Kotia Enterprises Limited

Basic Materials — Building Materials · BSE

₹25.50+₹1.08 (+4.42%)

DalalBaazaar Score

39 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

Driven by negative free cash flow, 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. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

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

What does this company do?

Kotia Enterprises Limited engages in the trading of bleached hardwood kraft pulp in India. It trades in various kinds and classes of paper, board, and pulp, such as writing paper, printing paper, absorbent paper, newsprint paper, wrapping paper, tissue paper, etc.

IndustryBuilding Materials

SectorBasic Materials

Annual revenue₹1 Cr

How does it make money?

Turns over ₹1 Cr a year. Of every ₹100 of sales, about ₹-191 reaches shareholders as profit, with ₹462 left at the operating level before interest, tax and depreciation.

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 3.8% 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%

DalalBaazaar Score

39/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ No meaningful P/E — the company is lossmaking

Quality vs. Valuation

Company Quality

46/ 100

Average

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

Valuation

47/ 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.

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

2.9x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Return on capital is rising
ROCE has improved from -0.9% to 3.8%.

🔴 What Needs Attention1

Return on equity is falling
ROE has dropped from -2.5% to -8.7% — each rupee of shareholder capital earns less than it did.

Red Flags

2 items require attention · 2 high

🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴The company is lossmakingFinancial
Net profit of -₹2 Cr in the latest reported year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Returns on shareholder capital are falling
ROE has dropped from -2.5% to -8.7%. 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
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

1EBITDA margin holds above 460%✓ 462.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹0 Cr
Profit that never becomes cash eventually stops being profit.
3ROCE stays above 8%✗ 3.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 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
✓ 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

1 good · 4 neutral · 6 weak

Market Cap

₹18 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

Not available

No data

Source didn't return this field

EPS (TTM)

₹-3.26

Loss-making

Negative earnings per share — the business is losing money

ROE

-8.7%

Weak

Weak capital efficiency

ROCE

3.8%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

208.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-4969.6%

Falling

Profits are shrinking

Dividend Yield

None

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

Free Cash Flow

-₹0 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

0.0%

Weak

Thin margins leave little room for error

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

3.26

Comfortable

Healthy short-term liquidity

52W Range Position

21%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

25.8 / 27.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

40.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	—	₹0 Cr	₹0 Cr	₹1 Cr	—
EBITDA	-₹0 Cr	-₹0 Cr	-₹1 Cr	₹6 Cr	—
EBITDA Margin	—	-104.4%	-118.7%	462.1%	—
PAT (Net Profit)	-₹0 Cr	-₹0 Cr	-₹0 Cr	-₹2 Cr	—
EPS	₹-0.35	₹-0.02	₹-0.07	₹-3.56	—
ROE	-2.5%	-0.2%	-0.1%	-8.7%	—
ROCE	-0.9%	-4.6%	-1.2%	3.8%	—
Free Cash Flow	-₹9 Cr	-₹0 Cr	-₹1 Cr	-₹0 Cr	—

🟢 EBITDA has turned positive, from -₹0 Cr to ₹6 Cr.

🟢 EBITDA Margin has risen from -104.4% to 462.1% over 3 years (+566.5 pts).

🔴 ROE has fallen from -2.5% to -8.7% over 3 years (-6.1 pts).

🟢 ROCE has risen from -0.9% to 3.8% over 3 years (+4.7 pts).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹33 Cr

Total Liabilities

₹4 Cr

Total Debt

—

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹0 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

80.3%

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

3 mixed3 general

Kotia Enterprises Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 13 Oct

Compare with

Equitymaster, 17 Oct

Kotia Enterprises Q1 Results: Un-audited financials filed with exchanges

scanx.trade, 16 AugResults

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

Adtech Systems reports standalone net loss of Rs 0.52 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.

Kotia Enterprises schedules 46th AGM for September 29, 2026

scanx.trade, 31 Aug

Q4 results 2026: RVNL to IndiGo among companies to declare Q4 results next week; check full list here

Livemint, 24 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.
2 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

MiddlingBusiness Quality · Financial Health · Growth

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

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