B.L. Kashyap and Sons Limited

Industrials — Engineering & Construction · NSE

₹58.30−₹0.48 (−0.82%)

DalalBaazaar Score

42 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:28 pm

Understanding the Business

Company site ↗

The 60-second version of B.L. Kashyap and Sons Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

B.L. Kashyap and Sons Limited, together with its subsidiaries, engages in the construction and infrastructure development activities in India.

IndustryEngineering & Construction

SectorIndustrials

Employees1,297

Annual revenue₹1,379 Cr

How does it make money?

Turns over ₹1,379 Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation. Each of its 1,297 employees supports ₹1.06 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.06 Cr

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., ADANI PORT & SEZ LTD, SIEMENS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 10.2% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE14.1%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +27% while net margin moved -94% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+27%

Margin effect-94%

DalalBaazaar Score

42/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 0.3% is weak
✗ ROE has fallen by 4.7 points over the period

Quality vs. Valuation

Company Quality

44/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

34/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

2915.0x

3Y Median

48.4x

40 monthly readings · mean 124.3x · range 21.3x–836.3x

Sector Median

30.1x

median of 3 sector peers

⚠️Current valuation is approximately 5923% above its 3y median of 48.4x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 9588% above the peer median of 30.1x.

vs. its own history

Expensive

48.4x median over 40 months · +5923%

vs. sector peers

Expensive

30.1x median of 3 peers · +9588%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

12.8x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on equity is falling
ROE has dropped from 5.0% to 0.3% — each rupee of shareholder capital earns less than it did.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.6x — little room if earnings dip.
🟡Profit is decliningFinancial
Net profit is down 93% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

The price already assumes success
The stock trades 5923% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 5.0% to 0.3%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 7%✓ 9.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Interest cover stays above 3x✗ 1.6x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 6% a year✓ 8.3% CAGR
Latest reported year was 2.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹58 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

5 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 5 neutral · 3 weak

Market Cap

₹1,315 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

2915.0x

Expensive

Expensive — verify against sector peers

P/B Ratio

2.47x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.02

Profitable

Profitable on a per-share basis

ROE

0.3%

Weak

Weak capital efficiency

ROCE

10.2%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.57x

Low

Conservative leverage

Revenue Growth (YoY)

2.6%

Modest

Modest growth

Profit Growth (YoY)

-8.3%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹58 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

55.5x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

7.1%

Average

Average margins

Net Margin

0.1%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.30

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.34

Defensive

Steadier than the market

52W Range Position

77%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

54.3 / 54.4

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

59.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,086 Cr	₹1,196 Cr	₹1,154 Cr	₹1,379 Cr	+8.3%
EBITDA	₹111 Cr	₹123 Cr	₹92 Cr	₹124 Cr	+3.7%
EBITDA Margin	10.2%	10.3%	8.0%	9.0%	—
PAT (Net Profit)	₹22 Cr	₹53 Cr	₹27 Cr	₹2 Cr	-58.8%
EPS	₹0.98	₹2.33	₹1.22	₹0.07	-58.5%
ROE	5.0%	10.6%	5.2%	0.3%	—
ROCE	11.1%	16.5%	14.5%	10.2%	—
Total Debt	₹320 Cr	₹310 Cr	₹316 Cr	₹299 Cr	-2.2%
Free Cash Flow	-₹4 Cr	₹44 Cr	₹33 Cr	₹58 Cr	—

🟢 Revenue has grown at 8.3% a year over 3 years.

🟢 EBITDA has grown at 3.7% a year over 3 years.

🔴 EBITDA Margin has fallen from 10.2% to 9.0% over 3 years (-1.2 pts).

🔴 PAT (Net Profit) has shrunk at 58.8% a year over 3 years.

🔴 EPS has shrunk at 58.5% a year over 3 years.

🔴 ROE has fallen from 5.0% to 0.3% over 3 years (-4.7 pts).

🟡 ROCE has held roughly flat at 10.2% over 3 years.

🟢 Total Debt has shrunk at 2.2% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹4 Cr to ₹58 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,662 Cr

Total Liabilities

₹1,135 Cr

Cash & Equivalents

₹25 Cr

Operating Cash Flow

₹115 Cr

Capex

-₹57 Cr

Shareholding (proxy)

Institutional Holding

0.1%

Insider Holding

62.9%

Corporate Actions

Ex-Dividend Date

12 Sept 2013

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
ADANI PORT & SEZ LTD	29.9x	14.1%
SIEMENS LTD	88.8x	10.5%

Recent News

1 positive2 mixed3 general

B.L. Kashyap and Sons Share Price: price near yearly high

Univest, 14 Oct

B.L. Kashyap and Sons Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 13 Oct

B. L. Kashyap and Sons (BLKASHYAP.NS) Slips 2.59% to ₹59.75, Drifting Toward the Lower Half of Its Range - Stop Hunt

siam.in, 14 Oct

BL Kashyap Wins ₹183.18 Crore Order; Shares Rise 3.42%

HDFC Sky, 20 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

B.L. Kashyap & Sons secures order worth Rs 183 crore

Business Standard, 21 AugOrder win

🟢Potentially positiveAn order or contract win, which adds to future revenue. How much depends on its size against annual sales and on when it is executed.

BL Kashyap share price rises 9% on securing ₹300 crore order for Greater Noida group housing project

Upstox, 18 FebPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

MiddlingBusiness Quality · Financial Health

WeakGrowth · Profitability · Valuation · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 1 high-severity red flag sits above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Interest cover stays above 3x · see Key things to watch ↑