Kinetic Trust Limited

Financial Services — Capital Markets · BSE

₹48.82₹0.00 (0.00%)

DalalBaazaar Score

67 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment, falling profits.

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. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Kinetic Trust Limited, a non-banking finance company, engages in investments in capital market in India. The company provides project financing and consultancy, financial restructuring, and invests in shares and securities.

IndustryCapital Markets

SectorFinancial Services

Annual revenue₹2 Cr

How does it make money?

Turns over ₹2 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹85 left at the operating level before interest, tax and depreciation.

EBITDA margin84.8%

Net margin8.4%

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC LIFE INS CO LTD, SBI LIFE INSURANCE CO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

BAJAJ FINANCE LIMITEDP/E 30.2x · ROE 17.8%

HDFC LIFE INS CO LTDP/E 58.4x · ROE 11.3%

SBI LIFE INSURANCE CO LTDP/E 63.9x · ROE 13.7%

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.

ROCE4.1%

ROE3.1%

Peer median ROE13.7%

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 +539% while net margin moved -123% 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+539%

Margin effect-123%

DalalBaazaar Score

67/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 128.5x is demanding — it needs sustained high growth to justify
✗ P/E is 64% above its own historical median of 78.5x — expensive by its own standards

Quality vs. Valuation

Company Quality

77/ 100

Good

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

Valuation

26/ 100

Expensive

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

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

128.5x

2Y Median

78.5x

28 monthly readings · mean 80.3x · range 47.2x–138.6x

Sector Median

58.4x

median of 3 sector peers

⚠️Current valuation is approximately 64% above its 2y median of 78.5x. 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 120% above the peer median of 58.4x.

vs. its own history

Expensive

78.5x median over 28 months · +64%

vs. sector peers

Expensive

58.4x median of 3 peers · +120%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

128.5x

P/B

3.99x

EV/EBITDA

29.8x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Return on equity is rising
ROE has improved from -2.7% to 3.5%.
Return on capital is rising
ROCE has improved from -3.5% to 4.1%.

🔴 What Needs Attention2

Margins are compressing
EBITDA margin has slipped from 89.0% to 84.8% over 3 years.
Valuation above its historical average
At 128.5x the stock trades 64% above its own median of 78.5x.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.2x — little room if earnings dip.
🟡Margins are compressingFinancial
EBITDA margin is down 4.2 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 89.0% to 84.8%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The price already assumes success
The stock trades 64% 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.
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 64% a year✓ 85.5% CAGR
Latest reported year was 62.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 83%✓ 84.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✗ 3.1%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Interest cover stays above 3x✗ 1.2x
How much operating profit can fall before interest stops being comfortably covered.
5Valuation vs its own median of 78.5x✗ 128.5x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

5 / 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

3 good · 3 neutral · 5 weak

Market Cap

₹16 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

128.5x

Expensive

Expensive — verify against sector peers

P/B Ratio

3.99x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.38

Profitable

Profitable on a per-share basis

ROE

3.1%

Weak

Weak capital efficiency

ROCE

4.1%

Weak

Low return on total capital employed

Debt/Equity

5.55x

High

High leverage

Revenue Growth (YoY)

62.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-33.3%

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 generative

Generates cash even after funding its capex

More Metrics

CMP

₹48.82

ROA

0.5%

Weak

Assets generate little profit

Operating Margin

27.2%

Good

Healthy core-business profitability

Net Margin

26.1%

Good

Strong bottom-line conversion

Current Ratio

126.83

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.38

Defensive

Steadier than the market

52W Range Position

46%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

48.6 / 50.7

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

54.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹0 Cr	₹0 Cr	₹1 Cr	₹2 Cr	+85.5%
EBITDA	₹0 Cr	₹0 Cr	₹1 Cr	₹1 Cr	+82.5%
EBITDA Margin	89.0%	50.5%	81.6%	84.8%	—
PAT (Net Profit)	-₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	—
EPS	₹-0.3	₹0.27	₹0.54	₹0.44	—
ROE	-2.7%	2.4%	4.5%	3.5%	—
ROCE	-3.5%	1.6%	5.0%	4.1%	—
Total Debt	—	₹11 Cr	₹15 Cr	₹29 Cr	—
Free Cash Flow	₹2 Cr	-₹2 Cr	₹0 Cr	₹4 Cr	+37.3%

🟢 Revenue has grown at 85.5% a year over 3 years.

🟢 EBITDA has grown at 82.5% a year over 3 years.

🔴 EBITDA Margin has fallen from 89.0% to 84.8% over 3 years (-4.2 pts).

🟢 PAT (Net Profit) has turned positive, from -₹0 Cr to ₹0 Cr.

🟢 EPS has turned positive, from ₹-0.3 to ₹0.44.

🟢 ROE has risen from -2.7% to 3.5% over 3 years (+6.2 pts).

🟢 ROCE has risen from -3.5% to 4.1% over 3 years (+7.5 pts).

🟢 Free Cash Flow has grown at 37.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹37 Cr

Total Liabilities

₹33 Cr

Total Debt

₹29 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹4 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

71.4%

Corporate Actions

Ex-Dividend Date

19 Aug 1996

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC LIFE INS CO LTD	58.4x	11.3%
SBI LIFE INSURANCE CO LTD	63.9x	13.7%

Recent News

1 positive1 mixed1 negative3 general

Compare KINETIC TRUS with BOM.OXYGEN

Equitymaster, 25 Sept

Kinetic Trust Q1 Results: Net profit falls 32% YoY to ₹4.13 lakh

scanx.trade, 12 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Kinetic Trust seeks approval for ₹6.60 crore warrant issue at AGM

scanx.trade, 06 Jul

SOLLFEGE SMART ELECTRONICS LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 09 Oct

Kinetic Engineering Q1 results FY27: Net Loss Rs 12 Cr, Revenue Rs 50 Cr

Univest, 04 AugResults

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

Vadilal Industries consolidated net profit rises 95.45% in the June 2026 quarter

Business Standard, 12 AugResults

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

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.

DalalBaazaar Thesis

🟢Business QualityStrong17.5/20

🟢Financial HealthStrong17/20

🟢GrowthStrong13/20

🟢ProfitabilityStrong10/15

🔴ValuationDemanding4.9/15

🔴RiskHigh4.4/10

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 64% a year85.5% CAGR
✓EBITDA margin holds above 83%84.8%
✗Return on equity stays above 8%3.1%
✗Interest cover stays above 3x1.2x
✗Valuation vs its own median of 78.5x128.5x today