Kuwer Industries Limited

Consumer Cyclical — Packaging & Containers · BSE

₹10.19−₹0.25 (−2.39%)

DalalBaazaar Score

56 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Kuwer Industries Limited engages in metalizing and embossing polyester and BOPP films business in India.

IndustryPackaging & Containers

SectorConsumer Cyclical

Employees45

Annual revenue₹73 Cr

How does it make money?

Turns over ₹73 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹1 left at the operating level before interest, tax and depreciation. Each of its 45 employees supports ₹1.62 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.62 Cr

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS 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 12.7% 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 ROE25.9%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +9% while net margin moved +679% 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+9%

Margin effect+679%

DalalBaazaar Score

56/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Debt/Equity of 1.80x is high — earnings must service borrowings before shareholders see anything
✓ Current ratio of 1.65 — short-term bills are well covered
✗ Free cash flow is negative — growth is being funded by borrowing or fresh equity
✗ Interest cover of only 2.0x — little room if profits dip

Quality vs. Valuation

Company Quality

52/ 100

Average

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

Valuation

77/ 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

2.6x

3Y Median

46.0x

40 monthly readings · mean 55.7x · range 4.5x–165.0x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 94% below its 3y median of 46.0x. 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 96% below the peer median of 69.2x.

vs. its own history

Cheap

46.0x median over 40 months · -94%

vs. sector peers

Cheap

69.2x median of 4 peers · -96%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

70.4x

PEG

0.02

What's Good / What's Bad

🟢 What's Going Well3

Return on equity is rising
ROE has improved from 1.4% to 10.1%.
Return on capital is rising
ROCE has improved from 7.3% to 12.7%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

7 items require attention · 6 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 1.80x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only 2.0x — little room if earnings dip.
🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴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.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 5.5 points, from 6.4% to 0.9%.
🔴Receivables growing faster than salesFinancial
Receivables up 70% against revenue up 9% — sales are being booked faster than they are collected.
🟡Debt is increasingFinancial
Total debt is up 37% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 94% 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 96% 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?

Margins are being competed away
EBITDA margin has fallen from 6.4% to 0.9%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 56.2x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 70% against revenue up 9%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 3.0% 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.

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

1EBITDA margin holds above -1%✓ 0.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 56.2x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹13 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ 2.0x
How much operating profit can fall before interest stops being comfortably covered.
5Revenue growth stays above 4% a year✗ 3.0% CAGR
Latest reported year was 38.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.

Investment Checklist

5 / 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

₹9 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

2.6x

Cheap

Cheap against the generic band

P/B Ratio

0.47x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹3.99

Profitable

Profitable on a per-share basis

ROE

10.1%

Moderate

Moderate capital efficiency

ROCE

12.7%

Moderate

Moderate return on the capital in the business

Debt/Equity

1.80x

High

High leverage

Revenue Growth (YoY)

38.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

339.9%

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

Operating Margin

-1.0%

Weak

Thin margins leave little room for error

Net Margin

4.8%

Average

Average bottom-line conversion

Current Ratio

1.65

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.37

Defensive

Steadier than the market

52W Range Position

36%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

10.2 / 10.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

54.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹67 Cr	₹59 Cr	₹58 Cr	₹73 Cr	+3.0%
EBITDA	₹4 Cr	₹5 Cr	₹5 Cr	₹1 Cr	-47.0%
EBITDA Margin	6.4%	8.3%	8.8%	0.9%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹0 Cr	₹2 Cr	+104.2%
EPS	₹0.26	₹0.12	₹0.5	₹2.21	+104.1%
ROE	1.4%	0.6%	2.6%	10.1%	—
ROCE	7.3%	8.4%	9.3%	12.7%	—
Total Debt	₹26 Cr	₹28 Cr	₹32 Cr	₹36 Cr	+11.0%
Free Cash Flow	₹3 Cr	-₹2 Cr	-₹5 Cr	-₹13 Cr	—

🟢 Revenue has grown at 3.0% a year over 3 years.

🔴 EBITDA has shrunk at 47.0% a year over 3 years.

🔴 EBITDA Margin has fallen from 6.4% to 0.9% over 3 years (-5.5 pts).

🟢 PAT (Net Profit) has grown at 104.2% a year over 3 years.

🟢 EPS has grown at 104.1% a year over 3 years.

🟢 ROE has risen from 1.4% to 10.1% over 3 years (+8.7 pts).

🟢 ROCE has risen from 7.3% to 12.7% over 3 years (+5.4 pts).

🔴 Total Debt has grown at 11.0% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹3 Cr to -₹13 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹72 Cr

Total Liabilities

₹52 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹12 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

57.7%

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

1 positive1 mixed4 general

KUWER INDUSTRIES LTD. Share Price - Live KUWERIN Stock Price & Chart

Upstox, 05 May

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

Value Research, 13 Sept

Kuwer Industries Files Q3FY26 Results Publication Notice with BSE

scanx.trade, 14 FebResults

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

Kuwer Industries net profit surges 340% in FY26; AGM set for September 30

scanx.trade, 04 SeptResults

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

SINGERIND Stock Price and Chart — NSE:SINGERIND

TradingView, 19 Mar

Kuwer Industries (BSE:530421) - Stock Analysis

Simply Wall Street, 01 Dec

Watch Items

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

DalalBaazaar Thesis

StrongGrowth · Valuation

MiddlingBusiness Quality · Profitability

WeakFinancial Health · Risk

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. 6 high-severity red flags sit above this conclusion and should be read first.

4 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; Interest cover stays above 3x; Revenue growth stays above 4% a year · see Key things to watch ↑