Kaarya Facilities and Services Limited

Industrials — Specialty Business Services · BSE

₹15.30+₹0.32 (+2.14%)

DalalBaazaar Score

59 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:51 pm

Understanding the Business

Company site ↗

The 60-second version of Kaarya Facilities and Services Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Kaarya Facilities and Services Limited operates as an integrated asset and facilities management company in India.

IndustrySpecialty Business Services

SectorIndustrials

Annual revenue₹39 Cr

How does it make money?

Turns over ₹39 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA LIMITED. 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?Some evidence

ROCE of 73.3% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE15.2%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +74% while net margin moved -115% 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+74%

Margin effect-115%

DalalBaazaar Score

59/ 100

Moderate

Weighted across six categories. Every point is explained below.

✓ Beta of 0.14 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

60/ 100

Average

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

Valuation

83/ 100

Cheap

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

7.7x

1.3Y Median

14.9x

16 monthly readings · mean 12.0x · range 5.7x–15.3x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 48% below its 1.3y median of 14.9x. 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 91% below the peer median of 88.8x.

vs. its own history

Cheap

14.9x median over 16 months · -48%

vs. sector peers

Cheap

88.8x median of 3 peers · -91%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

5.5x

PEG

0.84

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from -7.4% to 11.2% over 3 years.
Return on equity is rising
ROE has improved from -227.8% to 75.1%.
Return on capital is rising
ROCE has improved from -109.5% to 73.3%.
High return on capital employed
ROCE of 73.3% is the mark of a business that converts capital into profit efficiently.

🔴 What Needs Attention0

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

Red Flags

4 items require attention · 4 high

🔴Debt has risen sharplyFinancial
Total debt is up 77% over 3 years, from ₹6 Cr to ₹10 Cr.
🔴High leverageFinancial
Debt/Equity of 3.83x — earnings must service borrowings before shareholders see anything.
🔴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.
🔴Receivables growing faster than salesFinancial
Receivables up 269% against revenue up 74% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 73.3% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from -7.4% to 11.2%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 48% 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.
Cheaper than its peers
It trades 91% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 3.83x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 269% against revenue up 74%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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.
Several serious flags at once
4 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1Revenue growth stays above 15% a year✓ 20.3% CAGR
Latest reported year was -9.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 9%✓ 11.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹1 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 2.7x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

7 / 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 · 3 neutral · 4 weak

Market Cap

₹15 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

7.7x

Cheap

Cheap against the generic band

P/B Ratio

5.49x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹1.99

Profitable

Profitable on a per-share basis

ROE

146.1%

Strong

Strong capital efficiency

ROCE

73.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

3.83x

High

High leverage

Revenue Growth (YoY)

-9.5%

Shrinking

Sales are contracting

Profit Growth (YoY)

9.1%

Modest

Slow profit growth

Dividend Yield

None

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

Free Cash Flow

-₹2 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

11.8%

Good

Assets are working hard

Operating Margin

15.2%

Good

Healthy core-business profitability

Net Margin

5.2%

Average

Average bottom-line conversion

Current Ratio

1.12

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.14

Defensive

Steadier than the market

52W Range Position

27%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

11.6 / 11.5

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

100.0

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹22 Cr	₹29 Cr	₹38 Cr	₹39 Cr	+20.3%
EBITDA	-₹2 Cr	-₹3 Cr	₹4 Cr	₹4 Cr	—
EBITDA Margin	-7.4%	-10.8%	9.5%	11.2%	—
PAT (Net Profit)	-₹8 Cr	-₹5 Cr	₹2 Cr	₹2 Cr	—
EPS	₹-1.09	₹-5.41	₹1.84	—	—
ROE	-227.8%	—	2232.6%	75.1%	—
ROCE	-109.5%	—	250.5%	73.3%	—
Total Debt	₹6 Cr	₹7 Cr	₹9 Cr	₹10 Cr	+21.1%
Free Cash Flow	₹0 Cr	-₹1 Cr	-₹1 Cr	-₹1 Cr	—

🟢 Revenue has grown at 20.3% a year over 3 years.

🟢 EBITDA has turned positive, from -₹2 Cr to ₹4 Cr.

🟢 EBITDA Margin has risen from -7.4% to 11.2% over 3 years (+18.6 pts).

🟢 PAT (Net Profit) has turned positive, from -₹8 Cr to ₹2 Cr.

🟢 ROE has risen from -227.8% to 75.1% over 3 years (+303.0 pts).

🟢 ROCE has risen from -109.5% to 73.3% over 3 years (+182.9 pts).

🔴 Total Debt has grown at 21.1% a year over 3 years.

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

Balance Sheet & Cash Flow — FY2026

Total Assets

₹23 Cr

Total Liabilities

₹21 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹1 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

66.0%

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

6 general

Kaarya Facilities And Services Ltd. Peer Comparison – Compare with Others

Value Research, 31 Aug

Kaarya Facilities & Services shareholders approve all resolutions at 17th AGM

scanx.trade, 28 Sept

Kaarya Facilities And Services Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 03 Sept

Kaarya Facilities sets Sept 28 for 17th AGM; book closure begins Sept 22

scanx.trade, 28 Sept

BIOGEN PHARMACHEM INDUSTRIES LTD Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 19 May

Kaarya Facilities Appoints Jitendra Rathod as CFO with 15 Years Experience

scanx.trade, 03 Apr

Watch Items

Revenue growth is negative (-9.5%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongGrowth · Profitability · Valuation

MiddlingBusiness Quality

WeakFinancial Health · 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. 4 high-severity red flags sit above this conclusion and should be read first.

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