Kenrik Industries Limited

Consumer Cyclical — Luxury Goods · BSE

₹10.13−₹0.45 (−4.25%)

DalalBaazaar Score

49 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by moderate debt load, negative free cash flow, the company is currently loss-making.

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, 7:45 pm

Understanding the Business

Company site ↗

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

What does this company do?

Kenrik Industries Limited engages in the manufacturing, wholesaling, and supplying of plain and studded gold jewelry and ornaments in India. The company offers handmade gold jewelry studded with precious and semi-precious stones, such as diamond, ruby, cubic zirconia, etc.

IndustryLuxury Goods

SectorConsumer Cyclical

Annual revenue₹80 Cr

How does it make money?

Turns over ₹80 Cr a year. Of every ₹100 of sales, about ₹-0 reaches shareholders as profit, with ₹0 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED, ASIAN PAINTS 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 0.4% 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 ROE25.9%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +55% while net margin moved -101% 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+55%

Margin effect-101%

DalalBaazaar Score

49/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative
✗ ROE has fallen by 4.1 points over the period

Quality vs. Valuation

Company Quality

44/ 100

Weak

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

Valuation

40/ 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

No P/E available

EV/EBITDA

105.2x

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 4.1% to -0.0% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 5.7% to 0.4% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 2 high · 1 watch

🔴The company is lossmakingFinancial
Net profit of -₹0 Cr in the latest reported year.
🔴Receivables growing faster than salesFinancial
Receivables up 217% against revenue up 55% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹10 Cr in the latest year.

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?

Sales are being booked faster than collected
Receivables are up 217% against revenue up 55%. 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 4.1% to -0.0%. 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

1Revenue growth stays above 12% a year✓ 15.6% CAGR
Latest reported year was 9.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -2%✓ 0.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹10 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 0.4%
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
✓ 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 buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

1 good · 5 neutral · 5 weak

Market Cap

₹13 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

0.57x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0

Loss-making

Negative earnings per share — the business is losing money

ROE

-0.0%

Weak

Weak capital efficiency

ROCE

0.4%

Weak

Low return on total capital employed

Debt/Equity

0.91x

Moderate

Moderate leverage

Revenue Growth (YoY)

9.7%

Modest

Modest growth

Profit Growth (YoY)

-100.4%

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

-₹9 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

0.1%

Weak

Assets generate little profit

Operating Margin

-1.3%

Weak

Thin margins leave little room for error

Net Margin

-0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

6.47

Comfortable

Healthy short-term liquidity

52W Range Position

51%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

12.8 / 10.5

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

13.9

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹52 Cr	₹71 Cr	₹75 Cr	₹80 Cr	+15.6%
EBITDA	₹1 Cr	₹1 Cr	₹1 Cr	₹0 Cr	-43.7%
EBITDA Margin	1.3%	1.8%	1.9%	0.2%	—
PAT (Net Profit)	₹0 Cr	₹1 Cr	₹1 Cr	-₹0 Cr	—
EPS	₹0.38	₹0.86	₹0.79	—	—
ROE	4.1%	8.5%	7.3%	-0.0%	—
ROCE	5.7%	9.9%	10.6%	0.4%	—
Total Debt	₹1 Cr	₹1 Cr	₹1 Cr	₹0 Cr	-28.8%
Free Cash Flow	₹0 Cr	₹2 Cr	-₹3 Cr	-₹10 Cr	—

🟢 Revenue has grown at 15.6% a year over 3 years.

🔴 EBITDA has shrunk at 43.7% a year over 3 years.

🔴 EBITDA Margin has fallen from 1.3% to 0.2% over 3 years (-1.2 pts).

🔴 PAT (Net Profit) has turned negative, from ₹0 Cr to -₹0 Cr.

🔴 ROE has fallen from 4.1% to -0.0% over 3 years (-4.1 pts).

🔴 ROCE has fallen from 5.7% to 0.4% over 3 years (-5.2 pts).

🟢 Total Debt has shrunk at 28.8% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹0 Cr to -₹10 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹26 Cr

Total Liabilities

₹4 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹10 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

72.0%

Peer Comparison

Company	P/E	ROE
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%
ASIAN PAINTS LIMITED	46.9x	22.3%

Recent News

1 mixed5 general

Kenrik Industries Limited Share Price - Live KENRIK Stock Price & Chart

Upstox, 05 May

Kenrik Industries AGM votes pass financials and director appointment unanimously

scanx.trade, 29 Sept

Darsh Advisory triggers open offer to acquire 26% stake in Kenrik Industries

scanx.trade, 27 AugM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

Kenrik Industries IPO sees 24% subscription on first day of bidding

Moneycontrol.com, 29 Apr

Darsh Advisory takes 72% of Kenrik Industries, triggers Rs 3.25 crore open offer

Dealroom, 27 Aug

Kenrik Industries share price: Stock makes flat listing on BSE SME platform

Upstox, 08 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 oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongFinancial Health · Growth · Valuation

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

2 of 5 tripwires tripped — Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑