Kanishk Aluminium India Limited

Basic Materials — Aluminum · BSE

₹24.10₹0.00 (0.00%)

DalalBaazaar Score

58 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

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

In simple words: Reasonable but unspectacular business quality, 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, 7:01 pm

Understanding the Business

Company site ↗

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

What does this company do?

Kanishk Aluminium India Limited engages in the manufacturing and sale of aluminum extrusion products in India. The company offers solid and hollow section profiles, solar profiles, railings, heat sinks and sliding/fixed windows, and door profiles.

IndustryAluminum

SectorBasic Materials

Annual revenue₹79 Cr

How does it make money?

Turns over ₹79 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are HINDALCO INDUSTRIES LTD, VEDANTA LIMITED, TATA STEEL LIMITED, JSW STEEL 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?Little sign of one

Returns on capital of 12.3% 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 ROE18.7%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +33% while net margin moved +76% 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+33%

Margin effect+76%

DalalBaazaar Score

58/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

57/ 100

Average

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

Valuation

88/ 100

Cheap

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

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

5.9x

Sector Median

12.2x

median of 4 sector peers

🟢Against its sector it trades 52% below the peer median of 12.2x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

12.2x median of 4 peers · -52%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

7.4x

PEG

0.18

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 6.7% to 11.0% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 29.4% to 9.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 26.2% to 12.3% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 3 high · 1 watch

🔴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.
🔴Receivables growing faster than salesFinancial
Receivables up 277% against revenue up 33% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 138% against revenue up 33% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹29 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 6.7% to 11.0%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 52% 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 3.8x 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 277% against revenue up 33%. 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 29.4% to 9.1%. 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

1EBITDA margin holds above 9%✓ 11.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 3.8x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹29 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✓ 3.3x
How much operating profit can fall before interest stops being comfortably covered.
5Revenue growth stays above 7% a year✓ 10.0% CAGR
Latest reported year was 31.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.

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

₹32 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

5.9x

Cheap

Cheap against the generic band

P/B Ratio

0.71x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹4.1

Profitable

Profitable on a per-share basis

ROE

13.3%

Moderate

Moderate capital efficiency

ROCE

12.3%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.72x

Moderate

Moderate leverage

Revenue Growth (YoY)

31.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

35.3%

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

-₹35 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

6.7%

Average

Average asset productivity

Operating Margin

10.2%

Average

Average margins

Net Margin

5.2%

Average

Average bottom-line conversion

Current Ratio

1.80

Comfortable

Healthy short-term liquidity

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

25.0 / 24.4

Bullish alignment (short > long)

RSI (14)

28.8

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹59 Cr	₹59 Cr	₹60 Cr	₹79 Cr	+10.0%
EBITDA	₹4 Cr	₹4 Cr	₹7 Cr	₹9 Cr	+30.0%
EBITDA Margin	6.7%	7.6%	11.2%	11.0%	—
PAT (Net Profit)	₹2 Cr	₹2 Cr	₹3 Cr	₹4 Cr	+32.7%
EPS	₹1.31	₹1.13	₹2.27	—	—
ROE	29.4%	11.3%	18.4%	9.1%	—
ROCE	26.2%	19.9%	23.0%	12.3%	—
Total Debt	₹26 Cr	₹21 Cr	₹23 Cr	₹33 Cr	+7.5%
Free Cash Flow	-₹5 Cr	₹2 Cr	-₹2 Cr	-₹29 Cr	—

🟢 Revenue has grown at 10.0% a year over 3 years.

🟢 EBITDA has grown at 30.0% a year over 3 years.

🟢 EBITDA Margin has risen from 6.7% to 11.0% over 3 years (+4.3 pts).

🟢 PAT (Net Profit) has grown at 32.7% a year over 3 years.

🔴 ROE has fallen from 29.4% to 9.1% over 3 years (-20.3 pts).

🔴 ROCE has fallen from 26.2% to 12.3% over 3 years (-14.0 pts).

🔴 Total Debt has grown at 7.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹100 Cr

Total Liabilities

₹54 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹8 Cr

Capex

-₹22 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

83.3%

Peer Comparison

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

Recent News

1 positive5 general

Kanishk Aluminium reports 35% PAT growth in FY26; AGM set for September 25

scanx.trade, 27 Aug

KANISHK ALUMINIUM INDIA LIMITE Share Price

Upstox, 05 May

Aluminium Penny Stocks in India 2027: 5 Top Picks

Univest, 16 Sept

ALUFLUOR Stock Price and Chart — NSE:ALUFLUOR

TradingView, 17 Aug

Kanishk Aluminium FY26 net profit rises 35% to ₹411.93 lakh

scanx.trade, 01 JulResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Kanishk Aluminium India IPO listing today. Here's what GMP suggests ahead of debut

The Economic Times, 04 Feb

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

StrongGrowth · Valuation

MiddlingFinancial Health · Profitability

WeakBusiness Quality · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 3 high-severity red flags sit above this conclusion and should be read first.

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