1. At a Glance – Camphor Ka Dhuaan, Profits Ka Kya Hua?
A ₹150 Cr market cap company selling a product that literally evaporates — and lately, so have the profits.
Kanchi Karpooram Ltd is currently trading at ₹345, down 6.34% in 3 months and nearly 18.5% in 1 year. The stock sits at a P/E of 28.4, while the industry median is around 19. Price-to-book? A modest 0.69x, meaning the market is valuing it below its reported book value of ₹498 per share.
Q3 FY26 numbers:
- Sales: ₹33.92 Cr (↓4.53% QoQ)
- PAT: ₹0.45 Cr (↓37.5% QoQ)
- EPS: ₹1.04
ROE stands at 6.94%, ROCE at 9.44%, and OPM has shrunk to just 2.30% this quarter.
The company is “almost debt-free” — Debt to Equity of 0.06 — but when profits are shrinking and margins are thinner than papad, low debt alone doesn’t create fireworks.
So the big question: Is this a turnaround waiting to happen, or is the camphor flame slowly flickering out?
Let’s light the match.
2. Introduction – From Temple Bells to Tyre Factories
Founded in 1992, Kanchi Karpooram Ltd (KKL) manufactures Camphor and allied products, and also trades in agro products.
Camphor. Yes, that white cube your grandmother waves in aarti. But here’s the twist — it’s not just for temples. KKL supplies industries like:
- Tyres
- Paint
- Paper
- Pharma
- Rubber
- Food
They are ISO 9001:2015 certified — which means paperwork is proper. Profits? We’ll check.
Revenue breakup FY23:
- Camphor ~74%
- Dipentene ~7%
- Raw Cashew Nuts ~7%
- Others ~12%
Segment-wise FY23:
- Camphor ~93%
- Agro Products ~7%
So despite the “agro diversification,” this is fundamentally a camphor company. If camphor sneezes, the entire P&L catches cold.
And then comes raw material dependency. Their major raw material is alpha pinene, imported from Indonesia, Vietnam, Brazil and Europe. So input cost volatility is not just about supply — it’s also about global pricing.
Now tell me — when your core input is imported and your product margins are shrinking — do you feel calm or slightly nervous?
Exactly.
3. Business Model – WTF Do They Even Do?
Let’s simplify.
KKL buys alpha pinene (imported), processes it, and manufactures:
- Camphor
- Camphene
- Dipentene
- Double Distilled Turpentine
- Ester Gum
- Fortified Rosin
- Pine Oil
- Pine Tar
- Sodium Acetate Trihydrate
Basically, if it smells like pine forest and is used in industrial chemistry — they probably make it.
Revenue concentration is high. FY23 shows 93% revenue from Camphor segment. Agro products are minor.
But then comes the spicy part.
New Subsidiary Drama
They incorporated Kanchi Agro Product Private Limited in April 2022, mainly for trading raw cashew nuts. FY23 loss? ₹61.65 lakh.
Because clearly, if your core business margins are thin, what better idea than entering a low-margin trading business.
Then in September 2025, they acquired remaining 49% stake — making it wholly owned.
Why? Expansion? Control? Or just cleaning up structure?
Joint Venture Real Estate
In April 2023, they entered a JV with Prince Housing Chennai Pvt Ltd for residential & commercial development on company property in Chennai.
Camphor +
