Kriti Industries (India) Limited

Industrials — Building Products & Equipment · NSE

₹55.30+₹0.24 (+0.44%)

DalalBaazaar Score

41 / 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, 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, 7:48 pm

Understanding the Business

Company site ↗

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

What does this company do?

Kriti Industries (India) Limited manufactures and sells piping products and solutions, and accessories in India.

IndustryBuilding Products & Equipment

SectorIndustrials

Employees498

Annual revenue₹587 Cr

How does it make money?

Turns over ₹587 Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹6 left at the operating level before interest, tax and depreciation. Each of its 498 employees supports ₹1.18 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.18 Cr

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?Little sign of one

Returns on capital of 5.4% 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.

Peer median ROE15.2%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -20% while net margin moved -106% 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-20%

Margin effect-106%

DalalBaazaar Score

41/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 7.1% a year
✗ Latest-year revenue growth of -22.7% is below the longer-term trend — momentum is fading

Quality vs. Valuation

Company Quality

39/ 100

Weak

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

Valuation

44/ 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

EV/EBITDA

11.2x

PEG

—

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from -1.3% to 5.8% over 3 years.
Debt is being paid down
Total debt is down 23% over 3 years.
Return on equity is rising
ROE has improved from -17.7% to 0.5%.
Return on capital is rising
ROCE has improved from -10.0% to 5.4%.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

4 items require attention · 2 high · 2 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.2x — little room if earnings dip.
🔴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.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹14 Cr in the latest year.
🟡Inventory building faster than salesFinancial
Inventory up 23% against revenue up -20% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -1.3% to 5.8%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 23% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.

🔴 Bear CaseWhat could go wrong?

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 4%✓ 5.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Free cash flow remains positive✗ -₹14 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ 1.2x
How much operating profit can fall before interest stops being comfortably covered.
5ROCE stays above 8%✗ 5.4%
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

3 good · 2 neutral · 6 weak

Market Cap

₹291 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

1.31x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-1.59

Loss-making

Negative earnings per share — the business is losing money

ROE

0.5%

Weak

Weak capital efficiency

ROCE

5.4%

Weak

Low return on total capital employed

Debt/Equity

0.41x

Low

Conservative leverage

Revenue Growth (YoY)

-22.7%

Shrinking

Sales are contracting

Profit Growth (YoY)

126.4%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

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

Free Cash Flow

-₹14 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

0.3%

Weak

Thin margins leave little room for error

Net Margin

-1.6%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.26

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.62

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

59.0 / 62.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

30.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹732 Cr	₹866 Cr	₹721 Cr	₹587 Cr	-7.1%
EBITDA	-₹9 Cr	₹56 Cr	₹25 Cr	₹34 Cr	—
EBITDA Margin	-1.3%	6.5%	3.5%	5.8%	—
PAT (Net Profit)	-₹23 Cr	₹22 Cr	-₹4 Cr	₹1 Cr	—
EPS	₹-4.64	₹4.42	₹-0.84	₹0.21	—
ROE	-17.7%	14.5%	-2.1%	0.5%	—
ROCE	-10.0%	20.2%	4.5%	5.4%	—
Total Debt	₹124 Cr	₹133 Cr	₹105 Cr	₹95 Cr	-8.5%
Free Cash Flow	-₹3 Cr	₹18 Cr	₹3 Cr	-₹14 Cr	—

🔴 Revenue has shrunk at 7.1% a year over 3 years.

🟢 EBITDA has turned positive, from -₹9 Cr to ₹34 Cr.

🟢 EBITDA Margin has risen from -1.3% to 5.8% over 3 years (+7.1 pts).

🟢 PAT (Net Profit) has turned positive, from -₹23 Cr to ₹1 Cr.

🟢 EPS has turned positive, from ₹-4.64 to ₹0.21.

🟢 ROE has risen from -17.7% to 0.5% over 3 years (+18.2 pts).

🟢 ROCE has risen from -10.0% to 5.4% over 3 years (+15.5 pts).

🟢 Total Debt has shrunk at 8.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹483 Cr

Total Liabilities

₹261 Cr

Cash & Equivalents

₹5 Cr

Operating Cash Flow

₹20 Cr

Capex

-₹34 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

79.0%

Corporate Actions

Ex-Dividend Date

11 Jun 2024

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 mixed1 negative4 general

Kriti Industries (India) Share Price News After 9.61% Drop

Univest, 08 Oct

Kriti Industries Q1FY27 net loss widens to ₹227.59 lakh on revenue drop

scanx.trade, 14 OctResults

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

Kriti Industries (India) Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 22 Sept

Kriti Industries (India) reports consolidated net loss of Rs 2.21 crore in the June 2026 quarter

Business Standard, 11 AugResults

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

Kriti Industries (India) Ltd. Upper Circuit: Price and Key Data

Univest, 23 Sept

Kriti Industries accepts resignation of Company Secretary Aditi Randhar

scanx.trade, 21 Sept

Watch Items

Revenue growth is negative (-22.7%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

MiddlingFinancial Health · Valuation

WeakBusiness Quality · Growth · Profitability · Risk

Points for each in the Score ↑

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.

4 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑