Kaizen Agro Infrabuild Limited

Industrials — Engineering & Construction · BSE

₹8.53−₹0.17 (−1.95%)

DalalBaazaar Score

44 / 100

🟡 Moderate

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, but sales are shrinking. 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 Kaizen Agro Infrabuild Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Kaizen Agro Infrabuild Limited, a construction company, engages in the construction and civil works. It offers construction services, such as residential, commercial, and industrial projects, as well as involved in agriculture related business.

IndustryEngineering & Construction

SectorIndustrials

Employees6

Annual revenue₹70 Cr

How does it make money?

Turns over ₹70 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹1 left at the operating level before interest, tax and depreciation. Each of its 6 employees supports ₹11.72 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹11.72 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 0.5% 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?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +217% while net margin moved -70% 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+217%

Margin effect-70%

DalalBaazaar Score

44/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 0.3% is weak

Quality vs. Valuation

Company Quality

45/ 100

Average

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

Valuation

29/ 100

Expensive

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

213.3x

3Y Median

132.3x

40 monthly readings · mean 331.5x · range 60.6x–1128.0x

Sector Median

30.1x

median of 3 sector peers

⚠️Current valuation is approximately 61% above its 3y median of 132.3x. 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 609% above the peer median of 30.1x.

vs. its own history

Expensive

132.3x median over 40 months · +61%

vs. sector peers

Expensive

30.1x median of 3 peers · +609%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

79.6x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

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

🔴 What Needs Attention1

Margins are compressing
EBITDA margin has slipped from 2.6% to 0.8% over 3 years.

Red Flags

4 items require attention · 2 high · 2 watch

🔴Receivables growing faster than salesFinancial
Receivables up 756% against revenue up 217% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 1313% against revenue up 217% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹26 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 140% over 3 years — each existing share owns a smaller slice of the company.

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 2.6% to 0.8%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 756% against revenue up 217%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
The price already assumes success
The stock trades 61% 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.
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 35% a year✓ 46.9% CAGR
Latest reported year was -93.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -1%✓ 0.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹26 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✗ 0.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 132.3x✗ 213.3x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

2 / 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
✓ 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

2 good · 3 neutral · 6 weak

Market Cap

₹44 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

213.3x

Expensive

Expensive — verify against sector peers

P/B Ratio

0.39x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.04

Profitable

Profitable on a per-share basis

ROE

0.3%

Weak

Weak capital efficiency

ROCE

0.5%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

-93.2%

Shrinking

Sales are contracting

Profit Growth (YoY)

-42.9%

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

-₹26 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-46.2%

Weak

Thin margins leave little room for error

Net Margin

0.3%

Weak

Very little revenue reaches the bottom line

Current Ratio

3.40

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.44

Defensive

Steadier than the market

52W Range Position

12%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

9.2 / 9.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

0.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹22 Cr	₹27 Cr	₹14 Cr	₹70 Cr	+46.9%
EBITDA	₹1 Cr	₹0 Cr	₹1 Cr	₹1 Cr	-1.1%
EBITDA Margin	2.6%	0.7%	4.0%	0.8%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	-1.8%
EPS	₹0.18	₹0.02	₹0.08	₹0.07	-27.0%
ROE	0.6%	0.1%	0.3%	0.3%	—
ROCE	0.8%	0.2%	0.5%	0.5%	—
Free Cash Flow	-₹16 Cr	₹8 Cr	-₹24 Cr	-₹26 Cr	—

🟢 Revenue has grown at 46.9% a year over 3 years.

🟡 EBITDA has been broadly flat over 3 years (-1.1% a year).

🔴 EBITDA Margin has fallen from 2.6% to 0.8% over 3 years (-1.8 pts).

🟡 PAT (Net Profit) has been broadly flat over 3 years (-1.8% a year).

🔴 EPS has shrunk at 27.0% a year over 3 years.

🟡 ROE has held roughly flat at 0.3% over 3 years.

🟡 ROCE has held roughly flat at 0.5% over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹154 Cr

Total Liabilities

₹42 Cr

Total Debt

—

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹26 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

89.1%

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

2 positive1 mixed3 general

Kaizen Agro Infrabuild shareholders approve FY26 results, new directors

scanx.trade, 13 OctResults

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

Kaizen Agro Infrabuild revenue up 257% in FY26 to ₹7,032.34 lakh

scanx.trade, 20 AugResults

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

Kaizen Agro Infrabuild Ltd

Equitypandit, 11 Mar

KAIZEN AGRO INFRABUILD LIMITED Share Price

Upstox, 20 Mar

Kaizen Agro Infrabuild (BSE:538833) - Stock Analysis

Simply Wall Street, 31 Aug

Kaizen Agro FY26 profit falls despite revenue surge

scanx.trade, 29 MayResults

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

Watch Items

Revenue growth is negative (-93.2%) 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.
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

WeakBusiness Quality · Growth · Profitability · Valuation · 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.

3 of 5 tripwires tripped — Free cash flow remains positive; ROCE stays above 8%; Valuation vs its own median of 132.3x · see Key things to watch ↑