Krypton Industries Limited

Consumer Cyclical — Auto Parts · BSE

₹31.89+₹1.39 (+4.56%)

DalalBaazaar Score

66 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

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

In simple words: Reasonable but unspectacular business quality, with modest growth. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Constructive picture on fundamentals. Profitability, leverage and growth metrics are broadly healthy on this snapshot. That said, valuation should still be checked against direct sector peers (not just the generic P/E bands used here) before treating this as a buy signal.

Understanding the Business

Company site ↗

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

What does this company do?

Krypton Industries Limited, together with its subsidiaries, manufactures and sells polyurethane (PU) tyres in India. It operates through three segments: Tyre, Rim and Wheels; Footwear; and Hospital Equipments.

IndustryAuto Parts

SectorConsumer Cyclical

Employees143

Annual revenue₹51 Cr

How does it make money?

Turns over ₹51 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹15 left at the operating level before interest, tax and depreciation. Each of its 143 employees supports ₹35.4 lakh of revenue a year, the signature of a people-led business.

EBITDA margin14.7%

Net margin5.2%

Revenue / employee₹35.4 lakh

Who are its competitors?

The closest listed comparisons in its industry are BOSCH LIMITED, MARUTI SUZUKI INDIA LTD., TVS MOTOR COMPANY LTD, EICHER MOTORS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

BOSCH LIMITEDP/E 56.9x · ROE 15.9%

MARUTI SUZUKI INDIA LTD.P/E 25.2x · ROE 13.4%

TVS MOTOR COMPANY LTDP/E 56.8x · ROE 35.8%

EICHER MOTORS LTDP/E 34.7x · ROE 23.0%

What is its competitive advantage?Little sign of one

Returns on capital of 14.3% 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.

ROCE14.3%

ROE8.2%

Peer median ROE23.0%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +55% while net margin moved +66% 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+55%

Margin effect+66%

DalalBaazaar Score

66/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.33 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

66/ 100

Good

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

Valuation

80/ 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

16.8x

3Y Median

75.7x

40 monthly readings · mean 85.7x · range 17.7x–194.9x

Sector Median

45.7x

median of 4 sector peers

🟢Current valuation is approximately 78% below its 3y median of 75.7x. 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 63% below the peer median of 45.7x.

vs. its own history

Cheap

75.7x median over 40 months · -78%

vs. sector peers

Cheap

45.7x median of 4 peers · -63%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

16.8x

P/B

1.47x

EV/EBITDA

8.8x

PEG

0.45

Dividend Yield

3.14%

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 12.4% to 14.7% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from 3.3% to 8.2%.
Return on capital is rising
ROCE has improved from 5.9% to 14.3%.
Valuation below its historical average
At 16.8x the stock trades 78% below its own median of 75.7x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Debt is rising
Total debt is up 47% over 3 years — worth checking what it funded.

Red Flags

1 item require attention · 1 watch

🟡Debt is increasingFinancial
Total debt is up 47% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 12.4% to 14.7%. 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 78% 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 63% 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?

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.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 12% a year✓ 15.6% CAGR
Latest reported year was 2.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 13%✓ 14.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 3.0x
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✓ ₹11 Cr
Profit that never becomes cash eventually stops being profit.

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

5 good · 6 neutral · 0 weak

Market Cap

₹47 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

16.8x

Fair

Fairly valued against the generic band

P/B Ratio

1.47x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹1.9

Profitable

Profitable on a per-share basis

ROE

8.2%

Moderate

Moderate capital efficiency

ROCE

14.3%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.69x

Moderate

Moderate leverage

Revenue Growth (YoY)

2.3%

Modest

Modest growth

Profit Growth (YoY)

32.4%

Healthy

Profits growing at a healthy clip

Dividend Yield

3.14%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹11 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹31.89

Operating Margin

11.4%

Average

Average margins

Net Margin

5.4%

Average

Average bottom-line conversion

Current Ratio

1.90

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.33

Defensive

Steadier than the market

52W Range Position

23%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

31.7 / 33.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

42.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹33 Cr	₹43 Cr	₹46 Cr	₹51 Cr	+15.6%
EBITDA	₹4 Cr	₹5 Cr	₹5 Cr	₹7 Cr	+22.5%
EBITDA Margin	12.4%	11.6%	11.7%	14.7%	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	₹0 Cr	₹3 Cr	+37.0%
EPS	₹0.69	₹0.79	₹0.27	₹1.78	+37.1%
ROE	3.3%	3.7%	1.3%	8.2%	—
ROCE	5.9%	7.9%	10.0%	14.3%	—
Total Debt	₹15 Cr	₹16 Cr	₹22 Cr	₹22 Cr	+13.8%
Free Cash Flow	-₹2 Cr	-₹1 Cr	₹0 Cr	₹11 Cr	—

🟢 Revenue has grown at 15.6% a year over 3 years.

🟢 EBITDA has grown at 22.5% a year over 3 years.

🟢 EBITDA Margin has risen from 12.4% to 14.7% over 3 years (+2.3 pts).

🟢 PAT (Net Profit) has grown at 37.0% a year over 3 years.

🟢 EPS has grown at 37.1% a year over 3 years.

🟢 ROE has risen from 3.3% to 8.2% over 3 years (+4.9 pts).

🟢 ROCE has risen from 5.9% to 14.3% over 3 years (+8.4 pts).

🔴 Total Debt has grown at 13.8% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹2 Cr to ₹11 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹62 Cr

Total Liabilities

₹30 Cr

Total Debt

₹22 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

₹12 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

56.4%

Corporate Actions

Dividend Rate

₹1

Ex-Dividend Date

12 Sept 2025

Peer Comparison

Company	P/E	ROE
BOSCH LIMITED	56.9x	15.9%
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TVS MOTOR COMPANY LTD	56.8x	35.8%
EICHER MOTORS LTD	34.7x	23.0%

Recent News

6 general

Krypton Industries updates KMP contact details for SEBI compliance

scanx.trade, 15 Oct

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

Value Research, 13 Sept

Krypton Industries Limited Announces Resignation of Priya Agarwal as Company Secretary and Compliance Officer, Effective October 12, 2026

www.marketscreener.com, 12 Oct

Krypton Industries appoints Puspendu Kayal as Company Secretary

scanx.trade, 15 Oct

Krypton Industries Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 30 Aug

Krypton Gas Market Size, Market Forecast and Outlook By FMI

Future Market Insights, 13 Jun

Watch Items

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

DalalBaazaar Thesis

🟡Business QualityAdequate11.7/20

🟢Financial HealthStrong15.1/20

🟢GrowthStrong14.9/20

🟡ProfitabilityModerate8.3/15

🟢ValuationAttractive12/15

🔴RiskHigh4.4/10

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.

This thesis breaks if

✓Revenue growth stays above 12% a year15.6% CAGR
✓EBITDA margin holds above 13%14.7%
✗Debt / EBITDA stays below 2x3.0x
✓Interest cover stays above 3x3.1x
✓Free cash flow remains positive₹11 Cr