Kaycee Industries Limited

Industrials — Electrical Equipment & Parts · BSE

₹752.30−₹7.40 (−0.97%)

DalalBaazaar Score

54 / 100

🟡 Moderate

Verdict

CAUTION

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, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

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

What does this company do?

Kaycee Industries Limited manufactures and trades in electrical installation products in India. The company operates in two segments: Manufacturing and Trading.

IndustryElectrical Equipment & Parts

SectorIndustrials

Employees72

Annual revenue₹60 Cr

How does it make money?

Turns over ₹60 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹14 left at the operating level before interest, tax and depreciation. Each of its 72 employees supports ₹83.1 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹83.1 lakh

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.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 19.7% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE17.1%

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 +44% while net margin moved -12% 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+44%

Margin effect-12%

DalalBaazaar Score

54/ 100

Moderate

Weighted across six categories. Every point is explained below.

• Beta of 1.09 — moves roughly with the market
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

59/ 100

Average

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

Valuation

53/ 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

57.5x

3Y Median

98.4x

40 monthly readings · mean 500.0x · range 38.5x–4061.5x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 42% below its 3y median of 98.4x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 35% below the peer median of 88.8x.

vs. its own history

Cheap

98.4x median over 40 months · -42%

vs. sector peers

Cheap

88.8x median of 3 peers · -35%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

28.4x

PEG

7.17

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 33% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on equity is falling
ROE has dropped from 17.7% to 13.2% — each rupee of shareholder capital earns less than it did.

Red Flags

2 items require attention · 1 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 9.16x — earnings must service borrowings before shareholders see anything.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹0 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 19.7% 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.
Deleveraging frees up earnings
Debt is down 33% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 42% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 35% 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?

Leverage amplifies any setback
Debt/Equity of 9.16x. Interest is payable whether or not the business has a good year.
Returns on shareholder capital are falling
ROE has dropped from 17.7% to 13.2%. 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.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 10% a year✓ 12.9% CAGR
Latest reported year was 7.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 12%✓ 14.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹0 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 17%✓ 19.7%
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

2 good · 4 neutral · 5 weak

Market Cap

₹239 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

57.5x

Expensive

Expensive — verify against sector peers

P/B Ratio

7.16x

Rich

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

EPS (TTM)

₹13.09

Profitable

Profitable on a per-share basis

ROE

13.2%

Moderate

Moderate capital efficiency

ROCE

19.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

9.16x

High

High leverage

Revenue Growth (YoY)

7.9%

Modest

Modest growth

Profit Growth (YoY)

-19.9%

Falling

Profits are shrinking

Dividend Yield

0.27%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹0 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

10.5%

Average

Average margins

Net Margin

6.8%

Average

Average bottom-line conversion

Current Ratio

2.63

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.09

Market-like

Moves roughly in line with the market

52W Range Position

22%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

787.5 / 814.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

32.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹42 Cr	₹49 Cr	₹53 Cr	₹60 Cr	+12.9%
EBITDA	₹6 Cr	₹7 Cr	₹9 Cr	₹8 Cr	+14.3%
EBITDA Margin	13.6%	15.2%	17.7%	14.2%	—
PAT (Net Profit)	₹3 Cr	₹4 Cr	₹6 Cr	₹4 Cr	+8.0%
EPS	₹11.01	₹14.16	₹18.18	₹13.88	+8.0%
ROE	17.7%	18.9%	19.5%	13.2%	—
ROCE	19.8%	22.7%	24.9%	19.7%	—
Total Debt	₹5 Cr	₹4 Cr	₹4 Cr	₹3 Cr	-12.7%
Free Cash Flow	-₹3 Cr	₹4 Cr	₹5 Cr	-₹0 Cr	—

🟢 Revenue has grown at 12.9% a year over 3 years.

🟢 EBITDA has grown at 14.3% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 14.2% over 3 years.

🟢 PAT (Net Profit) has grown at 8.0% a year over 3 years.

🟢 EPS has grown at 8.0% a year over 3 years.

🔴 ROE has fallen from 17.7% to 13.2% over 3 years (-4.5 pts).

🟡 ROCE has held roughly flat at 19.7% over 3 years.

🟢 Total Debt has shrunk at 12.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹47 Cr

Total Liabilities

₹14 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹5 Cr

Capex

-₹5 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

77.5%

Corporate Actions

Dividend Rate

₹2

Ex-Dividend Date

31 Jul 2026

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

1 positive1 mixed4 general

Kaycee Industries Share Price falls 10.44% on price action

Univest, 05 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Compare with KAYCEE IND

Equitymaster, 07 Oct

Kaycee Industries Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 31 Aug

Kaycee Industries standalone profit rises 17% in Q1FY27

scanx.trade, 05 AugResults

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

Kaycee Industries Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

AEPL Stock Price and Chart — NSE:AEPL

TradingView, 12 Mar

Watch Items

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

DalalBaazaar Thesis

StrongGrowth

MiddlingBusiness Quality · Financial Health · Profitability

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

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑