Kati Patang Lifestyle Limited

Consumer Defensive — Beverages - Brewers · BSE

₹13.10₹0.00 (0.00%)

DalalBaazaar Score

41 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by negative free cash flow, the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, 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, 7:01 pm

Understanding the Business

Company site ↗

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

What does this company do?

Kati Patang Lifestyle Limited engages in the manufacture and sale beer under the Katti Patang brand. The company was formerly known as VirtualSoft Systems Limited and changed its name to Kati Patang Lifestyle Limited in December 2024. The company is based in New Delhi, India.

IndustryBeverages - Brewers

SectorConsumer Defensive

Annual revenue₹9 Cr

How does it make money?

Turns over ₹9 Cr a year. Of every ₹100 of sales, about ₹-107 reaches shareholders as profit, with ₹-101 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are HINDUSTAN UNILEVER LTD., ITC LTD, NESTLE INDIA LIMITED, BRITANNIA INDUSTRIES LTD. 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 -24.2% 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 ROE51.0%

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 +147% while net margin moved +48% 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+147%

Margin effect+48%

DalalBaazaar Score

41/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative

Quality vs. Valuation

Company Quality

42/ 100

Weak

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

Valuation

29/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

—

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from -108.1% to -101.5% over 3 years.
Debt is being paid down
Total debt is down 69% over 3 years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

6 items require attention · 4 high · 2 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only -31.9x — little room if earnings dip.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴The company is lossmakingFinancial
Net profit of -₹10 Cr in the latest reported year.
🔴Receivables growing faster than salesFinancial
Receivables up 627% against revenue up 147% — sales are being booked faster than they are collected.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from -9.3x to -31.9x.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 382% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -108.1% to -101.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 69% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 627% against revenue up 147%. 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
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
4 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 26% a year✓ 35.2% CAGR
Latest reported year was -19.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -103%✓ -101.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹10 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ -31.9x
How much operating profit can fall before interest stops being comfortably covered.
5ROCE stays above 8%✗ -24.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 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

0 good · 4 neutral · 7 weak

Market Cap

₹70 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

2.87x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹-2.38

Loss-making

Negative earnings per share — the business is losing money

ROE

-52.1%

Weak

Weak capital efficiency

ROCE

-24.2%

Weak

Low return on total capital employed

Debt/Equity

0.60x

Moderate

Moderate leverage

Revenue Growth (YoY)

-19.8%

Shrinking

Sales are contracting

Profit Growth (YoY)

-101.6%

Falling

Profits are shrinking

Dividend Yield

None

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

Free Cash Flow

-₹9 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

-15.5%

Weak

Assets generate little profit

Operating Margin

-54.5%

Weak

Thin margins leave little room for error

Net Margin

-72.6%

Weak

Very little revenue reaches the bottom line

Current Ratio

3.31

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.41

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

13.3 / 14.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

54.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹4 Cr	₹5 Cr	₹11 Cr	₹9 Cr	+35.2%
EBITDA	-₹4 Cr	-₹2 Cr	-₹4 Cr	-₹9 Cr	—
EBITDA Margin	-108.1%	-37.3%	-41.1%	-101.5%	—
PAT (Net Profit)	-₹3 Cr	-₹2 Cr	-₹5 Cr	-₹10 Cr	—
EPS	₹-2.39	₹-1.83	₹-1.26	₹-2.15	—
ROE	—	—	-32.3%	-44.9%	—
ROCE	-23.7%	-12.2%	-14.6%	-24.2%	—
Total Debt	₹43 Cr	₹48 Cr	₹13 Cr	₹14 Cr	-32.1%
Free Cash Flow	-₹4 Cr	-₹4 Cr	-₹19 Cr	-₹10 Cr	—

🟢 Revenue has grown at 35.2% a year over 3 years.

🟢 EBITDA Margin has risen from -108.1% to -101.5% over 3 years (+6.7 pts).

🔴 ROE has fallen from -32.3% to -44.9% over 3 years (-12.5 pts).

🟡 ROCE has held roughly flat at -24.2% over 3 years.

🟢 Total Debt has shrunk at 32.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹42 Cr

Total Liabilities

₹20 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹10 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

73.3%

Peer Comparison

Company	P/E	ROE
HINDUSTAN UNILEVER LTD.	42.5x	21.5%
ITC LTD	16.6x	27.4%
NESTLE INDIA LIMITED	59.8x	79.9%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%

Recent News

1 mixed1 negative4 general

Kati Patang Lifestyle to consider foreign investment and capital raise

scanx.trade, 05 Oct

Kati Patang Lifestyle: ન્યૂઝીલેન્ડની Gimme NZ માં ખરીદશે 10% હિસ્સો, શેર-સ્વેપ ડીલથી થશે વિસ્તરણ

Whalesbook, 08 Oct

Kati Patang Lifestyle Ltd. Share Price Live Today

CNBC TV18, 03 Jan

Kati Patang Lifestyle (BSE:531126) - Stock Analysis

Simply Wall Street, 03 Dec

Kati Patang Lifestyle to acquire 10% stake in NZ liquor delivery firm

scanx.trade, 08 OctM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

Essen Speciality Films standalone net profit declines 79.78% in the June 2026 quarter

Business Standard, 27 JulResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Watch Items

Revenue growth is negative (-19.8%) on the latest reported period — check if this is one-off or a trend.
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.

DalalBaazaar Thesis

StrongGrowth

MiddlingFinancial Health

WeakBusiness Quality · Profitability · Valuation · Risk

Points for each in the Score ↑

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. 4 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Free cash flow remains positive; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑