Kalyani Commercials Limited

Consumer Cyclical — Auto & Truck Dealerships · NSE

₹144.99₹0.00 (0.00%)

DalalBaazaar Score

47 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Very High

Driven by high debt relative to equity, 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. Debt is 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 Kalyani Commercials Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Kalyani Commercials Limited engages in the trading of heavy commercial vehicles, and three wheelers in India. It provides vehicle services. The company also operates a retail outlet of petroleum products. The company was incorporated in 1985 and is based in New Delhi, India.

IndustryAuto & Truck Dealerships

SectorConsumer Cyclical

Annual revenue₹587 Cr

How does it make money?

Turns over ₹587 Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹2 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS 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 44.2%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 11.9% against a peer median of 25.9% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE25.9%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +77% 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+77%

Margin effect-52%

DalalBaazaar Score

47/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Debt/Equity of 4.11x is high — earnings must service borrowings before shareholders see anything
• Current ratio of 1.20 covers short-term liabilities, without much slack
✗ Free cash flow is negative — growth is being funded by borrowing or fresh equity
✗ Interest cover of only 1.5x — little room if profits dip
✗ Debt has grown 27.6% a year — worth checking what it bought

Quality vs. Valuation

Company Quality

41/ 100

Weak

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

Valuation

76/ 100

Cheap

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

Optically cheap, but the underlying business scores poorly. Cheap-and-weak is what a value trap looks like from the outside — the low price may be deserved.

Historical Valuation

Current P/E

6.0x

1.3Y Median

5.9x

16 monthly readings · mean 5.8x · range 5.4x–5.9x

Sector Median

69.2x

median of 4 sector peers

🟡Currently trading close to its 1.3y median of 5.9x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 91% below the peer median of 69.2x.

vs. its own history

Fair

5.9x median over 16 months · +2%

vs. sector peers

Cheap

69.2x median of 4 peers · -91%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

9.0x

PEG

0.41

What's Good / What's Bad

🟢 What's Going Well2

High return on capital employed
ROCE of 44.2% 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 20.6% to 11.9% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 47.2% to 44.2% — often a sign of competition or overexpansion.

Red Flags

6 items require attention · 5 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 108% over 3 years, from ₹44 Cr to ₹92 Cr.
🔴High leverageFinancial
Debt/Equity of 4.11x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.5x — little room if earnings dip.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Inventory building faster than salesFinancial
Inventory up 168% against revenue up 77% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹30 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 44.2% 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.
Cheaper than its peers
It trades 91% 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?

The debt load needs earnings to hold up
Debt is 8.2x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Returns on shareholder capital are falling
ROE has dropped from 20.6% to 11.9%. 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.
Several serious flags at once
5 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 16% a year✓ 20.9% CAGR
Latest reported year was 51.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 0%✓ 1.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 8.2x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹30 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 1.5x
How much operating profit can fall before interest stops being comfortably covered.

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 · 4 neutral · 2 weak

Market Cap

₹14 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

6.0x

Cheap

Cheap against the generic band

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹24.13

Profitable

Profitable on a per-share basis

ROE

11.9%

Moderate

Moderate capital efficiency

ROCE

44.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

4.11x

High

High leverage

Revenue Growth (YoY)

51.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

14.5%

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

-₹30 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

0.0%

Weak

Thin margins leave little room for error

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.20

Adequate

Adequate, but no real cushion

52W Range Position

100%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

145.0 / 142.8

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

100.0

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹332 Cr	₹278 Cr	₹387 Cr	₹587 Cr	+20.9%
EBITDA	₹8 Cr	₹7 Cr	₹8 Cr	₹11 Cr	+12.5%
EBITDA Margin	2.4%	2.5%	2.2%	1.9%	—
PAT (Net Profit)	₹3 Cr	₹2 Cr	₹2 Cr	₹3 Cr	-5.4%
EPS	₹31.53	₹23.63	₹23.33	₹26.72	-5.4%
ROE	20.6%	13.5%	11.7%	11.9%	—
ROCE	47.2%	37.1%	39.4%	44.2%	—
Total Debt	₹44 Cr	₹23 Cr	₹52 Cr	₹92 Cr	+27.6%
Free Cash Flow	-₹19 Cr	₹24 Cr	-₹25 Cr	-₹30 Cr	—

🟢 Revenue has grown at 20.9% a year over 3 years.

🟢 EBITDA has grown at 12.5% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 1.9% over 3 years.

🔴 PAT (Net Profit) has shrunk at 5.4% a year over 3 years.

🔴 EPS has shrunk at 5.4% a year over 3 years.

🔴 ROE has fallen from 20.6% to 11.9% over 3 years (-8.7 pts).

🔴 ROCE has fallen from 47.2% to 44.2% over 3 years (-3.0 pts).

🔴 Total Debt has grown at 27.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹123 Cr

Total Liabilities

₹101 Cr

Cash & Equivalents

₹5 Cr

Operating Cash Flow

-₹29 Cr

Capex

-₹0 Cr

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

2 mixed4 general

Kalyani Commercials vs Nifty 50: Share Price Performance Compared

Univest, 01 Oct

Kalyani Commercials Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 06 Oct

Kalyani Commercials Q2 2026 Earnings: Revenue Climbs 51.61% YoY to ₹587.18 Crore as EPS Touches ₹26.72 - ROA Comparison

https://www.siam.in/, 28 SeptResults

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

Kalyani Commercials NSE:KALYANI Trading Window Closure Q2 FY27

Kalkine India, 29 SeptResults

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

Kalyani Commercials Share Price Forecast: 3 Year Outlook to 2030

Univest, 20 Jul

Kalyani Commercials Ltd. Peer Comparison – Compare with Others

Value Research, 31 Aug

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
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 overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongValuation

MiddlingBusiness Quality · Growth

WeakFinancial Health · Profitability · Risk

Points for each in the Score ↑

Cheap, but for a reason

The low price is the whole case here, and the business underneath scores poorly. Cheap-and-weak is what a value trap looks like from the outside — it needs a specific reason the numbers are about to improve, not just the observation that they are low. 5 high-severity red flags sit above this conclusion and should be read first.

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