Kritika Wires Limited

Basic Materials — Steel · NSE

₹4.93₹0.00 (0.00%)

DalalBaazaar Score

53 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Whether sales start growing again is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Kritika Wires Limited engages in the manufacturing, exporting and supplying various industrial steel, galvanized, and aluminum wires in India.

IndustrySteel

SectorBasic Materials

Employees139

Annual revenue₹693 Cr

How does it make money?

Turns over ₹693 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹3 left at the operating level before interest, tax and depreciation. Each of its 139 employees supports ₹4.99 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin3.0%

Net margin0.9%

Revenue / employee₹4.99 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, JINDAL STEEL LIMITED, STEEL AUTHORITY OF INDIA. 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%

JINDAL STEEL LIMITEDP/E 39.1x · ROE 5.3%

STEEL AUTHORITY OF INDIAP/E 16.5x · ROE 7.1%

What is its competitive advantage?Little sign of one

Returns on capital of 10.6% 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.

ROCE10.6%

ROE6.1%

Peer median ROE10.8%

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 +151% while net margin moved -59% 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+151%

Margin effect-59%

DalalBaazaar Score

53/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 6.1% is weak

Quality vs. Valuation

Company Quality

49/ 100

Average

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

Valuation

55/ 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.

Historical Valuation

Current P/E

20.5x

3Y Median

25.4x

40 monthly readings · mean 36.0x · range 12.0x–103.2x

Sector Median

18.2x

median of 4 sector peers

🟢Current valuation is approximately 19% below its 3y median of 25.4x. 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 is priced broadly in line with the peer median of 18.2x.

vs. its own history

Fair

25.4x median over 40 months · -19%

vs. sector peers

Fair

18.2x median of 4 peers · +13%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

20.5x

P/B

1.30x

EV/EBITDA

8.8x

PEG

17.90

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Debt is rising
Total debt is up 150% over 3 years — worth checking what it funded.
Return on capital is falling
ROCE has declined from 13.2% to 10.6% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 high

🔴Debt has risen sharplyFinancial
Total debt is up 150% over 3 years, from ₹22 Cr to ₹55 Cr.

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?

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

1Revenue growth stays above 27% a year✓ 36.0% CAGR
Latest reported year was -21.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 1%✓ 3.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Interest cover stays above 3x✓ 3.1x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹16 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

6 / 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

₹131 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

20.5x

Fair

Fairly valued against the generic band

P/B Ratio

1.30x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.24

Profitable

Profitable on a per-share basis

ROE

6.1%

Weak

Weak capital efficiency

ROCE

10.6%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.55x

Low

Conservative leverage

Revenue Growth (YoY)

-21.8%

Shrinking

Sales are contracting

Profit Growth (YoY)

20.0%

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

₹16 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹4.93

Operating Margin

0.9%

Weak

Thin margins leave little room for error

Net Margin

1.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.90

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.32

Defensive

Steadier than the market

52W Range Position

10%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

5.0 / 5.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

42.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹276 Cr	₹423 Cr	₹744 Cr	₹693 Cr	+36.0%
EBITDA	₹12 Cr	₹19 Cr	₹25 Cr	₹21 Cr	+19.2%
EBITDA Margin	4.5%	4.5%	3.4%	3.0%	—
PAT (Net Profit)	₹6 Cr	₹10 Cr	₹10 Cr	₹6 Cr	+1.1%
EPS	₹0.22	₹0.39	₹0.38	₹0.23	+1.5%
ROE	8.1%	12.3%	10.7%	6.1%	—
ROCE	13.2%	19.5%	20.1%	10.6%	—
Total Debt	₹22 Cr	₹40 Cr	₹51 Cr	₹55 Cr	+35.7%
Free Cash Flow	-₹8 Cr	₹4 Cr	-₹8 Cr	₹16 Cr	—

🟢 Revenue has grown at 36.0% a year over 3 years.

🟢 EBITDA has grown at 19.2% a year over 3 years.

🔴 EBITDA Margin has fallen from 4.5% to 3.0% over 3 years (-1.5 pts).

🟡 PAT (Net Profit) has been broadly flat over 3 years (1.1% a year).

🟡 EPS has been broadly flat over 3 years (1.5% a year).

🔴 ROE has fallen from 8.1% to 6.1% over 3 years (-1.9 pts).

🔴 ROCE has fallen from 13.2% to 10.6% over 3 years (-2.5 pts).

🔴 Total Debt has grown at 35.7% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹8 Cr to ₹16 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹177 Cr

Total Liabilities

₹76 Cr

Total Debt

₹55 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹19 Cr

Capex

-₹3 Cr

Corporate Actions

Ex-Dividend Date

21 Jul 2022

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
JINDAL STEEL LIMITED	39.1x	5.3%
STEEL AUTHORITY OF INDIA	16.5x	7.1%

Recent News

6 general

Kritika Wires Share Price Forecast: 3 Year Outlook to 2030

Univest, 20 Jul

Kritika Wires Ltd. Peer Comparison – Compare with Others

Value Research, 27 Aug

Kritika Wires Standalone June 2026 Net Sales at Rs 161.86 crore, down 21.75% Y-o-Y

Moneycontrol.com, 10 Aug

Kritika Wires vs Nifty 50: Share Price Performance Compared

Univest, 01 Oct

Compare LLOYDS STEEL IND. with

Equitymaster, 09 Oct

Kritika Wires confirms no fund raising activity in Q1FY26

scanx.trade, 04 Aug

Watch Items

Revenue growth is negative (-21.8%) 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 QualityAdequate9/20

🟢Financial HealthStrong13.4/20

🟡GrowthModest10/20

🔴ProfitabilityWeak4.5/15

🟢ValuationAttractive10.6/15

🟡RiskModerate5.2/10

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.

This thesis breaks if

✓Revenue growth stays above 27% a year36.0% CAGR
✓EBITDA margin holds above 1%3.0%
✗Debt / EBITDA stays below 2x2.6x
✓Interest cover stays above 3x3.1x
✓Free cash flow remains positive₹16 Cr