Kaira Can Company Limited

Consumer Cyclical — Packaging & Containers · BSE

₹1,358.80−₹68.20 (−4.78%)

DalalBaazaar Score

34 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

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

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:06 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Kaira Can Company Limited manufactures and sells open top sanitary cans, lithographed and plain metal containers, and special containers in India and internationally. The company operates in two segments, Tin Containers and Ice Cream Cones.

IndustryPackaging & Containers

SectorConsumer Cyclical

Employees175

Annual revenue₹217 Cr

How does it make money?

Turns over ₹217 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹3 left at the operating level before interest, tax and depreciation. Each of its 175 employees supports ₹1.24 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin3.2%

Net margin0.8%

Revenue / employee₹1.24 Cr

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

MARUTI SUZUKI INDIA LTD.P/E 25.2x · ROE 13.4%

TITAN COMPANY LIMITEDP/E 68.5x · ROE 36.7%

TRENT LTDP/E 87.2x · ROE 25.9%

AVENUE SUPERMARTS LIMITEDP/E 69.9x · ROE 12.7%

What is its competitive advantage?Little sign of one

Returns on capital of 3.6% 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.

ROCE3.6%

ROE2.0%

Peer median ROE25.9%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -3% while net margin moved -77% 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-3%

Margin effect-77%

DalalBaazaar Score

34/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 1.2% a year
✗ Profit has declined at 39.4% a year

Quality vs. Valuation

Company Quality

32/ 100

Weak

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

Valuation

46/ 100

Fair

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

55.5x

3Y Median

37.7x

40 monthly readings · mean 38.6x · range 21.8x–81.8x

Sector Median

69.2x

median of 4 sector peers

⚠️Current valuation is approximately 47% above its 3y median of 37.7x. 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 20% below the peer median of 69.2x.

vs. its own history

Expensive

37.7x median over 40 months · +47%

vs. sector peers

Fair

69.2x median of 4 peers · -20%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

55.5x

P/B

1.38x

EV/EBITDA

19.0x

PEG

1.23

Dividend Yield

0.88%

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention6

Margins are compressing
EBITDA margin has slipped from 7.2% to 3.2% over 3 years.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 9.6% to 2.0% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 13.6% to 3.6% — often a sign of competition or overexpansion.
Inventory building faster than sales
Inventory is up 34% against revenue growth of -3% — stock may not be moving.
Valuation above its historical average
At 55.5x the stock trades 47% above its own median of 37.7x.

Red Flags

5 items require attention · 1 high · 4 watch

🔴High leverageFinancial
Debt/Equity of 7.35x — earnings must service borrowings before shareholders see anything.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹4 Cr in the latest year.
🟡Profit is decliningFinancial
Net profit is down 78% over 3 years.
🟡Margins are compressingFinancial
EBITDA margin is down 4.0 points over 3 years.
🟡Inventory building faster than salesFinancial
Inventory up 34% against revenue up -3% — stock may not be moving.

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?

Margins are being competed away
EBITDA margin has fallen from 7.2% to 3.2%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 7.35x. Interest is payable whether or not the business has a good year.
The price already assumes success
The stock trades 47% 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 9.6% to 2.0%. 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.
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 1%✓ 3.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹4 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 1.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 8%✗ 3.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 37.7x✗ 55.5x today
A re-rating above its own history needs a reason; without one it is just a higher price.

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

₹125 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

55.5x

Expensive

Expensive — verify against sector peers

P/B Ratio

1.38x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹24.49

Profitable

Profitable on a per-share basis

ROE

2.0%

Weak

Weak capital efficiency

ROCE

3.6%

Weak

Low return on total capital employed

Debt/Equity

7.35x

High

High leverage

Revenue Growth (YoY)

18.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

45.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.88%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹4 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹1,358.8

P/E (Forward)

21.1x

Improving

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

Operating Margin

3.0%

Weak

Thin margins leave little room for error

Net Margin

0.9%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.12

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.26

Defensive

Steadier than the market

52W Range Position

40%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1385.6 / 1481.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

58.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹225 Cr	₹197 Cr	₹204 Cr	₹217 Cr	-1.2%
EBITDA	₹16 Cr	₹8 Cr	₹8 Cr	₹7 Cr	-24.7%
EBITDA Margin	7.2%	4.2%	4.0%	3.2%	—
PAT (Net Profit)	₹8 Cr	₹4 Cr	₹4 Cr	₹2 Cr	-39.4%
EPS	₹87.19	₹40.84	₹41.69	₹19.43	-39.4%
ROE	9.6%	4.3%	4.3%	2.0%	—
ROCE	13.6%	6.0%	5.8%	3.6%	—
Total Debt	—	—	₹4 Cr	₹7 Cr	—
Free Cash Flow	₹12 Cr	₹1 Cr	-₹15 Cr	-₹4 Cr	—

🟡 Revenue has been broadly flat over 3 years (-1.2% a year).

🔴 EBITDA has shrunk at 24.7% a year over 3 years.

🔴 EBITDA Margin has fallen from 7.2% to 3.2% over 3 years (-4.0 pts).

🔴 PAT (Net Profit) has shrunk at 39.4% a year over 3 years.

🔴 EPS has shrunk at 39.4% a year over 3 years.

🔴 ROE has fallen from 9.6% to 2.0% over 3 years (-7.6 pts).

🔴 ROCE has fallen from 13.6% to 3.6% over 3 years (-10.0 pts).

🔴 Free Cash Flow has turned negative, from ₹12 Cr to -₹4 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹132 Cr

Total Liabilities

₹41 Cr

Total Debt

₹7 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹1 Cr

Capex

-₹3 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

93.4%

Corporate Actions

Dividend Rate

₹12

Ex-Dividend Date

31 Jul 2026

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

2 positive1 mixed3 general

EMMBI INDUSTRIES Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 15 Oct

Kaira Can Company Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 29 Aug

Kaira Can FY26 profit falls, recommends Rs 12 dividend

scanx.trade, 25 MayCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Kaira Can Q1 FY27 Results: Revenue Rs 86 Cr, PAT Up 45%

Univest, 17 AugResults

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

Kaira Can Co. Ltd. (BSE: KAIRA) Business Overview and Growth Factors

Kalkine India, 11 Sept

Kaira Can Q1 Results: Net profit up 45% YoY to ₹1.5 crore

scanx.trade, 13 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Watch Items

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

DalalBaazaar Thesis

🔴Business QualityWeak5.9/20

🟡Financial HealthAdequate10.6/20

🔴GrowthWeak2.4/20

🔴ProfitabilityWeak4.6/15

🔴ValuationDemanding6.2/15

🔴RiskHigh4/10

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.

This thesis breaks if

✓EBITDA margin holds above 1%3.2%
✗Free cash flow remains positive-₹4 Cr
✓Debt / EBITDA stays below 2x1.0x
✗ROCE stays above 8%3.6%
✗Valuation vs its own median of 37.7x55.5x today