Krupalu Metals Limited

Industrials — Metal Fabrication · BSE

₹26.20₹0.00 (0.00%)

DalalBaazaar Score

67 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

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

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

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

What does this company do?

Krupalu Metals Limited engages in manufacturing and sale of brass and copper products in India.

IndustryMetal Fabrication

SectorIndustrials

Employees8

Annual revenue₹62 Cr

How does it make money?

Turns over ₹62 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹8 left at the operating level before interest, tax and depreciation. Each of its 8 employees supports ₹7.78 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹7.78 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, HINDALCO INDUSTRIES LTD, VEDANTA 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 20.4%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 20.5% against a peer median of 18.7% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE18.7%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +85% while net margin moved +257% 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+85%

Margin effect+257%

DalalBaazaar Score

67/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

68/ 100

Good

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

Valuation

88/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

3.9x

1.3Y Median

9.0x

15 monthly readings · mean 9.9x · range 7.2x–14.9x

Sector Median

12.2x

median of 4 sector peers

🟢Current valuation is approximately 56% below its 1.3y median of 9.0x. 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 68% below the peer median of 12.2x.

vs. its own history

Cheap

9.0x median over 15 months · -56%

vs. sector peers

Cheap

12.2x median of 4 peers · -68%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

5.9x

PEG

0.04

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 3.2% to 7.6% over 3 years.
Return on capital is rising
ROCE has improved from 17.2% to 20.4%.
High return on capital employed
ROCE of 20.4% 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 Attention1

Return on equity is falling
ROE has dropped from 16.3% to 13.2% — each rupee of shareholder capital earns less than it did.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 76% over 3 years, from ₹7 Cr to ₹13 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 218% against revenue up 85% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹16 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 20.4% 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.
Margin expansion has further to run
EBITDA margin has risen from 3.2% to 7.6%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 56% 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 68% 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?

Returns on shareholder capital are falling
ROE has dropped from 16.3% to 13.2%. 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.
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
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 17% a year✓ 22.9% CAGR
Latest reported year was 124.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 6%✓ 7.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹16 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 17%✓ 20.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 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

7 good · 3 neutral · 1 weak

Market Cap

₹15 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

3.9x

Cheap

Cheap against the generic band

P/B Ratio

0.73x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹6.68

Profitable

Profitable on a per-share basis

ROE

20.5%

Strong

Strong capital efficiency

ROCE

20.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.63x

Moderate

Moderate leverage

Revenue Growth (YoY)

124.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

117.4%

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

-₹13 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

9.1%

Good

Assets are working hard

Operating Margin

10.6%

Average

Average margins

Net Margin

4.5%

Average

Average bottom-line conversion

Current Ratio

1.75

Comfortable

Healthy short-term liquidity

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

29.7 / 29.2

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

0.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹34 Cr	₹37 Cr	₹48 Cr	₹62 Cr	+22.9%
EBITDA	₹1 Cr	₹3 Cr	₹4 Cr	₹5 Cr	+63.6%
EBITDA Margin	3.2%	7.0%	7.9%	7.6%	—
PAT (Net Profit)	₹0 Cr	₹2 Cr	₹2 Cr	₹3 Cr	+87.8%
EPS	₹0.71	₹2.63	₹3.66	—	—
ROE	16.3%	38.1%	35.1%	13.2%	—
ROCE	17.2%	36.3%	48.5%	20.4%	—
Total Debt	₹7 Cr	₹10 Cr	₹8 Cr	₹13 Cr	+20.8%
Free Cash Flow	₹1 Cr	-₹2 Cr	₹2 Cr	-₹16 Cr	—

🟢 Revenue has grown at 22.9% a year over 3 years.

🟢 EBITDA has grown at 63.6% a year over 3 years.

🟢 EBITDA Margin has risen from 3.2% to 7.6% over 3 years (+4.4 pts).

🟢 PAT (Net Profit) has grown at 87.8% a year over 3 years.

🔴 ROE has fallen from 16.3% to 13.2% over 3 years (-3.1 pts).

🟢 ROCE has risen from 17.2% to 20.4% over 3 years (+3.2 pts).

🔴 Total Debt has grown at 20.8% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹1 Cr to -₹16 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹43 Cr

Total Liabilities

₹22 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹11 Cr

Capex

-₹5 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

76.8%

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
HINDALCO INDUSTRIES LTD	12.3x	12.0%
VEDANTA LIMITED	10.4x	18.7%

Recent News

1 mixed5 general

Krupalu Metals Limited Share Price

Upstox, 05 May

Krupalu Metals Ltd Peer Comparison – Compare with Others

Value Research, 03 Sept

Krupalu Metals appoints Solanki as additional non-executive director

scanx.trade, 06 Oct

Krupalu Metals IPO GMP, Grey Market Premium Today

IPO Watch, 03 Sept

Krupalu Metals Limited to Launch SME IPO on BSE to Fund Expansion

ANI News, 03 SeptCapacity

🟡Mixed / dependsCapacity additions can raise revenue over two to three years, but the capital spend usually pressures free cash flow first. Worth checking whether the capex is funded from operations or from borrowing.

JAIN RESOURCE RECYCLING LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 15 Oct

Watch Items

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.
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

StrongGrowth · Valuation

MiddlingBusiness Quality · Financial Health · Profitability

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 3 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive · see Key things to watch ↑