K I C Metaliks Limited

Basic Materials — Steel · BSE

₹30.68+₹0.09 (+0.29%)

DalalBaazaar Score

42 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by 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. Thin profit margins are the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:28 pm

Understanding the Business

Company site ↗

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

What does this company do?

K I C Metaliks Limited engages in the manufacture and sale of pig iron in India. It offers pig iron, pig iron scraps, and its by-products. The company also provides coking coal, and other products. It supplies its products to foundries, automotive, and construction industries.

IndustrySteel

SectorBasic Materials

Employees340

Annual revenue₹783 Cr

How does it make money?

Turns over ₹783 Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹3 left at the operating level before interest, tax and depreciation. Each of its 340 employees supports ₹2.30 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.30 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, JINDAL STEEL LIMITED, STEEL AUTHORITY OF INDIA. 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 5.3% 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 ROE10.8%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +4% while net margin moved -95% 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+4%

Margin effect-95%

DalalBaazaar Score

42/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 1.5% — barely ahead of inflation
✗ Profit has declined at 61.6% a year

Quality vs. Valuation

Company Quality

38/ 100

Weak

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

Valuation

66/ 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

34.1x

3Y Median

49.9x

40 monthly readings · mean 46.0x · range 8.1x–111.6x

Sector Median

18.2x

median of 4 sector peers

🟢Current valuation is approximately 32% below its 3y median of 49.9x. 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 87% above the peer median of 18.2x.

vs. its own history

Cheap

49.9x median over 40 months · -32%

vs. sector peers

Expensive

18.2x median of 4 peers · +87%

vs. generic bands

Fair

15x–35x

EV/EBITDA

7.8x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Debt is being paid down
Total debt is down 20% over 3 years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 10.4% to 0.6% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 17.9% to 5.3% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.2x — little room if earnings dip.
🟡Profit is decliningFinancial
Net profit is down 94% over 3 years.
🟡Margins are compressingFinancial
EBITDA margin is down 2.7 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 20% 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 32% 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?

Margins are being competed away
EBITDA margin has fallen from 6.0% to 3.3%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 4.0x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
A premium to the sector to defend
It trades 87% above the peer median. That premium needs a reason that persists, or it closes.
Growth barely outpaces inflation
Revenue compounding at 1.5% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 10.4% to 0.6%. 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.

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

1EBITDA margin holds above 1%✓ 3.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 4.0x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✗ 1.2x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 4% a year✗ 1.5% CAGR
Latest reported year was 50.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹35 Cr
Profit that never becomes cash eventually stops being profit.

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

6 good · 3 neutral · 2 weak

Market Cap

₹109 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

34.1x

Fair

Fairly valued against the generic band

P/B Ratio

0.62x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.9

Profitable

Profitable on a per-share basis

ROE

0.6%

Weak

Weak capital efficiency

ROCE

5.3%

Weak

Low return on total capital employed

Debt/Equity

0.59x

Low

Conservative leverage

Revenue Growth (YoY)

50.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

117.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

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

Free Cash Flow

₹35 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

2.1x

Improving

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

Operating Margin

1.6%

Weak

Thin margins leave little room for error

Net Margin

0.4%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.18

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

1.25

Market-like

Moves roughly in line with the market

52W Range Position

49%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

30.3 / 31.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

49.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹749 Cr	₹854 Cr	₹717 Cr	₹783 Cr	+1.5%
EBITDA	₹45 Cr	₹25 Cr	₹13 Cr	₹26 Cr	-16.9%
EBITDA Margin	6.0%	2.9%	1.8%	3.3%	—
PAT (Net Profit)	₹19 Cr	₹2 Cr	-₹6 Cr	₹1 Cr	-61.6%
EPS	₹5.22	₹0.64	₹-1.72	₹0.3	-61.4%
ROE	10.4%	1.3%	-3.5%	0.6%	—
ROCE	17.9%	5.2%	-0.8%	5.3%	—
Total Debt	₹128 Cr	₹130 Cr	₹124 Cr	₹103 Cr	-7.2%
Free Cash Flow	₹34 Cr	₹12 Cr	₹14 Cr	₹35 Cr	+1.0%

🟡 Revenue has been broadly flat over 3 years (1.5% a year).

🔴 EBITDA has shrunk at 16.9% a year over 3 years.

🔴 EBITDA Margin has fallen from 6.0% to 3.3% over 3 years (-2.7 pts).

🔴 PAT (Net Profit) has shrunk at 61.6% a year over 3 years.

🔴 EPS has shrunk at 61.4% a year over 3 years.

🔴 ROE has fallen from 10.4% to 0.6% over 3 years (-9.8 pts).

🔴 ROCE has fallen from 17.9% to 5.3% over 3 years (-12.6 pts).

🟢 Total Debt has shrunk at 7.2% a year over 3 years.

🟡 Free Cash Flow has been broadly flat over 3 years (1.0% a year).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹386 Cr

Total Liabilities

₹211 Cr

Cash & Equivalents

₹10 Cr

Operating Cash Flow

₹43 Cr

Capex

-₹8 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

81.3%

Corporate Actions

Ex-Dividend Date

11 Sept 2001

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
JINDAL STEEL LIMITED	39.1x	5.3%
STEEL AUTHORITY OF INDIA	16.5x	7.1%

Recent News

1 mixed1 negative4 general

KIC Metaliks resumes Mini Blast Furnace operations at Durgapur plant

scanx.trade, 15 Oct

KIC Metaliks Ltd Forms Death Cross, Signalling Potential Bearish Trend

MarketsMojo, 15 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

KIC Metaliks Ltd. Peer Comparison – Compare with Others

Value Research, 31 Aug

KIC Metaliks Ltd Downgraded to Sell Amid Mixed Financial and Technical Signals

MarketsMojo, 07 OctAnalyst view

🔴Potentially negativeAn analyst opinion changing, which moves the price without changing the business.

KIC Metaliks Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 29 Aug

KIC Metaliks returns to profitability with net profit of ₹105.11 lakh in FY26

scanx.trade, 26 May

Watch Items

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

DalalBaazaar Thesis

StrongValuation

MiddlingFinancial Health

WeakBusiness Quality · Growth · Profitability · Risk

Points for each in the Score ↑

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.

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Interest cover stays above 3x; Revenue growth stays above 4% a year · see Key things to watch ↑