Khaitan Chemicals and Fertilizers Valuation

Q: What is the Fair Price of KHAICHEM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

KHAICHEM (₹72.58) is trading below our estimate of [[fair value]] (₹158.1)

Is KHAICHEM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of KHAICHEM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: KHAICHEM (₹72.58) is trading below our estimate of fair value (₹158.1)

Significantly Below Fair Value: KHAICHEM is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for KHAICHEM?

Key metric: As KHAICHEM is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for KHAICHEM. This is calculated by dividing KHAICHEM's market cap by their current revenue.
What is KHAICHEM's PS Ratio?
PS Ratio	1.3x
Sales	₹5.40b
Market Cap	₹6.77b

KHAICHEM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.8x
Enterprise Value/EBITDA	-23.9x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does KHAICHEM's PS Ratio compare to its peers?

The above table shows the PS ratio for KHAICHEM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	1.1x
NOVAAGRI Nova Agritech	2.1x	n/a	₹5.8b
DHARMAJ Dharmaj Crop Guard	1.2x	n/a	₹9.5b
524037 Rama Phosphates	0.5x	n/a	₹3.5b
524709 NACL Industries	0.6x	n/a	₹10.2b
KHAICHEM Khaitan Chemicals and Fertilizers	1.3x	n/a	₹6.8b

Price-To-Sales vs Peers: KHAICHEM is expensive based on its Price-To-Sales Ratio (1.3x) compared to the peer average (1.1x).

Price to Sales Ratio vs Industry

How does KHAICHEM's PS Ratio compare vs other companies in the IN Chemicals Industry?

28 Companies	Price / Sales	Estimated Growth	Market Cap
523630 National Fertilizers	0.3x	n/a	US$679.71m
500339 Rain Industries	0.3x	n/a	US$601.58m
ZUARI Zuari Agro Chemicals	0.2x	n/a	US$110.56m
JAYAGROGN Jayant Agro-Organics	0.4x	n/a	US$100.73m

28 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: KHAICHEM is good value based on its Price-To-Sales Ratio (1.3x) compared to the Indian Chemicals industry average (1.7x).

Price to Sales Ratio vs Fair Ratio

What is KHAICHEM's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

KHAICHEM PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	1.3x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate KHAICHEM's Price-To-Sales Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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