Shares of Khaitan Chemicals hit a fresh 52-week low today amid growing worries of investors over the decline of the multibagger scrip in the last one year. In fact, the stock has slipped 61.70% from its 52-week high of Rs 156.95 hit on April 18 last year. Khaitan Chemicals stock has lost 42.42% in a year and fallen 21% in 2023. However, in a span of three years, the Khaitan Chemicals stock delivered 680% returns, earning a multibagger tag during the period. The stock zoomed 234% during the last five years.
The stock was trading 0.24% higher at Rs 61.55 today against the previous close of Rs 61.40 on BSE. It hit a fresh 52 week low of Rs 60.10 in the current trading session.
Shares of Khaitan Chemicals are trading lower than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. In a year, the stock has lost 42.42 per cent and fallen 20.88 per cent this year. Total 0.16 lakh shares of the firm changed hands amounting to a turnover of Rs 9.68 crore on BSE.
Market cap of the firm stood at Rs 596.97 crore.
The correction in the stock can be partly attributed to the financial performance of the chemical player during the last four quarters. The firm logged a consolidated net profit of Rs 7.53 crore in the December 2022 quarter (Q3 FY23), down 74 per cent from Rs 28.97 crore in the same quarter a year ago.
Profit slipped 55.84 % from Rs 17.05 crore in the September 2022 quarter. The company’s revenue from operations stood at Rs 213.71 crore in Q3 FY23, a year-on-year (YoY) fall of 21.75 per cent from Rs 273.10 crore in Q3 FY22.
Sales slipped 22.81% from Rs 276.86 crore in the September quarter of the current fiscal. EBITDA fell 70.78% to Rs 13.22 crore in the December quarter against Rs 45.24 crore in the corresponding quarter of the previous fiscal.
On a quarter-on-quarter basis, profit fell to Rs 2.89 crore in the March 2022 quarter against Rs 28.98 crore net profit in the December 2021 quarter, which led to weak sentiment around the stock.
In the June 2022 quarter, the firm logged a rise in profit to Rs 7.94 crore but a 60% fall in profit on a year on year basis from Rs 19.81 crore in the June 2021 quarter.
Profit rose to Rs 17.05 crore in the September 2022 quarter but was followed by a slump in the December quarter.
On a yearly basis, Khaitan Chemicals reported a healthy growth of 219% in net profit to Rs 79.50 crore for the March 2022 fiscal compared to Rs 24.87 crore profit in the March 2021 fiscal. However, with a slump in profit in the subsequent quarters, the growth margin in profit is likely to narrow for the fiscal ended 2023.
Returns of Peers
The firm has lagged behind peers when it comes to returns to shareholders during the last one year. While Madras Fertilizers stock zoomed 89 per cent, shares of Mangalore Chemicals climbed 0.26 per cent during the period.
Khaitan Chemicals and Fertilizers Limited is engaged in the manufacturing of Single Super Phosphate Fertilisers, Sulphuric Acid and its variants, Processing of Oil Seed, and selling of Wind Power. It is the largest manufacturer of Single Super Phosphate (SSP) in India.
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