Kontor Space Limited

Sector n/a · NSE

₹150.25+₹7.15 (+5.00%)

DalalBaazaar Score

49 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by short-term liabilities exceed short-term assets, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:28 pm

Understanding the Business

The 60-second version of Kontor Space 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 ₹25 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹31 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?Little sign of one

Returns on capital of 14.5% 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.

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 +168% while net margin moved -55% 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+168%

Margin effect-55%

DalalBaazaar Score

49/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

52/ 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

14.7x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Very low debt
Debt/Equity of 0.22x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 40.4% to 7.9% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 31.4% to 14.5% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 3 high · 2 watch

🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 12.7 points, from 43.3% to 30.6%.
🔴Receivables growing faster than salesFinancial
Receivables up 911% against revenue up 168% — sales are being booked faster than they are collected.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 9.4x to 5.2x.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.47 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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 43.3% to 30.6%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 911% against revenue up 168%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 40.4% to 7.9%. 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.
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

1Revenue growth stays above 29% a year✓ 38.8% CAGR
Latest reported year was 24.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 29%✓ 30.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹0 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 11%✓ 14.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

2 / 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 · 6 neutral · 3 weak

Market Cap

₹105 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

7.9%

Weak

Weak capital efficiency

ROCE

14.5%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.22x

Low

Conservative leverage

Revenue Growth (YoY)

24.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-45.0%

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

-₹0 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Gross Margin

53.2%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

9.2%

Average

Average bottom-line conversion

Current Ratio

0.47

Tight

Tight short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

52.4 / 54.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

28.5

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹9 Cr	₹11 Cr	₹20 Cr	₹25 Cr	+38.8%
EBITDA	₹4 Cr	₹4 Cr	₹6 Cr	₹8 Cr	+23.6%
EBITDA Margin	43.3%	36.8%	32.5%	30.6%	—
PAT (Net Profit)	₹2 Cr	₹2 Cr	₹4 Cr	₹2 Cr	+6.5%
EPS	₹0.47	₹3.15	₹6.67	—	—
ROE	40.4%	8.8%	15.8%	7.9%	—
ROCE	31.4%	12.2%	15.3%	14.5%	—
Total Debt	₹6 Cr	₹5 Cr	₹5 Cr	₹6 Cr	+3.8%
Free Cash Flow	-₹3 Cr	-₹4 Cr	-₹6 Cr	-₹0 Cr	—

🟢 Revenue has grown at 38.8% a year over 3 years.

🟢 EBITDA has grown at 23.6% a year over 3 years.

🔴 EBITDA Margin has fallen from 43.3% to 30.6% over 3 years (-12.7 pts).

🟢 PAT (Net Profit) has grown at 6.5% a year over 3 years.

🔴 ROE has fallen from 40.4% to 7.9% over 3 years (-32.5 pts).

🔴 ROCE has fallen from 31.4% to 14.5% over 3 years (-17.0 pts).

🔴 Total Debt has grown at 3.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹44 Cr

Total Liabilities

₹16 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹4 Cr

Capex

-₹4 Cr

Recent News

6 general

1,236,000 Equity Shares of Kontor Space Limited are subject to a Lock-Up Agreement Ending on 14-OCT-2026.

www.marketscreener.com, 14 Oct

Kontor Space Ltd Peer Comparison – Compare with Others

Value Research, 30 Aug

Compare with

Equitymaster, 09 Oct

Kontor Space files FY26 shareholding pattern, confirms no encumbrances

scanx.trade, 16 Jun

Executive Centre joins growing list of flex-office players taking IPO route

Business Standard, 14 Jan

Momentum Stocks: Visa Steel hits upper circuit; Adani Ports, Laurus Labs at new high

Moneycontrol.com, 05 May

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.
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

MiddlingBusiness Quality · Financial Health · Growth · Valuation

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

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑