Author: Prashant Marathe
Date Published: May 21, 2025

🧾 At a Glance

• Total Income (Q4): ₹49.35 Cr
• Net Profit (Q4): ₹4.10 Cr
• EPS (Q4): ₹0.12
• CMP: ₹20
• EduFair Value: ₹14–₹18
  👉 Verdict: Dumped harder than a penny stock in a panic.

🧪 About the Company

Sadhana Nitrochem Ltd is a niche chemicals manufacturer that deals in:

• Nitrotoluenes
• Specialty intermediates
• Organic chemical compounds

It had its “📈 multibagger moment” back in 2022–23 when it rallied on capex + China+1 stories.

But now? Valuation has crashed. Confidence with it.

📊 Quarterly Performance Snapshot

Total FY25 EPS = ₹0.18–₹0.20

That’s not a growth stock. That’s a bond yield on life support.

🧠 EduInvesting Take

“This was once a ₹100+ favourite on Twitter. Now it’s fighting for ₹21.”

✅ Profitable
✅ Revenue growth visible in Q4
❌ Extremely low EPS
❌ Continuous lower circuits
❌ Zero investor trust

The company needs a rerating trigger. Right now, it’s just breaking down daily.

🧮 EduFair Value Estimate

• EPS = ₹0.20
• Give it a 70x P/E (smallcap chemical premium)? No.
• Use conservative 70x only if capex is complete & margins bounce
  ✅ EduFair Value = ₹14–₹18

CMP = ₹20 → Already overvalued based on EPS
📉 Unless Q1 FY26 shows a revenue jump — this will fall further.

⚠️ Risks

• 🧯 Lower circuits = zero liquidity
• 🧾 Poor communication, no updates
• 📉 Microcap + niche chemical = double whammy
• 🔍 May take months to recover, if at all

💸 CMP vs Value

🏁 EduFinal Word

Sadhana is a:

• ⚗️ Speculative penny chemical play
• 💀 Stuck in price trap
• 🔁 Waiting for capex execution + big order news

Edu Verdict:
Avoid. Only revisit if circuits break and FY26 shows real numbers.