Kunststoffe Industries Limited

Industrials — Building Products & Equipment · BSE

₹27.07−₹0.01 (−0.04%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

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

In simple words: Reasonable but unspectacular business quality, though profits are falling even as sales grow. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

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

What does this company do?

Kunststoffe Industries Limited engages in the polymer processing and related businesses in India. The company is involved in the manufactures and sells spirally wound HDPE/PP pipes; and tanks, chemical vessels and equipment, and anti-corrosion ducting products.

IndustryBuilding Products & Equipment

SectorIndustrials

Employees28

Annual revenue₹12 Cr

How does it make money?

Turns over ₹12 Cr a year. Of every ₹100 of sales, about ₹14 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation. Each of its 28 employees supports ₹43.1 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹43.1 lakh

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 10.2% 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 -4% while net margin moved +30% 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+30%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 1.3% a year
✗ Profit CAGR of only 7.6%
✗ Profit fell 35.4% in the latest year

Quality vs. Valuation

Company Quality

57/ 100

Average

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

Valuation

81/ 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

12.0x

3Y Median

17.2x

40 monthly readings · mean 16.7x · range 8.4x–21.8x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 30% below its 3y median of 17.2x. 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 86% below the peer median of 88.8x.

vs. its own history

Cheap

17.2x median over 40 months · -30%

vs. sector peers

Cheap

88.8x median of 3 peers · -86%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

7.0x

PEG

1.57

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 Attention1

Return on capital is falling
ROCE has declined from 15.0% to 10.2% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 high

🔴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.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 30% 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 86% 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?

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 11%✓ 12.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹1 Cr
Profit that never becomes cash eventually stops being profit.
3ROCE stays above 8%✓ 10.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
4Valuation vs its own median of 17.2x✓ 12.0x today
A re-rating above its own history needs a reason; without one it is just a higher price.

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
✓ 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 · 5 neutral · 1 weak

Market Cap

₹19 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

12.0x

Cheap

Cheap against the generic band

P/B Ratio

1.42x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹2.25

Profitable

Profitable on a per-share basis

ROE

13.1%

Moderate

Moderate capital efficiency

ROCE

10.2%

Moderate

Moderate return on the capital in the business

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

36.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-35.4%

Falling

Profits are shrinking

Dividend Yield

None

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

Free Cash Flow

₹1 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

6.7%

Average

Average margins

Net Margin

11.8%

Good

Strong bottom-line conversion

Current Ratio

2.42

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.12

Defensive

Steadier than the market

52W Range Position

63%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

26.5 / 23.0

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

47.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹13 Cr	₹13 Cr	₹12 Cr	₹12 Cr	-1.3%
EBITDA	₹2 Cr	₹1 Cr	₹1 Cr	₹2 Cr	+0.3%
EBITDA Margin	12.3%	10.3%	11.7%	12.9%	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	₹1 Cr	₹2 Cr	+7.6%
EPS	₹1.99	₹1.58	₹1.13	₹2.49	+7.8%
ROE	14.4%	10.3%	6.8%	13.1%	—
ROCE	15.0%	11.5%	10.5%	10.2%	—
Free Cash Flow	-₹1 Cr	₹1 Cr	₹2 Cr	₹1 Cr	—

🟡 Revenue has been broadly flat over 3 years (-1.3% a year).

🟡 EBITDA has been broadly flat over 3 years (0.3% a year).

🟡 EBITDA Margin has held roughly flat at 12.9% over 3 years.

🟢 PAT (Net Profit) has grown at 7.6% a year over 3 years.

🟢 EPS has grown at 7.8% a year over 3 years.

🔴 ROE has fallen from 14.4% to 13.1% over 3 years (-1.3 pts).

🔴 ROCE has fallen from 15.0% to 10.2% over 3 years (-4.8 pts).

🟢 Free Cash Flow has turned positive, from -₹1 Cr to ₹1 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹18 Cr

Total Liabilities

₹5 Cr

Total Debt

—

Cash & Equivalents

₹8 Cr

Operating Cash Flow

₹1 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

58.2%

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 positive1 mixed4 general

Kunststoffe Industries Ltd. Peer Comparison – Compare with Others

Value Research, 01 Sept

Kunststoffe Industries adopts FY26 financials at 40th AGM

scanx.trade, 29 Sept

Kunststoffe Industries schedules 40th AGM for September 29, 2026

scanx.trade, 04 Sept

KUNSTSTOFFE INDUSTRIES LTD. Share Price

Upstox, 23 Apr

Indian Railway Finance Corporation standalone net profit rises 0.15% in the March 2026 quarter

Business Standard, 14 MayResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Q4 results 2026: Bharti Airtel to HAL among companies to declare Q4 results next week; full list here

Livemint, 10 MayResults

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

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongFinancial Health · Profitability · Valuation

MiddlingBusiness Quality · Risk

WeakGrowth

Points for each in the Score ↑

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.

All 4 tripwires holding · see Key things to watch ↑