Kanishk Steel Industries Limited

Basic Materials — Steel · BSE

₹43.34+₹1.04 (+2.46%)

DalalBaazaar Score

48 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Low

Driven by micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Whether sales start growing again is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 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 Kanishk Steel Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Kanishk Steel Industries Limited manufactures and sells iron and steel products under the Kanishk Steels brand in India.

IndustrySteel

SectorBasic Materials

Employees142

Annual revenue₹407 Cr

How does it make money?

Turns over ₹407 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹4 left at the operating level before interest, tax and depreciation. Each of its 142 employees supports ₹2.86 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin4.4%

Net margin1.3%

Revenue / employee₹2.86 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, JINDAL STEEL LIMITED, STEEL AUTHORITY OF INDIA. 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%

JINDAL STEEL LIMITEDP/E 39.1x · ROE 5.3%

STEEL AUTHORITY OF INDIAP/E 16.5x · ROE 7.1%

What is its competitive advantage?Little sign of one

Returns on capital of 10.4% 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.

ROCE10.4%

ROE4.6%

Peer median ROE10.8%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +1% while net margin moved -47% 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+1%

Margin effect-47%

DalalBaazaar Score

48/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 0.4% — barely ahead of inflation
✗ Profit has declined at 18.7% a year
✗ Latest-year revenue growth of -13.7% is below the longer-term trend — momentum is fading

Quality vs. Valuation

Company Quality

44/ 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

18.3x

3Y Median

19.1x

40 monthly readings · mean 22.3x · range 7.9x–52.7x

Sector Median

18.2x

median of 4 sector peers

🟡Currently trading close to its 3y median of 19.1x — the market is paying about what it usually pays for this company.

🟡Against its sector it is priced broadly in line with the peer median of 18.2x.

vs. its own history

Fair

19.1x median over 40 months · -4%

vs. sector peers

Fair

18.2x median of 4 peers · +1%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

18.3x

P/B

1.12x

EV/EBITDA

8.4x

PEG

9.14

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well4

Debt is being paid down
Total debt is down 42% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Very low debt
Debt/Equity of 0.26x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 10.0% to 4.6% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 12.5% to 10.4% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.9x — little room if earnings dip.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 4.6x to 1.9x.
🟡Profit is decliningFinancial
Net profit is down 46% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 42% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹3 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?

Growth barely outpaces inflation
Revenue compounding at 0.4% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 10.0% to 4.6%. 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.
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
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

1EBITDA margin holds above 2%✓ 4.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Interest cover stays above 3x✗ 1.9x
How much operating profit can fall before interest stops being comfortably covered.
3Revenue growth stays above 4% a year✗ 0.4% CAGR
Latest reported year was -13.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Free cash flow remains positive✓ ₹3 Cr
Profit that never becomes cash eventually stops being profit.
5Debt / EBITDA stays below 2x✓ 1.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.

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

4 good · 5 neutral · 2 weak

Market Cap

₹123 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

18.3x

Fair

Fairly valued against the generic band

P/B Ratio

1.12x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹2.37

Profitable

Profitable on a per-share basis

ROE

4.6%

Weak

Weak capital efficiency

ROCE

10.4%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.26x

Low

Conservative leverage

Revenue Growth (YoY)

-13.7%

Shrinking

Sales are contracting

Profit Growth (YoY)

2.0%

Modest

Slow profit growth

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹3 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹43.34

Operating Margin

3.7%

Weak

Thin margins leave little room for error

Net Margin

1.3%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.32

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.68

Defensive

Steadier than the market

52W Range Position

12%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

44.3 / 45.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

42.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹402 Cr	₹388 Cr	₹360 Cr	₹407 Cr	+0.4%
EBITDA	₹13 Cr	₹8 Cr	₹16 Cr	₹18 Cr	+11.9%
EBITDA Margin	3.2%	2.0%	4.5%	4.4%	—
PAT (Net Profit)	₹9 Cr	₹3 Cr	₹8 Cr	₹5 Cr	-18.7%
EPS	₹3.34	₹0.91	₹2.93	₹1.79	-18.8%
ROE	10.0%	2.7%	7.9%	4.6%	—
ROCE	12.5%	6.7%	16.0%	10.4%	—
Total Debt	₹49 Cr	₹54 Cr	₹25 Cr	₹28 Cr	-16.8%
Free Cash Flow	-₹47 Cr	₹0 Cr	-₹23 Cr	₹3 Cr	—

🟡 Revenue has been broadly flat over 3 years (0.4% a year).

🟢 EBITDA has grown at 11.9% a year over 3 years.

🟢 EBITDA Margin has risen from 3.2% to 4.4% over 3 years (+1.2 pts).

🔴 PAT (Net Profit) has shrunk at 18.7% a year over 3 years.

🔴 EPS has shrunk at 18.8% a year over 3 years.

🔴 ROE has fallen from 10.0% to 4.6% over 3 years (-5.4 pts).

🔴 ROCE has fallen from 12.5% to 10.4% over 3 years (-2.1 pts).

🟢 Total Debt has shrunk at 16.8% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹47 Cr to ₹3 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹181 Cr

Total Liabilities

₹70 Cr

Total Debt

₹28 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹6 Cr

Capex

-₹3 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

80.0%

Corporate Actions

Ex-Dividend Date

18 Sept 2008

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
JINDAL STEEL LIMITED	39.1x	5.3%
STEEL AUTHORITY OF INDIA	16.5x	7.1%

Recent News

1 positive1 mixed4 general

Compare LLOYDS STEEL IND. with KANISHK STEEL

Equitymaster, 13 Oct

Kanishk Steel Industries Share Price Update and Valuation

Univest, 09 Sept

Kanishk Steel Q1 FY27 Results: Revenue Rs 87 Cr, PAT Rs 1 Cr and Key Highlights

Univest, 11 AugResults

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

KANISHK STEEL INDUSTRIES LTD. Share Price

Upstox, 25 Mar

U. Y. Fincorp standalone net profit rises 228.64% in the June 2026 quarter

Business Standard, 10 AugResults

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

A-ONE STEELS INDIA LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 02 Oct

Watch Items

Revenue growth is negative (-13.7%) 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.

DalalBaazaar Thesis

🟡Business QualityAdequate9/20

🟢Financial HealthStrong13.7/20

🔴GrowthWeak5.9/20

🔴ProfitabilityWeak4.6/15

🟢ValuationAttractive10.6/15

🔴RiskHigh4.4/10

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. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 2%4.4%
✗Interest cover stays above 3x1.9x
✗Revenue growth stays above 4% a year0.4% CAGR
✓Free cash flow remains positive₹3 Cr
✓Debt / EBITDA stays below 2x1.6x