Kaka Industries Limited

Consumer Cyclical — Furnishings, Fixtures & Appliances · BSE

₹214.00−₹4.10 (−1.88%)

DalalBaazaar Score

64 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by moderate debt load, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

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

What does this company do?

Kaka Industries Limited manufactures and sells polymer-based profiles, and factory-made and solid PVC doors in India.

IndustryFurnishings, Fixtures & Appliances

SectorConsumer Cyclical

Annual revenue₹263 Cr

How does it make money?

Turns over ₹263 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹14 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are HAVELLS INDIA LIMITED, VOLTAS LTD, TITAN COMPANY 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 23.0%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 25.5% against a peer median of 17.1% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE17.1%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +71% while net margin moved +52% 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+71%

Margin effect+52%

DalalBaazaar Score

64/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.18 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

65/ 100

Good

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

Valuation

77/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

15.6x

3Y Median

23.9x

40 monthly readings · mean 26.5x · range 15.6x–52.8x

Sector Median

68.5x

median of 3 sector peers

🟢Current valuation is approximately 35% below its 3y median of 23.9x. 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 77% below the peer median of 68.5x.

vs. its own history

Cheap

23.9x median over 40 months · -35%

vs. sector peers

Cheap

68.5x median of 3 peers · -77%

vs. generic bands

Fair

15x–35x

EV/EBITDA

10.5x

PEG

0.41

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 9.1% to 14.0% over 3 years.
High return on capital employed
ROCE of 23.0% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 36.7% to 22.6% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 29.1% to 23.0% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 161% over 3 years, from ₹40 Cr to ₹104 Cr.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Inventory building faster than salesFinancial
Inventory up 221% against revenue up 71% — stock may not be moving.
🟡Receivables growing faster than salesFinancial
Receivables up 98% against revenue up 71% — 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 23.0% 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 9.1% to 14.0%. 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 35% 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 77% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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?

Sales are being booked faster than collected
Receivables are up 98% against revenue up 71%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 36.7% to 22.6%. 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.
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
3 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✓ 19.6% CAGR
Latest reported year was 35.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 12%✓ 14.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹17 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 20%✓ 23.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

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

5 good · 5 neutral · 1 weak

Market Cap

₹292 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

15.6x

Fair

Fairly valued against the generic band

P/B Ratio

3.52x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹13.74

Profitable

Profitable on a per-share basis

ROE

25.5%

Strong

Strong capital efficiency

ROCE

23.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.25x

Moderate

Moderate leverage

Revenue Growth (YoY)

35.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

56.3%

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

-₹27 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

10.6%

Good

Assets are working hard

Operating Margin

11.9%

Average

Average margins

Net Margin

7.1%

Average

Average bottom-line conversion

Current Ratio

1.25

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.18

Defensive

Steadier than the market

52W Range Position

58%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

218.7 / 221.9

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

45.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹154 Cr	₹170 Cr	₹198 Cr	₹263 Cr	+19.6%
EBITDA	₹14 Cr	₹21 Cr	₹26 Cr	₹37 Cr	+38.0%
EBITDA Margin	9.1%	12.5%	13.1%	14.0%	—
PAT (Net Profit)	₹7 Cr	₹13 Cr	₹13 Cr	₹19 Cr	+37.6%
EPS	₹5.27	₹10.34	₹9.42	—	—
ROE	36.7%	25.2%	20.0%	22.6%	—
ROCE	29.1%	25.7%	23.2%	23.0%	—
Total Debt	₹40 Cr	₹46 Cr	₹72 Cr	₹104 Cr	+37.7%
Free Cash Flow	-₹3 Cr	-₹30 Cr	-₹22 Cr	-₹17 Cr	—

🟢 Revenue has grown at 19.6% a year over 3 years.

🟢 EBITDA has grown at 38.0% a year over 3 years.

🟢 EBITDA Margin has risen from 9.1% to 14.0% over 3 years (+4.9 pts).

🟢 PAT (Net Profit) has grown at 37.6% a year over 3 years.

🔴 ROE has fallen from 36.7% to 22.6% over 3 years (-14.1 pts).

🔴 ROCE has fallen from 29.1% to 23.0% over 3 years (-6.1 pts).

🔴 Total Debt has grown at 37.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹209 Cr

Total Liabilities

₹125 Cr

Cash & Equivalents

₹8 Cr

Operating Cash Flow

₹16 Cr

Capex

-₹33 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

72.4%

Peer Comparison

Company	P/E	ROE
HAVELLS INDIA LIMITED	43.5x	17.1%
VOLTAS LTD	75.8x	7.0%
TITAN COMPANY LIMITED	68.5x	36.7%

Recent News

1 mixed5 general

Kaka Industries seeks shareholder nod for BSE Main Board migration

scanx.trade, 16 Oct

Kaka Industries Ltd. Share Price Rise and Stock Analysis

Univest, 11 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Kaka Industries Ltd Key Financial Ratios – Valuation, Profitability & More

Value Research, 31 Aug

Kaka Industries Board Approves Migration from BSE SME to Main Board and Direct Listing on NSE

EquityBulls, 12 Oct

BHAVIK ENTERPRISES LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 15 Oct

Kaka Industries shareholders adopt FY26 financials, reappoint director

scanx.trade, 01 Oct

Watch Items

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

DalalBaazaar Thesis

StrongGrowth · Valuation

MiddlingBusiness Quality · Financial Health · Profitability

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 3 high-severity red flags sit above this conclusion and should be read first.

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