Kotyark Industries Limited

Basic Materials — Specialty Chemicals · NSE

₹31.50−₹0.68 (−2.11%)

DalalBaazaar Score

50 / 100

🟡 Moderate

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, 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, 7:49 pm

Understanding the Business

Company site ↗

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

What does this company do?

Kotyark Industries Limited engages in the manufacture and sale of biodiesel and other by products in India. The company also provides crude glycerin. It offers services to trucks, buses, and cars operators, as well as to gen, sets, boilers, shipping, farming industries.

IndustrySpecialty Chemicals

SectorBasic Materials

Employees137

Annual revenue₹313 Cr

How does it make money?

Turns over ₹313 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹15 left at the operating level before interest, tax and depreciation. Each of its 137 employees supports ₹2.28 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.28 Cr

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?Some evidence

ROCE of 16.7% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE22.3%

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 +141% while net margin moved -46% 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+141%

Margin effect-46%

DalalBaazaar Score

50/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ No meaningful P/E — the company is lossmaking

Quality vs. Valuation

Company Quality

54/ 100

Average

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

Valuation

39/ 100

Expensive

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

N/A

No P/E — the company is lossmaking

EV/EBITDA

9.0x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 18.7% to 10.4% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 23.8% to 16.7% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 3 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 91% over 3 years, from ₹34 Cr to ₹65 Cr.
🔴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.
🔴Inventory building faster than salesFinancial
Inventory up 313% against revenue up 141% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹7 Cr in the latest year.
🟡Margins are compressingFinancial
EBITDA margin is down 3.7 points over 3 years.

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 18.7% to 15.0%. 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 18.7% to 10.4%. 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.
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 26% a year✓ 34.1% CAGR
Latest reported year was 11.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 13%✓ 15.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹7 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 14%✓ 16.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 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 · 5 neutral · 3 weak

Market Cap

₹356 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

1.97x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹-1.46

Loss-making

Negative earnings per share — the business is losing money

ROE

10.4%

Moderate

Moderate capital efficiency

ROCE

16.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.36x

Low

Conservative leverage

Revenue Growth (YoY)

11.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

9.7%

Modest

Slow profit growth

Dividend Yield

1.43%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹7 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

10.0%

Average

Average margins

Net Margin

6.1%

Average

Average bottom-line conversion

Current Ratio

3.22

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.61

Defensive

Steadier than the market

52W Range Position

50%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

31.0 / 33.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

50.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹130 Cr	₹270 Cr	₹288 Cr	₹313 Cr	+34.1%
EBITDA	₹24 Cr	₹45 Cr	₹43 Cr	₹47 Cr	+24.6%
EBITDA Margin	18.7%	16.7%	14.9%	15.0%	—
PAT (Net Profit)	₹14 Cr	₹22 Cr	₹14 Cr	₹19 Cr	+9.4%
EPS	₹1.39	₹2.07	₹1.28	₹1.66	+6.2%
ROE	18.7%	14.7%	8.9%	10.4%	—
ROCE	23.8%	19.9%	14.5%	16.7%	—
Total Debt	₹34 Cr	₹62 Cr	₹50 Cr	₹65 Cr	+24.1%
Free Cash Flow	-₹22 Cr	-₹69 Cr	₹17 Cr	-₹7 Cr	—

🟢 Revenue has grown at 34.1% a year over 3 years.

🟢 EBITDA has grown at 24.6% a year over 3 years.

🔴 EBITDA Margin has fallen from 18.7% to 15.0% over 3 years (-3.7 pts).

🟢 PAT (Net Profit) has grown at 9.4% a year over 3 years.

🟢 EPS has grown at 6.2% a year over 3 years.

🔴 ROE has fallen from 18.7% to 10.4% over 3 years (-8.3 pts).

🔴 ROCE has fallen from 23.8% to 16.7% over 3 years (-7.1 pts).

🔴 Total Debt has grown at 24.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹261 Cr

Total Liabilities

₹78 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹4 Cr

Capex

-₹3 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

61.3%

Corporate Actions

Dividend Rate

₹0.45

Ex-Dividend Date

14 Aug 2026

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

2 positive4 general

Kotyark Industries secures Rs 173.45 crore biodiesel order from IOCL, BPCL, HPCL

scanx.trade, 18 Oct

Three Days Left Until Kotyark Industries Limited (NSE:KOTYARK) Trades Ex-Dividend

Simply Wall Street, 10 AugCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Kotyark Industries Secures Order Valued At ₹174 Crore

Sahi, 13 AugOrder win

🟢Potentially positiveAn order or contract win, which adds to future revenue. How much depends on its size against annual sales and on when it is executed.

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

Value Research, 30 Aug

Momentum Stocks: NELCO, Kotyark Industries, Khandwala Securities under pressure

Moneycontrol.com, 19 Aug

Kotyark Industries receives orders for supply of 1,662 KL of biodiesel

Business Standard, 06 Aug

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

MiddlingBusiness Quality · Financial Health · Growth · Profitability

WeakValuation · 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 ↑