KPT Industries Limited

Industrials — Tools & Accessories · BSE

₹475.00−₹4.35 (−0.91%)

DalalBaazaar Score

62 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

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

In simple words: Strong business and financial position, 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, 6:58 pm

Understanding the Business

Company site ↗

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

What does this company do?

KPT Industries Limited manufactures electrical power tools and roots, blowers, and exhausters in India and internationally. The company operates in four segments: Portable Power Tools, Blowers, Windmills, and E-vehicles. It offers power tools, such as drills, grinders, hammers.

IndustryTools & Accessories

SectorIndustrials

Employees236

Annual revenue₹173 Cr

How does it make money?

Turns over ₹173 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation. Each of its 236 employees supports ₹73.2 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹73.2 lakh

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 21.1%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 15.2% against a peer median of 15.2% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE15.2%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +16% while net margin moved +24% 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+16%

Margin effect+24%

DalalBaazaar Score

62/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 5.1% — barely ahead of inflation
• Profit CAGR of 12.7%
✗ Profit fell 6.1% in the latest year

Quality vs. Valuation

Company Quality

60/ 100

Average

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

Valuation

78/ 100

Cheap

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.

Historical Valuation

Current P/E

13.6x

3Y Median

19.9x

40 monthly readings · mean 20.7x · range 8.5x–35.4x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 31% below its 3y median of 19.9x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 85% below the peer median of 88.8x.

vs. its own history

Cheap

19.9x median over 40 months · -31%

vs. sector peers

Cheap

88.8x median of 3 peers · -85%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

8.6x

PEG

1.07

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 15% over 3 years.
High return on capital employed
ROCE of 21.1% 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 19.2% to 15.2% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 29.5% to 21.1% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Receivables growing faster than salesFinancial
Receivables up 67% against revenue up 16% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹1 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 21.1% 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.
Priced below its own history
The stock trades 31% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 85% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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 67% against revenue up 16%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 5.1% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 19.2% to 15.2%. 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

1EBITDA margin holds above 11%✓ 12.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹1 Cr
Profit that never becomes cash eventually stops being profit.
3Revenue growth stays above 4% a year✓ 5.1% CAGR
Latest reported year was 1.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Debt / EBITDA stays below 2x✓ 1.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 18%✓ 21.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 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

5 good · 4 neutral · 2 weak

Market Cap

₹162 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

13.6x

Cheap

Cheap against the generic band

P/B Ratio

2.04x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹34.93

Profitable

Profitable on a per-share basis

ROE

15.2%

Strong

Strong capital efficiency

ROCE

21.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.32x

Low

Conservative leverage

Revenue Growth (YoY)

1.9%

Modest

Modest growth

Profit Growth (YoY)

-6.1%

Falling

Profits are shrinking

Dividend Yield

0.63%

Modest

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

Free Cash Flow

-₹1 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

11.6%

Average

Average margins

Net Margin

6.8%

Average

Average bottom-line conversion

Current Ratio

2.21

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.45

Defensive

Steadier than the market

52W Range Position

34%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

483.4 / 481.6

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

38.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹149 Cr	₹150 Cr	₹165 Cr	₹173 Cr	+5.1%
EBITDA	₹19 Cr	₹23 Cr	₹27 Cr	₹22 Cr	+4.9%
EBITDA Margin	12.7%	15.4%	16.2%	12.6%	—
PAT (Net Profit)	₹8 Cr	₹12 Cr	₹14 Cr	₹12 Cr	+12.7%
EPS	₹24.77	₹35.47	₹40.96	₹35.49	+12.7%
ROE	19.2%	21.8%	20.4%	15.2%	—
ROCE	29.5%	30.4%	29.4%	21.1%	—
Total Debt	₹30 Cr	₹37 Cr	₹23 Cr	₹26 Cr	-5.1%
Free Cash Flow	₹8 Cr	-₹2 Cr	₹18 Cr	-₹1 Cr	—

🟢 Revenue has grown at 5.1% a year over 3 years.

🟢 EBITDA has grown at 4.9% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 12.6% over 3 years.

🟢 PAT (Net Profit) has grown at 12.7% a year over 3 years.

🟢 EPS has grown at 12.7% a year over 3 years.

🔴 ROE has fallen from 19.2% to 15.2% over 3 years (-4.0 pts).

🔴 ROCE has fallen from 29.5% to 21.1% over 3 years (-8.3 pts).

🟢 Total Debt has shrunk at 5.1% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹8 Cr to -₹1 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹129 Cr

Total Liabilities

₹50 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹2 Cr

Capex

-₹3 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

53.7%

Corporate Actions

Dividend Rate

₹3

Ex-Dividend Date

31 Jul 2026

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

1 positive1 mixed1 negative3 general

KPT Industries Ltd. Peer Comparison – Compare with Others

Value Research, 26 Aug

KPT Industries sets Sept 2 date for FY26 dividend payment

scanx.trade, 26 AugCapital return

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

Compare with KULK-POWER

Equitymaster, 16 Oct

KPT Industries Q4 FY26: Revenue Rs 16.38 Cr, PAT Rs 12.07 Cr

Univest, 01 JunResults

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

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

Value Research, 29 Aug

KPT Industries net profit falls 6% to ₹288 lakh in Q1FY27

scanx.trade, 08 AugResults

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

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingBusiness Quality · Growth · Profitability · 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 — Free cash flow remains positive · see Key things to watch ↑