KKV Agro Powers Limited

Sector n/a · NSE

₹959.60₹0.00 (0.00%)

DalalBaazaar Score

53 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with modest growth. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

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

How does it make money?

Turns over ₹964 Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹1 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?Some evidence

ROCE of 19.5% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -22% while net margin moved +253% 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-22%

Margin effect+253%

DalalBaazaar Score

53/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

57/ 100

Average

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

Valuation

60/ 100

Fair

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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

EV/EBITDA

9.4x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Return on equity is rising
ROE has improved from 5.5% to 12.8%.
Return on capital is rising
ROCE has improved from 13.4% to 19.5%.
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

4 items require attention · 3 high · 1 watch

🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Receivables growing faster than salesFinancial
Receivables up 370% against revenue up -22% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 58% against revenue up -22% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹4 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 19.5% 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.
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?

Sales are being booked faster than collected
Receivables are up 370% against revenue up -22%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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
3 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

1EBITDA margin holds above -1%✓ 0.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Free cash flow remains positive✗ -₹4 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 17%✓ 19.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 9 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
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

2 good · 8 neutral · 1 weak

Market Cap

₹60 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

Not available

No data

Source didn't return this field

ROE

12.8%

Moderate

Moderate capital efficiency

ROCE

19.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.61x

Moderate

Moderate leverage

Revenue Growth (YoY)

0.1%

Modest

Modest growth

Profit Growth (YoY)

95.2%

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 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Gross Margin

1.3%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

0.3%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.42

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

314.1 / 363.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

59.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,237 Cr	₹1,554 Cr	₹962 Cr	₹964 Cr	-8.0%
EBITDA	₹6 Cr	₹3 Cr	₹5 Cr	₹8 Cr	+11.7%
EBITDA Margin	0.4%	0.2%	0.5%	0.8%	—
PAT (Net Profit)	₹1 Cr	₹0 Cr	₹2 Cr	₹3 Cr	+40.1%
EPS	₹18.69	₹3.9	₹27	—	—
ROE	5.5%	1.3%	7.4%	12.8%	—
ROCE	13.4%	6.0%	12.5%	19.5%	—
Total Debt	₹14 Cr	₹12 Cr	₹9 Cr	₹16 Cr	+5.0%
Free Cash Flow	₹6 Cr	₹3 Cr	₹1 Cr	-₹4 Cr	—

🔴 Revenue has shrunk at 8.0% a year over 3 years.

🟢 EBITDA has grown at 11.7% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 0.8% over 3 years.

🟢 PAT (Net Profit) has grown at 40.1% a year over 3 years.

🟢 ROE has risen from 5.5% to 12.8% over 3 years (+7.2 pts).

🟢 ROCE has risen from 13.4% to 19.5% over 3 years (+6.1 pts).

🔴 Total Debt has grown at 5.0% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹6 Cr to -₹4 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹55 Cr

Total Liabilities

₹29 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

-₹4 Cr

Capex

-₹0 Cr

Recent News

6 general

KKV Agro Powers Ltd. Peer Comparison – Compare with Others

Value Research, 04 Sept

KKV Agro Powers (NSEI:KKVAPOW) - Stock Analysis

Simply Wall Street, 01 Dec

A platform that helps T.N. firms raise capital

The Hindu, 10 Mar

IMP Powers Limited Shareholders Approve Material Related Party Transactions for FY 2026-27

scanx.trade, 01 Apr

VEDANTA POWER LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 17 Jun

Why India's booming power market is bad for business

ET EnergyWorld, 03 Apr

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
3 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

MiddlingBusiness Quality · Financial Health · Growth · Profitability · Valuation

WeakRisk

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

2 of 4 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive · see Key things to watch ↑