Kabsons Industries Limited

Energy — Oil & Gas Refining & Marketing · BSE

₹14.60−₹0.20 (−1.35%)

DalalBaazaar Score

49 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

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

What does this company do?

Kabsons Industries Limited engages in the bottling and sale of liquefied petroleum gas under the KABSONS brand in India. The company was formerly known as Ellipse Industries Limited and changed its name to Kabsons Industries Limited in March 1993.

IndustryOil & Gas Refining & Marketing

SectorEnergy

Employees29

Annual revenue₹38 Cr

How does it make money?

Turns over ₹38 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 29 employees supports ₹1.31 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.31 Cr

Who are its competitors?

The closest listed comparisons in its industry are RELIANCE INDUSTRIES LTD, OIL AND NATURAL GAS CORP., BHARAT PETROLEUM CORP LT, INDIAN OIL CORP 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 6.8% 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 ROE15.4%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +174% while net margin moved -63% 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+174%

Margin effect-63%

DalalBaazaar Score

49/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 5.4% is weak
✗ ROE has fallen by 3.1 points over the period

Quality vs. Valuation

Company Quality

48/ 100

Average

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

Valuation

58/ 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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

EV/EBITDA

8.9x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 32% over 3 years.
Cash generation is improving
Free cash flow is up 138% 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 8.5% to 5.4% — each rupee of shareholder capital earns less than it did.

Red Flags

3 items require attention · 2 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 1.98x — earnings must service borrowings before shareholders see anything.
🔴Inventory building faster than salesFinancial
Inventory up 794% against revenue up 174% — stock may not be moving.
🟡Margins are compressingFinancial
EBITDA margin is down 2.9 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 32% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
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?

Margins are being competed away
EBITDA margin has fallen from 10.2% to 7.4%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 1.98x. Interest is payable whether or not the business has a good year.
Returns on shareholder capital are falling
ROE has dropped from 8.5% to 5.4%. 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

1Revenue growth stays above 30% a year✓ 40.0% CAGR
Latest reported year was 39.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 5%✓ 7.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹0 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 6.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 10 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 buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

2 good · 4 neutral · 5 weak

Market Cap

₹25 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

1.73x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0

Loss-making

Negative earnings per share — the business is losing money

ROE

5.4%

Weak

Weak capital efficiency

ROCE

6.8%

Weak

Low return on total capital employed

Debt/Equity

1.98x

High

High leverage

Revenue Growth (YoY)

39.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-92.9%

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

₹0 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

-3.3%

Weak

Thin margins leave little room for error

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.37

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.41

Defensive

Steadier than the market

52W Range Position

26%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

18.3 / 19.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

23.1

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹14 Cr	₹23 Cr	₹36 Cr	₹38 Cr	+40.0%
EBITDA	₹1 Cr	₹2 Cr	₹2 Cr	₹3 Cr	+25.5%
EBITDA Margin	10.2%	10.7%	6.1%	7.4%	—
PAT (Net Profit)	₹1 Cr	₹3 Cr	₹2 Cr	₹1 Cr	+0.2%
EPS	₹0.45	₹1.49	₹1.18	₹0.46	+0.7%
ROE	8.5%	21.9%	14.8%	5.4%	—
ROCE	8.5%	21.0%	14.3%	6.8%	—
Total Debt	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	-12.2%
Free Cash Flow	₹0 Cr	-₹1 Cr	₹0 Cr	₹0 Cr	+33.6%

🟢 Revenue has grown at 40.0% a year over 3 years.

🟢 EBITDA has grown at 25.5% a year over 3 years.

🔴 EBITDA Margin has fallen from 10.2% to 7.4% over 3 years (-2.9 pts).

🟡 PAT (Net Profit) has been broadly flat over 3 years (0.2% a year).

🟡 EPS has been broadly flat over 3 years (0.7% a year).

🔴 ROE has fallen from 8.5% to 5.4% over 3 years (-3.1 pts).

🔴 ROCE has fallen from 8.5% to 6.8% over 3 years (-1.6 pts).

🟢 Total Debt has shrunk at 12.2% a year over 3 years.

🟢 Free Cash Flow has grown at 33.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹21 Cr

Total Liabilities

₹6 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹2 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

2.0%

Insider Holding

67.4%

Peer Comparison

Company	P/E	ROE
RELIANCE INDUSTRIES LTD	21.9x	8.3%
OIL AND NATURAL GAS CORP.	6.4x	11.7%
BHARAT PETROLEUM CORP LT	7.3x	17.1%
INDIAN OIL CORP LTD	5.3x	15.4%

Recent News

2 mixed4 general

Kabsons Industries Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 30 Aug

Kabsons Industries declares voting results for FY26 financials adoption

scanx.trade, 28 SeptResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Compare with VINTRON INFORM

Equitymaster, 24 Sept

Kabsons Industries Clarifies Share Price Movement to BSE, Confirms Regulatory Compliance

scanx.trade, 09 Apr

Kabsons Industries (BSE:524675) - Stock Analysis

Simply Wall Street, 03 Dec

Kabsons Industries Ltd Q4 FY2022-23 net profit at Rs. 21.42 lakhs

EquityBulls, 25 MayResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingGrowth · Valuation

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. 2 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — ROCE stays above 8% · see Key things to watch ↑