Kck Industries Limited

Sector n/a · NSE

₹214.00+₹9.00 (+4.39%)

DalalBaazaar Score

50 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by moderate debt load, 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, 7:46 pm

Understanding the Business

The 60-second version of Kck Industries 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 ₹77 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?Some evidence

ROCE of 16.1% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 2 years revenue moved +11% while net margin moved +20% 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+11%

Margin effect+20%

DalalBaazaar Score

50/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 7.2% is weak
✗ ROE has fallen by 15.0 points over the period

Quality vs. Valuation

Company Quality

50/ 100

Average

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

Valuation

18/ 100

Expensive

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.

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

254.7x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 3.6% to 7.1% over 2 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 2 years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 22.2% to 7.2% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 18.5% to 16.1% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 1 high · 3 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.8x — little room if earnings dip.
🟡Debt is increasingFinancial
Total debt is up 25% over 2 years.
🟡Inventory building faster than salesFinancial
Inventory up 68% against revenue up 11% — stock may not be moving.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 130% over 2 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 3.6% to 7.1%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 4.2x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Growth barely outpaces inflation
Revenue compounding at 5.2% 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 22.2% to 7.2%. 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

1EBITDA margin holds above 5%✓ 7.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 4.2x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✗ 1.8x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 4% a year✓ 5.2% CAGR
Latest reported year was -19.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹10 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

4 / 9 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
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 6 neutral · 2 weak

Market Cap

₹1,361 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

7.2%

Weak

Weak capital efficiency

ROCE

16.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.04x

Moderate

Moderate leverage

Revenue Growth (YoY)

-19.2%

Shrinking

Sales are contracting

Profit Growth (YoY)

21.4%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

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

Free Cash Flow

₹10 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Gross Margin

14.4%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

2.1%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.76

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

14.6 / 14.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

57.1

Neutral momentum

Financial Trend (3-Year)

Metric	FY22	FY23	FY24	2Y CAGR
Revenue	₹69 Cr	₹95 Cr	₹77 Cr	+5.2%
EBITDA	₹2 Cr	₹4 Cr	₹5 Cr	+47.8%
EBITDA Margin	3.6%	4.3%	7.1%	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	₹2 Cr	+15.3%
EPS	₹0.6	₹0.48	—	—
ROE	22.2%	11.7%	7.2%	—
ROCE	18.5%	15.2%	16.1%	—
Total Debt	₹18 Cr	₹40 Cr	₹23 Cr	+12.0%
Free Cash Flow	-₹19 Cr	-₹26 Cr	₹10 Cr	—

🟢 Revenue has grown at 5.2% a year over 2 years.

🟢 EBITDA has grown at 47.8% a year over 2 years.

🟢 EBITDA Margin has risen from 3.6% to 7.1% over 2 years (+3.5 pts).

🟢 PAT (Net Profit) has grown at 15.3% a year over 2 years.

🔴 ROE has fallen from 22.2% to 7.2% over 2 years (-15.0 pts).

🔴 ROCE has fallen from 18.5% to 16.1% over 2 years (-2.4 pts).

🔴 Total Debt has grown at 12.0% a year over 2 years.

🟢 Free Cash Flow has turned positive, from -₹19 Cr to ₹10 Cr.

Balance Sheet & Cash Flow — FY2024

Total Assets

₹51 Cr

Total Liabilities

₹29 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹11 Cr

Capex

-₹1 Cr

Recent News

2 mixed4 general

Compare with APPLE FINANCE

Equitymaster, 16 Oct

KCK Industries Issues Corrigendum to EGM Notice for Preferential Issue of Equity Shares

scanx.trade, 24 JulFunding

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

Kck Industries Q1 FY27 Results Preview

Univest, 10 JulResults

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

KCK Industries approves ₹50 crore preferential allotment to six investors

scanx.trade, 07 Jul

Kck Industries | Stock Share Price Live

MarketSmith India, 26 Sept

KCK Stock Price and Chart — NSE:KCK

TradingView, 11 Jul

Watch Items

Revenue growth is negative (-19.2%) 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.
Sector/industry classification unavailable — verify manually for peer comparison.
3 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

MiddlingBusiness Quality · Financial Health · Growth · Valuation · Risk

WeakProfitability

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.

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Interest cover stays above 3x · see Key things to watch ↑