Khaitan (India) Limited

Industrials — Industrial Distribution · NSE

₹150.00−₹0.83 (−0.55%)

DalalBaazaar Score

71 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by short-term liabilities exceed short-term assets, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Short-term liquidity is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Constructive picture on fundamentals. Profitability, leverage and growth metrics are broadly healthy on this snapshot. That said, valuation should still be checked against direct sector peers (not just the generic P/E bands used here) before treating this as a buy signal.

Understanding the Business

Company site ↗

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

What does this company do?

Khaitan (India) Limited engages in trading of electrical goods in the agriculture and sugar sectors primarily in India. It operates through three segments: Electrical Goods, Sugar, and Agriculture.

IndustryIndustrial Distribution

SectorIndustrials

Employees114

Annual revenue₹112 Cr

How does it make money?

Turns over ₹112 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 114 employees supports ₹98.4 lakh of revenue a year, the signature of a people-led business.

EBITDA margin7.2%

Net margin5.4%

Revenue / employee₹98.4 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.

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

SIEMENS LTDP/E 88.8x · ROE 10.5%

ABB INDIA LIMITEDP/E 92.6x · ROE 19.1%

What is its competitive advantage?Some evidence

ROCE of 19.9% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE19.9%

ROE18.0%

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 +89% while net margin moved +372% 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+89%

Margin effect+372%

DalalBaazaar Score

71/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.59 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

73/ 100

Good

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

Valuation

81/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

10.2x

3Y Median

31.4x

40 monthly readings · mean 27.9x · range 6.3x–63.0x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 67% below its 3y median of 31.4x. 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 88% below the peer median of 88.8x.

vs. its own history

Cheap

31.4x median over 40 months · -67%

vs. sector peers

Cheap

88.8x median of 3 peers · -88%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

10.2x

P/B

2.13x

EV/EBITDA

9.5x

PEG

0.10

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well7

Debt is being paid down
Total debt is down 47% over 3 years.
Cash generation is improving
Free cash flow is up 30% over 3 years.
Return on equity is rising
ROE has improved from 3.6% to 18.0%.
Return on capital is rising
ROCE has improved from 14.2% to 19.9%.
Valuation below its historical average
At 10.2x the stock trades 67% below its own median of 31.4x.
Very low debt
Debt/Equity of 0.16x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Margins are compressing
EBITDA margin has slipped from 9.5% to 7.2% over 3 years.
Short-term liquidity is tight
Current ratio of 0.65 — near-term obligations exceed near-term assets.

Red Flags

2 items require attention · 2 watch

🟡Margins are compressingFinancial
EBITDA margin is down 2.2 points over 3 years.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.65 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 19.9% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Deleveraging frees up earnings
Debt is down 47% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 67% 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.
Cheaper than its peers
It trades 88% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹9 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 9.5% to 7.2%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
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.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 18% a year✓ 23.6% CAGR
Latest reported year was 39.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 5%✓ 7.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹9 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 17%✓ 19.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 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

8 good · 3 neutral · 0 weak

Market Cap

₹75 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

10.2x

Cheap

Cheap against the generic band

P/B Ratio

2.13x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹14.64

Profitable

Profitable on a per-share basis

ROE

18.0%

Strong

Strong capital efficiency

ROCE

19.9%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.16x

Low

Conservative leverage

Revenue Growth (YoY)

39.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

55.9%

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

₹9 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹150

Operating Margin

6.2%

Average

Average margins

Net Margin

5.6%

Average

Average bottom-line conversion

Current Ratio

0.65

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.59

Defensive

Steadier than the market

52W Range Position

70%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

148.7 / 150.4

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

56.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹59 Cr	₹58 Cr	₹78 Cr	₹112 Cr	+23.6%
EBITDA	₹6 Cr	₹5 Cr	₹8 Cr	₹8 Cr	+12.9%
EBITDA Margin	9.5%	9.0%	10.3%	7.2%	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	₹7 Cr	₹6 Cr	+107.3%
EPS	₹1.43	₹2.82	₹14.69	₹12.74	+107.3%
ROE	3.6%	6.6%	25.5%	18.0%	—
ROCE	14.2%	16.4%	25.6%	19.9%	—
Total Debt	₹10 Cr	₹12 Cr	₹11 Cr	₹5 Cr	-19.1%
Free Cash Flow	₹7 Cr	₹1 Cr	₹5 Cr	₹9 Cr	+9.0%

🟢 Revenue has grown at 23.6% a year over 3 years.

🟢 EBITDA has grown at 12.9% a year over 3 years.

🔴 EBITDA Margin has fallen from 9.5% to 7.2% over 3 years (-2.2 pts).

🟢 PAT (Net Profit) has grown at 107.3% a year over 3 years.

🟢 EPS has grown at 107.3% a year over 3 years.

🟢 ROE has risen from 3.6% to 18.0% over 3 years (+14.4 pts).

🟢 ROCE has risen from 14.2% to 19.9% over 3 years (+5.7 pts).

🟢 Total Debt has shrunk at 19.1% a year over 3 years.

🟢 Free Cash Flow has grown at 9.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹78 Cr

Total Liabilities

₹44 Cr

Total Debt

₹5 Cr

Cash & Equivalents

₹4 Cr

Operating Cash Flow

₹9 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

63.7%

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

Khaitan (India) Ltd adopts FY26 financials, re-appoints Gopal Mor

scanx.trade, 18 Oct

Khaitan (India) vs Nifty 50: Share Price Performance Compared

Univest, 01 Oct

Khaitan (India) Ltd is Rated Hold

MarketsMojo, 10 Oct

Radico Khaitan soars 5%, hits new high; stock up 64% from March low

Business Standard, 06 Jul

If EPS Growth Is Important To You, Radico Khaitan (NSE:RADICO) Presents An Opportunity

Simply Wall Street, 29 May

Khaitan (India) Share Price Target 2027 to 2030: Analyst Outlook

Univest, 18 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟡Business QualityAdequate11.5/20

🟢Financial HealthStrong13.9/20

🟢GrowthStrong18.5/20

🟢ProfitabilityStrong10.9/15

🟢ValuationAttractive11.8/15

🔴RiskHigh4.4/10

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last.

This thesis breaks if

✓Revenue growth stays above 18% a year23.6% CAGR
✓EBITDA margin holds above 5%7.2%
✓Free cash flow remains positive₹9 Cr
✓Debt / EBITDA stays below 2x0.7x
✓ROCE stays above 17%19.9%