Keerthi Industries Limited

Basic Materials — Building Materials · BSE

₹42.17−₹0.83 (−1.93%)

DalalBaazaar Score

32 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

Driven by moderate debt load, short-term liabilities exceed short-term assets, negative free cash flow.

In simple words: The company is currently losing money, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

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

What does this company do?

Keerthi Industries Limited engages in the manufacturing, sale, and distribution of cement in India, Malaysia, and internationally. It offers OPC and PPC cement under the Suvarna brand.

IndustryBuilding Materials

SectorBasic Materials

Employees294

Annual revenue₹94 Cr

How does it make money?

Turns over ₹94 Cr a year. Of every ₹100 of sales, about ₹-16 reaches shareholders as profit, with ₹-9 left at the operating level before interest, tax and depreciation. Each of its 294 employees supports ₹31.8 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹31.8 lakh

Who are its competitors?

The closest listed comparisons in its industry are ULTRATECH CEMENT LIMITED, GRASIM INDUSTRIES LTD, AMBUJA CEMENTS LTD, SHREE CEMENT 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 -37.9% 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.

Peer median ROE7.4%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -61% while net margin moved +443% 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-61%

Margin effect+443%

DalalBaazaar Score

32/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative
✗ ROE has fallen by 50.5 points over the period

Quality vs. Valuation

Company Quality

28/ 100

Weak

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

Valuation

36/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

—

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Debt is being paid down
Total debt is down 64% over 3 years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from -9.1% to -59.6% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from -5.7% to -37.9% — often a sign of competition or overexpansion.

Red Flags

7 items require attention · 4 high · 3 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only -3.5x — little room if earnings dip.
🔴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.
🔴The company is lossmakingFinancial
Net profit of -₹15 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 9.3 points, from 0.7% to -8.6%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from -4.9x to -3.5x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹4 Cr in the latest year.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.31 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 64% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 0.7% to -8.6%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Returns on shareholder capital are falling
ROE has dropped from -9.1% to -59.6%. 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.
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
4 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

1EBITDA margin holds above -11%✓ -8.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹4 Cr
Profit that never becomes cash eventually stops being profit.
3Interest cover stays above 3x✗ -3.5x
How much operating profit can fall before interest stops being comfortably covered.
4ROCE stays above 8%✗ -37.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 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

2 good · 3 neutral · 6 weak

Market Cap

₹34 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

1.32x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-22.02

Loss-making

Negative earnings per share — the business is losing money

ROE

-59.6%

Weak

Weak capital efficiency

ROCE

-37.9%

Weak

Low return on total capital employed

Debt/Equity

0.92x

Moderate

Moderate leverage

Revenue Growth (YoY)

-45.9%

Shrinking

Sales are contracting

Profit Growth (YoY)

32.9%

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

-₹4 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-33.6%

Weak

Thin margins leave little room for error

Net Margin

-24.4%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.31

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.09

Defensive

Steadier than the market

52W Range Position

19%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

40.9 / 40.8

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

56.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹241 Cr	₹212 Cr	₹97 Cr	₹94 Cr	-27.0%
EBITDA	₹2 Cr	-₹3 Cr	-₹19 Cr	-₹8 Cr	—
EBITDA Margin	0.7%	-1.5%	-19.4%	-8.6%	—
PAT (Net Profit)	-₹7 Cr	-₹16 Cr	-₹23 Cr	-₹15 Cr	—
EPS	₹-9.03	₹-19.57	₹-28.41	₹-19.07	—
ROE	-9.1%	-24.7%	-55.9%	-59.6%	—
ROCE	-5.7%	-13.3%	-36.2%	-37.9%	—
Total Debt	₹65 Cr	₹61 Cr	₹58 Cr	₹24 Cr	-28.6%
Free Cash Flow	-₹29 Cr	₹9 Cr	₹5 Cr	-₹4 Cr	—

🔴 Revenue has shrunk at 27.0% a year over 3 years.

🔴 EBITDA has turned negative, from ₹2 Cr to -₹8 Cr.

🔴 EBITDA Margin has fallen from 0.7% to -8.6% over 3 years (-9.3 pts).

🔴 ROE has fallen from -9.1% to -59.6% over 3 years (-50.5 pts).

🔴 ROCE has fallen from -5.7% to -37.9% over 3 years (-32.2 pts).

🟢 Total Debt has shrunk at 28.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹126 Cr

Total Liabilities

₹101 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹1 Cr

Capex

-₹5 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

89.9%

Corporate Actions

Ex-Dividend Date

15 Sept 2022

Peer Comparison

Company	P/E	ROE
ULTRATECH CEMENT LIMITED	37.6x	11.1%
GRASIM INDUSTRIES LTD	34.8x	5.5%
AMBUJA CEMENTS LTD	20.4x	7.4%
SHREE CEMENT LIMITED	49.7x	7.0%

Recent News

1 positive1 mixed4 general

SAINIK FINANCE Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 17 Oct

Keerthi Industries halts clinker production due to unfavorable market conditions

scanx.trade, 12 Jun

Keerthi Industries reports standalone net loss of Rs 7.14 crore in the June 2026 quarter

Business Standard, 14 AugResults

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

Keerthi Industries publishes notice for 43rd AGM on September 24, 2026

scanx.trade, 24 Sept

Keerthi Industries Completes INR 36 Crore Electronics Division Sale Agreement

scanx.trade, 28 Mar

3M India standalone net profit rises 31.17% in the June 2026 quarter

Business Standard, 14 AugResults

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

Watch Items

Revenue growth is negative (-45.9%) 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.

DalalBaazaar Thesis

MiddlingValuation

WeakBusiness Quality · Financial Health · Growth · Profitability · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 4 high-severity red flags sit above this conclusion and should be read first.

3 of 4 tripwires tripped — Free cash flow remains positive; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑