KD Green Industries Limited

Consumer Cyclical — Footwear & Accessories · NSE

₹50.17+₹0.48 (+0.97%)

DalalBaazaar Score

50 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 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 KD Green Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

KD Green Industries Limited engages in the manufacture, import, export, and trading of iron and steel products in India. The company offers GFRP rebar and byproducts; and eco-friendly building materials, such as autoclaved aerated concrete blocks, cement, and related products.

IndustryFootwear & Accessories

SectorConsumer Cyclical

Employees2

Annual revenue₹63 Cr

How does it make money?

Turns over ₹63 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹16 left at the operating level before interest, tax and depreciation. Each of its 2 employees supports ₹31.67 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin16.3%

Net margin4.7%

Revenue / employee₹31.67 Cr

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

MARUTI SUZUKI INDIA LTD.P/E 25.2x · ROE 13.4%

TITAN COMPANY LIMITEDP/E 68.5x · ROE 36.7%

TRENT LTDP/E 87.2x · ROE 25.9%

AVENUE SUPERMARTS LIMITEDP/E 69.9x · ROE 12.7%

What is its competitive advantage?Little sign of one

Returns on capital of 8.9% 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.

ROCE8.9%

ROE6.3%

Peer median ROE25.9%

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 +16228% while net margin moved -90% 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+16228%

Margin effect-90%

DalalBaazaar Score

50/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ P/E of 102.4x is demanding — it needs sustained high growth to justify
✗ P/B of 5.94x is a steep premium to book

Quality vs. Valuation

Company Quality

57/ 100

Average

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

Valuation

37/ 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.

Historical Valuation

Current P/E

102.4x

Sector Median

69.2x

median of 4 sector peers

⚠️Against its sector it trades 48% above the peer median of 69.2x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Expensive

69.2x median of 4 peers · +48%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

102.4x

P/B

5.94x

EV/EBITDA

51.0x

PEG

0.67

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Margins are compressing
EBITDA margin has slipped from 49.8% to 16.3% over 3 years.
Debt is rising
Total debt is up 143415% over 3 years — worth checking what it funded.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 143415% over 3 years, from ₹0 Cr to ₹22 Cr.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 33.6 points, from 49.8% to 16.3%.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 1058% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Self-funding with balance-sheet headroom
Positive free cash flow of ₹2 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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 49.8% to 16.3%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
A premium to the sector to defend
It trades 48% above the peer median. That premium needs a reason that persists, or it closes.
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 335% a year✓ 446.6% CAGR
Latest reported year was 3136.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 14%✓ 16.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✓ ₹2 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✓ 8.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 10 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

Price history

Quick Metrics

5 good · 3 neutral · 3 weak

Market Cap

₹509 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

102.4x

Expensive

Expensive — verify against sector peers

P/B Ratio

5.94x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹0.49

Profitable

Profitable on a per-share basis

ROE

6.3%

Weak

Weak capital efficiency

ROCE

8.9%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.30x

Low

Conservative leverage

Revenue Growth (YoY)

3136.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

192.7%

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

₹2 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹50.17

Operating Margin

14.8%

Average

Average margins

Net Margin

4.1%

Average

Average bottom-line conversion

Current Ratio

4.00

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.08

Market-like

Moves roughly in line with the market

52W Range Position

28%

Mid-range

Technical Snapshot

RSI (14)

46.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹0 Cr	₹24 Cr	₹2 Cr	₹63 Cr	+446.6%
EBITDA	₹0 Cr	₹0 Cr	₹1 Cr	₹10 Cr	+276.4%
EBITDA Margin	49.8%	1.2%	31.5%	16.3%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹1 Cr	₹3 Cr	+153.7%
EPS	₹0.37	₹0.47	₹0.08	₹0.29	-7.4%
ROE	—	155.5%	1.7%	6.3%	—
ROCE	—	182.1%	1.4%	8.9%	—
Total Debt	₹0 Cr	—	₹0 Cr	₹22 Cr	+1028.0%
Free Cash Flow	-₹0 Cr	₹0 Cr	₹0 Cr	₹2 Cr	—

🟢 Revenue has grown at 446.6% a year over 3 years.

🟢 EBITDA has grown at 276.4% a year over 3 years.

🔴 EBITDA Margin has fallen from 49.8% to 16.3% over 3 years (-33.6 pts).

🟢 PAT (Net Profit) has grown at 153.7% a year over 3 years.

🔴 EPS has shrunk at 7.4% a year over 3 years.

🔴 ROE has fallen from 155.5% to 6.3% over 3 years (-149.2 pts).

🔴 ROCE has fallen from 182.1% to 8.9% over 3 years (-173.3 pts).

🔴 Total Debt has grown at 1028.0% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹0 Cr to ₹2 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹110 Cr

Total Liabilities

₹38 Cr

Total Debt

₹22 Cr

Cash & Equivalents

₹5 Cr

Operating Cash Flow

₹3 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

87.5%

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

6 general

KD Green Industries (BSE:512595) - Stock Analysis

Simply Wall Street, 03 Oct

KDGREEN Stock Price and Chart — NSE:KDGREEN

TradingView, 19 Aug

KD Green Industries Limited (KDGREEN.BO) valuation measures and financial statistics

Yahoo Finance UK, 16 Oct

KD Green Industries Ltd

Equitypandit, 04 Sept

KD Green Industries passes all resolutions at 34th AGM

scanx.trade, 01 Oct

KD Green Industries Ltd is Rated Sell

MarketsMojo, 06 Oct

Watch Items

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

DalalBaazaar Thesis

🔴Business QualityWeak7.9/20

🟢Financial HealthStrong15.6/20

🟢GrowthStrong14.7/20

🔴ProfitabilityWeak4.5/15

🔴ValuationDemanding3.2/15

🔴RiskHigh3.6/10

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.

This thesis breaks if

✓Revenue growth stays above 335% a year446.6% CAGR
✓EBITDA margin holds above 14%16.3%
✗Debt / EBITDA stays below 2x2.1x
✓Free cash flow remains positive₹2 Cr
✓ROCE stays above 8%8.9%