • Mar 19
Insider recently bought ₹37m worth of stock On the 10th of March, Subbarao Vallabhaneni bought around 191k shares on-market at roughly ₹193 per share. This transaction amounted to 69% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought ₹74m more in shares than they have sold in the last 12 months. Recent Insider Transactions • Mar 07
Chairperson & MD recently bought ₹4.9m worth of stock On the 5th of March, Velagapudi Lakshmana Dutt bought around 28k shares on-market at roughly ₹179 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. In the last 3 months, there was an even bigger purchase from another insider worth ₹26m. Velagapudi Lakshmana has been a buyer over the last 12 months, purchasing a net total of ₹12m worth in shares. Buy Or Sell Opportunity • Mar 06
Now 22% overvalued Over the last 90 days, the stock has fallen 22% to ₹197. The fair value is estimated to be ₹161, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years. Earnings per share has grown by 9.6%. Recent Insider Transactions • Feb 23
Chairperson & MD recently bought ₹2.1m worth of stock On the 21st of February, Velagapudi Lakshmana Dutt bought around 11k shares on-market at roughly ₹190 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. This was Velagapudi Lakshmana's only on-market trade for the last 12 months. Buy Or Sell Opportunity • Feb 17
Now 21% overvalued Over the last 90 days, the stock has fallen 17% to ₹191. The fair value is estimated to be ₹157, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years. Earnings per share has grown by 9.6%. Reported Earnings • Feb 13
Third quarter 2025 earnings released: EPS: ₹1.24 (vs ₹5.44 in 3Q 2024) Third quarter 2025 results: EPS: ₹1.24 (down from ₹5.44 in 3Q 2024). Revenue: ₹6.14b (down 21% from 3Q 2024). Net income: ₹160.0m (down 77% from 3Q 2024). Profit margin: 2.6% (down from 9.0% in 3Q 2024). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has increased by 16% per year, which means it is tracking significantly ahead of earnings growth. Anuncio • Jan 21
The KCP Limited to Report Q3, 2025 Results on Feb 12, 2025 The KCP Limited announced that they will report Q3, 2025 results on Feb 12, 2025 Reported Earnings • Nov 09
Second quarter 2025 earnings released: EPS: ₹4.76 (vs ₹2.53 in 2Q 2024) Second quarter 2025 results: EPS: ₹4.76 (up from ₹2.53 in 2Q 2024). Revenue: ₹6.17b (down 12% from 2Q 2024). Net income: ₹613.6m (up 88% from 2Q 2024). Profit margin: 9.9% (up from 4.7% in 2Q 2024). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has increased by 18% per year, which means it is well ahead of earnings. Anuncio • Oct 10
The KCP Limited to Report Q2, 2025 Results on Nov 08, 2024 The KCP Limited announced that they will report Q2, 2025 results on Nov 08, 2024 Anuncio • Aug 23
The KCP Limited Approves Board Changes The KCP Limited at its AGM held on August 22, 2024, approved appointment of Sri. C. Panduranga Rao as a Non-Executive Independent Director of the Company. Dr. Subbarao Vallabhanenl, retiring Director has expressed his unwillingness to continue as a Director of the company vide resignation letter dated 01 August 2024. Anuncio • Aug 08
The KCP Limited Announces Board Resignations The KCP Limited announced the resignation of Sri. V.H. Ramakrishnan, Sri. P.S. Kumar, Sri. Vijay Sankar, Sri. M. Narasimhappa as Non-Executive Independent Directors of the Company have retired from the Board on Completion of their second term of 5 (five) consecutive years. Reported Earnings • Aug 01
Full year 2024 earnings released: EPS: ₹14.63 (vs ₹3.24 in FY 2023) Full year 2024 results: EPS: ₹14.63 (up from ₹3.24 in FY 2023). Revenue: ₹28.5b (up 26% from FY 2023). Net income: ₹1.89b (up 352% from FY 2023). Profit margin: 6.6% (up from 1.9% in FY 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 25% per year but the company’s share price has increased by 16% per year, which means it is well ahead of earnings. Declared Dividend • Jul 31
Dividend of ₹1.00 announced Shareholders will receive a dividend of ₹1.00. Ex-date: 14th August 2024 Payment date: 21st September 2024 Dividend yield will be 0.4%, which is about the same as the industry average. Sustainability & Growth Dividend is well covered by both earnings (7% earnings payout ratio) and cash flows (18% cash payout ratio). The dividend has increased by an average of 26% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 18% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Anuncio • Jul 30
The KCP Limited, Annual General Meeting, Aug 22, 2024 The KCP Limited, Annual General Meeting, Aug 22, 2024, at 11:00 Indian Standard Time. New Risk • Jul 30
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Indian stocks, typically moving 9.7% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (9.7% average weekly change). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Significant insider selling over the past 3 months (₹9.0m sold). Anuncio • Jul 10
The KCP Limited to Report Q1, 2025 Results on Aug 01, 2024 The KCP Limited announced that they will report Q1, 2025 results on Aug 01, 2024 Valuation Update With 7 Day Price Move • Jun 06
Investor sentiment improves as stock rises 26% After last week's 26% share price gain to ₹220, the stock trades at a trailing P/E ratio of 15x. Average trailing P/E is 28x in the Basic Materials industry in India. Total returns to shareholders of 95% over the past three years. New Risk • Jun 05
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Indian stocks, typically moving 8.4% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (8.4% average weekly change). Reported Earnings • May 21
Full year 2024 earnings released: EPS: ₹14.63 (vs ₹3.24 in FY 2023) Full year 2024 results: EPS: ₹14.63 (up from ₹3.24 in FY 2023). Revenue: ₹29.2b (up 29% from FY 2023). Net income: ₹1.89b (up 352% from FY 2023). Profit margin: 6.5% (up from 1.9% in FY 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 25% per year but the company’s share price has increased by 19% per year, which means it is well ahead of earnings. Reported Earnings • Feb 10
Third quarter 2024 earnings released: EPS: ₹5.44 (vs ₹0.78 loss in 3Q 2023) Third quarter 2024 results: EPS: ₹5.44 (up from ₹0.78 loss in 3Q 2023). Revenue: ₹8.14b (up 48% from 3Q 2023). Net income: ₹700.7m (up ₹801.4m from 3Q 2023). Profit margin: 8.6% (up from net loss in 3Q 2023). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 29% per year but the company’s share price has increased by 38% per year, which means it is well ahead of earnings. Anuncio • Jan 18
The KCP Limited to Report Q3, 2024 Results on Feb 09, 2024 The KCP Limited announced that they will report Q3, 2024 results on Feb 09, 2024 Valuation Update With 7 Day Price Move • Jan 05
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to ₹182, the stock trades at a trailing P/E ratio of 27.6x. Average trailing P/E is 38x in the Basic Materials industry in India. Total returns to shareholders of 148% over the past three years. Recent Insider Transactions • Dec 14
Non-Executive Non-Independent Director recently bought ₹2.0m worth of stock On the 12th of December, Subbarao Vallabhaneni bought around 14k shares on-market at roughly ₹145 per share. This transaction amounted to 7.9% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought ₹14m more in shares than they have sold in the last 12 months. Reported Earnings • Nov 12
Second quarter 2024 earnings released: EPS: ₹2.53 (vs ₹0.40 loss in 2Q 2023) Second quarter 2024 results: EPS: ₹2.53 (up from ₹0.40 loss in 2Q 2023). Revenue: ₹7.00b (up 30% from 2Q 2023). Net income: ₹325.8m (up ₹377.1m from 2Q 2023). Profit margin: 4.7% (up from net loss in 2Q 2023). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 28% per year but the company’s share price has increased by 28% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Oct 10
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to ₹144, the stock trades at a trailing P/E ratio of 39.3x. Average trailing P/E is 31x in the Basic Materials industry in India. Total returns to shareholders of 134% over the past three years. Anuncio • Aug 09
The KCP Limited to Report Q1, 2024 Results on Aug 10, 2023 The KCP Limited announced that they will report Q1, 2024 results on Aug 10, 2023 Upcoming Dividend • Aug 03
Upcoming dividend of ₹0.10 per share at 0.1% yield Eligible shareholders must have bought the stock before 10 August 2023. Payment date: 16 September 2023. Payout ratio is a comfortable 3.1% but the company is not cash flow positive. Trailing yield: 0.1%. Lower than top quartile of Indian dividend payers (1.5%). Lower than average of industry peers (0.5%). Reported Earnings • Jul 26
Full year 2023 earnings released: EPS: ₹3.24 (vs ₹14.59 in FY 2022) Full year 2023 results: EPS: ₹3.24 (down from ₹14.59 in FY 2022). Revenue: ₹22.5b (up 6.9% from FY 2022). Net income: ₹417.4m (down 78% from FY 2022). Profit margin: 1.9% (down from 8.9% in FY 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has increased by 27% per year, which means it is tracking significantly ahead of earnings growth. Anuncio • Jul 25
The KCP Limited, Annual General Meeting, Aug 17, 2023 The KCP Limited, Annual General Meeting, Aug 17, 2023, at 10:30 Indian Standard Time. Agenda: To receive, consider and adopt the Audited Standalone Financial Statements of the Company for the Financial Year ended 31st March, 2023, together with the Reports of the Directors and the Auditors thereon; to receive, consider and adopt the Audited Consolidated Financial Statements of the Company for the Financial Year ended 31st March, 2023 and the Report of the Auditors thereon; to consider, declaration of Dividend for the year 2022-23; to appoint a Director in place of Sri. V. Chandra Kumar Prasad , who retires by rotation and being eligible, offers himself for re-appointment; to appoint a Director in place of Dr. Subbarao Vallabhaneni , who retires by rotation and being eligible, offers himself for re-appointment; to appoint a Director in place of Sri. Ravi Chitturi who retires by rotation and being eligible,offers himself for re-appointment; and to consider other matters. Board Change • Jul 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. 6 highly experienced directors. Non-Executive Non-Independent Director Ravi Chitturi was the last director to join the board, commencing their role in 2020. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • May 25
Full year 2023 earnings released: EPS: ₹3.24 (vs ₹14.59 in FY 2022) Full year 2023 results: EPS: ₹3.24 (down from ₹14.59 in FY 2022). Revenue: ₹22.9b (up 8.7% from FY 2022). Net income: ₹417.4m (down 78% from FY 2022). Profit margin: 1.8% (down from 8.9% in FY 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has increased by 39% per year, which means it is tracking significantly ahead of earnings growth. Recent Insider Transactions • Mar 18
Non-Executive Non-Independent Director recently bought ₹474k worth of stock On the 16th of March, Subbarao Vallabhaneni bought around 5k shares on-market at roughly ₹94.70 per share. This transaction amounted to 3.3% of their direct individual holding at the time of the trade. In the last 3 months, there was an even bigger purchase from another insider worth ₹2.1m. Insiders have collectively bought ₹16m more in shares than they have sold in the last 12 months. Recent Insider Transactions • Mar 02
Chairperson & MD recently bought ₹2.1m worth of stock On the 27th of February, Velagapudi Lakshmana Dutt bought around 22k shares on-market at roughly ₹95.76 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Velagapudi Lakshmana has been a buyer over the last 12 months, purchasing a net total of ₹15m worth in shares. Recent Insider Transactions • Feb 18
Chairperson & MD recently bought ₹1.6m worth of stock On the 16th of February, Velagapudi Lakshmana Dutt bought around 16k shares on-market at roughly ₹99.55 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Velagapudi Lakshmana has been a buyer over the last 12 months, purchasing a net total of ₹14m worth in shares. Reported Earnings • Feb 14
Third quarter 2023 earnings released: ₹0.78 loss per share (vs ₹1.71 profit in 3Q 2022) Third quarter 2023 results: ₹0.78 loss per share (down from ₹1.71 profit in 3Q 2022). Revenue: ₹5.51b (up 8.1% from 3Q 2022). Net loss: ₹100.7m (down 146% from profit in 3Q 2022). Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has only increased by 18% per year, which means it is significantly lagging earnings growth. Anuncio • Jan 31
The KCP Limited to Report Q3, 2023 Results on Feb 10, 2023 The KCP Limited announced that they will report Q3, 2023 results on Feb 10, 2023 Recent Insider Transactions • Dec 29
Chairperson & MD recently bought ₹1.1m worth of stock On the 26th of December, Velagapudi Lakshmana Dutt bought around 10k shares on-market at roughly ₹108 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Velagapudi Lakshmana has been a buyer over the last 12 months, purchasing a net total of ₹13m worth in shares. Reported Earnings • Nov 16
Second quarter 2023 earnings released: ₹0.40 loss per share (vs ₹4.16 profit in 2Q 2022) Second quarter 2023 results: ₹0.40 loss per share (down from ₹4.16 profit in 2Q 2022). Revenue: ₹5.38b (up 2.0% from 2Q 2022). Net loss: ₹51.3m (down 110% from profit in 2Q 2022). Over the last 3 years on average, earnings per share has increased by 45% per year but the company’s share price has only increased by 25% per year, which means it is significantly lagging earnings growth. Reported Earnings • Nov 13
Second quarter 2023 earnings released: ₹0.40 loss per share (vs ₹4.16 profit in 2Q 2022) Second quarter 2023 results: ₹0.40 loss per share (down from ₹4.16 profit in 2Q 2022). Revenue: ₹5.44b (up 3.0% from 2Q 2022). Net loss: ₹51.3m (down 110% from profit in 2Q 2022). Over the last 3 years on average, earnings per share has increased by 45% per year but the company’s share price has only increased by 27% per year, which means it is significantly lagging earnings growth. Buying Opportunity • Sep 26
Now 21% undervalued The stock has been flat over the last 90 days. The fair value is estimated to be ₹136, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 15% over the last 3 years. Earnings per share has grown by 57%. Upcoming Dividend • Jul 26
Upcoming dividend of ₹1.00 per share Eligible shareholders must have bought the stock before 02 August 2022. Payment date: 09 September 2022. Payout ratio is a comfortable 6.9% and this is well supported by cash flows. Trailing yield: 0.9%. Lower than top quartile of Indian dividend payers (1.7%). In line with average of industry peers (0.9%). Reported Earnings • Jul 20
Full year 2022 earnings released: EPS: ₹14.59 (vs ₹12.64 in FY 2021) Full year 2022 results: EPS: ₹14.59 (up from ₹12.64 in FY 2021). Revenue: ₹21.1b (up 23% from FY 2021). Net income: ₹1.88b (up 15% from FY 2021). Profit margin: 8.9% (in line with FY 2021). Over the last 3 years on average, earnings per share has increased by 60% per year but the company’s share price has only increased by 12% per year, which means it is significantly lagging earnings growth. Recent Insider Transactions • Jun 23
Non-Executive Non-Independent Director recently bought ₹3.8m worth of stock On the 16th of June, Subbarao Vallabhaneni bought around 36k shares on-market at roughly ₹107 per share. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought ₹18m more in shares than they have sold in the last 12 months. Recent Insider Transactions • Jun 02
Chairperson & MD recently bought ₹2.2m worth of stock On the 26th of May, V. L. Dutt bought around 21k shares on-market at roughly ₹104 per share. In the last 3 months, they made an even bigger purchase worth ₹2.3m. V. L. has been a buyer over the last 12 months, purchasing a net total of ₹13m worth in shares. Reported Earnings • May 20
Full year 2022 earnings released: EPS: ₹14.59 (vs ₹12.64 in FY 2021) Full year 2022 results: EPS: ₹14.59 (up from ₹12.64 in FY 2021). Revenue: ₹21.1b (up 23% from FY 2021). Net income: ₹1.88b (up 15% from FY 2021). Profit margin: 8.9% (in line with FY 2021). Over the last 3 years on average, earnings per share has increased by 60% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Recent Insider Transactions • Apr 10
Insider recently bought ₹338k worth of stock On the 5th of April, Nalini Prasad bought around 3k shares on-market at roughly ₹120 per share. In the last 3 months, there was an even bigger purchase from another insider worth ₹2.3m. Insiders have collectively bought ₹10m more in shares than they have sold in the last 12 months. Recent Insider Transactions • Mar 21
Insider recently bought ₹132k worth of stock On the 17th of March, Nalini Prasad bought around 1k shares on-market at roughly ₹112 per share. In the last 3 months, there was an even bigger purchase from another insider worth ₹2.3m. Insiders have collectively bought ₹8.6m more in shares than they have sold in the last 12 months. Recent Insider Transactions • Feb 26
Chairperson & MD recently bought ₹581k worth of stock On the 24th of February, V. L. Dutt bought around 5k shares on-market at roughly ₹116 per share. This was the largest purchase by an insider in the last 3 months. V. L. has been a buyer over the last 12 months, purchasing a net total of ₹4.6m worth in shares. Reported Earnings • Feb 13
Third quarter 2022 earnings: Revenues and EPS in line with analyst expectations Third quarter 2022 results: EPS: ₹1.71 (down from ₹2.57 in 3Q 2021). Revenue: ₹5.10b (up 16% from 3Q 2021). Net income: ₹220.8m (down 33% from 3Q 2021). Profit margin: 4.3% (down from 7.5% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 68% per year but the company’s share price has only increased by 17% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Jan 04
Investor sentiment improved over the past week After last week's 16% share price gain to ₹143, the stock trades at a trailing P/E ratio of 7.9x. Average trailing P/E is 18x in the Basic Materials industry in India. Total returns to shareholders of 63% over the past three years. Recent Insider Transactions • Dec 23
Chairperson & MD recently bought ₹483k worth of stock On the 20th of December, V. L. Dutt bought around 4k shares on-market at roughly ₹121 per share. In the last 3 months, they made an even bigger purchase worth ₹2.0m. V. L. has been a buyer over the last 12 months, purchasing a net total of ₹19m worth in shares. Recent Insider Transactions • Nov 21
Chairperson & MD recently bought ₹505k worth of stock On the 19th of November, V. L. Dutt bought around 4k shares on-market at roughly ₹133 per share. This was the largest purchase by an insider in the last 3 months. V. L. has been a buyer over the last 12 months, purchasing a net total of ₹16m worth in shares. Reported Earnings • Nov 13
Second quarter 2022 earnings released: EPS ₹4.16 (vs ₹2.31 in 2Q 2021) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2022 results: Revenue: ₹5.29b (up 34% from 2Q 2021). Net income: ₹535.8m (up 80% from 2Q 2021). Profit margin: 10% (up from 7.6% in 2Q 2021). The increase in margin was driven by higher revenue. Recent Insider Transactions • Sep 25
Insider recently sold ₹434k worth of stock On the 22nd of September, S. Rangasami sold around 3k shares on-market at roughly ₹145 per share. This was the largest sale by an insider in the last 3 months. Despite this recent sale, insiders have collectively bought ₹16m more than they sold in the last 12 months. Recent Insider Transactions • Sep 17
Insider recently sold ₹206k worth of stock On the 14th of September, S. Rangasami sold around 2k shares on-market at roughly ₹137 per share. This was the largest sale by an insider in the last 3 months. Despite this recent sale, insiders have collectively bought ₹17m more than they sold in the last 12 months. Upcoming Dividend • Aug 19
Upcoming dividend of ₹2.00 per share Eligible shareholders must have bought the stock before 26 August 2021. Payment date: 02 October 2021. Trailing yield: 1.4%. Lower than top quartile of Indian dividend payers (1.5%). Higher than average of industry peers (0.4%). Reported Earnings • Aug 15
First quarter 2022 earnings released: EPS ₹5.65 (vs ₹1.92 in 1Q 2021) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2022 results: Revenue: ₹5.48b (up 58% from 1Q 2021). Net income: ₹728.5m (up 194% from 1Q 2021). Profit margin: 13% (up from 7.2% in 1Q 2021). The increase in margin was driven by higher revenue. Reported Earnings • Jun 27
Full year 2021 earnings released: EPS ₹12.64 (vs ₹2.11 in FY 2020) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: ₹17.2b (up 21% from FY 2020). Net income: ₹1.63b (up ₹1.36b from FY 2020). Profit margin: 9.5% (up from 1.9% in FY 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has only increased by 12% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Jun 26
Investor sentiment improved over the past week After last week's 15% share price gain to ₹138, the stock trades at a trailing P/E ratio of 15.8x. Average trailing P/E is 18x in the Basic Materials industry in India. Total returns to shareholders of 44% over the past three years. Valuation Update With 7 Day Price Move • Jun 08
Investor sentiment improved over the past week After last week's 15% share price gain to ₹116, the stock trades at a trailing P/E ratio of 13.4x. Average trailing P/E is 19x in the Basic Materials industry in India. Total returns to shareholders of 11% over the past three years. Is New 90 Day High Low • Mar 03
New 90-day high: ₹83.25 The company is up 15% from its price of ₹72.65 on 03 December 2020. The Indian market is up 17% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Basic Materials industry, which is up 21% over the same period.