Kotyark Industries Ltd. is India’s only pure-play listed biodiesel company, focusing on renewable energy and sustainability. With a strong presence in Rajasthan and Gujarat, it operates in a sector with huge growth potential, backed by favorable government policies and increasing demand for biofuels.
📈 Company Growth and Financials
| Metric | H1FY25 | H1FY24 | YoY Growth | H2FY24 | QoQ Growth |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 196.75 | 127.23 | +55% | 143.76 | +37% |
| EBITDA (₹ Cr) | 36.07 | 20.00 | +80% | 24.48 | +47% |
| EBITDA Margin | 18.3% | 15.7% | +2.6% | 17.0% | +1.3% |
| Net Profit (₹ Cr) | 17.83 | 10.79 | +65% | 11.40 | +56% |
| Earnings Per Share (₹) | 17.36 | 11.19 | +55% | 11.56 | +50% |
✅ Key Takeaways:
- Revenue surged by 55% YoY, primarily driven by increased OMC (Oil Marketing Companies) orders.
- EBITDA margin improved to 18.3%, highlighting cost efficiency.
- PAT growth (65%) outpaced revenue, showing strong bottom-line expansion.
🛠️ Order Book and Business Expansion
| Key Parameter | Current Status |
|---|---|
| Order Book Status | Strong demand from OMCs, with tenders improving |
| Business Expansion | Increasing footprint in biofuel supply chain |
| Manufacturing Locations | Sirohi, Rajasthan & Anand, Gujarat |
| Production Capacity | 4,80,000 KL of biodiesel annually |
| Glycerin Output | 63,000 KL of crude glycerin per year |
| Retail Expansion | 25+ mobile retail outlets under “Green N Green” brand |
✅ Key Takeaways:
- OMC blending mandates expected to drive order book growth in coming years.
- Existing capacity sufficient for expansion without major CAPEX investments.
🔮 Future Projections
| Metric | FY24 | FY25E (Projected) | CAGR Estimate (3 Years) |
|---|---|---|---|
| Revenue (₹ Cr) | 271 | 350-375 | 25-30% |
| Net Profit (₹ Cr) | 22.19 | 27-30 | 20-25% |
| EPS (₹) | 22.76 | 30+ | 30%+ |
Strategic Growth Areas:
✔ Government push for 5% biodiesel blending by 2030
✔ Expansion in bulk buyer segment (transport, mining, industries)
✔ Strengthening of raw material sourcing with Rajasthan Govt. MoU
💰 Debt and Financial Health
| Metric | FY24 | FY23 | YoY Change |
|---|---|---|---|
| Debt-to-Equity Ratio | 0.2 | 0.2 | Stable |
| Total Borrowings (₹ Cr) | 37.55 | 17.65 | +112% |
| Cash & Bank Balance (₹ Cr) | 5.04 | 0.21 | +2287% |
✅ Key Takeaways:
- Debt remains manageable with a low debt-to-equity ratio of 0.2.
- Cash reserves have strengthened, enhancing financial stability.
🌍 Market Size and Opportunities
| Market Size | 2024 | 2032 Projection | CAGR |
|---|---|---|---|
| Global Biodiesel Market | $36.48 Bn | $79.12 Bn | 8.1% |
| India’s Share | 1% of global production | Significant growth potential | – |
🚀 Massive opportunities exist in India’s biofuel sector, with increasing domestic production mandates.
⚖️ Regulatory and Market Influences
| Factor | Impact on Kotyark |
|---|---|
| Government Policies | National Biofuels Policy favors higher blending |
| SEBI/ASM Scrutiny | No known regulatory issues |
| Promoter Holding | 67.65% (Stable) |
| Market Volatility | Affected by crude oil price swings & policy changes |
✅ Strong government support makes this a long-term positive sector for investment.
📊 Technical Analysis (Stock Price: ₹425)
| Timeframe | Support Levels (₹) | Resistance Levels (₹) |
|---|---|---|
| Short-Term | ₹400 | ₹480 |
| Medium-Term | ₹380 | ₹525 |
| Long-Term | ₹350 | ₹600 |
📈 Trend & Forecasts:
- Short-Term: Consolidation between ₹400-₹480.
- Medium-Term: Breakout above ₹525 can push towards ₹600 levels.
- Long-Term: Bullish outlook if government mandates strengthen biodiesel adoption.
💡 Valuation and Investment Outlook
| Metric | Current | Industry Avg | Verdict |
|---|---|---|---|
| P/E Ratio | 15.28 | 18-22 | Fairly Valued |
| P/B Ratio | 6.5 | 4.5-5.0 | Slightly Expensive |
Investment Summary
✅ Strong revenue & profit growth
✅ Favorable sectoral demand & government backing
✅ Technically oversold – buy on dips for long-term gains
🔹 Investment Strategy: can Accumulate between ₹380-₹420 for a long-term target of ₹600+.
❓ FAQs
1️⃣ Is Kotyark Industries profitable?
✅ Yes, with 65% YoY PAT growth in H1FY25.
2️⃣ What is Kotyark’s market share in biodiesel?
✅ Among the top biodiesel producers in India, major supplier to OMCs.
3️⃣ Does Kotyark have expansion plans?
✅ MoU signed with Rajasthan Govt. for feedstock sourcing.
4️⃣ Is the stock a good investment?
✅ Long-term potential strong, but stock is in a correction phase.
5️⃣ What are the key risks?
❌ Order delays from OMCs
❌ Government policy fluctuations
