Kaushalya Logistics Limited

Sector n/a · NSE

₹99.75−₹3.95 (−3.81%)

DalalBaazaar Score

56 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

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

In simple words: Strong business and financial position, with modest growth. Thin profit margins are the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:57 pm

Understanding the Business

The 60-second version of Kaushalya Logistics 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 ₹2,379 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹1 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 20.6%. Returns that high normally get competed away; when they persist, something is protecting them. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

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 +296% while net margin moved -56% 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+296%

Margin effect-56%

DalalBaazaar Score

56/ 100

Moderate

Weighted across six categories. Every point is explained below.

✓ ROCE of 20.6% is above 20% — the business earns a high return on the capital it employs
✗ ROCE has fallen by 4.5 points — returns are eroding
✗ EBITDA margin of 1.1% is thin — little cushion if costs rise
✗ Net margin of 0.5% is slim
• Revenue has compounded at 58.3% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

58/ 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

10.3x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Cash generation is improving
Free cash flow is up 30% over 3 years.
High return on capital employed
ROCE of 20.6% 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 Attention2

Return on equity is falling
ROE has dropped from 36.6% to 16.8% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 25.1% to 20.6% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 high

🔴Debt has risen sharplyFinancial
Total debt is up 56% over 3 years, from ₹48 Cr to ₹74 Cr.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 20.6% 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?

Returns on shareholder capital are falling
ROE has dropped from 36.6% to 16.8%. 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.
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 44% a year✓ 58.3% CAGR
Latest reported year was 102.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -1%✓ 1.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Interest cover stays above 3x✓ 3.1x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹3 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

7 / 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

4 good · 7 neutral · 0 weak

Market Cap

₹185 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

16.8%

Strong

Strong capital efficiency

ROCE

20.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.02x

Moderate

Moderate leverage

Revenue Growth (YoY)

102.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

3.1%

Modest

Slow profit growth

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹3 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Gross Margin

-4.6%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

0.5%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.58

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

40.5 / 30.1

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

41.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹600 Cr	₹1,412 Cr	₹1,177 Cr	₹2,379 Cr	+58.3%
EBITDA	₹14 Cr	₹19 Cr	₹25 Cr	₹25 Cr	+23.1%
EBITDA Margin	2.3%	1.3%	2.1%	1.1%	—
PAT (Net Profit)	₹7 Cr	₹9 Cr	₹12 Cr	₹12 Cr	+20.0%
EPS	₹3.78	₹8.12	₹6.39	—	—
ROE	36.6%	18.7%	19.6%	16.8%	—
ROCE	25.1%	19.4%	22.5%	20.6%	—
Total Debt	₹48 Cr	₹67 Cr	₹80 Cr	₹74 Cr	+16.1%
Free Cash Flow	₹3 Cr	-₹28 Cr	-₹20 Cr	₹3 Cr	+9.2%

🟢 Revenue has grown at 58.3% a year over 3 years.

🟢 EBITDA has grown at 23.1% a year over 3 years.

🔴 EBITDA Margin has fallen from 2.3% to 1.1% over 3 years (-1.2 pts).

🟢 PAT (Net Profit) has grown at 20.0% a year over 3 years.

🔴 ROE has fallen from 36.6% to 16.8% over 3 years (-19.7 pts).

🔴 ROCE has fallen from 25.1% to 20.6% over 3 years (-4.5 pts).

🔴 Total Debt has grown at 16.1% a year over 3 years.

🟢 Free Cash Flow has grown at 9.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹260 Cr

Total Liabilities

₹187 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹4 Cr

Capex

-₹1 Cr

Recent News

6 general

Kaushalya Logistics Ltd. Upper Circuit Today: Price, Data and Peers

Univest, 23 Sept

Zeal Global Services (NSEI:ZEAL) - Stock Analysis

Simply Wall Street, 11 Oct

RAJVI LOGITRADE LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 12 Oct

Concerns Surrounding Kaushalya Logistics' (NSE:KLL) Performance

Simply Wall Street, 19 Nov

Market Movers Today: Top Gainers & Losers

Alice Blue, 21 Sept

E-Commerce Aggregator Penny Stocks India 2027: 5 Picks

Univest, 17 Sept

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

StrongGrowth

MiddlingBusiness Quality · Financial Health · Profitability · Valuation · Risk

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. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 5 tripwires tripped — Debt / EBITDA stays below 2x · see Key things to watch ↑