KCD Industries India Limited

Industrials — Engineering & Construction · BSE

₹3.18−₹0.07 (−2.15%)

DalalBaazaar Score

41 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, the company is currently loss-making.

In simple words: The company is currently losing money, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:03 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

KCD Industries India Limited engages in the construction business in India. It undertakes construction of residential, commercial, and institutional buildings; high-rise buildings, gated community, and villaments; and other buildings, such as car parks and corporate offices.

IndustryEngineering & Construction

SectorIndustrials

Employees10

Annual revenue₹3 Cr

How does it make money?

Turns over ₹3 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation. Each of its 10 employees supports ₹30.4 lakh of revenue a year, the signature of a people-led business.

EBITDA margin11.7%

Net margin6.9%

Revenue / employee₹30.4 lakh

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., ADANI PORT & SEZ LTD, SIEMENS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

ADANI PORT & SEZ LTDP/E 29.9x · ROE 14.1%

SIEMENS LTDP/E 88.8x · ROE 10.5%

What is its competitive advantage?Little sign of one

Returns on capital of 0.8% 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.

ROCE0.8%

ROE0.5%

Peer median ROE14.1%

DalalBaazaar Score

41/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 0.5% is weak
✗ ROE has fallen by 5.1 points over the period

Quality vs. Valuation

Company Quality

40/ 100

Weak

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

Valuation

30/ 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

P/E (Trailing)

Not meaningful

P/B

0.20x

EV/EBITDA

42.3x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Return on capital is rising
ROCE has improved from -7.2% to 0.8%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention4

Margins are compressing
EBITDA margin has slipped from 34.3% to 11.7% over 3 years.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 5.6% to 0.5% — each rupee of shareholder capital earns less than it did.
Receivables growing faster than sales
Receivables are up 8936% against revenue growth of 515% — customers are taking longer to pay.

Red Flags

5 items require attention · 3 high · 2 watch

🔴High leverageFinancial
Debt/Equity of 8.29x — earnings must service borrowings before shareholders see anything.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 22.6 points, from 34.3% to 11.7%.
🔴Receivables growing faster than salesFinancial
Receivables up 8936% against revenue up 515% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹29 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 186% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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?

Margins are being competed away
EBITDA margin has fallen from 34.3% to 11.7%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 9.5x 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 8936% against revenue up 515%. 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 5.6% to 0.5%. 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.

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

1EBITDA margin holds above 10%✓ 11.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 9.5x
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.
4ROCE stays above 8%✗ 0.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

3 / 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

1 good · 2 neutral · 8 weak

Market Cap

₹12 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

0.20x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-0.02

Loss-making

Negative earnings per share — the business is losing money

ROE

0.5%

Weak

Weak capital efficiency

ROCE

0.8%

Weak

Low return on total capital employed

Debt/Equity

8.29x

High

High leverage

Revenue Growth (YoY)

-84.2%

Shrinking

Sales are contracting

Profit Growth (YoY)

-91.7%

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

-₹29 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹3.18

Operating Margin

9.2%

Average

Average margins

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.70

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.09

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

3.5 / 3.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

27.9

Oversold zone

Financial Trend (4-Year)

Metric	FY22	FY23	FY24	FY25	3Y CAGR
Revenue	-₹1 Cr	₹4 Cr	₹19 Cr	₹3 Cr	—
EBITDA	-₹0 Cr	₹2 Cr	₹4 Cr	₹0 Cr	—
EBITDA Margin	34.3%	45.1%	19.7%	11.7%	—
PAT (Net Profit)	₹0 Cr	₹2 Cr	₹3 Cr	₹0 Cr	+3.1%
EPS	₹0.57	₹1.63	₹2.56	₹0.08	-48.0%
ROE	5.6%	32.2%	6.1%	0.5%	—
ROCE	-7.2%	35.0%	9.0%	0.8%	—
Free Cash Flow	-₹0 Cr	₹0 Cr	-₹27 Cr	-₹29 Cr	—

🟢 Revenue has turned positive, from -₹1 Cr to ₹3 Cr.

🟢 EBITDA has turned positive, from -₹0 Cr to ₹0 Cr.

🔴 EBITDA Margin has fallen from 34.3% to 11.7% over 3 years (-22.6 pts).

🟢 PAT (Net Profit) has grown at 3.1% a year over 3 years.

🔴 EPS has shrunk at 48.0% a year over 3 years.

🔴 ROE has fallen from 5.6% to 0.5% over 3 years (-5.1 pts).

🟢 ROCE has risen from -7.2% to 0.8% over 3 years (+8.0 pts).

Balance Sheet & Cash Flow — FY2025

Total Assets

₹51 Cr

Total Liabilities

₹11 Cr

Total Debt

₹3 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹29 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

45.8%

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
ADANI PORT & SEZ LTD	29.9x	14.1%
SIEMENS LTD	88.8x	10.5%

Recent News

1 mixed5 general

UDAY JEWELLERY INDUSTRIES Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 26 Sept

KCD Industries India: Promoter Rajiv Darji Exits, Sells Entire 20.9% Stake to Six New Investors

scanx.trade, 13 Aug

KCD Industries India Ltd's Rs. 48.85 crores Rights Issue to open on May 31st 2023

Ahmedabad Mirror, 31 May

Mishtann Foods - 11 penny stocks shine in 3 months; 3 turn multibaggers. Do you own any?

The Economic Times, 27 Jul

Q1 results today: Bajaj Finserv, Bank of Baroda, Cipla, others to declare quarterly earnings on Friday — 25 July 2025

Livemint, 25 JulResults

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

2 Small Cap Companies Announce Stock Splits: Check Record Date Here

Goodreturns, 08 Feb

Watch Items

Revenue growth is negative (-84.2%) 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.
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

🔴Business QualityWeak7.5/20

🟡Financial HealthAdequate10.6/20

🔴GrowthWeak7.2/20

🔴ProfitabilityWeak4.6/15

🟡ValuationFair7.1/15

🔴RiskHigh3.7/10

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

This thesis breaks if

✓EBITDA margin holds above 10%11.7%
✗Debt / EBITDA falls below 3x9.5x
✗Free cash flow remains positive-₹29 Cr
✗ROCE stays above 8%0.8%