KDDL Limited

Consumer Cyclical — Luxury Goods · NSE

₹3,820.30+₹51.10 (+1.36%)

DalalBaazaar Score

51 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

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

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Cash generation is currently 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 KDDL Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

KDDL Limited, together with its subsidiaries, engages in the manufacturing and sale of watch dials and hands, precision engineering components, and press tools.

IndustryLuxury Goods

SectorConsumer Cyclical

Employees1,511

Annual revenue₹2,128 Cr

How does it make money?

Turns over ₹2,128 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹17 left at the operating level before interest, tax and depreciation. Each of its 1,511 employees supports ₹1.41 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.41 Cr

Who are its competitors?

The closest listed comparisons in its industry are TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED, ASIAN PAINTS 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?Little sign of one

Returns on capital of 10.4% 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 ROE25.9%

What is the outlook?

1 analysts covering the stock expect revenue to grow about 18.0% and earnings to grow about 24.7% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+18.0%

Est. earnings growth+24.7%

Analysts1

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 +92% while net margin moved -14% 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+92%

Margin effect-14%

DalalBaazaar Score

51/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 8.2% is weak
✗ ROE has fallen by 3.6 points over the period

Quality vs. Valuation

Company Quality

55/ 100

Average

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

Valuation

46/ 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

48.4x

3Y Median

38.8x

40 monthly readings · mean 44.7x · range 26.6x–83.1x

Sector Median

69.2x

median of 4 sector peers

⚠️Current valuation is approximately 25% above its 3y median of 38.8x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 30% below the peer median of 69.2x.

vs. its own history

Expensive

38.8x median over 40 months · +25%

vs. sector peers

Cheap

69.2x median of 4 peers · -30%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

13.8x

PEG

2.69

What's Good / What's Bad

🟢 What's Going Well2

Very low debt
Debt/Equity of 0.27x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 11.7% to 8.2% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 15.0% to 10.4% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 108% over 3 years, from ₹246 Cr to ₹512 Cr.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹4 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 30% 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?

The price already assumes success
The stock trades 25% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 11.7% to 8.2%. 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 18% a year✓ 24.3% CAGR
Latest reported year was 36.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 15%✓ 17.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹4 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 10.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 12 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
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 5 neutral · 2 weak

Market Cap

₹4,699 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

48.4x

Expensive

Expensive — verify against sector peers

P/B Ratio

4.35x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹78.89

Profitable

Profitable on a per-share basis

ROE

8.2%

Moderate

Moderate capital efficiency

ROCE

10.4%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.27x

Low

Conservative leverage

Revenue Growth (YoY)

36.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

43.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.60%

Modest

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

Free Cash Flow

-₹4 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

29.6x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

9.5%

Average

Average margins

Net Margin

4.2%

Average

Average bottom-line conversion

Current Ratio

3.85

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.49

Defensive

Steadier than the market

52W Range Position

80%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

3930.3 / 3914.3

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

35.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,108 Cr	₹1,378 Cr	₹1,629 Cr	₹2,128 Cr	+24.3%
EBITDA	₹181 Cr	₹278 Cr	₹309 Cr	₹363 Cr	+26.1%
EBITDA Margin	16.3%	20.2%	18.9%	17.1%	—
PAT (Net Profit)	₹54 Cr	₹103 Cr	₹95 Cr	₹88 Cr	+18.0%
EPS	₹42.18	₹81.9	₹76.26	₹71.63	+19.3%
ROE	11.7%	14.0%	10.3%	8.2%	—
ROCE	15.0%	16.2%	12.5%	10.4%	—
Total Debt	₹246 Cr	₹250 Cr	₹453 Cr	₹512 Cr	+27.6%
Free Cash Flow	-₹26 Cr	₹14 Cr	-₹144 Cr	-₹4 Cr	—

🟢 Revenue has grown at 24.3% a year over 3 years.

🟢 EBITDA has grown at 26.1% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 17.1% over 3 years.

🟢 PAT (Net Profit) has grown at 18.0% a year over 3 years.

🟢 EPS has grown at 19.3% a year over 3 years.

🔴 ROE has fallen from 11.7% to 8.2% over 3 years (-3.6 pts).

🔴 ROCE has fallen from 15.0% to 10.4% over 3 years (-4.6 pts).

🔴 Total Debt has grown at 27.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,755 Cr

Total Liabilities

₹837 Cr

Cash & Equivalents

₹209 Cr

Operating Cash Flow

₹144 Cr

Capex

-₹148 Cr

Shareholding (proxy)

Institutional Holding

5.8%

Insider Holding

58.3%

Corporate Actions

Dividend Rate

₹23

Ex-Dividend Date

08 Sept 2026

Analyst Consensus

Recommendations

0 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹3,830

+0.3% vs CMP

Target Range

₹3,830 – ₹3,830

Peer Comparison

Company	P/E	ROE
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%
ASIAN PAINTS LIMITED	46.9x	22.3%

Recent News

5 mixed1 general

KDDL Forecast — Price Target — Prediction for 2027

TradingView, 26 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

KDDL vs Nifty 50: Share Price Performance Compared

Univest, 01 Oct

KDDL shares hit 20% upper circuit; what sparked a rally in the watch components maker

Fortune India, 20 MayPrice 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.

Here's why KDDL shares jumped 20% to hit upper circuit on bourses today

Business Standard, 20 MayPrice 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.

28% Return in One Month: This Small-Cap Stock Jumps 13% After Reporting Q1 FY27 Results; PAT Surges 51%, DII Stake More Than Doubles

Dalal Street Investment Journal, 05 AugResults

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

KDDL Ltd Reports Strong Quarterly Turnaround with Robust Revenue and Profit Growth

MarketsMojo, 20 MayResults

🟡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

StrongFinancial Health · Growth

MiddlingBusiness Quality

WeakProfitability · Valuation · 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 ↑