Hit Kit Global Solutions Limited

Consumer Defensive — Grocery Stores · BSE

₹2.34+₹0.01 (+0.43%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

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. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:47 pm

Understanding the Business

Company site ↗

The 60-second version of Hit Kit Global Solutions Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Hit Kit Global Solutions Limited engages in the retail of vegetables and fruits. The company was incorporated in 1988 and is based in Mumbai, India.

IndustryGrocery Stores

SectorConsumer Defensive

Employees4

Annual revenue₹1 Cr

How does it make money?

Turns over ₹1 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation. Each of its 4 employees supports ₹25.8 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹25.8 lakh

Who are its competitors?

The closest listed comparisons in its industry are HINDUSTAN UNILEVER LTD., ITC LTD, NESTLE INDIA LIMITED, BRITANNIA INDUSTRIES 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 0.8% 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 ROE51.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +286% while net margin moved +499% 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+286%

Margin effect+499%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

✗ ROCE of 0.8% is below 10% — capital is not working hard
• ROCE has been broadly stable
✗ EBITDA margin of 8.8% is thin — little cushion if costs rise
✗ Net margin of 7.0% is slim
• Revenue has compounded at 56.9% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

63/ 100

Average

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

Valuation

51/ 100

Fair

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

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

234.0x

3Y Median

827.3x

40 monthly readings · mean 655.9x · range 1.9x–1472.7x

Sector Median

43.3x

median of 4 sector peers

🟢Current valuation is approximately 72% below its 3y median of 827.3x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 441% above the peer median of 43.3x.

vs. its own history

Cheap

827.3x median over 40 months · -72%

vs. sector peers

Expensive

43.3x median of 4 peers · +441%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

137.7x

PEG

1.26

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from -26.5% to 8.8% over 3 years.
Debt is being paid down
Total debt is down 94% over 3 years.
Very low debt
Debt/Equity of 0.02x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 46% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -26.5% to 8.8%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 94% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 72% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.

🔴 Bear CaseWhat could go wrong?

A premium to the sector to defend
It trades 441% above the peer median. That premium needs a reason that persists, or it closes.
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

1Revenue growth stays above 43% a year✓ 56.9% CAGR
Latest reported year was 98.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 7%✓ 8.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹1 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 0.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 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

4 good · 2 neutral · 5 weak

Market Cap

₹13 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

234.0x

Expensive

Expensive — verify against sector peers

P/B Ratio

0.98x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.01

Profitable

Profitable on a per-share basis

ROE

0.7%

Weak

Weak capital efficiency

ROCE

0.8%

Weak

Low return on total capital employed

Debt/Equity

0.02x

Low

Conservative leverage

Revenue Growth (YoY)

98.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-96.5%

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

-₹1 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

6.2%

Average

Average margins

Net Margin

7.0%

Average

Average bottom-line conversion

Current Ratio

2.84

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.10

Defensive

Steadier than the market

52W Range Position

26%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

2.3 / 2.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

44.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹0 Cr	₹0 Cr	₹0 Cr	₹1 Cr	+56.9%
EBITDA	-₹0 Cr	-₹0 Cr	₹0 Cr	₹0 Cr	—
EBITDA Margin	-26.5%	-52.3%	38.9%	8.8%	—
PAT (Net Profit)	₹0 Cr	-₹3 Cr	₹3 Cr	₹0 Cr	+185.1%
EPS	₹0	₹-0.73	₹0.55	₹0.02	+148.1%
ROE	0.0%	-39.5%	21.8%	0.7%	—
ROCE	0.1%	-37.1%	22.2%	0.8%	—
Total Debt	₹0 Cr	₹0 Cr	—	₹0 Cr	-60.9%
Free Cash Flow	₹0 Cr	-₹0 Cr	-₹6 Cr	-₹1 Cr	—

🟢 Revenue has grown at 56.9% a year over 3 years.

🟢 EBITDA has turned positive, from -₹0 Cr to ₹0 Cr.

🟢 EBITDA Margin has risen from -26.5% to 8.8% over 3 years (+35.3 pts).

🟢 PAT (Net Profit) has grown at 185.1% a year over 3 years.

🟢 EPS has grown at 148.1% a year over 3 years.

🟡 ROE has held roughly flat at 0.7% over 3 years.

🟡 ROCE has held roughly flat at 0.8% over 3 years.

🟢 Total Debt has shrunk at 60.9% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹0 Cr to -₹1 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹13 Cr

Total Liabilities

₹0 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹1 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

40.8%

Peer Comparison

Company	P/E	ROE
HINDUSTAN UNILEVER LTD.	42.5x	21.5%
ITC LTD	16.6x	27.4%
NESTLE INDIA LIMITED	59.8x	79.9%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%

Recent News

1 positive5 general

Hit Kit Global Solutions Ltd: Eswara Rao Nandam Group Disposes 4.14% Stake Through Open Market Sale

scanx.trade, 04 Oct

Hit Kit Global Solutions: Shareholder Changes Outweigh Small Revenue

Kalkine India, 12 Oct

SRIT INDIA LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 18 Oct

Hit Kit Global Solutions Ltd Upgraded to Sell on Technical Improvements Despite Fundamental Challenges

MarketsMojo, 29 SeptAnalyst view

🟢Potentially positiveAn analyst opinion changing, which moves the price without changing the business.

Hit Kit Global Solutions Ltd. Peer Comparison – Compare with Others

Value Research, 30 Aug

Hit Kit Global Solutions (BSE: 532359): Register Shifts Explained

Kalkine India, 06 Oct

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health · Growth

MiddlingValuation

WeakBusiness Quality · Profitability · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

2 of 5 tripwires tripped — Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑