Kkalpana Industries (India) Limited

Basic Materials — Specialty Chemicals · BSE

₹6.68+₹0.13 (+1.98%)

DalalBaazaar Score

36 / 100

🔴 Weak

Verdict

CAUTION

Risk

High

Driven by high debt relative to equity, 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, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

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

What does this company do?

Kkalpana Industries (India) Limited manufactures and sells plastic compounds in India and internationally. It offers polyethylene, polyethylene terephthalate, polypropylene, polyvinyl chloride, and polystyrene.

IndustrySpecialty Chemicals

SectorBasic Materials

Employees41

Annual revenue₹37 Cr

How does it make money?

Turns over ₹37 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹-19 left at the operating level before interest, tax and depreciation. Each of its 41 employees supports ₹91.1 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹91.1 lakh

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?Little sign of one

Returns on capital of 2.5% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

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 -86% while net margin moved +204% 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-86%

Margin effect+204%

DalalBaazaar Score

36/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 48.4% a year
✗ Profit has declined at 25.2% a year
✗ Latest-year revenue growth of -56.8% is below the longer-term trend — momentum is fading

Quality vs. Valuation

Company Quality

34/ 100

Weak

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

Valuation

37/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

95.4x

3Y Median

108.7x

40 monthly readings · mean 279.3x · range 46.4x–1069.0x

Sector Median

40.4x

median of 4 sector peers

🟢Current valuation is approximately 12% below its 3y median of 108.7x. 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 136% above the peer median of 40.4x.

vs. its own history

Fair

108.7x median over 40 months · -12%

vs. sector peers

Expensive

40.4x median of 4 peers · +136%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

—

PEG

6.15

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 99% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 5.3% to 2.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 9.3% to 2.5% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 3 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 1.83x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.7x — little room if earnings dip.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 22.3 points, from 3.8% to -18.5%.
🟡Profit is decliningFinancial
Net profit is down 58% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 99% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
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 3.8% to -18.5%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 1.83x. Interest is payable whether or not the business has a good year.
A premium to the sector to defend
It trades 136% above the peer median. That premium needs a reason that persists, or it closes.
Returns on shareholder capital are falling
ROE has dropped from 5.3% to 2.1%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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.

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

1EBITDA margin holds above -21%✓ -18.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Interest cover stays above 3x✗ 1.7x
How much operating profit can fall before interest stops being comfortably covered.
3Free cash flow remains positive✓ ₹32 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✗ 2.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 108.7x✓ 95.4x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

4 / 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

₹63 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

95.4x

Expensive

Expensive — verify against sector peers

P/B Ratio

1.98x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.07

Profitable

Profitable on a per-share basis

ROE

2.1%

Weak

Weak capital efficiency

ROCE

2.5%

Weak

Low return on total capital employed

Debt/Equity

1.83x

High

High leverage

Revenue Growth (YoY)

-56.8%

Shrinking

Sales are contracting

Profit Growth (YoY)

15.5%

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

₹32 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

2.3%

Weak

Thin margins leave little room for error

Net Margin

2.4%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.06

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.72

Defensive

Steadier than the market

52W Range Position

12%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

6.8 / 6.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

44.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹272 Cr	₹62 Cr	₹40 Cr	₹37 Cr	-48.4%
EBITDA	₹10 Cr	₹9 Cr	₹4 Cr	-₹7 Cr	—
EBITDA Margin	3.8%	15.2%	10.2%	-18.5%	—
PAT (Net Profit)	₹2 Cr	₹0 Cr	₹1 Cr	₹1 Cr	-25.2%
EPS	₹0.2	₹0.02	₹0.07	₹0.08	-26.3%
ROE	5.3%	0.6%	1.9%	2.1%	—
ROCE	9.3%	7.1%	6.1%	2.5%	—
Total Debt	₹49 Cr	₹44 Cr	₹27 Cr	₹1 Cr	-76.0%
Free Cash Flow	-₹10 Cr	₹0 Cr	₹13 Cr	₹32 Cr	—

🔴 Revenue has shrunk at 48.4% a year over 3 years.

🔴 EBITDA has turned negative, from ₹10 Cr to -₹7 Cr.

🔴 EBITDA Margin has fallen from 3.8% to -18.5% over 3 years (-22.3 pts).

🔴 PAT (Net Profit) has shrunk at 25.2% a year over 3 years.

🔴 EPS has shrunk at 26.3% a year over 3 years.

🔴 ROE has fallen from 5.3% to 2.1% over 3 years (-3.2 pts).

🔴 ROCE has fallen from 9.3% to 2.5% over 3 years (-6.8 pts).

🟢 Total Debt has shrunk at 76.0% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹10 Cr to ₹32 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹63 Cr

Total Liabilities

₹25 Cr

Cash & Equivalents

₹7 Cr

Operating Cash Flow

₹32 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

79.1%

Corporate Actions

Ex-Dividend Date

17 Sept 2021

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

1 mixed1 negative4 general

KKalpana Industries (India) standalone net profit declines 91.18% in the March 2026 quarter

Business Standard, 26 MayResults

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

Kkalpana Plastick Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Kkalpana Industries appoints Rajni Mishra as Independent Director

scanx.trade, 29 Jun

Kkalpana Industries Limited Announces Regularisation of Rajni Mishra as Non-Executive Independent Director, Effective July 1, 2026

www.marketscreener.com, 28 Sept

VISDEM Stock Price and Chart — NSE:VISDEM

TradingView, 06 Aug

Kkalpana Industries Q1 FY27 Results: Revenue Rs 4 Cr, PAT Rs 0.02 Cr and Key Highlights

Univest, 12 AugResults

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

Watch Items

Revenue growth is negative (-56.8%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

MiddlingFinancial Health · Valuation

WeakBusiness Quality · Growth · Profitability · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 3 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑