Kronox Lab Sciences Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Kronox Lab Sciences Ltd trades at ₹176, in a confirmed uptrend and 11 weeks into that stage. That is +16.9% against its own 200-day average. It sits at 53% of a 52-week range of ₹132 to ₹215. On relative strength it has no relative-strength read yet.

Today the stock is in a confirmed uptrend — week 11 of stage 2, confirmed. At ₹176 it trades +16.9% versus its 200-day average and sits at 53% of its 52-week range (₹132–₹215).

Against the market, two honest reads. Cumulative: over the last 4 months the stock moved +34% while the NIFTY 500 moved +1% — ahead of the index over the full window. Recent form: no trailing-13-week read yet — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Kronox Lab Sciences Ltd trades at 22.8× P/E, mid-range by its own standards (49th percentile). Its long-run median P/E is 23.1×, measured across 2.2 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 22.8× is mid-range by its own standards (49th percentile), against a long-run median of 23.1× measured over 2.2 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

One caveat before moving on: margins are the best this company has ever printed — cheap against its own history on record margins is not the same thing as cheap. If profitability mean-reverts, today's multiple is higher than it looks.

Put together: the multiple is unremarkable against its own past, so the story rests on the earnings line underneath it, not the multiple.

Stage: Mixed Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Kronox Lab Sciences Ltd reads as mixed on its fundamental arc. Mixed — no clean majority across the growth curves, ROCE slipping at 36.0% — the per-curve reads carry the story. The read is built from 10 quarters across 3 curves, on partial evidence.

Why it matters: when the curves disagree, the per-curve reads above matter more than any single verdict.

One or more growth curves carry a base-effect spike — a large year-on-year move off a near-zero or loss-making comparable quarter. Those spikes are capped before the classifier reads the trajectory, and shown pinned on the chart, so a single distorted quarter does not drive the stage call.

Return readings here are annual, not quarterly — read as level and direction only; they can confirm the growth curves but never drive the stage on their own.

A partial read: at least one curve is short, or the returns curve is not the computed quarterly series — hold the stage word a little more loosely.

4-Factor Sector Score

53.3/100 — rank 13 of 28 in Speciality Chemicals · 65% evidence confidence

Kronox Lab Sciences Ltd scores 53.3 out of 100 against the 28 companies it is compared with in Speciality Chemicals, ranking 13. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 9.4 + 21.6 + 10.8 + 11.5 = 53.3. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Kronox Lab Sciences Ltd reported ₹28.4 Cr of revenue in the Jun 26 quarter, +16.9% year on year. Over 6 years it has compounded at 12.4% a year. The last full year, FY26, came in at ₹101 Cr. The last four reported quarters add to ₹105 Cr.

FY26 revenue came in at ₹101 Cr (+1.0% on the year), capping 6 years at 12.4% compound. The latest quarter (Jun 26) printed ₹28.4 Cr, +16.9% year on year.

Pace check: the last four quarters averaged +6.2% growth against the decade's 12.4% — the current year is running slower than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +6.1% over the last 4 quarters against +8.7%/yr over the last 8 — stabilising; TTM profit +11.6% vs +16.3%/yr — rolling over.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Kronox Lab Sciences Ltd's operating margin is 31.7% in the Jun 26 quarter, −1.1 percentage points against the same quarter a year ago. That is the widest this company has ever printed on a full-year basis. Across 7 fiscal years the operating margin has ranged 23.0% to 34.0%. The current quarter sits inside that band.

The latest quarter's operating margin is 31.7%, −1.1 pp against the same quarter a year ago. Across 7 fiscal years the operating margin has ranged 23.0%–34.0%, and FY26's 34.0% is the top of that band — a record year.

🚨 Why the margin moved: operating margin went −1.1 pp year on year while gross margin went −0.9 pp — the loss came mostly from the gross line: input costs and pricing.

Worth repeating from the valuation section: cheap against its own history on record margins is not the same thing as cheap — a record margin flatters every ratio built on top of it.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Kronox Lab Sciences Ltd earned ₹7.3 Cr of net profit in the Jun 26 quarter, +16.2% year on year. It is the 8th consecutive quarter of growth. Full-year FY26 profit was ₹28.0 Cr. The 6-year compound rate is 20.8%. That is 25.7% of the quarter's revenue. The same quarter a year earlier earned ₹6.3 Cr.

Jun 26 profit was ₹7.3 Cr, +16.2% year on year — the 8th consecutive quarter of growth. On the full year, FY26 printed ₹28.0 Cr (+12.0%), and the 6-year compound rate is 20.8%.

Why profit moved: revenue contributed +16.9% and the margin −1.1 pp — the quarter was revenue-led, with the margin roughly flat.

Pace comparison, last four quarters: profit +11.7% vs revenue +6.2%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 97% of Kronox Lab Sciences Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹24.0 Cr of operating cash against ₹28.0 Cr of profit. After ₹3.0 Cr of capital spending, ₹21.0 Cr was left as free cash.

FY26: operating cash of ₹24.0 Cr against reported profit of ₹28.0 Cr, leaving free cash of ₹21.0 Cr after ₹3.0 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 97% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 97%: the cash cycle stretched 11 days between FY21 and FY26 — more of each rupee of profit waits inside the cycle before arriving.

Router verdict: the bigger cash user is investment — capital spending ran 4.5× depreciation over three years, so the next section's job is to check what that build-out is buying.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Kronox Lab Sciences Ltd's cash conversion cycle runs 90 days in FY26, up from 79 days in FY21. Capital spending ran ₹18.0 Cr over the last 3 years. At FY26 sales of ₹101 Cr each day of that cycle holds about ₹0.3 Cr, so roughly ₹25.0 Cr sits inside the business at any moment.

FY26: debtors at 76 days, inventory at 66 days — roughly 2.2 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 90 days, looser than FY21's 79.

The full loop: cash goes out to suppliers and production on day 0; stock waits 66 days to sell; customers pay about 76 days after that; and suppliers themselves are paid at 52 days — netting out to the 90-day cycle.

In money terms: at FY26 sales of ₹101 Cr, each day of the cycle holds about ₹0.3 Cr — so the 90-day loop keeps roughly ₹25.0 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹18.0 Cr over the last 3 fiscal years against ₹4.0 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹1.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Kronox Lab Sciences Ltd earns a ROCE of 36% in FY26. Return on invested capital clears the cost of that capital by +27.5 percentage points, so growth here adds value rather than only size. The wiring behind it is 27.7% net margin on 0.79× asset turns.

FY26 ROCE is 36%.

Why the return is what it is — the wiring (FY26): 27.7% net margin × 0.79× asset turns × 1.10× balance-sheet leverage ≈ 24.1% on equity. Margin is doing the heavy lifting; leverage is modest — this is an earned return, not a borrowed one.

The capstone test — ROIC − WACC: 39.5% − 12.0% = a +27.5 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. A spread this wide means every rupee reinvested creates more than a rupee of value — the engine compounds.

Debt Debt-to-equity says how much of the business is funded by borrowings; interest cover says how many times operating profit pays the interest bill. Low and high, respectively, is the safe corner.

Kronox Lab Sciences Ltd carries ₹2.0 Cr of borrowings against ₹116 Cr of equity in FY26, a debt-to-equity of 0.02. Over 5 years borrowings went from ₹4.0 Cr to ₹2.0 Cr. Capital spending ran ₹18.0 Cr across the last 3 of those years.

FY26: borrowings of ₹2.0 Cr against equity of ₹116 Cr — a debt-to-equity of 0.02. Over 5 years borrowings went from ₹4.0 Cr to ₹2.0 Cr while capital spending ran ₹18.0 Cr in just the last 3 — the build-out is being paid for out of cash, not debt.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Domestic institutions cut 2.3 points of Kronox Lab Sciences Ltd over 8 quarters, the biggest move on the register. That takes domestic institutions to 2.1% of the company. Foreign institutions moved −1.5 points over the same window, to 0.0%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Domestic institutions: −2.3 points over 8 quarters to 2.1%; Foreign institutions: −1.5 points over 8 quarters to 0.0%; Promoters: +0.0 points over 8 quarters to 74.2%.

🚨 Why the register moved: domestic institutions drove it (−2.3 points), alongside foreign institutions (−1.5 points) — distribution into the market’s bid.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Kronox Lab Sciences Ltd: the Z-score reads 32.38. A Z-score above roughly 3 reads as safe and below roughly 1.8 as the distress zone, so this sits well clear of distress. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure.

Why it matters: a Z-score of 32.38 sits well clear of the distress zone — the balance sheet is not the risk here.

The safety line in one sentence: the Z-score reads 32.38.

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