Kanoria Energy & Infrastructure Limited

Industrials — Building Products & Equipment · BSE

₹14.30+₹0.60 (+4.38%)

DalalBaazaar Score

36 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

Driven by moderate debt load, the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, though profits are falling even as sales grow. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:48 pm

Understanding the Business

Company site ↗

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

What does this company do?

Kanoria Energy & Infrastructure Limited manufactures and sells asbestos cement pressure pipes, asbestos cement corrugated roofing sheets, and allied products in India.

IndustryBuilding Products & Equipment

SectorIndustrials

Employees358

Annual revenue₹270 Cr

How does it make money?

Turns over ₹270 Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹6 left at the operating level before interest, tax and depreciation. Each of its 358 employees supports ₹75.3 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹75.3 lakh

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA 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 9.1% 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 ROE15.2%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -14% while net margin moved -95% 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-14%

Margin effect-95%

DalalBaazaar Score

36/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 4.8% a year
✗ Profit has declined at 65.5% a year
✗ Profit fell 89.0% in the latest year

Quality vs. Valuation

Company Quality

31/ 100

Weak

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

Valuation

44/ 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

11.7x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 31% over 3 years.
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

Return on equity is falling
ROE has dropped from 11.5% to 0.4% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 15.6% to 9.1% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 2 high · 2 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.1x — little room if earnings dip.
🔴Receivables growing faster than salesFinancial
Receivables up 87% against revenue up -14% — sales are being booked faster than they are collected.
🟡Profit is decliningFinancial
Net profit is down 96% over 3 years.
🟡Margins are compressingFinancial
EBITDA margin is down 2.0 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 31% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
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 8.0% to 6.0%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 4.5x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 87% against revenue up -14%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 11.5% to 0.4%. 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 4%✓ 6.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 4.5x
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✗ 1.1x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹53 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✓ 9.1%
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

3 good · 4 neutral · 4 weak

Market Cap

₹122 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

1.18x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-0.55

Loss-making

Negative earnings per share — the business is losing money

ROE

0.4%

Weak

Weak capital efficiency

ROCE

9.1%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.87x

Moderate

Moderate leverage

Revenue Growth (YoY)

16.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-89.0%

Falling

Profits are shrinking

Dividend Yield

0.35%

Modest

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

Free Cash Flow

₹53 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

5.8%

Average

Average margins

Net Margin

-1.6%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.24

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.09

Defensive

Steadier than the market

52W Range Position

26%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

16.4 / 16.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

30.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹312 Cr	₹348 Cr	₹298 Cr	₹270 Cr	-4.8%
EBITDA	₹25 Cr	₹25 Cr	₹20 Cr	₹16 Cr	-13.6%
EBITDA Margin	8.0%	7.3%	6.6%	6.0%	—
PAT (Net Profit)	₹10 Cr	₹8 Cr	₹4 Cr	₹0 Cr	-65.5%
EPS	₹1.12	₹0.92	₹0.42	₹0.05	-64.5%
ROE	11.5%	8.7%	3.8%	0.4%	—
ROCE	15.6%	15.7%	11.8%	9.1%	—
Total Debt	₹106 Cr	₹117 Cr	₹112 Cr	₹73 Cr	-11.5%
Free Cash Flow	-₹17 Cr	-₹34 Cr	₹18 Cr	₹53 Cr	—

🔴 Revenue has shrunk at 4.8% a year over 3 years.

🔴 EBITDA has shrunk at 13.6% a year over 3 years.

🔴 EBITDA Margin has fallen from 8.0% to 6.0% over 3 years (-2.0 pts).

🔴 PAT (Net Profit) has shrunk at 65.5% a year over 3 years.

🔴 EPS has shrunk at 64.5% a year over 3 years.

🔴 ROE has fallen from 11.5% to 0.4% over 3 years (-11.1 pts).

🔴 ROCE has fallen from 15.6% to 9.1% over 3 years (-6.4 pts).

🟢 Total Debt has shrunk at 11.5% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹17 Cr to ₹53 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹266 Cr

Total Liabilities

₹172 Cr

Cash & Equivalents

₹5 Cr

Operating Cash Flow

₹58 Cr

Capex

-₹5 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

94.3%

Corporate Actions

Dividend Rate

₹0.05

Ex-Dividend Date

11 Aug 2026

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

1 positive2 mixed3 general

Kanoria Energy & Infrastructure (KEIL) Share Price Falls 10.27% in Latest Session

Univest, 13 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Kanoria Energy & Infrastructure Limited Board Approves Proposal to Change Company Name

scanx.trade, 11 May

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

Equitymaster, 17 Oct

Kanoria Energy & Infrastructure Ltd. (KEIL) Share Price Falls 8.12% to Rs 15.62

Univest, 17 AugPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Kanoria Energy & Infrastructure approves ₹2.5 Cr preference share redemption

scanx.trade, 07 Aug

Dividend alert: Jio Financial, Power Grid, HPCL among 90 stocks turning ex-dividend this week

The Economic Times, 09 AugCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

MiddlingFinancial Health · Valuation · Risk

WeakBusiness Quality · Growth · Profitability

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. 2 high-severity red flags sit 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 ↑