Kiran Vyapar Limited

Financial Services — Capital Markets · NSE

₹188.10−₹3.96 (−2.06%)

DalalBaazaar Score

53 / 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, 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, 6:10 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 Kiran Vyapar Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Kiran Vyapar Limited, together with its subsidiaries, operates as a non-banking financial and non-deposit taking company in India. The company engages in investment, trading, and dealing in shares and securities, mutual funds, loans, and financing.

IndustryCapital Markets

SectorFinancial Services

Employees13

Annual revenue₹95 Cr

How does it make money?

Turns over ₹95 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹44 left at the operating level before interest, tax and depreciation. Each of its 13 employees supports ₹7.29 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin44.3%

Net margin1.1%

Revenue / employee₹7.29 Cr

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.

ROCE1.7%

ROE0.0%

Peer median ROE13.7%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +34% while net margin moved -98% 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+34%

Margin effect-98%

DalalBaazaar Score

53/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 0.0% is weak

Quality vs. Valuation

Company Quality

55/ 100

Average

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

Valuation

33/ 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

78.4x

Sector Median

58.4x

median of 3 sector peers

⚠️Against its sector it trades 34% above the peer median of 58.4x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Expensive

58.4x median of 3 peers · +34%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

78.4x

P/B

0.22x

EV/EBITDA

19.9x

PEG

3.92

Dividend Yield

0.53%

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Margins are compressing
EBITDA margin has slipped from 74.9% to 44.3% over 3 years.

Red Flags

4 items require attention · 2 high · 2 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.3x — little room if earnings dip.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 30.6 points, from 74.9% to 44.3%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 6.6x to 1.3x.
🟡Profit is decliningFinancial
Net profit is down 97% 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 74.9% to 44.3%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
A premium to the sector to defend
It trades 34% 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
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 8% a year✓ 10.2% CAGR
Latest reported year was 21.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 42%✓ 44.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✗ 0.0%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Interest cover stays above 3x✗ 1.3x
How much operating profit can fall before interest stops being comfortably covered.

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 trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high

Price history

Quick Metrics

5 good · 2 neutral · 4 weak

Market Cap

₹513 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

78.4x

Expensive

Expensive — verify against sector peers

P/B Ratio

0.22x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹2.4

Profitable

Profitable on a per-share basis

ROE

0.0%

Weak

Weak capital efficiency

ROCE

1.7%

Weak

Low return on total capital employed

Debt/Equity

0.22x

Low

Conservative leverage

Revenue Growth (YoY)

21.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

20.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.53%

Modest

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

Free Cash Flow

-₹78 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹188.1

Operating Margin

73.0%

Good

Healthy core-business profitability

Net Margin

1.2%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.65

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.02

Defensive

Steadier than the market

52W Range Position

33%

Mid-range

Technical Snapshot

RSI (14)

45.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹71 Cr	₹83 Cr	₹94 Cr	₹95 Cr	+10.2%
EBITDA	₹53 Cr	₹232 Cr	₹101 Cr	₹42 Cr	-7.5%
EBITDA Margin	74.9%	279.4%	106.9%	44.3%	—
PAT (Net Profit)	₹39 Cr	₹202 Cr	₹67 Cr	₹1 Cr	-70.3%
EPS	₹14.39	₹74.99	₹24.75	₹0.38	-70.3%
ROE	2.7%	10.4%	3.1%	0.0%	—
ROCE	3.3%	10.9%	4.2%	1.7%	—
Total Debt	₹141 Cr	₹91 Cr	₹291 Cr	₹496 Cr	+52.0%
Free Cash Flow	-₹45 Cr	₹59 Cr	-₹68 Cr	-₹78 Cr	—

🟢 Revenue has grown at 10.2% a year over 3 years.

🔴 EBITDA has shrunk at 7.5% a year over 3 years.

🔴 EBITDA Margin has fallen from 74.9% to 44.3% over 3 years (-30.6 pts).

🔴 PAT (Net Profit) has shrunk at 70.3% a year over 3 years.

🔴 EPS has shrunk at 70.3% a year over 3 years.

🔴 ROE has fallen from 2.7% to 0.0% over 3 years (-2.6 pts).

🔴 ROCE has fallen from 3.3% to 1.7% over 3 years (-1.6 pts).

🔴 Total Debt has grown at 52.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,889 Cr

Total Liabilities

₹611 Cr

Total Debt

₹496 Cr

Cash & Equivalents

₹173 Cr

Operating Cash Flow

-₹77 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

89.0%

Corporate Actions

Dividend Rate

₹1

Ex-Dividend Date

18 Sept 2026

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

3 positive3 general

Kiran Vyapar Ltd. Peer Comparison – Compare with Others

Value Research, 27 Aug

Kiran Vyapar FY26 PAT falls to ₹1,123.20 lakh, declares dividend

scanx.trade, 26 MayCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Kiran Vyapar Consolidated June 2026 Net Sales at Rs 33.06 crore, up 21.31% Y-o-Y

Moneycontrol.com, 18 Aug

Kiran Vyapar Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Kiran Vyapar shareholders approve FY26 financials and final dividend

scanx.trade, 29 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Colab Platforms consolidated net profit rises 18.33% in the June 2026 quarter

Business Standard, 10 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 QualityAdequate12.2/20

🟢Financial HealthStrong17/20

🔴GrowthWeak7.7/20

🔴ProfitabilityWeak4.5/15

🟡ValuationFair7.7/15

🔴RiskHigh4/10

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

This thesis breaks if

✓Revenue growth stays above 8% a year10.2% CAGR
✓EBITDA margin holds above 42%44.3%
✗Return on equity stays above 8%0.0%
✗Interest cover stays above 3x1.3x