Kalpataru Limited

Real Estate — Real Estate - Development · NSE

₹263.60+₹0.95 (+0.36%)

DalalBaazaar Score

44 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by high debt relative to equity, small-cap size, which brings sharper price swings.

In simple words: The business is earning a fairly low return on the money invested in it, with modest growth. Debt is 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 Kalpataru Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Kalpataru Limited, through its subsidiaries, operates as a real estate development company in India.

IndustryReal Estate - Development

SectorReal Estate

Employees1,900

Annual revenue₹3,104 Cr

How does it make money?

Turns over ₹3,104 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹43 left at the operating level before interest, tax and depreciation. Each of its 1,900 employees supports ₹1.63 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.63 Cr

Who are its competitors?

The closest listed comparisons in its industry are DLF LIMITED, GODREJ PROPERTIES LTD, OBEROI REALTY 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?Some evidence

ROCE of 18.2% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE10.3%

What is the outlook?

1 analysts covering the stock expect revenue to grow about 18.0% and earnings to grow about 46.7% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+18.0%

Est. earnings growth+46.7%

Analysts1

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -9% while net margin moved -151% 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-9%

Margin effect-151%

DalalBaazaar Score

44/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 3.2% a year

Quality vs. Valuation

Company Quality

42/ 100

Weak

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

Valuation

55/ 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

43.2x

1.3Y Median

310.2x

16 monthly readings · mean 251.6x · range 55.1x–366.3x

Sector Median

30.2x

median of 3 sector peers

🟢Current valuation is approximately 86% below its 1.3y median of 310.2x. 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 43% above the peer median of 30.2x.

vs. its own history

Cheap

310.2x median over 16 months · -86%

vs. sector peers

Expensive

30.2x median of 3 peers · +43%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

10.8x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 35.1% to 42.9% over 3 years.
Return on equity is rising
ROE has improved from -16.7% to 2.3%.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 26.3% to 18.2% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 2 high · 2 watch

🔴High leverageFinancial
Debt/Equity of 2.25x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.1x — little room if earnings dip.
🟡Receivables growing faster than salesFinancial
Receivables up 34% against revenue up -9% — sales are being booked faster than they are collected.
🟡Inventory building faster than salesFinancial
Inventory up 41% against revenue up -9% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 18.2% 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 35.1% to 42.9%. 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 86% 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?

The debt load needs earnings to hold up
Debt is 6.9x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 34% against revenue up -9%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 43% above the peer median. That premium needs a reason that persists, or it closes.
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
Small 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 41%✓ 42.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 6.9x
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✗ 1.1x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹711 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 15%✓ 18.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 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 · 3 neutral · 3 weak

Market Cap

₹5,428 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

43.2x

Expensive

Expensive — verify against sector peers

P/B Ratio

1.32x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹6.1

Profitable

Profitable on a per-share basis

ROE

2.3%

Weak

Weak capital efficiency

ROCE

18.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

2.25x

High

High leverage

Revenue Growth (YoY)

6.5%

Modest

Modest growth

Profit Growth (YoY)

333.4%

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

₹711 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

39.9x

Improving

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

Operating Margin

-11.9%

Weak

Thin margins leave little room for error

Net Margin

3.4%

Average

Average bottom-line conversion

Current Ratio

1.54

Comfortable

Healthy short-term liquidity

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

269.6 / 274.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

28.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹3,427 Cr	₹1,673 Cr	₹1,933 Cr	₹3,104 Cr	-3.2%
EBITDA	₹1,202 Cr	₹1,064 Cr	₹1,423 Cr	₹1,330 Cr	+3.4%
EBITDA Margin	35.1%	63.6%	73.6%	42.9%	—
PAT (Net Profit)	-₹203 Cr	-₹103 Cr	₹22 Cr	₹94 Cr	—
EPS	₹-9.88	₹-5.02	₹1.05	₹4.76	—
ROE	-16.7%	-10.2%	0.9%	2.3%	—
ROCE	26.3%	20.6%	22.2%	18.2%	—
Total Debt	₹9,679 Cr	₹10,614 Cr	₹10,172 Cr	₹9,168 Cr	-1.8%
Free Cash Flow	₹2,116 Cr	₹327 Cr	₹446 Cr	₹711 Cr	-30.5%

🔴 Revenue has shrunk at 3.2% a year over 3 years.

🟢 EBITDA has grown at 3.4% a year over 3 years.

🟢 EBITDA Margin has risen from 35.1% to 42.9% over 3 years (+7.8 pts).

🟢 PAT (Net Profit) has turned positive, from -₹203 Cr to ₹94 Cr.

🟢 EPS has turned positive, from ₹-9.88 to ₹4.76.

🟢 ROE has risen from -16.7% to 2.3% over 3 years (+19.0 pts).

🔴 ROCE has fallen from 26.3% to 18.2% over 3 years (-8.1 pts).

🟡 Total Debt has been broadly flat over 3 years (-1.8% a year).

🔴 Free Cash Flow has shrunk at 30.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹17,682 Cr

Total Liabilities

₹13,604 Cr

Cash & Equivalents

₹239 Cr

Operating Cash Flow

₹848 Cr

Capex

-₹138 Cr

Shareholding (proxy)

Institutional Holding

10.8%

Insider Holding

83.7%

Analyst Consensus

Target Price (Mean)

₹420

+59.3% vs CMP

Target Range

₹420 – ₹420

Peer Comparison

Company	P/E	ROE
DLF LIMITED	36.6x	10.3%
GODREJ PROPERTIES LTD	30.2x	8.4%
OBEROI REALTY LIMITED	23.5x	14.7%

Recent News

2 positive2 mixed2 general

Kalpataru Power Transmission Share Price - Live NSE: KPIL Stock Price & Chart

Upstox, 16 Oct

Kalpataru Projects International (NSEI:KPIL) Stock Forecast & Analyst Predictions

Simply Wall Street, 14 OctAnalyst view

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

Kalpataru Projects secures GST appeal win, removes ₹1.52 crore liability

scanx.trade, 18 Oct

Kalpataru Projects International wins new orders worth ₹2,225 crore; Stock gives up early gains

CNBC TV18, 13 OctOrder win

🟢Potentially positiveOrder wins add to future revenue, though the effect depends on the contract's size against annual sales and on when it is executed.

Kalpataru Projects Wins Rs 2,225 Crore Orders, Order Book Hits Record High

NDTV Profit, 13 OctOrder win

🟢Potentially positiveOrder wins add to future revenue, though the effect depends on the contract's size against annual sales and on when it is executed.

Kalpataru Share Price Target 2027 to 2030: Analyst Outlook

Univest, 17 AugAnalyst view

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

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
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

MiddlingBusiness Quality · Financial Health · Profitability · Valuation

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

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Interest cover stays above 3x · see Key things to watch ↑