Kiri Industries Limited

Basic Materials — Specialty Chemicals · NSE

₹501.50+₹0.55 (+0.11%)

DalalBaazaar Score

76 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing obvious stands out as stretched — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Kiri Industries Limited manufactures and sells dyes, dye intermediates, and basic chemicals in India and internationally.

IndustrySpecialty Chemicals

SectorBasic Materials

Employees787

Annual revenue₹822 Cr

How does it make money?

Turns over ₹822 Cr a year. Of every ₹100 of sales, about ₹677 reaches shareholders as profit, with ₹27 left at the operating level before interest, tax and depreciation. Each of its 787 employees supports ₹1.04 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.04 Cr

Who are its competitors?

The closest listed comparisons in its industry are ASIAN PAINTS LIMITED, PIDILITE INDUSTRIES LTD, SRF LTD, UPL 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 91.9% 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 ROE22.3%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -10% while net margin moved +5718% 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-10%

Margin effect+5718%

DalalBaazaar Score

76/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of -0.13 — 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

78/ 100

Good

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

Valuation

84/ 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

0.5x

3Y Median

13.7x

40 monthly readings · mean 13.3x · range 0.6x–20.1x

Sector Median

40.4x

median of 4 sector peers

🟢Current valuation is approximately 96% below its 3y median of 13.7x. 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 99% below the peer median of 40.4x.

vs. its own history

Cheap

13.7x median over 40 months · -96%

vs. sector peers

Cheap

40.4x median of 4 peers · -99%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

12.6x

PEG

0.00

What's Good / What's Bad

🟢 What's Going Well7

Margins are improving
EBITDA margin is up from 19.3% to 26.6% over 3 years.
Debt is being paid down
Total debt is down 21% over 3 years.
Cash generation is improving
Free cash flow is up 6324% over 3 years.
Return on equity is rising
ROE has improved from 4.0% to 86.5%.
Return on capital is rising
ROCE has improved from 4.7% to 91.9%.
High return on capital employed
ROCE of 91.9% is the mark of a business that converts capital into profit efficiently.
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

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 91.9% 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.
Margin expansion has further to run
EBITDA margin has risen from 19.3% to 26.6%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 21% 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 96% 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 99% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

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

1EBITDA margin holds above 25%✓ 26.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹4,268 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 89%✓ 91.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 13.7x✓ 0.5x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

11 / 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

₹3,268 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

0.5x

Cheap

Cheap against the generic band

P/B Ratio

0.48x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹928.39

Profitable

Profitable on a per-share basis

ROE

86.5%

Strong

Strong capital efficiency

ROCE

91.9%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.65x

Moderate

Moderate leverage

Revenue Growth (YoY)

54.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

2465.1%

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

₹4,268 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

1.3%

Weak

Thin margins leave little room for error

Net Margin

615.5%

Good

Strong bottom-line conversion

Current Ratio

8.72

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.13

Defensive

Steadier than the market

52W Range Position

38%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

540.7 / 510.8

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

25.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹916 Cr	₹694 Cr	₹729 Cr	₹822 Cr	-3.6%
EBITDA	₹177 Cr	₹234 Cr	₹418 Cr	₹218 Cr	+7.3%
EBITDA Margin	19.3%	33.6%	57.3%	26.6%	—
PAT (Net Profit)	₹107 Cr	₹166 Cr	₹265 Cr	₹5,567 Cr	+273.7%
EPS	₹20.67	₹31.95	₹42.81	₹900.91	+251.9%
ROE	4.0%	6.0%	8.2%	86.5%	—
ROCE	4.7%	6.7%	8.7%	91.9%	—
Total Debt	₹53 Cr	₹126 Cr	₹1,124 Cr	₹42 Cr	-7.6%
Free Cash Flow	₹66 Cr	-₹85 Cr	-₹749 Cr	₹4,268 Cr	+300.5%

🔴 Revenue has shrunk at 3.6% a year over 3 years.

🟢 EBITDA has grown at 7.3% a year over 3 years.

🟢 EBITDA Margin has risen from 19.3% to 26.6% over 3 years (+7.3 pts).

🟢 PAT (Net Profit) has grown at 273.7% a year over 3 years.

🟢 EPS has grown at 251.9% a year over 3 years.

🟢 ROE has risen from 4.0% to 86.5% over 3 years (+82.5 pts).

🟢 ROCE has risen from 4.7% to 91.9% over 3 years (+87.2 pts).

🟢 Total Debt has shrunk at 7.6% a year over 3 years.

🟢 Free Cash Flow has grown at 300.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹7,039 Cr

Total Liabilities

₹594 Cr

Cash & Equivalents

₹551 Cr

Operating Cash Flow

₹4,555 Cr

Capex

-₹287 Cr

Shareholding (proxy)

Institutional Holding

15.2%

Insider Holding

41.7%

Corporate Actions

Ex-Dividend Date

17 Sept 2020

Peer Comparison

Company	P/E	ROE
ASIAN PAINTS LIMITED	46.9x	22.3%
PIDILITE INDUSTRIES LTD	57.8x	24.4%
SRF LTD	33.8x	15.4%
UPL LIMITED	21.5x	6.1%

Recent News

2 mixed1 negative3 general

Shareholders Shouldn’t Be Too Comfortable With Kiri Industries' (NSE:KIRIINDUS) Strong Earnings

Simply Wall Street, 07 JunResults

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

Kiri Industries Ltd. Peer Comparison – Compare with Others

Value Research, 30 Aug

Kiri Industries Ltd is Rated Hold by MarketsMOJO

MarketsMojo, 16 Oct

Kiri Industries Ltd (BOM:532967) (Q1 2027) Earnings Call Highlights: Record PAT of INR270 Crore ...

Yahoo Finance, 13 AugResults

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

Kiri Industries Receives Warning Letters from BSE and NSE for Alleged Disclosure Non-Compliance

scanx.trade, 28 AprRegulatory

🔴Potentially negativeRegulatory and legal actions carry a financial cost and a governance question. The second usually matters more than the first.

Chemical Stocks In Focus: Dye Intermediate Prices See Massive Surge — Check Details

NDTV Profit, 24 Sept

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 · Profitability · Valuation

MiddlingGrowth

WeakRisk

Points for each in the Score ↑

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.

All 5 tripwires holding · see Key things to watch ↑