Kemp and Company Limited

Industrials — Conglomerates · BSE

₹1,098.20₹0.00 (0.00%)

DalalBaazaar Score

48 / 100

🟡 Moderate

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, 6:59 pm

Understanding the Business

Company site ↗

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

What does this company do?

Kemp and Company Limited engages in the retail of luggage products and accessories in India. It operates in Trading and Real Estate segments. The Trading segment engages in retailing plastic molded suitcases, brief and vanity cases, and other travel goods.

IndustryConglomerates

SectorIndustrials

Employees5

Annual revenue₹3 Cr

How does it make money?

Turns over ₹3 Cr a year. Of every ₹100 of sales, about ₹-74 reaches shareholders as profit, with ₹-57 left at the operating level before interest, tax and depreciation. Each of its 5 employees supports ₹60.0 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹60.0 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 -1.3% 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 +103% while net margin moved -193% 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+103%

Margin effect-193%

DalalBaazaar Score

48/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative

Quality vs. Valuation

Company Quality

49/ 100

Average

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.

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

—

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Margins are improving
EBITDA margin is up from -79.7% to -57.5% over 3 years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

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?

Margin expansion has further to run
EBITDA margin has risen from -79.7% to -57.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 Bear CaseWhat could go wrong?

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 20% a year✓ 26.6% CAGR
Latest reported year was 73.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -59%✓ -57.5%
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.
4ROCE stays above 8%✗ -1.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 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

2 good · 3 neutral · 6 weak

Market Cap

₹119 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

0.72x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-2.3

Loss-making

Negative earnings per share — the business is losing money

ROE

-1.3%

Weak

Weak capital efficiency

ROCE

-1.3%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

73.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-101.3%

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

-₹4 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-22.1%

Weak

Thin margins leave little room for error

Net Margin

-34.5%

Weak

Very little revenue reaches the bottom line

Current Ratio

82.07

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.38

Defensive

Steadier than the market

52W Range Position

48%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1104.0 / 1075.2

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

100.0

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1 Cr	₹3 Cr	₹3 Cr	₹3 Cr	+26.6%
EBITDA	-₹1 Cr	-₹0 Cr	-₹1 Cr	-₹2 Cr	—
EBITDA Margin	-79.7%	-5.9%	-39.7%	-57.5%	—
PAT (Net Profit)	₹1 Cr	-₹0 Cr	-₹1 Cr	-₹2 Cr	—
EPS	₹10.86	₹-2.34	₹-10.18	₹-20.5	—
ROE	0.5%	-0.1%	-0.8%	-1.3%	—
ROCE	-0.5%	-0.1%	-1.0%	-1.3%	—
Free Cash Flow	-₹1 Cr	-₹2 Cr	-₹2 Cr	-₹4 Cr	—

🟢 Revenue has grown at 26.6% a year over 3 years.

🟢 EBITDA Margin has risen from -79.7% to -57.5% over 3 years (+22.2 pts).

🔴 PAT (Net Profit) has turned negative, from ₹1 Cr to -₹2 Cr.

🔴 EPS has turned negative, from ₹10.86 to ₹-20.5.

🔴 ROE has fallen from 0.5% to -1.3% over 3 years (-1.8 pts).

🟡 ROCE has held roughly flat at -1.3% over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹171 Cr

Total Liabilities

₹6 Cr

Total Debt

—

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹4 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

90.7%

Corporate Actions

Ex-Dividend Date

07 Sept 2023

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 mixed5 general

Kemp & Company Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 29 Aug

Kemp & Company Ltd. Peer Comparison – Compare with Others

Value Research, 31 Aug

WH Brady & Company Share Price Near 52-Week Low Analysis

Univest, 18 Sept

VIP Industries shares jump 9% amid large trades; check all details here

Business Standard, 24 DecPrice 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.

Kemp & Company Shareholders Unanimously Approve VIP House Purchase Transaction

scanx.trade, 07 Nov

Qnity Electronics Is Up About 80% This Year. Here’s How Much the Stock Could Rise in 2028

TIKR.com, 21 May

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongGrowth

MiddlingFinancial Health · Valuation

WeakBusiness Quality · Profitability · 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 4 tripwires tripped — Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑