Kesar India Limited

Real Estate — Real Estate - Development · BSE

₹1,061.50+₹1.50 (+0.14%)

DalalBaazaar Score

68 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:58 pm

Understanding the Business

Company site ↗

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

What does this company do?

Kesar India Limited operates as a real estate development company in India. It develops residential and commercial projects.

IndustryReal Estate - Development

SectorReal Estate

Employees71

Annual revenue₹176 Cr

How does it make money?

Turns over ₹176 Cr a year. Of every ₹100 of sales, about ₹17 reaches shareholders as profit, with ₹27 left at the operating level before interest, tax and depreciation. Each of its 71 employees supports ₹2.49 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.49 Cr

Who are its competitors?

The closest listed comparisons in its industry are DLF LIMITED, GODREJ PROPERTIES LTD, OBEROI REALTY 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?Some evidence

ROCE of 16.5% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE10.3%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +1062% while net margin moved +230% 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+1062%

Margin effect+230%

DalalBaazaar Score

68/ 100

Good

Weighted across six categories. Every point is explained below.

• Beta of 1.01 — moves roughly with the market
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

77/ 100

Good

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

Valuation

49/ 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.

Historical Valuation

Current P/E

67.2x

3Y Median

116.2x

40 monthly readings · mean 184.7x · range 24.0x–1487.0x

Sector Median

30.2x

median of 3 sector peers

🟢Current valuation is approximately 42% below its 3y median of 116.2x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 123% above the peer median of 30.2x.

vs. its own history

Cheap

116.2x median over 40 months · -42%

vs. sector peers

Expensive

30.2x median of 3 peers · +123%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

72.6x

PEG

0.28

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 8.8% to 27.1% over 3 years.
Return on equity is rising
ROE has improved from 4.1% to 12.0%.
Return on capital is rising
ROCE has improved from 5.0% to 16.5%.
Very low debt
Debt/Equity of 0.18x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

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

Red Flags

5 items require attention · 4 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 1968% over 3 years, from ₹2 Cr to ₹44 Cr.
🔴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.
🔴Receivables growing faster than salesFinancial
Receivables up 3722% against revenue up 1062% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 1264% against revenue up 1062% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹133 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 8.8% to 27.1%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 42% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
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?

Sales are being booked faster than collected
Receivables are up 3722% against revenue up 1062%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 123% above the peer median. That premium needs a reason that persists, or it closes.
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

1Revenue growth stays above 95% a year✓ 126.5% CAGR
Latest reported year was 1073.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 25%✓ 27.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹133 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 13%✓ 16.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 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

5 good · 3 neutral · 3 weak

Market Cap

₹3,454 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

67.2x

Expensive

Expensive — verify against sector peers

P/B Ratio

11.50x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹15.79

Profitable

Profitable on a per-share basis

ROE

12.0%

Moderate

Moderate capital efficiency

ROCE

16.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.18x

Low

Conservative leverage

Revenue Growth (YoY)

1073.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

7585.7%

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

-₹133 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

7.8%

Average

Average margins

Net Margin

13.8%

Good

Strong bottom-line conversion

Current Ratio

2.23

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.01

Market-like

Moves roughly in line with the market

52W Range Position

56%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1139.9 / 1173.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

21.3

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹15 Cr	₹53 Cr	₹108 Cr	₹176 Cr	+126.5%
EBITDA	₹1 Cr	₹15 Cr	₹28 Cr	₹48 Cr	+229.4%
EBITDA Margin	8.8%	28.5%	25.6%	27.1%	—
PAT (Net Profit)	₹1 Cr	₹11 Cr	₹20 Cr	₹30 Cr	+237.1%
EPS	₹2.39	₹22.54	₹7.94	₹10.08	+61.6%
ROE	4.1%	36.1%	39.9%	12.0%	—
ROCE	5.0%	47.2%	50.5%	16.5%	—
Total Debt	₹2 Cr	₹22 Cr	₹30 Cr	₹44 Cr	+174.5%
Free Cash Flow	-₹10 Cr	₹9 Cr	-₹2 Cr	-₹133 Cr	—

🟢 Revenue has grown at 126.5% a year over 3 years.

🟢 EBITDA has grown at 229.4% a year over 3 years.

🟢 EBITDA Margin has risen from 8.8% to 27.1% over 3 years (+18.3 pts).

🟢 PAT (Net Profit) has grown at 237.1% a year over 3 years.

🟢 EPS has grown at 61.6% a year over 3 years.

🟢 ROE has risen from 4.1% to 12.0% over 3 years (+8.0 pts).

🟢 ROCE has risen from 5.0% to 16.5% over 3 years (+11.5 pts).

🔴 Total Debt has grown at 174.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹439 Cr

Total Liabilities

₹190 Cr

Cash & Equivalents

₹31 Cr

Operating Cash Flow

-₹128 Cr

Capex

-₹5 Cr

Shareholding (proxy)

Institutional Holding

1.1%

Insider Holding

88.6%

Peer Comparison

Company	P/E	ROE
DLF LIMITED	36.6x	10.3%
GODREJ PROPERTIES LTD	30.2x	8.4%
OBEROI REALTY LIMITED	23.5x	14.7%

Recent News

1 positive2 mixed3 general

Kesar India Reports Strong 64% Revenue Growth in FY26 Financial Results

scanx.trade, 14 OctResults

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

Kesar India Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Kesar India bags Rs 160-cr EPC contract from Zee Enterprises

Business Standard, 22 MayOrder win

🟢Potentially positiveAn order or contract win, which adds to future revenue. How much depends on its size against annual sales and on when it is executed.

Kesar India Q1 FY27 Results: Revenue Rs 171 Cr, PAT Rs 16 Cr and Key Highlights

Univest, 07 AugResults

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

Kesar India Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 27 Aug

Kesar India (BSE: 543542) Equity Capital Rises After Preferential Warrant Conversion

Kalkine India, 27 Jul

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

StrongBusiness Quality · Financial Health · Growth · Profitability

WeakValuation · Risk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 4 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑