Kalyani Investment Company Limited

Financial Services — Asset Management · NSE

₹4,979.90+₹189.60 (+3.96%)

DalalBaazaar Score

59 / 100

🟡 Moderate

Verdict

CAUTION

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: The business is earning a fairly low return on the money invested in it, 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, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Kalyani Investment Company Limited, an investment company, engages in making investments in group companies in India. It invests in companies, including forging, steel, power generation, chemicals, and banking sectors.

IndustryAsset Management

SectorFinancial Services

Employees2

Annual revenue₹57 Cr

How does it make money?

Turns over ₹57 Cr a year. Of every ₹100 of sales, about ₹65 reaches shareholders as profit, with ₹79 left at the operating level before interest, tax and depreciation. Each of its 2 employees supports ₹28.43 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹28.43 Cr

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC BANK LTD, ICICI BANK LTD., STATE BANK OF INDIA. 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?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE16.5%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +21% while net margin moved -47% 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+21%

Margin effect-47%

DalalBaazaar Score

59/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 6.4% — barely ahead of inflation
✗ Profit has declined at 14.1% a year
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows
✗ Profit fell 48.6% in the latest year

Quality vs. Valuation

Company Quality

63/ 100

Average

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

Valuation

29/ 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.

Historical Valuation

Current P/E

53.5x

3Y Median

30.8x

40 monthly readings · mean 33.7x · range 18.7x–61.5x

Sector Median

17.0x

median of 4 sector peers

⚠️Current valuation is approximately 74% above its 3y median of 30.8x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 215% above the peer median of 17.0x.

vs. its own history

Expensive

30.8x median over 40 months · +74%

vs. sector peers

Expensive

17.0x median of 4 peers · +215%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

48.6x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

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

2 items require attention · 1 high · 1 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 19.5 points, from 98.2% to 78.7%.
🟡Profit is decliningFinancial
Net profit is down 37% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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?

Margins are being competed away
EBITDA margin has fallen from 98.2% to 78.7%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The price already assumes success
The stock trades 74% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Growth barely outpaces inflation
Revenue compounding at 6.4% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
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

1EBITDA margin holds above 77%✓ 78.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Return on equity stays above 8%✗ 0.3%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Revenue growth stays above 5% a year✓ 6.4% CAGR
Latest reported year was 2.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Valuation vs its own median of 30.8x✗ 53.5x today
A re-rating above its own history needs a reason; without one it is just a higher price.

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

2 good · 4 neutral · 5 weak

Market Cap

₹2,174 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

53.5x

Expensive

Expensive — verify against sector peers

P/B Ratio

0.19x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹93.08

Profitable

Profitable on a per-share basis

ROE

0.3%

Weak

Weak capital efficiency

ROCE

0.4%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

2.9%

Modest

Modest growth

Profit Growth (YoY)

-48.6%

Falling

Profits are shrinking

Dividend Yield

0.20%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹18 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

55.7%

Good

Healthy core-business profitability

Net Margin

51.9%

Good

Strong bottom-line conversion

Current Ratio

3972.07

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.42

Defensive

Steadier than the market

52W Range Position

38%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

4858.7 / 5077.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

48.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹47 Cr	₹54 Cr	₹60 Cr	₹57 Cr	+6.4%
EBITDA	₹46 Cr	₹51 Cr	₹53 Cr	₹45 Cr	-1.2%
EBITDA Margin	98.2%	96.0%	88.6%	78.7%	—
PAT (Net Profit)	₹58 Cr	₹70 Cr	₹72 Cr	₹37 Cr	-14.1%
EPS	₹133.05	₹160.48	₹163.89	₹84.23	-14.1%
ROE	1.0%	0.8%	0.8%	0.3%	—
ROCE	0.8%	0.6%	0.6%	0.4%	—
Free Cash Flow	-₹4 Cr	-₹12 Cr	-₹16 Cr	-₹18 Cr	—

🟢 Revenue has grown at 6.4% a year over 3 years.

🟡 EBITDA has been broadly flat over 3 years (-1.2% a year).

🔴 EBITDA Margin has fallen from 98.2% to 78.7% over 3 years (-19.5 pts).

🔴 PAT (Net Profit) has shrunk at 14.1% a year over 3 years.

🔴 EPS has shrunk at 14.1% a year over 3 years.

🟡 ROE has held roughly flat at 0.3% over 3 years.

🟡 ROCE has held roughly flat at 0.4% over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹12,434 Cr

Total Liabilities

₹1,043 Cr

Total Debt

—

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹18 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

76.1%

Corporate Actions

Dividend Rate

₹10

Ex-Dividend Date

14 Aug 2026

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%
STATE BANK OF INDIA	10.3x	15.2%

Recent News

1 positive1 negative4 general

Kalyani Investment Company Share Price Forecast to 2030

Univest, 20 Jul

Kalyani Investment Company Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 29 Aug

Kalyani Investment Q1 Results: Standalone net profit up 16.6% YoY to ₹24.21 million

scanx.trade, 13 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Kalyani Investment Company Ltd Downgraded to Strong Sell Amid Weak Fundamentals and Technical Signals

MarketsMojo, 01 OctAnalyst view

🔴Potentially negativeAn analyst opinion changing, which moves the price without changing the business.

Kalyani Investment Company Ltd. Share Price at 52-Week Low

Univest, 21 Aug

Kalyani Investment Company Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

Watch Items

This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
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.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health

MiddlingProfitability · Risk

WeakGrowth · Valuation

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. 1 high-severity red flag sits above this conclusion and should be read first.

2 of 4 tripwires tripped — Return on equity stays above 8%; Valuation vs its own median of 30.8x · see Key things to watch ↑