KSE Limited

Consumer Defensive — Packaged Foods · NSE

₹177.26−₹0.27 (−0.15%)

DalalBaazaar Score

60 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, 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. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 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 KSE Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

KSE Limited manufactures and sells ready mixed cattle feed products in India. The company operates through Animal Feed, Oil Cake Processing, and Dairy segments.

IndustryPackaged Foods

SectorConsumer Defensive

Employees832

Annual revenue₹1,680 Cr

How does it make money?

Turns over ₹1,680 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 832 employees supports ₹2.02 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin6.7%

Net margin5.0%

Revenue / employee₹2.02 Cr

Who are its competitors?

The closest listed comparisons in its industry are NESTLE INDIA LIMITED, BRITANNIA INDUSTRIES LTD, TATA CONSUMER PRODUCT LTD, DABUR INDIA LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

NESTLE INDIA LIMITEDP/E 59.8x · ROE 79.9%

BRITANNIA INDUSTRIES LTDP/E 44.1x · ROE 51.0%

TATA CONSUMER PRODUCT LTDP/E 59.3x · ROE 7.5%

DABUR INDIA LTDP/E 34.7x · ROE 17.2%

What is its competitive advantage?Some evidence

ROCE of 31.2% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE31.2%

ROE24.0%

Peer median ROE51.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +4% while net margin moved -3481% 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+4%

Margin effect-3481%

DalalBaazaar Score

60/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 1.4% — barely ahead of inflation
✗ Profit fell 97.6% in the latest year

Quality vs. Valuation

Company Quality

60/ 100

Average

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

Valuation

83/ 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

12.2x

Sector Median

51.7x

median of 4 sector peers

🟢Against its sector it trades 76% below the peer median of 51.7x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

51.7x median of 4 peers · -76%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

12.2x

P/B

1.62x

EV/EBITDA

5.0x

PEG

—

Dividend Yield

8.46%

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from -0.1% to 6.7% over 3 years.
Cash generation is improving
Free cash flow is up 115% over 3 years.
Return on equity is rising
ROE has improved from -1.1% to 24.0%.
Return on capital is rising
ROCE has improved from -0.4% to 31.2%.
High return on capital employed
ROCE of 31.2% is the mark of a business that converts capital into profit efficiently.

🔴 What Needs Attention1

Debt is rising
Total debt is up 31% over 3 years — worth checking what it funded.

Red Flags

3 items require attention · 1 high · 2 watch

🔴High leverageFinancial
Debt/Equity of 7.12x — earnings must service borrowings before shareholders see anything.
🟡Debt is increasingFinancial
Total debt is up 31% over 3 years.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 900% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 31.2% 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 -0.1% to 6.7%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 76% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 7.12x. Interest is payable whether or not the business has a good year.
Growth barely outpaces inflation
Revenue compounding at 1.4% 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.
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

1EBITDA margin holds above 5%✓ 6.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✗ 1.4% CAGR
Latest reported year was 9.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹45 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 28%✓ 31.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 10 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

Price history

Quick Metrics

6 good · 3 neutral · 2 weak

Market Cap

₹567 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

12.2x

Cheap

Cheap against the generic band

P/B Ratio

1.62x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹14.51

Profitable

Profitable on a per-share basis

ROE

24.0%

Strong

Strong capital efficiency

ROCE

31.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

7.12x

High

High leverage

Revenue Growth (YoY)

9.1%

Modest

Modest growth

Profit Growth (YoY)

-97.6%

Falling

Profits are shrinking

Dividend Yield

8.46%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹45 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹177.26

Operating Margin

-0.5%

Weak

Thin margins leave little room for error

Net Margin

2.7%

Weak

Very little revenue reaches the bottom line

Current Ratio

8.42

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.30

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

RSI (14)

37.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,610 Cr	₹1,683 Cr	₹1,650 Cr	₹1,680 Cr	+1.4%
EBITDA	-₹1 Cr	₹34 Cr	₹123 Cr	₹113 Cr	—
EBITDA Margin	-0.1%	2.0%	7.5%	6.7%	—
PAT (Net Profit)	-₹2 Cr	₹18 Cr	₹91 Cr	₹84 Cr	—
EPS	₹-0.74	₹5.5	₹28.53	₹26.26	—
ROE	-1.1%	7.8%	30.8%	24.0%	—
ROCE	-0.4%	11.3%	39.7%	31.2%	—
Total Debt	₹19 Cr	₹21 Cr	₹24 Cr	₹25 Cr	+9.4%
Free Cash Flow	₹21 Cr	-₹23 Cr	₹127 Cr	₹45 Cr	+29.0%

🟡 Revenue has been broadly flat over 3 years (1.4% a year).

🟢 EBITDA has turned positive, from -₹1 Cr to ₹113 Cr.

🟢 EBITDA Margin has risen from -0.1% to 6.7% over 3 years (+6.8 pts).

🟢 PAT (Net Profit) has turned positive, from -₹2 Cr to ₹84 Cr.

🟢 EPS has turned positive, from ₹-0.74 to ₹26.26.

🟢 ROE has risen from -1.1% to 24.0% over 3 years (+25.2 pts).

🟢 ROCE has risen from -0.4% to 31.2% over 3 years (+31.6 pts).

🔴 Total Debt has grown at 9.4% a year over 3 years.

🟢 Free Cash Flow has grown at 29.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹415 Cr

Total Liabilities

₹65 Cr

Total Debt

₹25 Cr

Cash & Equivalents

₹28 Cr

Operating Cash Flow

₹54 Cr

Capex

-₹8 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

48.9%

Corporate Actions

Dividend Rate

₹15

Ex-Dividend Date

21 Aug 2026

Peer Comparison

Company	P/E	ROE
NESTLE INDIA LIMITED	59.8x	79.9%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%
TATA CONSUMER PRODUCT LTD	59.3x	7.5%
DABUR INDIA LTD	34.7x	17.2%

Recent News

1 mixed5 general

KSE (KSE) Share/Stock Price Live, NSE

TechGraph, 13 Oct

KSE Stock Price and Chart — NSE:KSE

TradingView, 17 Aug

KSE Q1 FY27 Results Preview

Univest, 09 JulResults

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

Pakistan stock markets crash: KSE 100 plunges 6,000 points as US-Iran ceasefire talks collapse

The Economic Times, 13 Apr

Pakistan's stock market tumbles! KSE-100 tanks over 3800 points after record gains; doubts on US-Iran cea

The Times of India, 09 Apr

KSE Trades Ex-Split; Price Adjusts 90% to ₹269

HDFC Sky, 28 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.

DalalBaazaar Thesis

🟡Business QualityAdequate12.4/20

🟢Financial HealthStrong13.9/20

🔴GrowthWeak7.6/20

🟢ProfitabilityStrong10.6/15

🟢ValuationAttractive11.2/15

🔴RiskHigh3.9/10

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

✓EBITDA margin holds above 5%6.7%
✗Revenue growth stays above 4% a year1.4% CAGR
✓Free cash flow remains positive₹45 Cr
✓Debt / EBITDA stays below 2x0.2x
✓ROCE stays above 28%31.2%