Konndor Industries Limited

Basic Materials — Paper & Paper Products · BSE

₹17.63+₹0.34 (+1.97%)

DalalBaazaar Score

37 / 100

🔴 Weak

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 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 Konndor Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Konndor Industries Limited engages in the trading and marketing of paper products in India. It operates through the Printing and Stationery, Commodities and Agriculture, and Other segments.

IndustryPaper & Paper Products

SectorBasic Materials

Employees4

Annual revenue₹2 Cr

How does it make money?

Turns over ₹2 Cr a year. Of every ₹100 of sales, about ₹-2 reaches shareholders as profit, with ₹-0 left at the operating level before interest, tax and depreciation. Each of its 4 employees supports ₹45.4 lakh of revenue a year, the signature of a people-led business.

EBITDA margin-0.4%

Net margin-2.3%

Revenue / employee₹45.4 lakh

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, ULTRATECH CEMENT LIMITED, ASIAN PAINTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

TATA STEEL LIMITEDP/E 19.8x · ROE 10.8%

JSW STEEL LIMITEDP/E 12.0x · ROE 24.7%

ULTRATECH CEMENT LIMITEDP/E 37.6x · ROE 11.1%

ASIAN PAINTS LIMITEDP/E 46.9x · ROE 22.3%

What is its competitive advantage?Little sign of one

Returns on capital of -0.3% 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.

ROCE-0.3%

ROE-0.4%

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 -84% while net margin moved -198% 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-84%

Margin effect-198%

DalalBaazaar Score

37/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ ROCE of -0.3% is below 10% — capital is not working hard
✗ ROCE has fallen by 4.6 points — returns are eroding
✗ EBITDA margin of -0.4% is thin — little cushion if costs rise
✗ The business is lossmaking at the net level

Quality vs. Valuation

Company Quality

36/ 100

Weak

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

Valuation

36/ 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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

P/E (Trailing)

Not meaningful

P/B

0.99x

EV/EBITDA

—

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well1

Very low debt
Debt/Equity of 0.23x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention5

Margins are compressing
EBITDA margin has slipped from 3.4% to -0.4% over 3 years.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 3.1% to -0.4% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 4.3% to -0.3% — often a sign of competition or overexpansion.
Inventory building faster than sales
Inventory is up 685% against revenue growth of -84% — stock may not be moving.

Red Flags

4 items require attention · 2 high · 2 watch

🔴The company is lossmakingFinancial
Net profit of -₹0 Cr in the latest reported year.
🔴Inventory building faster than salesFinancial
Inventory up 685% against revenue up -84% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹3 Cr in the latest year.
🟡Margins are compressingFinancial
EBITDA margin is down 3.8 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 3.4% to -0.4%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Returns on shareholder capital are falling
ROE has dropped from 3.1% to -0.4%. 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.
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

1EBITDA margin holds above -2%✓ -0.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹3 Cr
Profit that never becomes cash eventually stops being profit.
3ROCE stays above 8%✗ -0.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 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

2 good · 2 neutral · 7 weak

Market Cap

₹10 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

0.99x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-0.04

Loss-making

Negative earnings per share — the business is losing money

ROE

-0.4%

Weak

Weak capital efficiency

ROCE

-0.3%

Weak

Low return on total capital employed

Debt/Equity

0.23x

Low

Conservative leverage

Revenue Growth (YoY)

-79.5%

Shrinking

Sales are contracting

Profit Growth (YoY)

-106.3%

Falling

Profits are shrinking

Dividend Yield

None

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

Free Cash Flow

-₹3 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹17.63

Operating Margin

80.2%

Good

Healthy core-business profitability

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

940.26

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.82

Market-like

Moves roughly in line with the market

52W Range Position

46%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

17.8 / 16.2

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

54.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹12 Cr	₹14 Cr	₹9 Cr	₹2 Cr	-46.0%
EBITDA	₹0 Cr	₹1 Cr	₹1 Cr	-₹0 Cr	—
EBITDA Margin	3.4%	6.1%	8.7%	-0.4%	—
PAT (Net Profit)	₹0 Cr	₹1 Cr	₹1 Cr	-₹0 Cr	—
EPS	₹0.48	₹1.17	₹1.18	₹-0.07	—
ROE	3.1%	7.0%	6.6%	-0.4%	—
ROCE	4.3%	8.9%	9.0%	-0.3%	—
Free Cash Flow	₹0 Cr	-₹0 Cr	₹0 Cr	-₹3 Cr	—

🔴 Revenue has shrunk at 46.0% a year over 3 years.

🔴 EBITDA has turned negative, from ₹0 Cr to -₹0 Cr.

🔴 EBITDA Margin has fallen from 3.4% to -0.4% over 3 years (-3.8 pts).

🔴 PAT (Net Profit) has turned negative, from ₹0 Cr to -₹0 Cr.

🔴 EPS has turned negative, from ₹0.48 to ₹-0.07.

🔴 ROE has fallen from 3.1% to -0.4% over 3 years (-3.5 pts).

🔴 ROCE has fallen from 4.3% to -0.3% over 3 years (-4.6 pts).

🔴 Free Cash Flow has turned negative, from ₹0 Cr to -₹3 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹12 Cr

Total Liabilities

₹2 Cr

Total Debt

₹2 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹3 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

78.2%

Corporate Actions

Ex-Dividend Date

01 Aug 2001

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
ULTRATECH CEMENT LIMITED	37.6x	11.1%
ASIAN PAINTS LIMITED	46.9x	22.3%

Recent News

1 mixed1 negative4 general

Konndor Industries AGM approves shift of registered office to another state

scanx.trade, 05 Oct

Konndor Industries Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

Konndor Industries Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 30 Aug

Konndor Industries FY26 Results: Net loss of ₹4.11 lakh, revenue falls 78%

scanx.trade, 22 SeptResults

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

Konndor Industries FY26 Results: Net loss widens to ₹4.11 lakh

scanx.trade, 15 SeptResults

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

Konndor Industries Director Vimal Mafatlal Patel Resigns Effective March 6, 2026

scanx.trade, 06 Mar

Watch Items

Revenue growth is negative (-79.5%) 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

🔴Business QualityWeak4.7/20

🟢Financial HealthStrong13.3/20

🔴GrowthWeak5/20

🔴ProfitabilityWeak3.8/15

🟡ValuationFair7.1/15

🔴RiskHigh3.5/10

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

This thesis breaks if

✓EBITDA margin holds above -2%-0.4%
✗Free cash flow remains positive-₹3 Cr
✗ROCE stays above 8%-0.3%