Kothari Products Limited (KPL) is the flagship company of the Kothari Group, incorporated on September 17, 1983. The company is primarily engaged in international trade and real estate activities, with its business segments encompassing Trading Items and Real Estate. Its diversified operations also extend into investments, hospitality, and education.
KPL was originally known for manufacturing Pan Masala and Gutka under the prominent brand "Pan Parag". It pioneered the concept of low-priced pouch packaging for Pan Masala in 1985. The company, initially promoted by M.M. Kothari in September 2003 as a private entity, was converted into a public company in November 1994.
The current market capitalization of Kothari Products Ltd (KOTHARIPRO) stands at ₹508.54 crore as of July 14, 2025. The stock has seen a 52-week high of ₹113.85 and a low of ₹57.60. The company's Price-to-Earnings (PE) ratio is -5.42, and its Price-to-Book (PB) ratio is 0.47.
Recently, Kothari Products Ltd announced a 1:1 bonus share issue, which significantly boosted stock prices, with shares surging by 20% following the board's decision to consider the bonus issue. This marks the third bonus issue for the company, following similar announcements in 2014 and 2016.
Financially, the company has shown mixed performance:
- Q4 FY 2024-25: Revenue stood at ₹238.85 crores (down 17.96% YoY), with Net Profit at ₹10.27 crores (down 10.23% YoY). The Net Profit Margin was 4.30% (up 9.42% YoY).
- Q3 FY 2024-25: Net profit increased by 18.99% compared to the same period last year, reaching ₹10.59 crores, showing a quarterly growth of 108.82%.
- Q1 FY 2024-25: Net profit declined by 55.00% to ₹5.27 crore in the quarter ended June 2024, from ₹11.71 crore in the previous year. Sales, however, rose by 10.39% to ₹247.64 crore.
- Market Capitalization: ₹515 crore (as per recent data)
- Revenue: ₹958 crore (overall figure combining recent periods)
- Net Profit/Loss: ₹-94.0 crore (overall loss figure)
- Sales Growth: -25.3% over the past five years.
- Promoter Holding: 75.0% as of latest available data.
- Key Ratios: PE Ratio: -5.42, PB Ratio: 0.47
- 52-Week Range: ₹57.60 - ₹113.85
Kothari Products Limited is involved in the import and export trade of a wide array of products and commodities, including Agro-based commodities, minerals, metals, petroleum products, coal, tiles, notebooks, computer storage devices, computer hardware, electronic components, transformers, copier paper, steel, scrap, and PVC, among others.
The company also markets:
- Pan Masala under the brand name Pan Parag.
- Flavoured Chewing Tobacco under the brand name Parag.
- Packs Coconut oil under the brand name 7-up.
The company operates manufacturing plants for Pan Masala & Gutkha in Kanpur (UP), Jorhat (Assam), and Noida (UP), and a Beverages Plant in Kanpur (UP), Nadiad (Gujarat), and Thane (Maharashtra). Its products are exported directly and through merchant exporters to various international markets, including Mexico, Australia, Singapore, the Middle East, Japan, Kenya, South Africa, the U.K., New Zealand, and Canada.
Kothari Products Limited has the following wholly-owned subsidiary companies:
- Sukhdum Constructions and Developers Ltd
- Arti Web-Developers Pvt Ltd
Additionally, "Kothari Products Singapore Pvt. Ltd." was incorporated in Singapore on May 21, 2008, as its subsidiary.
- Chairman: Deepak Kothari
- Company Secretary: Raj Kumar Gupta
- Auditor: G M Kapadia & Co.
Positives:
- Valuation: Stock is trading at 0.47 times its book value.
- Shareholder Returns: Recent bonus share announcement indicates management confidence and potential shareholder value creation.
- Diversification: Holds diversified business operations across international trade, real estate, and consumer products.
Challenges:
- Financial Health: Low interest coverage ratio and a low return on equity of -1.74% over the last 3 years.
- Liabilities: High contingent liabilities of ₹421 Cr.
- Working Capital: High debtors turnover of 172 days.
The company continues to focus on leveraging opportunities in its core sectors of real estate, investments, and international trading, while working to manage operational challenges within a competitive market environment.
