Kay Cee Energy & Infra Limited

Sector n/a · NSE

₹369.30+₹13.55 (+3.81%)

DalalBaazaar Score

67 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

The 60-second version of Kay Cee Energy & Infra Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

How does it make money?

Turns over ₹164 Cr a year. Of every ₹100 of sales, about ₹11 reaches shareholders as profit, with ₹20 left at the operating level before interest, tax and depreciation.

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

ROCE has stayed above 15% in every year available and stands at 26.2%. Returns that high normally get competed away; when they persist, something is protecting them. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

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 +231% while net margin moved +83% 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+231%

Margin effect+83%

DalalBaazaar Score

67/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

76/ 100

Good

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

Valuation

35/ 100

Expensive

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

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

EV/EBITDA

15.5x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

High return on capital employed
ROCE of 26.2% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

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

Red Flags

5 items require attention · 5 high

🔴Debt has risen sharplyFinancial
Total debt is up 1062% over 3 years, from ₹6 Cr to ₹75 Cr.
🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴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 288% against revenue up 231% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 436% against revenue up 231% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 26.2% 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.
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 288% against revenue up 231%. 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
5 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 37% a year✓ 49.1% CAGR
Set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 18%✓ 20.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹36 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 23%✓ 26.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 7 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)
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

2 good · 8 neutral · 1 weak

Market Cap

₹451 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

Not available

No data

Source didn't return this field

ROE

18.2%

Strong

Strong capital efficiency

ROCE

26.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.73x

Moderate

Moderate leverage

Revenue Growth (YoY)

Not available

No data

Source didn't return this field

Profit Growth (YoY)

Not available

No data

Source didn't return this field

Dividend Yield

None

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

Free Cash Flow

-₹36 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Gross Margin

34.3%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

11.4%

Good

Strong bottom-line conversion

Current Ratio

1.82

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

78.1 / 79.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

44.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY22	FY23	FY24	FY26	3Y CAGR
Revenue	₹50 Cr	₹61 Cr	₹64 Cr	₹164 Cr	+49.1%
EBITDA	—	₹10 Cr	₹12 Cr	₹33 Cr	—
EBITDA Margin	—	16.9%	19.3%	20.0%	—
PAT (Net Profit)	₹3 Cr	₹6 Cr	₹7 Cr	₹19 Cr	+82.3%
EPS	₹2.83	₹5.27	—	—	—
ROE	18.9%	26.1%	14.7%	18.2%	—
ROCE	—	23.9%	18.6%	26.2%	—
Total Debt	₹6 Cr	₹23 Cr	₹26 Cr	₹75 Cr	+126.5%
Free Cash Flow	—	-₹14 Cr	-₹16 Cr	-₹36 Cr	—

🟢 Revenue has grown at 49.1% a year over 3 years.

🟢 EBITDA Margin has risen from 16.9% to 20.0% over 3 years (+3.0 pts).

🟢 PAT (Net Profit) has grown at 82.3% a year over 3 years.

🟡 ROE has held roughly flat at 18.2% over 3 years.

🟢 ROCE has risen from 23.9% to 26.2% over 3 years (+2.3 pts).

🔴 Total Debt has grown at 126.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹238 Cr

Total Liabilities

₹135 Cr

Cash & Equivalents

₹19 Cr

Operating Cash Flow

-₹35 Cr

Capex

-₹0 Cr

Recent News

1 mixed5 general

Insiders Sold Kay Cee Energy & Infra At ₹384, Meanwhile Stock Sits Near ₹136

Simply Wall Street, 12 Jan

Kay Cee Energy & Infra Ltd Key Financial Ratios – Valuation, Profitability & More

Value Research, 31 Aug

Momentum Stocks: Suraj Estate Developers, Presstonic Engineering, Kay Cee Energy rise up to 13% on sheer...

Moneycontrol.com, 21 Sept

BCPL Stock Price and Chart — NSE:BCPL

TradingView, 27 Mar

Jost's Engineering Company Board Approves Strategic Divestment and CFO Transition

scanx.trade, 24 Mar

KAY CEE ENERGY & INFRA LIMITED Raises ₹2502.72 Lakhs in Qualified Institutional Placement (QIP).

Business Standard, 25 AprFunding

🟡Mixed / dependsNew funding changes the capital structure. Debt raises leverage; an equity raise dilutes existing holders.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
5 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongBusiness Quality · Growth · Profitability

MiddlingFinancial Health · Valuation

WeakRisk

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 5 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive · see Key things to watch ↑