📌 At a Glance
Rossari Biotech is a specialty chemicals player that started with textiles and grew into home, personal care, and even animal health chemicals. Sales have grown 4x in 6 years. Margins are decent, the stock’s down ~18% in a year, and PE is now 27x. Question is: Is this the next Pidilite, or just chemical cosplay?
🧪 1. WTF Do They Even Do?
Rossari Biotech Ltd makes stuff that goes into stuff that you never think about:
- 🧼 Personal & Home Care ingredients: For shampoos, handwashes, detergents, etc.
- 👕 Textile Specialty Chemicals: Their OG business – pretreatment, dyeing, finishing chemicals.
- 🐓 Animal Nutrition: Enzymes and feed additives for poultry and cattle.
They serve 2,000+ customers, have 4,000+ products, and operate 3 manufacturing facilities – Silvassa, Dahej, and HSIIDC Haryana.
Also, R&D center at IIT Bombay. 💥 Not bad for a ₹3,700 Cr microcap.
📊 2. Financials – The Profit Detox
| Metric (FY25) | Value |
|---|---|
| Revenue | ₹2,080 Cr |
| EBITDA | ₹265 Cr |
| EBITDA Margin | 13% |
| Net Profit | ₹136 Cr |
| EPS | ₹24.63 |
| 3-Year Sales CAGR | 12% |
| 3-Year PAT CAGR | 12% |
✅ Profit is stable.
❌ Margins have compressed post-COVID from 17% to 13%.
📉 Stock has given -18% return in 1 year, flat in 3 years.
🧮 3. Valuation – Cheap, Meh, or Crack?
| Valuation Metric | Value |
|---|---|
| PE Ratio | 27.6x |
| PB Ratio | 3.18x |
| EV/EBITDA | ~14x |
| Market Cap | ₹3,764 Cr |
Compared to peers:
- Pidilite: 75x PE
- Vinati: 49x
- Deepak Nitrite: 38x
📉 Rossari is cheaper.
But it’s also growing slower, and ROE is lower.
Verdict: Fairly valued for now. Not in crack zone.
🧼 4. What’s Cooking – Any Trigger?
- 🧬 Recent product launches in sustainable biosurfactants – big in FMCG.
- 🏭 Expanding Dahej plant capacity for home/personal care segment.
- 💸 Acquired Tristar Intermediates in FY22 – now integrated.
- 🛢️ Raw material volatility has reduced, helping stabilize OPM at ~13%.
Nothing too dramatic – just slow grind growth.
🧾 5. Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY25 Value |
|---|---|
| Total Assets | ₹1,886 Cr |
| Borrowings | ₹218 Cr |
| Cash Reserves | ₹137 Cr |
| Net Debt | ₹81 Cr |
| Debt/Equity | 0.17x |
🟢 Balance sheet is strong.
🧘♂️ Low debt. Reserves growing. Nothing scary.
💸 6. Cash Flow – Sab Number Game Hai
| FY25 Metric | Value |
|---|---|
| CFO | ₹137 Cr |
| Capex (Investing) | -₹183 Cr |
| FCF (est.) | -₹46 Cr |
| CFI (FY24+FY25) | -₹286 Cr |
🧨 High capex in FY25 = short-term FCF negative.
But it’s building future capacity, not burning cash.
📉 7. Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROE | 12.2% |
| ROCE | 15.8% |
| OPM | 13% |
| Debtor Days | 83 |
| Inventory Days | 90 |
| CCC (Cash Cycle) | 101 days |
📦 Working capital cycle has worsened (from 76 → 101 days).
📉 ROE decent but not best in class.
💰 8. P&L Breakdown – Show Me the Money
- Sales: ₹2,080 Cr
- EBITDA: ₹265 Cr
- PBT: ₹185 Cr
- PAT: ₹136 Cr
- EPS: ₹24.63
- Dividend: ₹0.50/share (~0.07% yield)
Dividend = chai money ☕
🧪 9. Peer Comparison – Who Else in the Game?
| Company | PE | ROE | OPM | Market Cap |
|---|---|---|---|---|
| Pidilite | 75x | 23% | 22.9% | ₹1.58 L Cr |
| Vinati Organics | 49x | 15.8% | 26% | ₹20.3k Cr |
| Deepak Nitrite | 38x | 13.7% | 13% | ₹26.8k Cr |
| Rossari Biotech | 27x | 12.2% | 13% | ₹3.76k Cr |
Rossari is a junior chemical stock, not yet in the big leagues.
🧮 10. Misc – Shareholding & Promoters
| Shareholding | Mar 2025 |
|---|---|
| Promoters | 68.18% |
| FIIs | 3.98% |
| DIIs | 17.59% |
| Public | 10.24% |
📉 FII stake falling.
🧘 Promoter holding rock solid.
👨🔬 R&D presence at IIT Bombay is a flex.
📢 11. EduInvesting Verdict™
Rossari Biotech is what happens when a smallcap actually tries to behave like a grown-up.
- Solid, boring, profitable business.
- No drama. No massive rally.
- PE is reasonable, balance sheet is healthy.
But is it the next Pidilite?
Only if they can fix margins and get growth mojo back.
EduInvesting Score™: 69/100
Tagline: “Good boy stock, but still waiting for that teenage growth spurt.”
✍️ Written by Prashant | 📅 July 4, 2025
🏷️ Tags
Rossari Biotech, specialty chemicals, textile chemicals India, biosurfactants India, Pidilite competitor, smallcap chemicals, Rossari stock analysis, Dahej plant expansion, IIT Bombay startup, animal nutrition chemicals, FY25 results, Indian chemical stocks 2025, low debt stocks
