Kalyani Cast-Tech Limited

Industrials — Metal Fabrication · BSE

₹1,183.00+₹2.40 (+0.20%)

DalalBaazaar Score

60 / 100

🟢 Good

Verdict

CAUTION

Risk

Moderate

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

In simple words: Strong business and financial position, 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, 6:08 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 Kalyani Cast-Tech Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Kalyani Cast-Tech Limited manufactures container, class of foundry, casting of steel and iron, and railway parts in India.

IndustryMetal Fabrication

SectorIndustrials

Employees224

Annual revenue₹150 Cr

How does it make money?

Turns over ₹150 Cr a year. Of every ₹100 of sales, about ₹11 reaches shareholders as profit, with ₹15 left at the operating level before interest, tax and depreciation. Each of its 224 employees supports ₹66.8 lakh of revenue a year, the signature of a people-led business.

EBITDA margin14.9%

Net margin11.4%

Revenue / employee₹66.8 lakh

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, HINDALCO INDUSTRIES LTD, VEDANTA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

TATA STEEL LIMITEDP/E 19.8x · ROE 10.8%

JSW STEEL LIMITEDP/E 12.0x · ROE 24.7%

HINDALCO INDUSTRIES LTDP/E 12.3x · ROE 12.0%

VEDANTA LIMITEDP/E 10.4x · ROE 18.7%

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 26.4%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 22.6% against a peer median of 18.7% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

ROCE26.4%

ROE22.6%

Peer median ROE18.7%

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 +137% while net margin moved -10% 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+137%

Margin effect-10%

DalalBaazaar Score

60/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 49.7x is demanding — it needs sustained high growth to justify
✗ P/E is 59% above its own historical median of 31.4x — expensive by its own standards
✗ P/B of 10.40x is a steep premium to book

Quality vs. Valuation

Company Quality

69/ 100

Good

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

Valuation

26/ 100

Expensive

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

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

49.7x

3Y Median

31.4x

37 monthly readings · mean 34.5x · range 23.1x–62.9x

Sector Median

12.2x

median of 4 sector peers

⚠️Current valuation is approximately 59% above its 3y median of 31.4x. 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 309% above the peer median of 12.2x.

vs. its own history

Expensive

31.4x median over 37 months · +59%

vs. sector peers

Expensive

12.2x median of 4 peers · +309%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

49.7x

P/B

10.40x

EV/EBITDA

39.5x

PEG

1.75

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 83% over 3 years.
High return on capital employed
ROCE of 26.4% 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 Attention6

Margins are compressing
EBITDA margin has slipped from 18.7% to 14.9% 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 56.3% to 20.9% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 67.3% to 26.4% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 1629% against revenue growth of 137% — customers are taking longer to pay.
Valuation above its historical average
At 49.7x the stock trades 59% above its own median of 31.4x.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Receivables growing faster than salesFinancial
Receivables up 1629% against revenue up 137% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹21 Cr in the latest year.
🟡Margins are compressingFinancial
EBITDA margin is down 3.7 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 26.4% 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.
Deleveraging frees up earnings
Debt is down 83% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
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 18.7% to 14.9%. 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 1629% against revenue up 137%. 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 59% 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 56.3% to 20.9%. 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

1Revenue growth stays above 25% a year✓ 33.2% CAGR
Latest reported year was -16.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 13%✓ 14.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹21 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 23%✓ 26.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 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 · 3 neutral · 4 weak

Market Cap

₹888 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

49.7x

Expensive

Expensive — verify against sector peers

P/B Ratio

10.40x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹23.79

Profitable

Profitable on a per-share basis

ROE

22.6%

Strong

Strong capital efficiency

ROCE

26.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.67x

Moderate

Moderate leverage

Revenue Growth (YoY)

-16.6%

Shrinking

Sales are contracting

Profit Growth (YoY)

23.9%

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

-₹21 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹1,183

ROA

14.9%

Good

Assets are working hard

Operating Margin

17.0%

Good

Healthy core-business profitability

Net Margin

11.4%

Good

Strong bottom-line conversion

Current Ratio

3.97

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.64

Defensive

Steadier than the market

52W Range Position

77%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1230.8 / 1056.5

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

23.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹63 Cr	₹94 Cr	₹139 Cr	₹150 Cr	+33.2%
EBITDA	₹12 Cr	₹14 Cr	₹20 Cr	₹22 Cr	+23.7%
EBITDA Margin	18.7%	14.9%	14.4%	14.9%	—
PAT (Net Profit)	₹8 Cr	₹10 Cr	₹14 Cr	₹17 Cr	+28.5%
EPS	₹11.21	₹16.42	₹19.85	—	—
ROE	56.3%	19.1%	22.1%	20.9%	—
ROCE	67.3%	26.2%	29.7%	26.4%	—
Total Debt	₹3 Cr	₹8 Cr	₹5 Cr	₹1 Cr	-44.7%
Free Cash Flow	₹3 Cr	-₹12 Cr	₹4 Cr	-₹21 Cr	—

🟢 Revenue has grown at 33.2% a year over 3 years.

🟢 EBITDA has grown at 23.7% a year over 3 years.

🔴 EBITDA Margin has fallen from 18.7% to 14.9% over 3 years (-3.7 pts).

🟢 PAT (Net Profit) has grown at 28.5% a year over 3 years.

🔴 ROE has fallen from 56.3% to 20.9% over 3 years (-35.4 pts).

🔴 ROCE has fallen from 67.3% to 26.4% over 3 years (-40.9 pts).

🟢 Total Debt has shrunk at 44.7% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹3 Cr to -₹21 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹99 Cr

Total Liabilities

₹13 Cr

Total Debt

₹1 Cr

Cash & Equivalents

₹5 Cr

Operating Cash Flow

₹18 Cr

Capex

-₹39 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

69.0%

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
HINDALCO INDUSTRIES LTD	12.3x	12.0%
VEDANTA LIMITED	10.4x	18.7%

Recent News

1 mixed5 general

Kalyani Cast Tech Ltd Key Financial Ratios – Valuation, Profitability & More

Value Research, 21 Sept

Kalyani Cast-Tech Ltd. Share Price News and Price Analysis

Univest, 07 Aug

Kalyani Cast Tech Approves ₹18.81 Crore Fundraise Via 3.23 Lakh Convertible Warrants

Sahi, 30 Jun

Kalyani Cast Tech passes all AGM resolutions with zero opposition

scanx.trade, 02 Oct

Kalyani Cast-Tech Share Price news: price rise and peers

Univest, 11 SeptPrice 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.

Kalyani Cast Tech FY26 PAT rises 20% to ₹17.11 crore

scanx.trade, 29 May

Watch Items

Revenue growth is negative (-16.6%) 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.
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

🟡Business QualityAdequate12.6/20

🟢Financial HealthStrong14/20

🟢GrowthStrong14.9/20

🟢ProfitabilityStrong10.4/15

🔴ValuationDemanding3.3/15

🔴RiskHigh4.4/10

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 25% a year33.2% CAGR
✓EBITDA margin holds above 13%14.9%
✗Free cash flow remains positive-₹21 Cr
✓Debt / EBITDA stays below 2x0.0x
✓ROCE stays above 23%26.4%