KANOHAR ELECTRICALS LTD

Industrials — Electrical Equipment & Parts · NSE

₹1,012.00+₹13.75 (+1.38%)

DalalBaazaar Score

72 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by small-cap size, which brings sharper price swings, a very high earnings multiple, which leaves little margin for disappointment.

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

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of KANOHAR ELECTRICALS LTD — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Kanohar Electricals Limited engages in the transformer manufacturing business for industries including power transmission, railways, renewable energy, and power distribution in India.

IndustryElectrical Equipment & Parts

SectorIndustrials

Annual revenue₹653 Cr

How does it make money?

Turns over ₹653 Cr a year. Of every ₹100 of sales, about ₹20 reaches shareholders as profit, with ₹28 left at the operating level before interest, tax and depreciation.

EBITDA margin28.1%

Net margin19.9%

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, HAVELLS INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

SIEMENS LTDP/E 88.8x · ROE 10.5%

ABB INDIA LIMITEDP/E 92.6x · ROE 19.1%

HAVELLS INDIA LIMITEDP/E 43.5x · ROE 17.1%

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

ROCE has stayed above 15% in every year available and stands at 45.2%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 34.8% 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.

ROCE45.2%

ROE34.8%

Peer median ROE17.1%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +115% while net margin moved +258% 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+115%

Margin effect+258%

DalalBaazaar Score

72/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 55.0x is demanding — it needs sustained high growth to justify
✗ P/B of 20.21x is a steep premium to book

Quality vs. Valuation

Company Quality

88/ 100

Excellent

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

Valuation

56/ 100

Fair

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

55.0x

Sector Median

88.8x

median of 3 sector peers

🟢Against its sector it trades 38% below the peer median of 88.8x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

88.8x median of 3 peers · -38%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

55.0x

P/B

20.21x

EV/EBITDA

43.8x

PEG

0.56

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well7

Margins are improving
EBITDA margin is up from 9.4% to 28.1% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from 10.5% to 34.8%.
Return on capital is rising
ROCE has improved from 15.8% to 45.2%.
High return on capital employed
ROCE of 45.2% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.10x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Debt is rising
Total debt is up 59% over 3 years — worth checking what it funded.
Receivables growing faster than sales
Receivables are up 218% against revenue growth of 115% — customers are taking longer to pay.

Red Flags

3 items require attention · 3 high

🔴Debt has risen sharplyFinancial
Total debt is up 59% over 3 years, from ₹25 Cr to ₹39 Cr.
🔴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 218% against revenue up 115% — 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 45.2% 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 9.4% to 28.1%. 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 38% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹11 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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 218% against revenue up 115%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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.
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 22% a year✓ 29.1% CAGR
Latest reported year was 103.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 26%✓ 28.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹11 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 42%✓ 45.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 10 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

Price history

Quick Metrics

7 good · 2 neutral · 2 weak

Market Cap

₹8,014 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

55.0x

Expensive

Expensive — verify against sector peers

P/B Ratio

20.21x

Rich

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

EPS (TTM)

₹18.4

Profitable

Profitable on a per-share basis

ROE

34.8%

Strong

Strong capital efficiency

ROCE

45.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.10x

Low

Conservative leverage

Revenue Growth (YoY)

103.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

139.9%

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

₹11 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹1,012

Operating Margin

27.8%

Good

Healthy core-business profitability

Net Margin

20.1%

Good

Strong bottom-line conversion

Current Ratio

2.50

Comfortable

Healthy short-term liquidity

52W Range Position

63%

Mid-range

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹303 Cr	₹276 Cr	₹450 Cr	₹653 Cr	+29.1%
EBITDA	₹28 Cr	₹33 Cr	₹96 Cr	₹184 Cr	+86.1%
EBITDA Margin	9.4%	11.8%	21.3%	28.1%	—
PAT (Net Profit)	₹17 Cr	₹18 Cr	₹65 Cr	₹130 Cr	+97.6%
EPS	₹2.12	₹2.24	₹8.22	—	—
ROE	10.5%	10.0%	26.8%	34.8%	—
ROCE	15.8%	15.5%	35.5%	45.2%	—
Total Debt	₹25 Cr	₹43 Cr	₹33 Cr	₹39 Cr	+16.7%
Free Cash Flow	-₹26 Cr	-₹18 Cr	₹69 Cr	₹11 Cr	—

🟢 Revenue has grown at 29.1% a year over 3 years.

🟢 EBITDA has grown at 86.1% a year over 3 years.

🟢 EBITDA Margin has risen from 9.4% to 28.1% over 3 years (+18.7 pts).

🟢 PAT (Net Profit) has grown at 97.6% a year over 3 years.

🟢 ROE has risen from 10.5% to 34.8% over 3 years (+24.3 pts).

🟢 ROCE has risen from 15.8% to 45.2% over 3 years (+29.3 pts).

🔴 Total Debt has grown at 16.7% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹26 Cr to ₹11 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹614 Cr

Total Liabilities

₹241 Cr

Total Debt

₹39 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹26 Cr

Capex

-₹15 Cr

Shareholding (proxy)

Institutional Holding

9.2%

Insider Holding

74.6%

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

3 mixed3 general

KANOHAR ELECTRICALS LTD Share Price - Live NSE: KANOHAR Stock Price & Chart

Upstox, 16 Oct

Kanohar Electricals Share Price rises on strong price action

Univest, 16 OctPrice 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.

Kanohar Electricals Reports Q1 Net Profit of ₹27.3 Crore versus ₹11.4 Crore YoY

Sahi, 06 OctResults

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

Kanohar Electricals soars 20%; stock up 79% from IPO price in three weeks

Business Standard, 07 Oct

Kanohar Electricals Ltd | Stock Share Price Live

MarketSmith India, 30 Sept

Kanohar Electricals to host analyst call on October 21 at 5:00 pm

scanx.trade, 15 OctAnalyst view

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

Watch Items

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

DalalBaazaar Thesis

🟢Business QualityStrong17.9/20

🟢Financial HealthStrong15.6/20

🟢GrowthStrong18.5/20

🟢ProfitabilityStrong13.5/15

🔴ValuationDemanding3.2/15

🔴RiskHigh3.2/10

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 3 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 22% a year29.1% CAGR
✓EBITDA margin holds above 26%28.1%
✓Free cash flow remains positive₹11 Cr
✓Debt / EBITDA stays below 2x0.2x
✓ROCE stays above 42%45.2%