KCL Infra Projects Limited

Industrials — Engineering & Construction · BSE

₹1.33+₹0.02 (+1.53%)

DalalBaazaar Score

56 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with modest growth. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

KCL Infra Projects Limited engages in the development, construction, and engineering of infrastructure projects in India.

IndustryEngineering & Construction

SectorIndustrials

Employees14

Annual revenue₹59 Cr

How does it make money?

Turns over ₹59 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 14 employees supports ₹4.20 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹4.20 Cr

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.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 4.3% 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 ROE14.1%

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 +201% while net margin moved -30% 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+201%

Margin effect-30%

DalalBaazaar Score

56/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 2.9% is weak

Quality vs. Valuation

Company Quality

51/ 100

Average

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

Valuation

88/ 100

Cheap

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

13.3x

3Y Median

27.2x

40 monthly readings · mean 26.7x · range 10.9x–47.3x

Sector Median

30.1x

median of 3 sector peers

🟢Current valuation is approximately 51% below its 3y median of 27.2x. 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 56% below the peer median of 30.1x.

vs. its own history

Cheap

27.2x median over 40 months · -51%

vs. sector peers

Cheap

30.1x median of 3 peers · -56%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

5.8x

PEG

0.47

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 24% over 3 years.
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

3 items require attention · 2 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 5.84x — earnings must service borrowings before shareholders see anything.
🔴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.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹10 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 24% 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 51% 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 56% 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 5.84x. Interest is payable whether or not the business has a good year.
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
2 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 33% a year✓ 44.4% CAGR
Latest reported year was 2635.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 5%✓ 6.8%
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.
4Debt / EBITDA stays below 2x✓ 0.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 4.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 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

4 good · 3 neutral · 4 weak

Market Cap

₹22 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

13.3x

Cheap

Cheap against the generic band

P/B Ratio

0.51x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.1

Profitable

Profitable on a per-share basis

ROE

2.9%

Weak

Weak capital efficiency

ROCE

4.3%

Weak

Low return on total capital employed

Debt/Equity

5.84x

High

High leverage

Revenue Growth (YoY)

2635.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

0.5%

Modest

Slow profit growth

Dividend Yield

None

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

Free Cash Flow

-₹10 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

1.1%

Weak

Thin margins leave little room for error

Net Margin

2.1%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.67

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.36

Defensive

Steadier than the market

52W Range Position

59%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1.3 / 1.2

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

58.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹20 Cr	₹9 Cr	₹12 Cr	₹59 Cr	+44.4%
EBITDA	₹2 Cr	₹2 Cr	₹3 Cr	₹4 Cr	+35.4%
EBITDA Margin	8.3%	22.1%	25.7%	6.8%	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	₹1 Cr	₹2 Cr	+28.3%
EPS	₹0.06	₹0.05	₹0.06	₹0.1	+18.6%
ROE	2.0%	1.6%	0.9%	2.9%	—
ROCE	3.4%	3.1%	2.2%	4.3%	—
Total Debt	₹4 Cr	₹4 Cr	₹4 Cr	₹3 Cr	-8.7%
Free Cash Flow	-₹12 Cr	-₹1 Cr	₹10 Cr	-₹10 Cr	—

🟢 Revenue has grown at 44.4% a year over 3 years.

🟢 EBITDA has grown at 35.4% a year over 3 years.

🔴 EBITDA Margin has fallen from 8.3% to 6.8% over 3 years (-1.5 pts).

🟢 PAT (Net Profit) has grown at 28.3% a year over 3 years.

🟢 EPS has grown at 18.6% a year over 3 years.

🟡 ROE has held roughly flat at 2.9% over 3 years.

🟡 ROCE has held roughly flat at 4.3% over 3 years.

🟢 Total Debt has shrunk at 8.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹108 Cr

Total Liabilities

₹51 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

-₹10 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

47.4%

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 positive2 mixed3 general

KCL Infra Projects FY26 net profit rises to ₹165.96 crore

scanx.trade, 25 MayResults

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

MPDL Ltd. Share Price Surges 9.58% Today

Univest, 28 JulPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

KCL Infra Projects holds AGM on Sep 30, appoints new auditor

scanx.trade, 30 Sept

KCL Infra Projects (BSE:531784) - Stock Analysis

Simply Wall Street, 02 Dec

KCL Infra Projects adopts FY26 financials; 24.63% voting turnout

scanx.trade, 30 Sept

Q1 Results Next Week: HAL, IRCTC, MRF, Vodafone Idea, RVNL & More; Full List of Companies Announcing Earnings

Goodreturns, 08 AugResults

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

Watch Items

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

DalalBaazaar Thesis

StrongGrowth · Valuation

MiddlingFinancial Health

WeakBusiness Quality · Profitability · 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. 2 high-severity red flags sit above this conclusion and should be read first.

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